Problem 13-11 (IAA) Wholesome Company sold merchandise on a consignment basis to dealers. The gross profit was 25% above cost. The dealer is paid a 10% commission of the sales price for all sales made. All dealer sales are made on a cash basis. The following consignment activities occurred during the current year: Manufacturing cost of goods shipped on consignment Sales price of merchandise sold by dealers Payments remitted by dealers after deducting commission 8,800,000 9,600,000 6,300,000 What was the gross profit on 'consignment sales? a. 2,400,000 b. 1,920,000 c. 1,700,000 d. 1,220,000

Problem 13-11 (IAA) Wholesome Company sold merchandise on a consignment basis to dealers. The gross profit was 25% above cost. The dealer is paid a 10% commission of the sales price for all sales made. All dealer sales are made on a cash basis. The following consignment activities occurred during the current year: Manufacturing cost of goods shipped on consignment Sales price of merchandise sold by dealers Payments remitted by dealers after deducting commission 8,800,000 9,600,000 6,300,000 What was the gross profit on 'consignment sales? a. 2,400,000 b. 1,920,000 c. 1,700,000 d. 1,220,000

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

DSWD purchased goods for distribution on account with list price amounting to P100,000. The supplier granted trade discounts of 20% and 10%, with credit terms of 5/10, n/30. Payment was made 15 days after the date of purchase. Compute the cost of purchased goods for distribution
Question 1
None
8
E 7-8 Sales returns ⒸLO7-4 Halifax Manufacturing allows its customers to return merchandise for any reason up to 90 days after delivery and receive a credit to their accounts. All of Halifax's sales are for credit (no cash is collected at the time of sale). The company began 2024 with a refund liability of $300,000. During 2024, Halifax sold merchandise on account for $11,500,000. Halifax's merchandise costs are 65% of merchandise selling price. Also during the year, customers returned $450,000 in sales for credit, with $250,000 of those being returns of merchandise sold prior to 2024, and the rest being merchandise sold during 2024. Sales returns, estimated to be 4% of sales, are recorded as an adjusting entry at the end of the year. Required: 1. Prepare entries to (a) record actual returns in 2024 of merchandise that was sold prior to 2024; (b) record actual returns in 2024 of merchandise that was sold during 2024; and (c) adjust the refund liability to its appropriate balance at…
9
PROBLEM 23-10A IS MY QUESTION. POSTED 23-9A FOR REFERENCE FOR 23-10A. Problem 23-9A: Zowine Company's condensed income statement for the year ended December 31, 20-2, was as follows: Net sales 765,000 Cost of goods sold 550,000 Gross profit 215,000 Operating expenses 30,000 Income before taxes 185,000 Income tax expense 65,000 Net income 120,000 Additional information obtained from Zowine's comparative balance sheets as of December 31, 20-2 and 20-1, was as follows: 20-2 20-1 Cash $60,000 $ 20,000 Accounts receivable 70,000 100,000 Merchandise inventory 80,000 125,000 Accounts payable 55,000 90,000 Required Prepare a partial statement of cash flows reporting cash provided by operating activities for the year ended December 31, 20-2. (NO ANSWER IS NEEDED FOR THIS... REFER TO BELOW) Refer to Problem 23-9A (above). The following additional information was obtained from Zowine's financial statements and auxiliary records for…
7
The following is the year ended data for Tiger Company: Sales Revenue $58,000 Cost of Goods Manufactured 21,000 Beginning Finished Goods Inventory 1,100 Ending Finished Goods Inventory 2,200 Selling Expenses 15,000 Administrative Expenses 3,900 What is the gross profit? A. $22,100 B. $38,100 C. $19,200 D.
The following is the year ended data for Tiger Company: Sales Revenue Cost of Goods Manufactured Beginning Finished Goods Inventory Ending Finished Goods Inventory Selling Expenses Administrative Expenses What is the cost of goods available for sale? O A. $5,700 OB. $29,300 OC. $26,700 O D. $24,300 $51,000 28,000 1,300 2,600 15,100 3,500