Keep Calm Company provided the following information for the current year: Accounts receivable, January 1 2,100,000 Accounts receivable, December 31 2,700,000 Collections of accounts during the year 9,000,000 I nventory, January 1 4,500,000 Purchases during the year 5,800,000 All sales are made on account. The mark up on cost is 20% What is the estimated inventory at December 31

Keep Calm Company provided the following information for the current year: Accounts receivable, January 1 2,100,000 Accounts receivable, December 31 2,700,000 Collections of accounts during the year 9,000,000 I nventory, January 1 4,500,000 Purchases during the year 5,800,000 All sales are made on account. The mark up on cost is 20% What is the estimated inventory at December 31

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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Russell Retail Group begins the year with inventory of $55,000 and ends the year with inventory of $45,000. During the year, the company has four purchases for the following amounts.Purchase on February 17 $210,000 Purchase on May 6 130,000 Purchase on September 8 160,000 Purchase on December 4 410,000Required: Calculate cost of goods sold for the year.
The beginning inventory of merchandise at Dunne Co. and data on purchases and sales for a three-month period ending June 30 are as follows: Number Per Transaction of Units Unit Total Date $ 30,000 25 $1,200 Apr. 3 Inventory Purchase 93,000 75 1,240 Sale 11 40 2,000 80,000 Sale 30 30 2,000 60,000 Purchase 1,260 May 8 60 75,600 Sale 10 50 2,000 100,000 Sale 19 20 2,000 40,000 Purchase 28 80 1,260 100,800 Sale 2,250 June 5 40 90,000 Sale 16 25 2,250 56,250 Purchase 21 35 1,264 44,240 Sale 2,250 28 44 99,000 Instructions 1. Record the inventory, purchases, and cost of merchandise sold data in a perpetual inventory record similar to the one illustrated in Exhibit 3, using the first-in, first-out method. 2. Determine the total sales and the total cost of merchandise sold for the period. Jour- nalize the entries in the sales and cost of merchandise sold accounts. Assume that all sales were on account. 3. Determine the gross profit from sales for the period. 4. Determine the ending inventory…
Marian Company reported the following items for the month of July: $476,300 Cost of goods sold $73,900 Ending inventory Days' inventory outstanding is: (Round intermediate numbers to two decimal places, final answer to the nearest day) Sales revenue Beginning inventory A. 131 days B. 123 days C. 365 days D. 115 days $235,000 $84,100
Ivanhoe company uses the gross profit method to estimate inventory for monthly reporting purposes. Presented below is information for the month of May. Inventory, May 1 - 159,500 Purchases (gross) - 593,300. Freight in 32,900 Sales revenue. 974,400. Sales return. 75,900. Purchases discount. 10,800. Compute the estimated inventory at May 31, assuming that the gross profit is 25% of sales. The estimated inventory at May 31 is what?
The records of Vaughn's Boutique report the following data for the month of April. Sales revenue $97,100 Purchases (at cost) $47,800 Sales returns 2,100 Purchases (at sales price) 86,100 Markups 10,400 Purchase returns (at cost) 2,100 Markup cancellations 1,500 Purchase returns (at sales price) 3,100 Markdowns 10,200 Beginning inventory (at cost) 24,251 Markdown cancellations 2,900 Beginning inventory (at sales price) 44,800 Freight on purchases 2,500 Compute the ending inventory by the conventional retail inventory method. (Round ratios for computational purposes to 0 decimal places, eg. 78% and final answer to 0 decimal places, eg. 28,987.) Ending inventory using conventional retail inventory method %$4
488. Keep calm company provided the following information for the current year accounts receivable January 1 2,100,000 accounts receivable, December 31 2,700,000 collection of accounts during the year 9,000,000 Inventory January 1 4,500,000 Purchases during the year 5,800,000 All sales are made on discount. the markup on cost is 20% What is the estimated inventory at December 31?
If the estimated rate of gross profit is 30%, what is the estimated cost of the inventory on September 30, based on the following data? Sep. 1 Inventory (at cost) $125,000 Sep. 1-30 Purchases, net (at cost) 300,000 Sep. 1-30 Sales 150,000 Oa. $105,000 Ob. $275,000 Oc, $320.000 Od. $192,500
Pearl Company uses the gross profit method to estimate inventory for monthly reporting purposes. Presented below is information for the month of May. Inventory, May 1 $ 158,100 Purchases (gross) 665,400 Freight-in 29,700 Sales revenue 937,900 Sales returns 69,300 Purchase discounts 12,900 Compute the estimated inventory at May 31, assuming that the gross profit is 25% of net sales. The estimated inventory at May 31
Landis Company is preparing its financial statements. Gross margin is normally 40% of sales. Information taken from the company's records revealed sales of $95,000; beginning inventory of $9,500 and purchases of $66,500. What is the estimated amount of ending inventory at the end of the period? Multiple Choice ο ο ο ο $30,400 $57,000 $38,000 $19,000
Landis Company is preparing its financial statements. Gross margin is normally 40% of sales. Information taken from the company's records revealed sales of $60,000; beginning inventory of $6,000 and purchases of $42,000. What is the estimated amount of ending inventory at the end of the period? Multiple Choice O O O $19,200 $36,000 $12,000 $24,000
21. Williams Co. uses a periodic inventory system. The following are inventory transactions for the month of March: 3/1 Beginning Inventory 5,000 units at $2 3/7 Purchase 2,500 units at $3 3/16 Purchase 2,500 units at $4 3/26 Sales at $8 per unit 7,500 units Williams uses the weighted average method to determine the value of its inventory. What amount should Williams report as cost of goods sold on the income statement for the month of January?
Russell Retail Group begins the year with inventory of $55000 and ends the year with inventory of $45,000. During the year, the company has four purchases for the following amounts. Purchase on February 17 Purchase on May 6 Purchase on September 8 Purchase on December 4 $210,000 130,000 160,000 410,000 Required: Calculate cost of goods sold for the year.