Layla Company uses the periodic inventory system. Layla started the period with $22,000 in inventory. The Company purchased an additional $25,000 of merchandise and returned $3,000 for a full credit.If Layla's cost of goods sold during the period was $31,000, what must have been the total of the physical inventory count?

Periodic Inventory System: Under this system, the balance of the merchandise inventory is not…

Answered: Layla Company uses the periodic…

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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You have the following information for Swifty Inc. Swifty Inc. uses the periodic method of accounting for its inventory transactions. March March March 1 Beginning inventory 2,200 liters at a cost of 70¢ per liter. 3 Purchased 2,500 liters at a cost of 74¢ per liter. Sold 2,300 liters for $1.05 per liter. Purchased 4,000 liters at a cost of 81¢ per liter. Purchased 2,300 liters at a cost of 89¢ per liter. Sold 5,200 liters for $1.25 per liter. (a1) 5 March 10 March March 30 20 Calculate the value of ending inventory that would be reported on the balance sheet, under each of the following cost flow assumptions. (Round answers to 2 decimal places, e.g. 125.50.) (1) Specific identification method assuming: (i) The March 5 sale consisted of 1,000 liters from the March 1 beginning inventory and 1,300 liters from the March 3 purchase; and (ii) The March 30 sale consisted of the following number of units sold from beginning inventory and each purchase: 450 liters from March 1; 550 liters from…
Jessie Stores uses the periodic system of calculating inventory. The following information is available for December of the current year when Jessie sold 500 units of inventory. units cost/unit total Cost Inventory, Dec. 1 - 300 250 75000 Purchases, Dec. 8 - 600 275 165000 900 240000 Using the FIFO method, calculate Jessie’s inventory on December 31 and its cost of goods sold for December.
Larkspur, Inc. uses a perpetual inventory system. Its beginning inventory consists of 210 units that cost $210 each. During August, the company purchased 310 units at $210 each, returned 6 units for credit, and sold 410 units at $ 360 each. Journalize the August transactions. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit (To record purchase of inventory) (To record purchase return of inventory) (To record sales)
The Boxwood Company sells blankets for $ 31.00 each. The following was taken from the inventory records during May. The company had no beginning inventory on May 1. Date Blankets Units Cost May 03 Purchase 9 $15.00 May 10 Sale 3 May 17 Purchase 15 $18.00 May 20 Sale 6 May 23 Sale 2 May 30 Purchase 8 $22.00 Assuming that the company uses the perpetual inventory system, determine the cost of goods sold for the sale of May 20 using the LIFO inventory cost method. Select the correct answer. $108.00 $45.00 $36.00 $176.00
A company uses a periodic inventory system. The beginning inventory was $20,000, purchases amounted to $110,000, sales totaled $215,000, and the year-end inventory was $25,000. The cost of goods sold must have been: a $100,000. b $105,000 c $110,000. d some other amount.
Cost of Goods Sold and the Periodic System Kanzu Company uses the periodic inventory system. Kanzu started the period with $10,000 in inventory. The Company purchased an additional $25,000 of merchandise, and returned $1,000 for a full credit. A physical count of inventory at the end of the period revealed that there was an ending inventory balance of $8,000 What was Kanzu's cost of goods sold during the period?
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Top Purse Company applies the periodic inventory system using the specific identification method. The company had the following transactions related to its best selling purse. Date Transaction Units Unit Cost Total Cost November 1 Beginning inventory 5 300 1,500 November 3 Sale 2 November 8 Purchase 9 320 2,880 November 10 Sale 4 November 17 Purchase 3 340 1,020 Compute the cost of goods sold for the best selling purse based on the following: The November 3rd sale consists of purses from beginning inventory. The November 10th sale consists of 1 purse from beginning inventory and 3 purses from the November 8th purchase.
Deala Ltd. (DL) is a retailer of office equipment. The company uses a periodic inventory system and on October 1 had 1,900 units of inventory with a total cost of $41,800. During the month of October, DL had the following inventory-related transactions: Date Oct. 9 12 17 25 Oct. 31 28 Explanation Purchase Purchases Sale Purchase: Cost of ending inventory Cost of goods sold Inventory Sale Purchases Cost of Goods Sold Units 5,100 $ Inventory 4.400 Date Account Titles and Explanation (5,100) 4,100 (6.300 Y Calculate ending inventory at October 31 and cost of goods sold for the month assuming that DL used (1) FIFO and (2) average cost. (Round average cost per unit to 2 decimal places, e.g. 50.25 and all other answers to the nearest whole dollar, e.g. 5,275.) FIFO Unit Cost/Price $23.00 93480 22.50 258100 38.00 22.80 38.00 Total Cost $117,300 99,000 Assuming the company uses FIFO, record the adjusting journal entry needed at the end of October to update the Inventory and Cost of Goods Sold…
The Boxwood Company sells blankets for $38 each. The following was taken from the inventory records during May. The company had no beginning inventory on May 1. Date Blankets Units Cost May 3 Purchase 8 $18 10 Sale 3 17 Purchase 15 $17 20 Sale 6 23 Sale 2 30 Purchase 12 $21 Assuming that the company uses the perpetual inventory system, determine the cost of goods sold for the sale of May 20 using the LIFO inventory cost method.
Adler Inc. has the following information for four inventory items, reported using the retail method, on July 31. The normal profit margin is 20% of selling price. Cost to Sell Cost per Replacement Cost Item Selling Price per No. Quantity Unit per Unit Unit per Unit #101 80 $20 $5 $15 $12 #102 50 22 4 14 15 #211 30 35 5 30 28 #212 40 40 8 28 35 Required Determine the inventory cost to report on the balance sheet on July 31 assuming that the company applies the lower of cost or market value rule to each individual inventory item. Note Do not use any negative signs with your answers. Per Unit Total Total Cost Cost to Cost Replacement Total Sell per Replacement Ceiling Floor Market Cost Lower of Selling Price Item per per No. Quantity Unit Unit Unit per Unit Cost #101 80 $20 $5 $15 $12 $ 0 $ #102 50 22 #211 30 35 45 14 15 0 30 28 0 #212 40 40 8 28 35 0 000 O 0 ос 00 Cost or Market 0 $ 0 $ 0 $ 0 $ 0 0 0 0 0 0 0 0 0 0 $ 0 $ 0 $ 0
The XZ Ltd. is a retailer and uses the Perpetual Inventory System. The below information is available regarding the purchases and sales activities: Purchase price: $4.20 Selling price: $5.70 Purchase discount (paid in 10 days): 6% Sales discount (received in 15 days): 10% Calculate the correct entries for its business activities. The XZ purchased 300 units on credit from AA on the 2nd of July. The XZ sold 200 units on credit to DSX on the 3rd of July. The XZ returned 50 defective units to AA on the 9th of July. The XZ paid cash to AA on the 11th of July. DSX paid its purchase on the 12th of July.

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