E6-2 (Algo) Inferring Merchandise Purchases [LO 6-2] Morgan & Cook, is a specialty retailer that operates stores selling clothes under various trade names. Assume that you are employed as a stock analyst and your boss has just completed a review of Morgan & Cook, for the first quarter of 2019. She provided you with her notes, but they are missing some information that you need. Her notes show the inventory for Morgan was $2,380 million at the end of the quarter and $2,270 million at the beginning of the quarter. Net Sales for the quarter were $4,400 million. Gross Profit was $1,620 million and Net Income was $367 million. Required: Determine the Cost of Goods Sold and cost of purchases for the first quarter. (Enter your answers in millions.) Cost of Goods Sold Purchases Amount million million

E6-2 (Algo) Inferring Merchandise Purchases [LO 6-2] Morgan & Cook, is a specialty retailer that operates stores selling clothes under various trade names. Assume that you are employed as a stock analyst and your boss has just completed a review of Morgan & Cook, for the first quarter of 2019. She provided you with her notes, but they are missing some information that you need. Her notes show the inventory for Morgan was $2,380 million at the end of the quarter and $2,270 million at the beginning of the quarter. Net Sales for the quarter were $4,400 million. Gross Profit was $1,620 million and Net Income was $367 million. Required: Determine the Cost of Goods Sold and cost of purchases for the first quarter. (Enter your answers in millions.) Cost of Goods Sold Purchases Amount million million

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

Please help determine the images attached
1. Compute the cost of the ending inventory under the FIFO method. Round the cost-to-retail ratio to three decimal places and the final answers to the nearest dollar.
Show the effects of the labor and MOH costs through T-accounts for the company's inventory and Cost of Sales accounts. (For balances beginning/ending in O select "Beg. Bal." and "End Bal." for the date and O for the amounts for the balance of the account.) WIP Inventory FG Inventory ✓
Pina Furniture Ltd. uses a perpetual inventory system and has a beginning inventory, as at June 1, of 490 bookcases at a cost of $132 each. During June, the company had the following purchases and sales of bookcases: Date June (a) 6 10 14 16 26 Purchases Units Unit cost 1,160 $134 1,780 970 135 136 Sales Units Unit price 950 1,660 $201 206
Assuming that all net sales figures are at retail and all cost of goods sold figures are at cost, calculate the average inventory (in $) and inventory turnover for the following. If the actual turnover is less than the published rate, calculate the target average inventory (in necessary to come up to industry standards. If the actual turnover is greater than the published rate, enter "above" for target average inventory. Round inventories to the nearest dollar and inventory turnovers to the nearest tenth. Net Sales Cost of Goods Sold $345,000 Need Help? Read It Beginning Inventory $44,000 Ending Inventory $52,000 $ Average Inventory Inventory Turnover Published Rate 6.0 $ Target Average Inventory
PA3. 10.2 Trini Company had the following transactions for the month. Number of Units Cost per Unit Total Beginning inventory Purchased May 31 Purchased Jul. 15 Purchased Nov. 1 1,050 1,020 1,300 1,200 4,570 900 $ 23,100 23,460 33,800 32,400 112,760 $22 23 26 27 Totals (goods available) Ending inventory ? Calculate the cost of goods sold dollar value for the period for each of the following cost allocation methods, using periodic inventory updating. Provide your calculations. A. first-in, first-out (FIFO) B. last-in, first-out (LIFO) C. weighted average (AVG)
One must consider the percentage completion of the units in beginning inventory under the weighted-average method when computing the cost per equivalent unit. True or False True False
calculate number of days sales in inventory
Complete the chart using the LIFO and FIFO costing methods, assuming a period of increasing costs: Highest Amount Lowest Amount Cost of Merchandise Sold Gross Profit Net Income Ending Merchandise Inventory
Define average days in inventory.
Ch 9 Problem Set B Problem 9-1 Part B The company uses the perpetual inventory method. It began the month of March with 100 units of inventory, at a unit cost of $55. Purchases during March March 5, 60 units at $60 each. March 18, 200 units at $65 each March 29, 40 units at $75 each. Sales during March March 12, 60 units. March 25, 210 units. All units were sold to customer for $100 each. 1. Use the following format to set up this inventory costing problem, as shown in Video #2. Inventory Date Units Cost per Total Cost Date Units Total Cost Unit Beg Balance Units Cost Beginning Balance + Purchases Goods Available for Sale - Sold Ending Balance
Under the weighted average cost, when a unit is sold, the average cost of each unit in inventory is assigned to cost of goods sold. True O False