National Distributing Company uses a periodic inventory system to track its merchandise inventory and the grossprofit method to estimate ending inventory and cost of goods sold for interim periods. Net purchases for themonth of August were $31,000. The July 31 and August 31, 2016, financial statements contained the followinginformation:Income StatementsFor the Months EndingAugust 31, 2016July 31, 2016Net sales$50,000$40,000Balance SheetsAtJuly 31, 2016August 31, 2016Assets:Merchandise inventory$28,000$27,000Required:Determine the company's cost percentage.

Compute the cost of goods sold:

Answered: National Distributing Company uses a…

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

SCC Company reported the following for the current year: $ 52,000 45,900 2,400 8,400 Net sales Cost of goods sold Beginning balance in inventory Ending balance in inventory Compute (a) Inventory turnover and (b) days' sales in Inventory. Hint Inventory turover uses average Inventory and days' sales in Inventory uses the ending balance in Inventory. Complete this question by entering your answers in the tabs below. Inventory Days Sales In Turnover Inventory Compute the inventory turnover. Numerator: 1 1 1 Inventory Turnover Denominator:
The following information is available for Sandhill Co. for three recent fiscal years. 2017 2016 2015 Inventory $562,019 $571,288 $327,592 Net sales 1,955,632 1,697,750 1,304,721 Cost of goods sold 1,522,434 1,280,731 939,086 Calculate the inventory turnover, days in inventory, and gross profit rate for 2017 and 2016. (Round inventory turnover to 1 decimal place, e.g. 5.2, days in inventory to 0 decimal places, e.g. 125 and gross profit rate to 1 decimal place, e.g. 5.2%.) 2017 2016 Inventory Turnover times times Days in Inventory days days Gross Profit Rate % %
Periodic Inventory System Raynolde Company uses a periodic inventory system. At the end of 2016, the following information is available: Purchase returns and allowances $ 1,400 Inventory, 12/31/2016 11,900 Purchases 21,200 Inventory, 1/1/2016 10,800 Purchases discounts 600 Required: Prepare a schedule to compute Raynolde Company's cost of goods sold for 2016. RAYNOLDE COMPANY Cost of Goods Sold Schedule For the Year Ended December 31, 2016
Raleigh Department Store uses the conventional retail method for the year ended December 31, 2016. Available information follows: The inventory at January 1, 2016, had a retail value of $36,000 and a cost of $29,570 based on the conventional retail method. Transactions during 2016 were as follows: Cost Retail Gross purchases $ 165,860 $ 400,000 Purchase returns 5,600 29,000 Purchase discounts 4,100 Gross sales 323,000 Sales returns 10,000 Employee discounts 3,500 Freight-in 30,000 Net markups 16,000 Net markdowns 29,000 Sales to employees are recorded net of discounts. The retail value of the December 31, 2017, inventory was $87,450, the cost-to-retail percentage for 2017 under the LIFO retail method was 67%, and the appropriate price index was 106% of the January 1, 2017, price level. The retail value of the December 31, 2018, inventory was $41,965, the cost-to-retail…
Required information [The following information applies to the questions displayed below.] Laker Company reported the following January purchases and sales data for its only product. For specific identification, ending inventory consists of 200 units from the January 30 purchase, 5 units from the January 20 purchase, and 25 units from beginning inventory. Date January 1 January 10 January 20 January 25 January 30 Activities Beginning inventory Sales Purchase Sales Purchase Totals Assume the perpetual inventory system is used. Required: Sales Cost of goods sold Gross profit LAKER COMPANY For Month Ended January 31 Weighted Average Units Acquired at Cost $ 7.50 = Specific Identification 150 units @ 80 units 0 $ 0 $ 200 units 430 units @ @ 3. Does gross profit using weighted average fall between that using FIFO and LIFO? 4. If costs were rising instead of falling, which method would yield the highest gross profit? FIFO $ 6.50 = Compute gross profit for the month of January for Laker…
Calculate the ending inventory at cost using the retail method (round cost-to-retail ratio to 2 decimals and final answer to 0 decimals). Keep in mind the ending inventory at October 31, 2023, at retail prices, is $82, 600.
None
Joru
Use the following financial information to find the entry you would make on an income statement for TOTAL OPERATING EXPENSES for the year ended December 31, 2008: Gross sales, $262,000; sales returns and allowances, $13,300; sales discounts, $2,400. Merchandise inventory, Jan. 1, 2008, $50,800; merchandise inventory, Dec. 31, 2008, $85,900; net purchases, $95,200; freight in, $625; salaries, $89,700; rent, $19,100; utilities, $1,300; insurance, $2,100; and income tax, $18,700. Use parentheses to show a loss

Recommended textbooks for you

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis…

Accounting

ISBN:

9780134475585

Author:

Srikant M. Datar, Madhav V. Rajan

Publisher:

PEARSON

Intermediate Accounting

Accounting

ISBN:

9781259722660

Author:

J. David Spiceland, Mark W. Nelson, Wayne M Thomas

Publisher:

McGraw-Hill Education

Financial and Managerial Accounting

Accounting

ISBN:

9781259726705

Author:

John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS