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?

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?

Name: In preparing financial statements for the year ended 31 March 2016, t
Uploaded: 2024-03-20T06:32:37.000Z
Channel: Bartleby
Description: In preparing financial statements for the year ended 31 March 2016, theinventory count was carried out on 4 April 2016. The value of inventorycounted was GHS36 million. Between 31 March and 4 April goods with a cost ofGHS2.7 million were received in

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

The following data were extracted from the accounting records of Harkins Company for the year ended April 30, 2019: Increase in estimated returns inventory 24 11,600 Merchandise inventory, May 1, 2018 Merchandise inventory, April 30, 2019 380,000 415,000 Purchases 3,800,000 Purchases returns and allowances 150,000 Purchases discounts 80,000 Sales 5,850,000 Freight in 16,600 a. Prepare the cost of merchandise sold section of the income statement for the year ended April 30, 2019, using the periodic inventory system. b. Determine the gross profit to be reported on the income statement for the year ended April 30, 2019. Would gross profit be different if the perpetual inventory system was used C. instead of the periodic inventory system?
The Toso Company uses the retail inventory method. The following information is available for the year ended December 31, 2024: Inventory 1/1/2024 Net purchases for the year Net sales Cost $ 420,000 1,980,000 Retail $ 750,000 2,850,000 2,940,000 Applying the average cost retail inventory method, Toso's inventory at December 31, 2024, is estimated at:
Jam Company uses the retail inventory method to estimate its inventory for interim statement purposes. Data relating to the computation of the inventory at December 31, 2011 are as follows: COST RETAIL Inventory, January 1 720,000 1,000,000 Purchases 4,080,000 6,300,000 Markup 700,000 Markdown 500,000 Sales 5,900,000 Estimated normal shoplifting losses 100,000 Under the AVERAGE COST RETAIL METHOD, what is the estimated cost of inventory on December 31, 2011?
In its 2015 annual report, Gap Inc. reported inventory of $1,889 million on January 31, 2015, and $1,928 million on February 1, 2014, cost of goods sold of $10,146 million for 2015, and net sales of $16,435 million. Compute Gap’s inventory turnover and the average days to sell inventory for the fiscal year 2015.
The management of Sheffield Corp. asks your help in determining the comparative effects of the FIFO and LIFO inventory cost flow methods. For 2017, the accounting records show these data. Inventory, January 1 (9,340 units) $ 34,558 Cost of 119,140 units purchased 488,390 Selling price of 95,990 units sold 684,900 Operating expenses 113,080 Units purchased consisted of 35,340 units at $3.90 on May 10; 60,520 units at $4.10 on August 15; and 23,280 units at $4.40 on November 20. Income taxes are 26%. (a) Prepare comparative condensed income statements for 2017 under FIFO and LIFO. (Round answers to 0 decimal places, e.g. 5,125.)
The ABC Ltd. uses the periodic inventory system. Answer the given questions by having the below information: Beginning Inventory on the 1st July 2018: $62,000 Goods available for sale during the year: $336,000 Purchase returns & allowances during the year: $22,800 Purchase discounts during the year: $16,200 Freight Cost: $13,000 Cost of Goods Sold during the year: $289,000 Operating Expenses: $7,900 Sold items during the year: 63,000 units Selling price: $5.30 Questions: 1. Calculate the Cost of Goods Purchased during the year ended in 2019. 2. Calculate the Total Purchases during the year ended in 2019. 3. Calculate the Net Purchased during the year ended in 2019. 4. Calculate the inventory on hand in the Balance Sheet on the 31st of June 2019. 5.Calculate the Total Income for the year ended in June 2019.
The ABC Ltd. uses the periodic inventory system. Answer the given questions by having the below information: Beginning Inventory on the 1st July 2018: $55,000 Goods available for sale during the year: $325,000 Purchase returns & allowances during the year: $22,800 Purchase discounts during the year: $ 12,200 Freight Cost: $9,000 Cost of Goods Sold during the year: $275,000 Operating Expenses: $18,500 Sold items during the year: 60,000 units Selling price: $5.50 Answer the following questions: Calculate the Cost of Goods Purchased during the year ended in 2019. Calculate the Total Purchases during the year ended in 2019. Calculate the Net Purchased during the year ended in 2019. Calculate the inventory on hand in the Balance Sheet on the 31st of June 2019. Calculate the Total Income for the year ended in June 2019.
Sheffield Inc. reported the following partial statement of income data for the years ended December 31, 2024 and 2023: Sales Cost of goods sold Gross profit (a) The company reported inventory in the statement of financial position at $46,000, $49,500, and $48,000 at the end of 2022, 2023, and 2024, respectively. The ending inventory amounts for 2022 and 2024 are correct. However, the company has understated the ending inventory at December 31, 2023, by $7,620. Sales 2024 $263,000 Cost of goods sold 204,000 $59,000 Your answer has been saved. See score details after the due date. Prepare correct statements of income for 2023 and 2024 through to gross profit. 2024 Gross profit (b) 2023 $254,000 199,390 $54,610 $ eTextbook and Media 263000 211620 51380 $ $ 2023 Cumulative effect of the inventory error on total gross profit $ 254000 191770 62230 Attempts: 1 of 1 used What is the cumulative effect of the inventory error on total gross profit for these two years? (If answer is zero, please…
Abercrombie & Fitch Co. reported the following in its financial statement notes.Ending inventory balances were $427.0 million, $679.9 million, and $464.6 million at February 2, 2013;January 28, 2012; and January 29, 2011, respectively. These balances included inventory in transitbalances of $34.8 million, $103.1 million, and $55.0 million at February 2, 2013; January 28, 2012; andJanuary 29, 2011, respectively. Inventory in transit is considered to be all merchandise owned byAbercrombie & Fitch that has not yet been received at an Abercrombie & Fitch distribution center.Was the inventory in transit sold to Abercrombie & Fitch as FOB shipping point or FOB destination?
Beginning inventory', purchases, and sales for WCS12 are as follows: Assuming a perpetual inventory system and using the weighted average method, determine (a) the weighted average unit cost after the October 22 purchase, (b) the cost of goods sold on October 29, and (c) the inventory on October 31.
The trial balance of Sheridan Company at the end of its fiscal year, August 31, 2017, includes these accounts: Beginning Inventory $19,620; Purchases $190,350; Sales Revenue $188,100; Freight-In $8,490; Sales Returns and Allowances $3,450; Freight-Out $2,820; and Purchase Returns and Allowances $5,400. The ending inventory is $22,100. Prepare a cost of goods sold section (periodic system) for the year ending August 31, 2017. SHERIDAN COMPANY Income Statement choose the accounting period select an income statement item $enter a dollar amount enter an opening name for subsection one $enter a dollar amount select between addition and deduction : enter an income statement item enter a dollar amount select a closing name for subsection one enter a total amount for subsection one select between addition and deduction : enter an income statement item enter a dollar amount select an income statement item enter a total of the two previous amounts select a summarizing…
Masthead Company's comparative balance sheets included an inventory of $180,400 at December 31, 2009, and $241,200 at December 31, 2010. Masthead's comparative balance sheets also included accounts payable of $85,400 at December 31, 2009, and $78,400 at December 31, 2010. Masthead's accounts payable balances are composed solely of amounts due to suppliers for purchases of inventory on account. Cost of goods sold, as reported by Masthead on its 2010 income statement, amounted to $1,200,000. What is the amount of cash payments for inventory that Masthead will report in the Operating Activities category of its 2010 statement of cash flows assuming that the direct method is used?