Given this information, the cost of merchandise available for sale during 2017 is? Following are the account balances from Samuel Company's statement of comprehensive income:Inventory, January 1, 2017$25,000Purchases35,000Purchase returns2,000Purchase discounts4,000Freight-in5,000Inventory, December 31, 201710,000Freight-out6,000Given this information, the cost of merchandise available for sale during 2017 isOa. $69,000Ob. $65,000Oc. $59,000Od. $61,000

Cost of merchandise available for sale is the maximum amount of goods that a company can possibly…

Answered: Following are the account balances from…

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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Which of the 3 methods of inventory costing (Lifo, Fifo, or Average Cost) will result in the lowest annual income tax expense for the year if prices to acquire the inventory have been steadily rising during the year?
Use the following statement of financial position and statement of comprehensive income Blue Bird, Inc. 2018 Statement of comprehensive income Net Sales Less: Cost of Goods Sold Less: Depreciation Earnings Before Interest and Taxes Less: Interest Paid Taxable Income Less: Taxes Net Income Blue Bird, Inc. Statement of financial position Years ended 2017 and 2018 $12,630 8,240 1,010 3,380 750 $2,630 920 $1,710 Cash Accounts rec. Inventory Total 2017 2018 $640 $590 1,200 1,390 2,300 2,470 $4,140 $4,450 Net fixed assets 4,640 5,200 Total assets $8,780 $9,650 Total liabilities & equity Accounts payable Long-term debt Common stock Retained earnings 2017 2018 2,500 2,800 4,000 4,500 1,040 1,690 $8,780 $9,650 Blue Bird, Inc. has 1,500 shares of stock outstanding. The price-earnings ratio for 2018 is 21. What is the market price per share of stock?
Required information [The following information applies to the questions displayed below.] Raleigh Department Store uses the conventional retail method for the year ended December 31, 2019. Available information follows: a. The inventory at January 1, 2019, had a retail value of $43,000 and a cost of $33,210 based on the conventional retail method. b. Transactions during 2019 were as follows: Gross purchases Purchase returns Purchase discounts Gross sales Sales returns Employee discounts Freight-in Net markups Net markdowns Cost $249,510 6,300 4,800 26,500 Retail $470,000 22,000 446,500 8,000 4,500 23,000 22,000 Sales to employees are recorded net of discounts. c. The retail value of the December 31, 2020, inventory was $55,080, the cost-to-retail percentage for 2020 under the LIFO retail method was 76%, and the appropriate price index was 102% of the January 1, 2020, price level. d. The retail value of the December 31, 2021, inventory was $47,250, the cost-to-retail percentage for…
If beginning inventory is $1,998, ending inventory is $1,407 and cost of goods sold is $11,158, how much is purchases?
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In preparing financial statements for the year ended 31 March 2016, the inventory count was carried out on 4 April 2016. The value of inventory counted was GHS36 million. Between 31 March and 4 April goods with a cost of GHS2.7 million were received into inventory and sales of GHS7.8 million were made at a mark-up on cost of 30%. At what amount should inventory be stated in the statement of financial position as at 31 March 2016? a GHS 38 76 million
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If the beginning inventory for 2025 is overstated, the effects of this error on cost of goods sold for 2025, net income for 2025, and assets at December 31, 2026, respectively, are Ⓒ understatement, overstatement, no effect. O understatement, overstatement, overstatement. Ⓒoverstatement, understatement, no effect. O overstatement, understatement, overstatement.
During 2017, Teal Mountain Inc. changed from LIFO to FIFO inventory pricing. Teal Mountain began operations in 2015 and its pretax income in 2016 and 2015 under LIFO was $470,000 and $562,000, respectively. Pretax income using FIFO pricing in the prior years would have been $504,000 in 2015 and $615,000 in 2016. In 2017, Teal Mountain reported pretax income using FIFO pricing of $577,000. Show comparative income statements for Teal Mountain beginning with “Income before income tax,” as presented in the 2017 income statement. The tax rate for all years is 30%. 2017 2016 2015 Income before income tax $enter a dollar amount $enter a dollar amount $enter a dollar amount Income tax enter a dollar amount enter a dollar amount enter a dollar amount Net Income $enter a total amount $enter a total amount $enter a total amount
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Adjusting Balance Sheet and Income Statement for LIFO to FIFO In its December 2019 10-K, Phillips 66 reported the following information ($ millions). 2019 Assets 2019 Inventories 2019 LIFO Reserve 2018 LIFO Reserve Tax Rate $52,848 $3,398 $3,870 $2,610 22% a. Determine the necessary adjustments to the following balance sheet line items for 2019. Note: Round your answers to the nearest whole dollar. Adjustment (S in millions) Inventories $4 6,008 x Total assets %24 Deferred tax liabilkies $ 54,108 x 277 x Equity 0 x b. Determine the necessary adjustments to the following income statement line items for 2019. Note: Round your answers to the nearest whole dollar. Adjustment ($ in millions) Cost of goods sold %24 0 x Pretax income %24 0 x Income tax expense $ 0 x Net income %24
UMET's Stores had the following inventory transactions in 2020: Transaction Units Cost per unit 1/1 Balance 50 $6 2/14 Sale 25 5/23 Purchase 100 8 8/21 Sale 50 11/5 Purchase 25 12 11/18 Sale 95 Required: Compute tge cost of goods sold and the ending inventory using the periodic inventory system for each of the following cost flow assumptions: a. FIFO b. LIFO c. Weighted average

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