**Oriole Company Income Statement Data for 2-Year Period****Original Data:**| Year | 2019 | 2020 ||------|------------|------------|| Sales revenue | $211,500 | $251,000 || Cost of goods sold | | || Beginning inventory | 34,000 | 44,000 || Cost of goods purchased | 180,500 | 216,500 || Cost of goods available for sale | 214,500 | 260,500 || Ending inventory | 44,000 | 55,000 || Cost of goods sold | 170,500 | 205,500 || Gross profit | $41,000 | $45,500 |**Additional Information:**Oriole uses a periodic inventory system. The inventories at January 1, 2019, and December 31, 2020, are correct. However, the ending inventory at December 31, 2019, was overstated by $6,000.---**Adjusted Income Statement Data:**Prepare correct income statement data for the 2 years.| Year | 2019 | 2020 ||------|--------------|--------------|| Sales | $ | $ || Cost of goods sold | $ | $ || Beginning inventory | $ | $ || Cost of goods purchased | $ | $ || Cost of goods available for sale | $ | $ || Ending inventory | $ | $ || Cost of goods sold | $ | $ || Gross profit | $ | $ |---To properly adjust the ending inventory, you need to revise the ending inventory for 2019 by reducing it by $6,000 and then reflect the result in the subsequent calculations for the cost of goods sold and gross profit for both years. This adjustment ensures accurate financial reporting and reflects the actual physical count of the inventory. Note: Please enter the recalculated amounts based on the given adjustments.

Income statement is a statement showing the revenues and related expenses calculated to arrive at…

Driole Company reported the following income statement data for a 2-year period. 2019 2020 $211,500 $251,000 Sales revenue Cost of goods sold Beginning inventory 34,000 44,000 Cost of goods purchased 180,500 216,500 Cost of goods available for sale 214,500 260,500 Ending inventory 44,000 55,000 Cost of goods sold 170,500 205,500 Gross profit $41,000 $45,500 Oriole uses a periodic inventory system. The inventories at January 1, 2019, and December 31, 2020, are correct. However, the ending inventory at December 31, 2019, was overstated $6,000.

Driole Company reported the following income statement data for a 2-year period. 2019 2020 $211,500 $251,000 Sales revenue Cost of goods sold Beginning inventory 34,000 44,000 Cost of goods purchased 180,500 216,500 Cost of goods available for sale 214,500 260,500 Ending inventory 44,000 55,000 Cost of goods sold 170,500 205,500 Gross profit $41,000 $45,500 Oriole uses a periodic inventory system. The inventories at January 1, 2019, and December 31, 2020, are correct. However, the ending inventory at December 31, 2019, was overstated $6,000.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

On January 1, 2021, Sanderson Variety Store adopted the dollar-value LIFO retail inventory method. Accounting records provided the following information: Beginning inventory Net purchases Net markups Net markdowns Net sales Retail price index, end of year During 2022, purchases at cost and retail were $271,830 and $418,200, respectively. Net markups, net markdowns, and net sales for the year were $7,000, $8,000, and $340,000, respectively. The retail price index at the end of 2022 was 1.08. Cost Retail $56,000 $80,000 223,040 330,000 6,000 8,000 307,000 1.02 Estimate ending inventory in 2022 using the dollar-value LIFO retail method. (Round your intermediate calculations to the nearest whole dollar. Round ratio calculation to the nearest whole percent.) Ending inventory This is a numeric cell, so please enter numbers only. X
Early in 2022, Pharoah Company switched to a just-in-time inventory system. Its sales revenue, cost of goods sold, and inventory amounts for 2021 and 2022 are shown below. Sales Cost of goods sold Beginning inventory Ending inventory Inventory turnover 2021 $3,115,000 1,260,800 Days in inventory 175,000 219,000 2022 $3,711,000 1,428,700 Determine the inventory turnover and days in inventory for 2021 and 2022. (Round answers to 1 decimal place, e.g. 12.5.) 2021 219,000 95,000 I days 2022 days
Taylor Company uses a periodic inventory system. The following is partial information from its income statements for 2019 and 2020: 2019 2020 Beginning inventory $ (b) $ (d) Sales 250,000 (f) Purchases 120,000 140,000 Purchase returns 2,000 3,000 Ending inventory 45,000 70,000 Gross profit (a) 88,000 Cost of goods sold 111,000 (e) Expenses 70,000 62,000 Net income (c) 26,000 Required Fill in the blanks lettered a through f. (Hint: It probably is easiest to work through the blanks according to the sequential letters.) (a) Gross profit (b) Beginning inventory (c) Net income (d) Beginning inventory of 2020 (e) Cost of goods sold (f) Sales
On January 1, 2021, Sanderson Variety Store adopted the dollar-value LIFO retail inventory method. Accounting records provided the following information: Beginning inventory Net purchases Net markups Net markdowns Net sales Retail price index, end of year Cost Retail $50,400 $ 84,000 201,840 350,000 10,000 12,000 327,000 1.04 During 2022, purchases at cost and retail were $248,655 and $452,100, respectively. Net markups, net markdowns, and net sales for the year were $3,000, $4,000, and $360,000, respectively. The retail price index at the end of 2022 was 1.06. Estimate ending inventory in 2022 using the dollar-value LIFO retail method. (Round your intermediate calculations to the nearest whole dollar. Round ratio calculation to the nearest whole percent.) Answer is complete but not entirely correct. $ 60,238 Ending inventory
ABC Merchandising Corporation has beginning inventory at the start of 2018 of $ 679,000, duringthe year company purchased $999,000 of goods. Th inventory balance at the end of the year is$211,000.• What is the cost of goods sold for the year?
During 2021, a company sells 359 units of inventory for $86 each. The company has the following inventory purchase transactions for 2021: Unit of Units Cost Total Cost $67 69 Number Date Jan. 1 Beginning inventory May 5 Purchase Nov. 3 Purchase Transaction 60 165 $ 4,020 11,385 13,248 $28,653 184 72 409 Calculate ending inventory and cost of goods sold for 2021 assuming the company uses LIFO. Ending inventory Cost of goods sold
Sunland Company's inventory on January 1, 2025, at cost and retail are $97,500 and $141,000, respectively. Sunland established its base year amounts on January 1, 2025. The current year price index was 1.20. Sunland also had the following information: Purchases Sales Mark-ups Mark-downs Cost $195,000 Retail $282,000 243,000 (a) LIFO retail. (b) Dollar Value LIFO. 19,740 (11,280) Determine ending inventory using: (Round ratio to 2 decimal places, e.g. 75.35% and final answer to 0 decimal places, e.g. 5,275.) (a) Ending inventory under LIFO retail (b) Ending inventory under Dollar Value LIFO
Condy Co. paid suppliers of merchandise inventory $700,000 during 2020. During 2020, inventory increased from a $92,000 beginning balance to a $105,000 ending balance, and accounts payable decreased from a $48,000 beginning balance to a $38,000 ending balance. How much was cost of goods sold in 2020? Select one: a. $682,000 b. $687,000 c. $692,000 d. $702,000 e. $677,000
On January 1, 2021, Sanderson Variety Store adopted the dollar-value LIFO retail inventory method, Accounting records provided the following information: Beginning inventory Net purchases Net markups Net markdowns Net sales. Retail price index, end of year Cost $ 40,800 155,440 Retail $ 68,000 270,000 6,000 8,000 250,000 1.02 During 2022, purchases at cost and retail were $168,000 and $301,000, respectively. Net markups, net markdowns, and net sales for the year were $3,000, $4,000, and $280,000, respectively. The retail price index at the end of 2022 was 1.06. Estimate ending Inventory in 2022 using the dollar-value LIFO retail method. (Round your intermediate calculations to the nearest whole dollar.) Answer is complete but not entirely correct. Ending inventory S 50,451
On January 1, 2021, Sanderson Variety Store adopted the dollar-value LIFO retail inventory method. Accounting records provided the following information: Beginning inventory Net purchases Net markups Net markdowns Net sales Retail price index, end of year Cost $50,400 201,840 During 2022, purchases at cost and retail were $248,655 and $452,100, respectively. Net markups, net markdowns, and net sales for the year were $3,000, $4,000, and $360,000, respectively. The retail price index at the end of 2022 was 1.06. Ending inventory Retail $ 84,000 350,000 10,000 12,000 327,000 1.04 Estimate ending inventory in 2022 using the dollar-value LIFO retail method. (Round your intermediate calculations to the nearest whole dollar. Round ratio calculation to the nearest whole percent.) $ 175,100
Data below for the year ended December 31, 2024, relates to Houdini Incorporated Houdini started business January 1, 2024, and uses the LIFO retail method to estimate ending inventory. Cost Retail Beginning inventory $66,000 $104,000 Net purchases 280,000 420,000 Net markups 20,000 Net markdowns 40,000 Net sales 375,000 Estimated ending inventory at cost is:
During 2021, a company sells 340 units of inventory for $90 each. The company has the following inventory purchase transactions for 2021: Date Transaction inventory Number of units Unit cost Total Cost Jan. 1 Beginning inventory 69 $62 $4,278 May 5 Purchase 168 63 10,584 Nov. 3 Purchase 181 65 11,765 418 26,627 Calculate ending inventory and cost of goods sold for 2021 assuming the company uses FIFO. Ending inventory Cost of goods sold