Conts XYZ Company prepares monthly interim financial statements. The company needs to estimate the month-end inventories because inventory is counted only every month-end. AIl sales are made on account ano the mark up on cost is 25%. The following information is made available: (Refer to image) What is the estimated cost of inventory on June 30? * Accounts receivable, June 1 Accounts receivable, June 30 Collections made in June 625,000.00, 775,000.00 2,150,000.00 1,280,000.00 1,800,000.00 Inventory, June 1 Purchases during June Your answer

Conts XYZ Company prepares monthly interim financial statements. The company needs to estimate the month-end inventories because inventory is counted only every month-end. AIl sales are made on account ano the mark up on cost is 25%. The following information is made available: (Refer to image) What is the estimated cost of inventory on June 30? * Accounts receivable, June 1 Accounts receivable, June 30 Collections made in June 625,000.00, 775,000.00 2,150,000.00 1,280,000.00 1,800,000.00 Inventory, June 1 Purchases during June Your answer

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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The records of a company showed the following for June: Sales 4,200 units at P200 each Purchases 4,000 units at P150 each Beginning inventory 6,000 units at P100 each Assuming the periodic inventory system is used, how much is the ending inventory using the weighted average method? is 480,000 corrrect?
Blossom, Inc. estimates the cost of its physical inventory at March 31 for use in interim financial statements. Blossom's rate of markup on cost is 25%. The following account balances are available at March 31: Inventory, March 1 Purchases Purchase returns Sales during March $548000 O $214000. O $400000. O $362800. O $232000. 428000 18000 744000 The estimate of the cost of inventory at March 31 would be
A company had the following purchases and sales during its first year of operations: Purchases January: 10 units at $120 20 units at $125 February: May: September: 15 units at $130 12 units at $135 November: 10 units at $140 On December 31, there were 26 units remaining in ending inventory. Using the periodic FIFO inventory costing method, what is the cost of the ending inventory? (Assume all sales were made on the last day of the month.) Multiple Choice $3,540 Sales 6 units 5 units 9 units 8 units 13 units $3,445
Kangaroo Jim Company reported beginning inventory of 460 units at a per unit cost of $10. It had the following purchase and sales transactions during the year: January 14 Sold 380 units at unit sales price of $30 on account. April 9 Purchased 370 additional units at a per unit cost of $10 on account. September 2 Sold 320 units at a sales price of $35 on account. December 31 Counted inventory and determined 130 units were still on hand. Required: Record each transaction, assuming that Kangaroo Jim Company uses a periodic inventory system. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)
Marian Company reported the following items for the month of July: $476,300 Cost of goods sold $73,900 Ending inventory Days' inventory outstanding is: (Round intermediate numbers to two decimal places, final answer to the nearest day) Sales revenue Beginning inventory A. 131 days B. 123 days C. 365 days D. 115 days $235,000 $84,100
Chess Top uses the periodic inventory system. For the current month, the beginning inventory consisted of 200 units that cost $65 each. During the month, the company made two purchases: 300 units at $68 each and 150 units at $70 each. Chess Top also sold 500 units during the month. Using the LIFO method, what is the amount of cost of goods sold for the month? $
A company began January with 4,000 units of its principal product. The cost of each unit is $7. Inventory transactions the month of January are as follows: Date of Purchase January 10 January 18 Totals * Includes purchase price and cost of freight. Date of Sale January 5 January 12 January 20 Total Perpetual Average Sales Beginning Inventory Sale - January 5 Subtotal Average Cost Purchase - January 10 Subtotal Average Cost 5,000 units were on hand at the end of the month. Sale - January 12 Subtotal Average Cost Units 3,000 4,000 7,000 Units 2,000 1,000 3,000 6,000 5. Calculate January's ending inventory and cost of goods sold for the month using Average cost, perpetual system. Note: Round average cost per unit to 4 decimal places. Enter sales with a negative sign. Number of units Purchases Unit Cost* $8 9 10,000 4,000 2,000 X 6,000 3,000 9,000 1,000 X Inventory on hand Cost per unit 7.0000 $ 28,000 0 8.0000 Answer is not complete. Inventory Value 28,000 24,000 52,000 Total Cost $…
Scrappers Supplies tracks the number of units purchased and sold throughout each accounting period but applies its inventory costing method at the end of each period, as if it uses a periodic inventory system. Assume its accounting records provided the following information at the end of the annual accounting period, December 31. Unit Transactions Units Cost $ 24 Beginning inventory, January 1 Transactions during the year: a. Purchase on account, March 2 b. Cash sale, April 1 ($40 each) c. Purchase on account, June 30 d. Cash sale, August 1 ($40 each) 200 300 26 (350) 250 30 (60) TIP: Although the purchases and sales are listed in chronological order, Scrappers determines the cost of goods sold after all of the purchases have occurred. Required: 1. Compute the cost of goods available for sale, cost of ending inventory, and cost of goods sold at December 31 under each of the following inventory costing methods: (Round "Cost per Unit" to 2 decimal places.) a. Last-in, first-out. b.…
Pearl Company uses the gross profit method to estimate inventory for monthly reporting purposes. Presented below is information for the month of May. Inventory, May 1 $ 158,100 Purchases (gross) 665,400 Freight-in 29,700 Sales revenue 937,900 Sales returns 69,300 Purchase discounts 12,900 Compute the estimated inventory at May 31, assuming that the gross profit is 25% of net sales. The estimated inventory at May 31
A company reports the following beginning inventory and two purchases for the month of January. On January 26, the company sells 350 units. Ending inventory at January 31 totals 150 units. Beginning inventory on January 1 Purchase on January 9 Purchase on January 25 Units 320 80 100 Unit Cost $ 4.50 4.70 4.84
The beginning inventory for Dunne Co. and data on purchases and sales for a three-month period are shown in Problem 7-1B. Date Transaction Number of units Per unit ($) Total ($) April 3 Inventory 25 1.200 30.000 8 Purchase 75 1.240 93.000 11 Sale 40 2.000 80.000 30 Sale 30 2.000 60.000 May 8 Purchase 60 1.260 76.500 10 Sale 50 2.000 100.000 19 Sale 20 2.000 40.000 28 Purchase 80 1.260 100.800 June 5 Sale 40 2.250 90.000 16 Sale 25 2.250 56.250 21 Purchase 35 1.264 44.240 28 Sale 44 2.250 99.000 Instructions1. Determine the inventory on June 30, 2014, and the cost of goods sold for the threemonth period, using the first-in, first-out method and the periodic inventory system.2. Determine the inventory on June 30, 2014, and the cost of goods sold for the threemonth period, using the last-in, first-out method and the periodic inventory system.3. Determine the inventory on June 30, 2014, and the cost of goods sold for the threemonth period,…
Otingo Equipment Co. wants to prepare interim financial statements for the first quarter. The company wishes to avoid making a physical count of inventory. Otingo's gross profit rate averages 35%. The following information for the first quarter is available from its records. Beginning inventory, January 1 $ 802,880 Cost of goods purchased 2,209,636 Sales . 3,760,260 Sales returns 79,300 Required Use the gross profit method to estimate the company's first-quarter ending inventory.