Cranbrook Used Books experienced the following events during the current year: a. Incurred $12,000 in selling costs. b. Took an inventory at year-end and learned that goods costing $55,000 were on hand. This compared with a beginning inventory of $72,000 on January 1. c. Purchased $124,000 of merchandise. d. Incurred $56,000 of administrative costs. e. Determined that sales revenue during the year was $187,000. f. Paid $4,500 for transportation-in costs. g. Debited all costs incurred to the appropriate account and credited to Accounts Payable. All sales were for cash. Required: Give the amounts for the following items in the Merchandise Inventory account: a. Ending balance (EB) b. Transfers-in (TI) c. Beginning balance (BB) d. Transfers-out (TO) Amount

Cranbrook Used Books experienced the following events during the current year: a. Incurred $12,000 in selling costs. b. Took an inventory at year-end and learned that goods costing $55,000 were on hand. This compared with a beginning inventory of $72,000 on January 1. c. Purchased $124,000 of merchandise. d. Incurred $56,000 of administrative costs. e. Determined that sales revenue during the year was $187,000. f. Paid $4,500 for transportation-in costs. g. Debited all costs incurred to the appropriate account and credited to Accounts Payable. All sales were for cash. Required: Give the amounts for the following items in the Merchandise Inventory account: a. Ending balance (EB) b. Transfers-in (TI) c. Beginning balance (BB) d. Transfers-out (TO) Amount

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter2: Basic Cost Management Concepts

Section: Chapter Questions

Problem 22E: Ellerson Company provided the following information for the last calendar year: During the year,...

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Ellerson Company provided the following information for the last calendar year: During the year, direct materials purchases amounted to 278,000, direct labor cost was 189,000, and overhead cost was 523,000. During the year, 100,000 units were completed. Refer to Exercise 2.21. Last calendar year, Ellerson recognized revenue of 1,312,000 and had selling and administrative expenses of 204,600. Required: 1. What is the cost of goods sold for last year? 2. Prepare an income statement for Ellerson for last year.
Shaquille Corporation began the current year with inventory of 50,000. During the year, its purchases totaled 110,000. Shaquille paid freight charges of 8,500 for those purchases. At the end of the year, Shaquille had inventory of 47,800. Prepare a schedule to determine Shaquille's cost of goods sold for the current year.
Click the Chart sheet tab. On the screen is a column chart showing ending inventory costs. During a deflationary period, which bar (A, B, or C) represents FIFO costing, which represents LIFO costing, and which represents weighted average? Explain your reasoning. On January 4 following year-end, Rio Enterprises received a shipment of 60 units of product costing 580 each. These units had been ordered by Del in December and had been shipped to him on December 27. They were shipped FOB shipping point. Revise the FIFOLIFO3 worksheet to include this shipment. Preview the printout to make sure that the worksheet will print neatly on one page, and then print the worksheet. Save the completed file as FIFOLIFOT. Using the FIFOLIFO3 file, prepare a 3-D bar (stacked) chart showing the cost of goods sold and ending inventory under each of the four inventory cost flow assumptions. No Chart Data Table is needed. Use the values in the Calculations Section of the worksheet for your chart. Enter your name somewhere on the chart. Save the file again as FIFOLIFO3. Print the chart.
Using the information in the previous exercises about Marleys Manufacturing, determine the operating income for department B, assuming department A sold department B 1,000 units during the month and department A reduces the selling price to the market price.
The following events occurred at Moore's Hobbies and Crafts store during the most recent fiscal year: Purchased merchandise costing $114,000. Had sales revenue for the year totaling $160,000; the merchandise sold was purchased for $92,500. Paid $10,000 transportation-in costs. Incurred selling and administrative costs equal to 10 percent of sales revenue. All transactions, sales and purchases, were for cash. An inventory account at the end of the year indicated merchandise costing $107,000 was on hand. Required: Give the amounts for the following items in the Merchandise Inventory account: A. Ending Balance B. Transfers-out C. Transfers- in D. Beginning Balance
Ralph’s Mini-Mart store in Alpine experienced the following events during the current year: 1. Incurred $391,000 in selling costs. 2. Incurred $1,216,000 of administrative costs. 3. Purchased $381,000 of merchandise. 4. Paid $35,000 for transportation-in costs. 5. Took an inventory at year-end and learned that goods costing $202,000 were on hand. This compared with a beginning inventory of $311,000 on January 1. 6. Determined that sales revenue during the year was $2,972,000. 7. Debited all costs incurred to the appropriate account and credited to Accounts Payable. All sales were for cash. Required: Give the amounts for the following items in the Merchandise Inventory account: Beginning Balance = Transfers In = Transfers Out = Ending Balance =
Don Pedro has not kept accurate accounting records during the financial year. He had opening inventory of $6,700. Additional goods were purchased during the year. At the year end he had $5,400 left in inventory. Total sales was $102,360 All sales are made at a mark up on cost of 20%. What is Don Pedro’s gross profit for the year? a. $13,750 b. $17,060 c. $16,540 d. $20,675
Assume that in September, Joplin Designs customers actually return$150,000 of inventory. Using the same cost of goods sold percentage, the companywould make the following entries to record 1) the refunds and 2) cost of items returned.
Sims company reports beginning raw materials inventory of $900 and ending raw materials inventory of $1,100. Assume the company purchased $5,200 of raw materials and used $5,000 of raw materials during the year. Compute raw materials inventory turnover and the number of days' sales in raw materials inventory. Complete this question by entering your answers in the tabs below. Raw Materials Days Sales In Raw Materials Inventory Inventory turnover Compute the number of days' sales in raw materials inventory. Numerator: Days' Sales In Raw Materials Inventory. 1 Denominator: 1
Daves Duds reported cost of goods sold of $2,500,000 this year. The inventory account increased by $180,000 during the year ending balance of $465,00. What was the cost of the merchandise inventory that Daves pruchesed during the year.
Urban Technology began the year with inventory of $320,000 and purchased $1,800,000 of goods during the year. Sales for the year are $3,895,000, and Urban Technology's gross profit percentage is 60% of sales. Compute Urban Technology's estimated cost of ending inventory by using the gross profit method. First, calculate the cost of goods available. Then calculate the estimated cost of ending inventory.
Misty Mountain Outfitters is a merchandiser of specialized fly fishing gear. Its cost of goods sold for Year 2 was $2,377,100, and sales were $3,565,650. The amount of merchandise on hand was $664,000, and total assets amounted to $3,671,900. What is the average number of days to sell inventory? Note: Do not round your intermediate calculations. Use 365 days in a year. Round to the nearest day. Multiple Choice O O O O 68 days 204 days 66 days 102 days