Elijah Company uses the conventional retail inventory method to account for inventory. Cost Retail Beginning inventory and purchases 7.800.000 11.960.000 Net markup Netmarkdown 520.000 780.000 Sales 10.140.000 What amount should be reported as cost of sales for the year?
Elijah Company uses the conventional retail inventory method to account for inventory. Cost Retail Beginning inventory and purchases 7.800.000 11.960.000 Net markup Netmarkdown 520.000 780.000 Sales 10.140.000 What amount should be reported as cost of sales for the year?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Elijah Company uses the conventional retail inventory method to account for inventory.
Retail
Beginning inventory and purchoses 7.800.000 11.960,000
520.000
780.000
10.140.000
Cost
Net markup
Netmarkdown
Sales
What amount should be reported as cost of sales for the year?
Elijah Company uses the average retail inventory method to account for inventory.
Cost
Retail
Beginning inventory and purchases 7,605,000 11,960,000
Net markup
520.000
Netmarkdown
780,000
Sales
10,140,000
What amount should be reported as cost of sales for the year?
Oliver Company provided the following data:
Retail
832,000
Beginning inventory
Purchases
Freight in
Purchase return
Cost
442.000
5,850,000 9,490,000
130,000
195.000
325,000
118,300
130.000
Purchase allowance
208,000
195,000
650,000
8,580.000
65,000
130,000
260,000
Departmental transfer in
Net markup
Net markdown
Sales
Sales allowance
Employee discount
Spoilage and breakage
Compute for the ending inventory under the FIFO retail approach.
Ava Company's inventory records showed the following information on December 31,
20x1.
Cost
Retail
Inventory, January 1
Sales
364,000 910,000
6.500,000
3,224,000 6,708,000
97,500
Purchases
Freight in
Markup
Markup cancelation
Markdown
Markdown cancelation
Estimated normal shrinkage is 2% of sales.
650,000
78,000
325.000
65.000
The entity uses the retail inventory method in estimating the value of its inventory.
What is the estimated cost of inventory on December 31, 20xl at approximate lower of
average cost or net realizable value approach?
Liam Company provided the following information for the current year:
Net Sales
Freight In
Purchase Discount
4,680,000
117,000
65.000
Ending Inventory
312.000
The gross margin is 40% of sales. What is the cost of goods available for sale?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F9c47a7e7-4354-4a91-8eed-c840ce2785fa%2Fb1697e23-f676-410a-bc79-cc4d0f63b372%2Fo10j2kd_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Elijah Company uses the conventional retail inventory method to account for inventory.
Retail
Beginning inventory and purchoses 7.800.000 11.960,000
520.000
780.000
10.140.000
Cost
Net markup
Netmarkdown
Sales
What amount should be reported as cost of sales for the year?
Elijah Company uses the average retail inventory method to account for inventory.
Cost
Retail
Beginning inventory and purchases 7,605,000 11,960,000
Net markup
520.000
Netmarkdown
780,000
Sales
10,140,000
What amount should be reported as cost of sales for the year?
Oliver Company provided the following data:
Retail
832,000
Beginning inventory
Purchases
Freight in
Purchase return
Cost
442.000
5,850,000 9,490,000
130,000
195.000
325,000
118,300
130.000
Purchase allowance
208,000
195,000
650,000
8,580.000
65,000
130,000
260,000
Departmental transfer in
Net markup
Net markdown
Sales
Sales allowance
Employee discount
Spoilage and breakage
Compute for the ending inventory under the FIFO retail approach.
Ava Company's inventory records showed the following information on December 31,
20x1.
Cost
Retail
Inventory, January 1
Sales
364,000 910,000
6.500,000
3,224,000 6,708,000
97,500
Purchases
Freight in
Markup
Markup cancelation
Markdown
Markdown cancelation
Estimated normal shrinkage is 2% of sales.
650,000
78,000
325.000
65.000
The entity uses the retail inventory method in estimating the value of its inventory.
What is the estimated cost of inventory on December 31, 20xl at approximate lower of
average cost or net realizable value approach?
Liam Company provided the following information for the current year:
Net Sales
Freight In
Purchase Discount
4,680,000
117,000
65.000
Ending Inventory
312.000
The gross margin is 40% of sales. What is the cost of goods available for sale?
![On September 30, 20x1, a fire at Olivia Company's only warehouse caused severe damaged to the entire
inventory. Based on recent history, the entity has a gross profit of 30% on cost of sales.
The following information is available from the records for the nine months ended September 30, 20xl:
715,000
3,978.000
78,000
5,252,000
520,000
Inventory - January 1
Purchases
Purchase returns
Sales
Sales returns
Sales allowances
130,000
A physical inventory disclosed usable damaged goods which can still be sold for P65,000.
1. What is the estimated cost of goods sold for the nine months ended September 30, 20x1?
2. What is the estimated cost of ending inventory for the nine months ended September 30, 20x1?
3. What is the estimated cost of ending inventory loss due to fire?
Oliver Company provided the following data:
Cost
442,000
5,850,000 9,490,000
130,000
195,000
117,000
130,000
Retail
832,000
Beginning inventory
Purchases
Freight in
Purchase return
325,000
Purchase allowance
Departmental transfer in
Net markup
208,000
195,000
650,000
8,580,000
65,000
130,000
260.000
Net markdown
Sales
Sales allowance
Employee discount
Spoilage and breakage
1. Compute for the ending inventory under the conservative retail approach.
2. Compute for the ending inventory under the average cost retail approach.
Noah Company has a recent gross profit history of 40% of net sales. The following data
are available from the accounting records for the three months ended March 31:
845,000
4,160,000
5.850.000
97,500
65,000
Inventory - January 1
Purchases
Net Sales
Purchase returns
Freight In
Using the gross profit method, what is the estimated cost of inventory on March 31?
Charlotte Company uses the FIFO retail method of inventory valuation. The following
information is available for the current year:
Cost
Retail
Beginning inventory
780,000 1,950,000
Purchases
3,900,000 7.150.000
Net additional markup
650,000
Netmarkdown
1,300,000
Sales
5,850,000
What is the estimated cost of the ending inventory?
Emma Company estimated the cost of its physical inventory on March 31 for use in
interim financial statement. The rate of mark up on cost is 25%. The inventory on
January was P7,150,000. During the period January I to March31, the entity had
purchases of P5,590,000, purchase returns of P260,000 and sales of P9,750,000.
What is the estimated cost of inventory on March 31?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F9c47a7e7-4354-4a91-8eed-c840ce2785fa%2Fb1697e23-f676-410a-bc79-cc4d0f63b372%2Fckfww5p_processed.jpeg&w=3840&q=75)
Transcribed Image Text:On September 30, 20x1, a fire at Olivia Company's only warehouse caused severe damaged to the entire
inventory. Based on recent history, the entity has a gross profit of 30% on cost of sales.
The following information is available from the records for the nine months ended September 30, 20xl:
715,000
3,978.000
78,000
5,252,000
520,000
Inventory - January 1
Purchases
Purchase returns
Sales
Sales returns
Sales allowances
130,000
A physical inventory disclosed usable damaged goods which can still be sold for P65,000.
1. What is the estimated cost of goods sold for the nine months ended September 30, 20x1?
2. What is the estimated cost of ending inventory for the nine months ended September 30, 20x1?
3. What is the estimated cost of ending inventory loss due to fire?
Oliver Company provided the following data:
Cost
442,000
5,850,000 9,490,000
130,000
195,000
117,000
130,000
Retail
832,000
Beginning inventory
Purchases
Freight in
Purchase return
325,000
Purchase allowance
Departmental transfer in
Net markup
208,000
195,000
650,000
8,580,000
65,000
130,000
260.000
Net markdown
Sales
Sales allowance
Employee discount
Spoilage and breakage
1. Compute for the ending inventory under the conservative retail approach.
2. Compute for the ending inventory under the average cost retail approach.
Noah Company has a recent gross profit history of 40% of net sales. The following data
are available from the accounting records for the three months ended March 31:
845,000
4,160,000
5.850.000
97,500
65,000
Inventory - January 1
Purchases
Net Sales
Purchase returns
Freight In
Using the gross profit method, what is the estimated cost of inventory on March 31?
Charlotte Company uses the FIFO retail method of inventory valuation. The following
information is available for the current year:
Cost
Retail
Beginning inventory
780,000 1,950,000
Purchases
3,900,000 7.150.000
Net additional markup
650,000
Netmarkdown
1,300,000
Sales
5,850,000
What is the estimated cost of the ending inventory?
Emma Company estimated the cost of its physical inventory on March 31 for use in
interim financial statement. The rate of mark up on cost is 25%. The inventory on
January was P7,150,000. During the period January I to March31, the entity had
purchases of P5,590,000, purchase returns of P260,000 and sales of P9,750,000.
What is the estimated cost of inventory on March 31?
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