Prepare a statement of cost of goods sold and gross profit
Q: The following were selected from among the transactions completed by Babcock Company during November…
A: Journal entries refers to the entries which are passed at the year end for the transactions incurred…
Q: Based on the information that follows, prepare the cost of goods sold section of a multiple-step…
A: Cost of goods manufactured means the cost incurred for manufacturing the finished product. Cost of…
Q: Prepare closing entries. (List all debit entries before credit entries. Credit account titles are…
A: JOURNAL ENTRIES Journal Entry is the First stage of Accounting Process. Journal Entry is the Process…
Q: The June 30, 2024, year-end trial balance for Askew Company contained the following information:…
A: Cost of goods sold (COGS) is the direct costs incurred in the production of goods that a company…
Q: Sarasota Company uses the gross profit method to estimate Inventory for monthly reporting purposes.…
A: COST OF GOODS MANUFACTUREDCost Of Goods Manufactured is the cost which is Directly or Indirectly…
Q: The accounting records of Sage Hill Electronics show the following data. Beginning inventory…
A: FIFO: First-In First Out:- As per FIFO method, units purchased first are sold first. Hence,…
Q: a. Sold merchandise on account, $13,100, with terms 2/10, net 30 on December 26. The cost of the…
A: Perpetual inventory system is a inventory system in which purchases and sales of inventory are…
Q: Prepare journal entries to record each of the following sales transactions of a merchandising…
A: Journal entry is the first step of bookkeeping . All transactions incurred during the period are…
Q: Apr. 1 Sold merchandise for $3,800, with credit terms n/30; invoice dated April 1. The cost of the…
A: A Journal entry is a primary entry that records the financial transactions initially. The…
Q: Perform a vertical analysis for the entry "Sales Returns and Allowances" on the portion of an income…
A: VERTICAL ANALYSIS OF BALANCE SHEETVertical analysis is a proportional analysis of financial…
Q: . Sold merchandise on account, $12,900, with terms 2/10, net 30 on December 26. The cost of the…
A: A journal entry is a form of accounting entry that is used to report a business transaction in a…
Q: Prepare journal entries to record each of the following sales transactions of a merchandising…
A: The procedure of entering business transactions for the first moment in the books of accounts is…
Q: Courtney Company uses a periodic inventory system. The following data was available: beginning…
A: An organization's sales, costs, and net income (or net loss) are part of the income statement or…
Q: Assume that Sunland Company uses a periodic inventory system and has these account balances:…
A: Calculate cost of goods sold and gross profit:
Q: The following data are available for Sellco for the fiscal year ended on January 31, 2023: Sales…
A: FIFO is first in first out which means inventory bought first is sold first.LIFO is last in first…
Q: The following were selected from among the transactions completed by Babcock Company during November…
A: A journal entry is a form of accounting entry that is used to report a business transaction in a…
Q: Assume that Whispering Winds Company has cost of goods purchased of $478,300, beginning inventory of…
A: Gross profit = Net sales - Cost of goods sold where, Cost of goods sold = beginning inventory + cost…
Q: Nix’It Company’s ledger on July 31, its fiscal year-end, includes the following selected accounts…
A: Inventory shrinkage indicates loss of inventory by normal wear and tear e.g. due to evaporation in…
Q: A company uses the perpetual inventory system and the gross method of accounting for purchases and…
A: Perpetual inventory system is that inventory system under which all transactions related to…
Q: Courtney Company uses a periodic Inventory system. The following data were available: beginning…
A: Inventory management:Inventory management refers to the system of ordering, storing, and, using the…
Q: Skysong Company uses the gross profit method to estimate inventory for monthly reporting purposes.…
A: Ending inventory is the amount of inventory that an entity has in hand at the end of the period. It…
Q: The following information is from Gbane Company's accounting records for the year ended December 31:…
A: Cost of goods sold (COGS) represents the direct costs associated with producing the goods or…
Q: Carla Vista Corp. offers three-year, 6% convertible bonds (par $1,000). Each $1,000 bond may be…
A: Journal entry is passed to record the transactions of all types that happen in the daily course of…
Q: Using the accounts and amounts below, calculate Cost of Goods Sold: Account Amount Beginning…
A: Cost of goods sold = Beginning inventory + cost of goods purchased - ending inventory
Q: Journalize the following transactions for Allen Company using the gross method of accounting for…
A: Formula = Cost of merchandise returned = Total sale value of merchandise returned × cost…
Q: Journalize the following transactions for Cox Company using the gross method of accounting for sales…
A: The journal entries keep the record for inventory on different basis such as perpetual or periodic.
Q: The accounting records of Kingbird Electronics show the following data. Beginning inventory…
A: Cost of goods sold using FIFO Method is $71190Cost of goods sold using LIFO Method is $74410Cost of…
Q: Hayes Company had the following account balances at the end of the year: Beginning Inventory O…
A: The gross profit margin is the excess of revenue over the cost of goods sold. The income statement…
Q: papers presented below. Also following are a series of transactions for Sheridan Co. for the month…
A: Sales journal refers to the form of a ledger account that reflects the overall sales transactions of…
Q: The following information was available from the inventory records of Jun Company for January: Unit…
A: Weighted Average Method is one of the methods of inventory valuation in which it is assumed that…
Q: At the end of January of the current year, the records of Donner Company showed the following for a…
A: There are two inventory costing methods namely the Periodic Method and the Perpetual Method:Under…
Q: The accounting records of Larkspur Electronics show the following data. Beginning inventory 3,000…
A: INVENTORY VALUATION Inventory Valuation is a Method of Calculation of Value of Inventory at the End…
Q: Based upon the following data for a business with a periodic inventory system, determine the cost of…
A: Cost of goods sold means the total cost of our service which we are providing or the product cost…
Q: Sheridan Co. uses a perpetual inventory system and both an accounts receivable and an accounts…
A: Account receivable: - Account receivable is the total amount of money that is due to the firm for…
Q: The accounting records of Sheridan Company show the following data. Beginning inventory 2,710…
A: Weighted Average Method is one of the methods of inventory valuation in which it is assumed that…
Q: The records of Sheridan Stores provided the following data for the year: Cost Retail (Base…
A: The given details are, Freight = $16,000 Net markups = $8,000 Net markdowns = $6,500 Price index =…
Q: Donaldson Corporation uses a periodic inventory system. On January 1, inventory is $253,000. On…
A: The objective of the question is to determine the correct journal entries to record the sale of…
Q: The following units of a particular item were available for sale during the calendar year: Jan. 1…
A: The first in first out method is an inventory valuation method according to which the first…
Q: ase Returns and Allowances $250,000; Purchase Discounts $11,000; and Freight-In $19,000; beginning…
A: Answer : a) Cost of good sold : Cost of good sold = Opening inventory + Net purchase + Direct…
Q: Using the following data taken from Payton Inc. which uses a periodic inventory system to answer…
A: Periodic inventory system: The method or system of recording the transactions related to inventory…
Q: At the end of January of the current year, the records of Donner Company showed the following for a…
A: There are two inventory costing methods namely the Periodic Method and the Perpetual Method:Under…
Q: Prepare a properly-formatted Income Statement using the periodic method of inventory control using…
A: Introduction: Income statement: All revenues and expenses are shown in income statement. It tells…
Q: SCC Company reported the following for the current year: Net sales $ 52,000 45,900 Cost of goods…
A: Ratio analysis helps to analyze the financial statements of the company. The management can take…
The accounts of Entity A on December 31, show the following balances:
Gross sales - 5,800,000
Sales returns - 116, 000
Sales discounts - 1,160, 000
Gross purchases - 2, 200, 000
Freight - in - 110, 000
Purchase discounts - 66, 000
Purchase returns - 22,000
Inventory, beg - 460, 000
Inventory , end - 320, 000
Requirement: Prepare a statement of cost of goods sold and gross profit
Step by step
Solved in 2 steps
- The following information is available for a company: Beginning inventory $ 33,000 Inventory purchases (on account) 163,000 Freight charges on purchases (paid in cash) 18,000 Inventory returned to suppliers (for credit) 20,000 Ending inventory 38,000 Sales (on account) 258,000 Cost of inventory sold 156,000 Required: Applying both a perpetual and a periodic inventory system, prepare the journal entries that summarize the transactions that created these balances. Include all end-of-period adjusting entries indicated. Record merchandise purchased on account for $163,000. Record the payment of $18,000 in cash for freight charges. Record merchandise returned to supplier for credit of $20,000. Record sales on account of $258,000. Record cost of merchandise sold of $156,000.Sandhill 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 Purchases (gross) Freight in Sales revenue Sales returns Purchase discounts (a) $156,000 576,100 (b) 29,300 998,400 72,100 11.900 Your answer is correct Compute the estimated Inventory at May 31, assuming that the gross profit is 25% of sales The estimated inventory at May 31 $ eTextbook and Media The estimated inventory at May 31 54775 $ Assistance Used Compute the estimated inventory at May 31, assuming that the gross profit is 25% of cost Round percentage of sales to 2 decimal places, eg 78.74% and final answer to 0 decimal places, eg 6,225) Attempts: 1 of 12 usedThe accounting records of Kingbird Electronics show the following data. Beginning inventory 2,400 units at $5 Purchases 6,400 units at $7 Sales 7,500 units at $10 Determine cost of goods sold during the period under a periodic inventory system using the FIFO method. (Round answer to 0 decimal places, e.g. 1,250.) FIFO Cost of goods sold during the period $enter a dollar amount
- Shore Co. sold merchandise to Blue Star Co. on account, $32,400, terms FOB shipping point, 2/15, n/30. The cost of the goods sold is $17,500. Shore paid freight of $900. Journalize the entries for Shore and Blue Star for the sale, purchase, and payment of amount due, using the net method under a perpetual inventory system. Refer to the appropriate company’s Chart of Accounts for exact wording of account titles.The following are the transactions for the month of July. Units Unit Cost Unit Selling Price July 1 Beginning Inventory 55 $ 10 July 13 Purchase 275 11 July 25 Sold (100 ) $ 14 July 31 Ending Inventory 230 Calculate cost of goods available for sale and ending inventory, then sales, cost of goods sold, and gross profit, under FIFO. Assume a periodic inventory system is used. How would i creat a FIFO periodic table?At the end of January of the current year, the records of Donner Company showed the following for a particular item that sold at $15.20 per unit: Transactions Units Inventory, January 1 Purchase, January 12. 560 Amount $1,792 540 Purchase, January 26 140 2,808 1,008 Sale Sale (420) (200) Required: 1a. Assuming the use of a periodic inventory system, compute Cost of Goods Sold under each method of inventory: average cost, FIFO, LIFO, and specific identification. For specific identification, assume that the first sale was selected from the beginning inventory and the second sale was selected from the January 12 purchase. 1b. Assuming the use of a periodic inventory system, prepare a partial income statement under each method of inventory: (a) average cost, (b) FIFO, (c) LIFO, and (d) specific identification. For specific identification, assume that the first sale was selected from the beginning inventory and the second sale was selected from the January 12 purchase. 2a. Between FIFO and…
- Using the following information, answer the questions. Net sales $198,000 Purchases 92,000 Purchases returns and allowances 1,800 Purchases discounts 1,250 Freight-in 1,590 Merchandise inventory, beginning of period 63,000 Merchandise inventory, end of period 37,000 Determine the cost of goods sold.A company has a beginning inventory of $20,000, purchases of $30,000, and sales of $40,000. Calculate the cost of goods sold and ending inventory using the periodic inventory system and the average cost method.Global Company sold merchandise for $11,700 on account. The cost of the items sold was $7,900. If the company uses the perpetual inventory system, which of the following best reflects the journal entry that should be prepared to record this transaction? Debit Credit A. Sales revenue 11,700 Accounts receivable 11,700 Cost of goods sold 7,900 Merchandise inventory 7,900 B. Accounts receivable 11,700 Merchandise inventory 7,900 Sales revenue 3,800 C. Accounts receivable 3,800 Sales revenue 3,800 D. Accounts receivable 11,700 Sales revenue 11,700 Cost of goods sold 7,900 Merchandise inventory 7,900 Group of answer choices A. B. C. D.
- Journalize the following transactions for Jackson Company using the gross method of accounting for sales discounts. Assume a perpetual inventory system. Also, assume a constant gross profit ratio for all items sold. Make sure to enter the day for each separate transaction. Sold goods costing $5,400 to Lewis Company on account, $9,000, terms 5/10, n/30. March 2 March 8 Lewis Company was granted an allowance of $540 for returned merchandise that was previously purchased on account. The returned goods are in perfect condition. March 13 Received the amount due from Lewis Company. Date Account Title Debit CreditAyayai Company had the following account balances at year-end: Cost of Goods Sold $63,840; Inventory $14,610; Operating Expenses $30,650; Sales Revenue $121,130; Sales Discounts $1,130; and Sales Returns and Allowances $1,850. A physical count of inventory determines that merchandise inventory on hand is $13,080.The accounting records of Concord Corporation show the following data. 2,820 units at $7 Beginning inventory Purchases 8,120 units at $9 Sales 9,838 units at $12 Calculate average unit cost. (Round answer to 3 decimal places, e.g. 5.125.) Average unit cost per unit $4 SHOW LIST OF ACCOUNTS LINK TO TEXT Determine cost of goods sold during the period under a periodic inventory system using the FIFO method, the LIFO method, and the average-cost method. (Round answers to 0 decimal places, e.g. 125.) FIFO LIFO Average-cost Cost of goods sold $ $1
