E12 -6 On 10 June 20X6, a fire occurred in the warehouse of John Bathloi. His financial year ends on 31 December. The following information is available: • Cost of inventory at 31 December 20X5: C65 000. • Cost of purchases from 1 January 20X6 to 10 June 20X6: C200 000. Cost of railage on purchases from 1 January 20X6 to 10 June 20X6: C10 000. Income from sales to wholesalers from 1 January 20X6 to 10 June 20X6: C300 000. Income from sales to retailers from 1 January 20X6 to 10 June 20X6: C125 000. John Bathloi sells to wholesalers at cost plus 100% and to retailers at cost plus 150%. Cost of inventory salvaged (including the related cost of railage): C10 000. You are required to: Calculate the cost of inventory destroyed. Ignore VAT.

E12 -6 On 10 June 20X6, a fire occurred in the warehouse of John Bathloi. His financial year ends on 31 December. The following information is available: • Cost of inventory at 31 December 20X5: C65 000. • Cost of purchases from 1 January 20X6 to 10 June 20X6: C200 000. Cost of railage on purchases from 1 January 20X6 to 10 June 20X6: C10 000. Income from sales to wholesalers from 1 January 20X6 to 10 June 20X6: C300 000. Income from sales to retailers from 1 January 20X6 to 10 June 20X6: C125 000. John Bathloi sells to wholesalers at cost plus 100% and to retailers at cost plus 150%. Cost of inventory salvaged (including the related cost of railage): C10 000. You are required to: Calculate the cost of inventory destroyed. Ignore VAT.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter5: The Income Statement And The Statement Of Cash Flows

Section: Chapter Questions

Problem 3RE: Shaquille Corporation began the current year with inventory of 50,000. During the year, its...

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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.
E6.18 modified The inventory of Ipswich Books was destroyed by fire on March 1. From an examination of the accounting records, the following data for the first two months of the year are obtained: Sales revenue $51,000, Sales returns and allowances $1,000, Purchases $31,200, Freight-in $1,200, and Purchase returns and allowances $1,800. Determine the merchandise lost by fire, assuming: a. A beginning inventory of $20,000 and a gross profit rate of 40% on net sales. b. A beginning inventory of $30,000 and gross profit rate of 25% on cost
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28. During the year, Raul Co. purchased P960,000 of inventory. The cost of goods sold for the year was P900,000, and the ending inventory was P180,000. What was the inventory turnover for the year? a. 6.4 b. 6.0 C. 5.3 d. 5.0
17. Bell Inc. took a physical inventory at the end of the year and determined that $780,000 of goods were on hand. In addition, Bell, Inc. determined that $60,000 of goods that were in transit that were shipped f.o.b. shipping point were actually received two days after the inventory count and that the company had $90,000 of goods out on onsignment. What amount should Bell report as inventory at the end of the year? a. $780,000. b. $840,000. c. $870,000. d. $930,000.
At the beginning of the year, Bennett Supply has inventory of $3,500. During the year, the company purchases an additional $12,000 of inventory. An inventory count at the end of the year reveals remaining inventory of $4,000. What amount will Bennett report for cost of goods sold? a. $11,000.b. $11,500.c. $12,000.d. $12,500.
Y Wholesale Company began the year with merchandise inventory of $9,000. During the year, Y purchased $97,000 of goods and returned $6,300 due to damage. Y also paid freight charges of $1,200 on inventory purchases. At year-end, Y's ending merchandise inventory balance stood at $17,400. Assume that Y uses the periodic inventory system. Compute Y's cost of goods sold for the year.
Crane Company reported the following information for November and December 2022. Cost of goods purchased Inventory, beginning-of-month Inventory, end-of-month Sales revenue (a) November December $531,000 $606,000 138,000 Gross profit rate 181,650 Crane's ending inventory at December 31 was destroyed in a fire. 855,000 1,000,000 Compute the gross profit rate for November. 181,650 %
am.111.
E7-8A. Inventory Costing Methods The following information is for the Bloom Company for the cur- rent year; the company sells just one product: Units Unit Cost $10 Beginning inventory Feb. 11. May 18. October 23. 200 Purchases: 500 14 400 16 100 20 At December 31 there was an ending inventory of 360 units. Assume the use of the periodie inven- tory method. Calculate the value of ending inventory and the cost of goods sold for the year using (a) first-in, first-out, (b) last-in, first-out, and (c) the weighted-average cost method.
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Assume the perpetual inventory system is used unless stated otherwise. Round all numbers to the nearest whole dollar unless stated otherwise. Computing cost of goods sold in a periodic inventory system M Wholesale Company began the year with a merchandise inventory of $5,000. During the year, M purchased $93,000 of goods and returned $6,600 due to damage. M also paid freight charges of $1,200 on inventory purchases. At year-end, M’s ending merchandise inventory balance stood at $17,200. Assume that M uses the periodic inventory system. Compute M’s cost of goods sold for the year.