, During Year 8 and Year 9, Sage sold merchandise toPage at a price that provides it with a gross profit of50%. The Year 9 sale was $10,000. Page's December31, Year 9, inventory contained $2,000 remaining. TheDecember 31, Year 8, inventory of Page contained $1,000 The unsold amount would then be $1,000. Alsoduring Year 9, Page sold merchandise to Sage for $33,600. Paige prices its sales based on a 40% markupon cost. At year end, the portion remaining in Sageinventory was 50% Intercompany sales for the yeartotalled $50,000. At the end of Year 9, Page owedSage $500 for merchandise inventory purchased onaccount. This liability is non-interest bearing. Table ofrealized and unrealized intercompany inventory profitsand sales

The objective of the question is to calculate the realized and unrealized intercompany inventory…

Answered: , During Year 8 and Year 9, Sage sold…

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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At the beginning of the year, Bramble had an inventory of $ 620000. During the year, the company purchased goods costing $2160000. If Bramble reported ending inventory of $ 970000 and sales of $ 3040000, their cost of goods sold and gross profit rate would be
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Marvin Company has a beginning inventory of 13 sets of paints at a cost of $1.90 each. During the year, the store purchased 5 sets at $2.00, 7 sets at $2.60, 7 sets at $2.90, and 11 sets at $3.40. By the end of the year, 28 sets were sold. Calculate the number of paint sets in ending inventory. Number of paint sets = 15 Calculate the cost of ending inventory under LIFO, FIFO, and the weighted average methods. Note: Round your answers to the nearest cent. ost of ending inventory under LIFO $28.70selected answer correct Cost of ending inventory under FIFO $49.00selected answer correct Cost of ending inventory under Weighted Average $ Please answer weighted average question.
Traylor Corporation began the year with three items in beginning inventory, each costing $5. During the year Traylor purchased five more items at a cost of $6 each and then two more items at a cost of $7 each. Traylor sold eight items for $10 each. If Traylor uses a periodic LIFO system, what would be Traylor’s gross profit for this year? 45 $45 $80 $80 $51 $51 $36
At the beginning of the year, Snaplt had $10,000 of inventory. During the year, Snaplt purchased $35, 000 of merchandise and sold $30,000 of merchandise. A physical count of inventory at year-end shows $14,000 of inventory exists. Prepare the entry to record inventory shrinkage.
Alpesh
Your company completed the following merchandise transactions during year 6: 1. On January 1, Year 6, your company had merchandise which cost $18,000 and had a net realizable value of $17,900. 2. Purchased $23,000 of merchandise for cash 3. Sold $19,000 of the merchandise for $36,400 on account. 4. Purchased $10,000 of merchandise on account, terms 2/10, n/30. 5. Paid for the merchandise in #3 on the eighth day after the purchase. 6. There were other purchases and sales throughout the year, but you do not need to record them, so no entry here. 7. Ended the year with merchandise which cost $26,000 (according to your calculations) and had a net realizable value of $25,400. INSTRUCTIONS: a. Prepare the entries for the transactions above assuming a Periodic inventory system, the allowance method for LCNRV, and the net method for purchase discounts. b. Prepare the entries for the transactions above assuming a Perpetual inventory system, the direct inventory reduction method for LCNRV, and…
Longmire & Sons made sales on credit to Alderman Sports totaling $500,000 on April 18. The cost of the goods sold is $400,000. Longmire estimates 3% of its sales to Alderman may be returned. On May 22, $9,000 worth of goods (with a cost of $7,200) are returned by Alderman. Longmire uses a periodic inventory system.
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Allied made its first and only purchase of inventory for the period on May 3 for 1,000 units at a price of $7 cash per unit (for a total cost of $7,000). Allied sold 500 of the units in inventory for $11 per unit (invoice total: $5,500) to Macy Co. under credit terms 2/10, n/60. Record the cost of goods sold. Macy returns 50 units because they did not fit the customer’s needs (invoice amount: $550). Allied restores the units, which cost $350, to its inventory. Macy discovers that 50 units are scuffed but are still of use and, therefore, keeps the units. Allied gives a price reduction (allowance) and credits Macy's accounts receivable for $150 to compensate for the damage. Allied receives payment from Macy for the amount owed on the May 5 purchase; payment is net of returns, allowances, and any cash discount.
Carla Vista Company is a retailer operating in the province of Ontario, where HST is 13%. Carla Vista uses a periodic inventory system. Transactions for the business are shown below: Nov. 1 Paid November store rent to the landlord. The lease calls for monthly payments of $6,700 before taxes. 4 Purchased merchandise for resale on account from Comet Industries. The merchandise cost $8,300 plus applicable tax. 6 Returned $600 of merchandise to Comet Industries. 7 Sold merchandise on account to Solar Star Company for $13,000 plus applicable sales taxes, terms, n/30, FOB shipping point. The merchandise was shipped to Solar Star. The cost of the merchandise to Carla Vista was $6,000. 12 Purchased a new laptop computer at Staples for the marketing manager. The price of the laptop was $1,200 before applicable taxes. 30 Paid the quarterly remittance of HST to the Receiver General. The balances in the accounts were as follows: HST Payable $2,660 and…

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