Problem 10-10 (AICPA Adapted) At year-end, Kerr Company purchased goods costing P500,000 FOB destination. These goods were received at year-end. The costs incurred in connection with the sale and delivery of the goods were: Packaging for shipment Shipping Special handling charges, 10,000 15,000 25,000 What total cost should be included in inventory? a. 545,000 b. 535,000 C. 520,000 d. 500,000

Problem 10-10 (AICPA Adapted) At year-end, Kerr Company purchased goods costing P500,000 FOB destination. These goods were received at year-end. The costs incurred in connection with the sale and delivery of the goods were: Packaging for shipment Shipping Special handling charges, 10,000 15,000 25,000 What total cost should be included in inventory? a. 545,000 b. 535,000 C. 520,000 d. 500,000

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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8
Q10: What is 2021 Gross Margin Percentage?
(ADDITIONAL INFO) Sales 450,000 1,440,000 2,126,250 Ethel uses the estimated net realizable value method to allocate the joint cost. The cost of product E sold for the year ended July 31, 2021 is: a. 1,470,000 b. 1,440,000 c. 990,000 d. 1,350,000 The cost of ending inventory for product D is: a. 270,000 b. 225,000 c. 180,000 d. 540,000 The gross profit (loss) of product F is: a. 168,750 b. 101,250 c. 1,226,250 d. (483,750)
24,600 с. Finished goods RM28,840 Required: O Prepare statement of cost production for the year ended 31 December 2020. O Prepare statement of comprehensive income for the year ended 31 December 2020. Eng Tat is a manufacturer. His trial balance as at 31 December 2020 is as follows: Particulars Debit RM 1,760 Credit RM Delivery van expenses Lighting and heating: Factory Office Manufacturing wages General expenses: Factory Office Sales representatives : Commission Purchase of raw materials Rent: Factory Office Machinery (Cost : RM40,000) Office equipment (RM9,000) Office salaries Accounts receivables Account payables Bank Sales Van (cost RM6,800) Inventory at 3+December 2020: Raw materials Finished goods Drawings Capital 7,220 1,490 72,100 8,100 1,940 11,688 57,210 6,100 2,700 28,600 8,200 17,740 34,200 9,400 16,142 194,800 6,200 13,260 41,300 24,200 155,950 360,150 360,150 ТОTAL
What would be NUBD’s finished inventory cost at December 31, 2021 under the variable costing method? A. P 90,000 B. P 104,000 C. P 105,000 D. P 135,000
1. Gross Purchases 2. Net Purchases 3. Raw Materials put into production
Inventory P 1,900,000 Sales 6,500,000 Sales returns 150,000 Cost of goods sold 4,600,000 Inventory losses 120,000 On December 24, the entity recorded a P 150,000 credit sales of goods costing P 100,000. These goods were sold on FOB destination point terms and were in transit on December 31. The goods were included in the physical count. The inventory on December 31 determined by physical count has a cost of P 2,000,000 and a net realizable value of P 1,700,000. Any inventory write down is not yet recorded. What amount should be reported as Cost of Goods Sold for 2020? P 5,020,000 P 4,500,000 C. P 4,720,000 D. P 4,920,000
View Policies Current Attempt in Progress Whispering Winds Corporation uses a perpetual inventory system and had inventory worth $88,500 at the beginning of the year. Purchases were made during the year for $393,000; however, 10% of these goods were returned to the supplier, and a 3% discount was taken on the remaining balance owing. Whispering Winds paid $3,500 cash for freight to ship the inventory to its location during the year. Whispering Winds reported cost of goods sold for the year of $295,000. Whispering Winds has a calendar year end. What is the balance in the inventory account at the end of the year? Balance If Whispering Winds counted its actual inventory balance as $118,000 at the end of the year, what adjusting entry, if any, would be made? (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit…
Subject-Accounting
Item 13 A company has determined its year-end inventory on a FIFO basis to be $530,000. Information pertaining to that inventory is as follows: Selling price $ 535,000 Costs to sell 37,500 Replacement cost 462,500 What should be the reported value of inventory if the company prepares its financial statements according to International Financial Reporting Standards (IFRS)?
1. Cost: Research expenditures incurred last year, related to new product Decision: Product introduction to marketplace Relevant or Irrelevant? 2. Cost: $4 million advertising program Decision: Whether to promote product A or B with the $4 million program Relevant or Irrelevant? 3. Cost: Manufactured cost of existing inventory Decision: Whether to discard the goods or sell them to a third-world country Relevant or Irrelevant?