„Problem 13-14 (AICPA Adapted) L What is the amount of gross profit for the eleven months ended May 31, 2020? In conducting an audit of Ultimate Company for the year ended June 30, 2020, the CPA observed the physical inventory at an interim date, May 31, 2020, instead of at year end. a 1,680,000 b 1,725,000 c. 1,735,000 d. 1,670,000 The following information was obtained from the general ledger. 2 What is the amount of sales for the month of June? Inventory, July 1, 2019 Physical inventory, May 31, 2020 Sales for 11 months ended May 31, 2020 Sales for year ended June 30, 2020 Purchases for 11 months ended May 31, 2020 before audit adjustments Purchases for year ended June 30, 2020 before audit adjustments 875,000 950,000 8,400,000 9,600,000 1,100,000 b. 1,200,000 c. 1,300,000 d. 1,400,000 . What is the cost of goods sold for the month of June ? 8. 6,750,000 8,000,000 1. Shipments received in May and included in the physical inventory but recorded as June purchases a. 960,000 b. 880,000 c. 980,000 d. 950,000 75,000 b. Shipments received in unsalable condition and exduded from physical inventory. Credit memos had not been received nor had chargebacks to vendors been recorded: 4 What is the inventory on June 30, 2020: Total at May 31, 2020 Total at June 30, 2020, including the May unrecorded chargebacks a 1,160,000 b. 1,240,000 c. 1,340,000 d. 1,140,000 10,000 15,000 c. Deposit made with vendor and charged to purchases in Ápril, 2020. Product was shipped in July, 2020 - 20,000 d. Deposit made with vendor and charged to purchases in May, 2020. Product was ahipped FOB destination, on May 29, 2020 and was included in May 31, 2020 physical inventory as goods in transit 55,000 e. Through the careleseness of the receiving department aJune shipment was damaged by rain. This ehipment was later sold in June at ite cost of 100,000
„Problem 13-14 (AICPA Adapted) L What is the amount of gross profit for the eleven months ended May 31, 2020? In conducting an audit of Ultimate Company for the year ended June 30, 2020, the CPA observed the physical inventory at an interim date, May 31, 2020, instead of at year end. a 1,680,000 b 1,725,000 c. 1,735,000 d. 1,670,000 The following information was obtained from the general ledger. 2 What is the amount of sales for the month of June? Inventory, July 1, 2019 Physical inventory, May 31, 2020 Sales for 11 months ended May 31, 2020 Sales for year ended June 30, 2020 Purchases for 11 months ended May 31, 2020 before audit adjustments Purchases for year ended June 30, 2020 before audit adjustments 875,000 950,000 8,400,000 9,600,000 1,100,000 b. 1,200,000 c. 1,300,000 d. 1,400,000 . What is the cost of goods sold for the month of June ? 8. 6,750,000 8,000,000 1. Shipments received in May and included in the physical inventory but recorded as June purchases a. 960,000 b. 880,000 c. 980,000 d. 950,000 75,000 b. Shipments received in unsalable condition and exduded from physical inventory. Credit memos had not been received nor had chargebacks to vendors been recorded: 4 What is the inventory on June 30, 2020: Total at May 31, 2020 Total at June 30, 2020, including the May unrecorded chargebacks a 1,160,000 b. 1,240,000 c. 1,340,000 d. 1,140,000 10,000 15,000 c. Deposit made with vendor and charged to purchases in Ápril, 2020. Product was shipped in July, 2020 - 20,000 d. Deposit made with vendor and charged to purchases in May, 2020. Product was ahipped FOB destination, on May 29, 2020 and was included in May 31, 2020 physical inventory as goods in transit 55,000 e. Through the careleseness of the receiving department aJune shipment was damaged by rain. This ehipment was later sold in June at ite cost of 100,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:I What is the amount of gross profit for the eleven months
2 What is the amount of sales for the month of June?
a What is the cost of goods sold for the month of June ?
at an interim date, May 31, 2020, instead of at year end.
ended June 30, 2020, the CPA observed the physical inventory
The following information was obtained from the general
„Problem 13-14 (AICPA Adapted)
ended May 31, 2020?
year
In conducting an audit of Ultimate Company for the
a 1,680,000
b. 1,725,000
C. 1,735,000
d. 1,670,000
ledger.
Inventory, July 1, 2019
Physical inventory, May 31, 2020
Sales for 11 months ended May 31, 2020
Sales for year ended June 30, 2020
Purchases for 11 months ended May 31, 2020
before audit adjustments
Purchases for year ended June 30, 2020
before audit adjustments
875,000
950,000
8,400,000
9,600,000
в. 1,100,000
b. 1,200,000
c. 1,300,000
d. 1,400,000
er 14
6,750,000
8,000,000
1. Shipments received in May and included in the
physical inventory but recorded as June purchases
a. 960,000
b. 880,000
c. 980,000
d. 950,000
75,000
b. Shipments received in unsalable condition and
exduded from physical inventory. Credit memos
had not been received nor had chargebacks to
vendors been recorded:
A What is the inventory on June 30, 2020
a. 1,160,000
b. 1,240,000
c. 1,340,000
d. 1,140,000
10,000
Total at May 31, 2020
Total at June 30, 2020, including the May
unrecorded chargebacks
15,000
c. Deposit made with vendor and charged to purchases
in Ápril, 2020. Product was shipped in July, 2020 -
20,000
d. Deposit made with vendor and charged to purchases
in May, 2020. Product was shipped FOB destination,
on May 29, 2020 and was included in May 31, 2020
physical inventory as goods in transit
55,000
e. Through the carelessness of the receiving department
a June shipment was damaged by rain. This shipment
was later sold in June at its cost of
100,000
376
377
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