Hiligaynon Company provided the following information for the current year: Beginning inventory of 400,000 Freight in of 300,000 Purchase discounts of 900,000 Ending inventory of 500,000 Operating expenses of 1,250,000 and sales discount of 250,000 The gross profit rate is 50%. The operating expenses is only one-sixth of the total cost of sales. 1. How much is the cost of sales? 2. How much is the purchases? 3. how much is the gross sales? 4. How much is the profit before tax? 5. Without any other transactions that may affect the retained earnings, how much is the retained earnings?

Hiligaynon Company provided the following information for the current year: Beginning inventory of 400,000 Freight in of 300,000 Purchase discounts of 900,000 Ending inventory of 500,000 Operating expenses of 1,250,000 and sales discount of 250,000 The gross profit rate is 50%. The operating expenses is only one-sixth of the total cost of sales. 1. How much is the cost of sales? 2. How much is the purchases? 3. how much is the gross sales? 4. How much is the profit before tax? 5. Without any other transactions that may affect the retained earnings, how much is the retained earnings?

Name: Hiligaynon Company provided the following information for the current
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Description: Hiligaynon Company provided the following information for the current year:Beginning inventory of 400,000Freight in of 300,000Purchase discounts of 900,000Ending inventory of 500,000Operating expenses of 1,250,000and sales discount of 250,000The gro

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter10: Inventory

Section: Chapter Questions

Problem 2TP: Assume your company uses the periodic inventory costing method, and the inventory count left out an...

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Concept explainers

Variance Analysis

In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.

Standard Costing

The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.

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Question

Hiligaynon Company provided the following information for the current year:
Beginning inventory of 400,000
Freight in of 300,000
Purchase discounts of 900,000
Ending inventory of 500,000
Operating expenses of 1,250,000
and sales discount of 250,000
The gross profit rate is 50%.
The operating expenses is only one-sixth of the total cost of sales.
1. How much is the cost of sales?
2. How much is the purchases?
3. how much is the gross sales?
4. How much is the profit before tax?
5. Without any other transactions that may affect the retained earnings, how much
is the retained earnings?

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