PROBLEM 19: San Juan Manufacturing began operations 5 years ago. On August 13, 2021, a fire broke out in the warehouse destroying all inventory and many records relating to the inventory. The information available is presented below (all sales and purchases are on account): 1/1/2021 P 143,850 130,590 88,140 8/13/2021 Inventory Accounts receivable Accounts payable Collections on accounts P 128,890 122,850 receivable, 1/1 to 8/13 753,800 Payments to suppliers, 1/1 to 8/13 Goods out on consignment at 8/13 at cost 487,500 52,900 Summary on previous years' sales follows: 2019 P 626,000 P705,000 P 680,000 225,600 2018 2020 Sales Gross profit 187,800 231,200 24. What is the inventory loss suffered as a result of the fire if the average gross profit rate is used? 25. What is the inventory loss suffered as a result of the fire if the trend in gross profit rate continues?

PROBLEM 19: San Juan Manufacturing began operations 5 years ago. On August 13, 2021, a fire broke out in the warehouse destroying all inventory and many records relating to the inventory. The information available is presented below (all sales and purchases are on account): 1/1/2021 P 143,850 130,590 88,140 8/13/2021 Inventory Accounts receivable Accounts payable Collections on accounts P 128,890 122,850 receivable, 1/1 to 8/13 753,800 Payments to suppliers, 1/1 to 8/13 Goods out on consignment at 8/13 at cost 487,500 52,900 Summary on previous years' sales follows: 2019 P 626,000 P705,000 P 680,000 225,600 2018 2020 Sales Gross profit 187,800 231,200 24. What is the inventory loss suffered as a result of the fire if the average gross profit rate is used? 25. What is the inventory loss suffered as a result of the fire if the trend in gross profit rate continues?

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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101- Final Exam Part The Boxwood Company sells blankets for $34 each. The following was taken from the inventory records during May. The company had no beginning inventory on Ma Date Blankets Units Cost May 3 Purchase 10 $16 Sale 4 17 Purchase 14 $17 20 Sale 4 Sale 3 23 Purchase 12 $20 Assuming that the company uses the perpetual inventory system, determine the May 31 inventory balance using the FIFO inventory cost method. a. $500 Ob. $400 C. $461 Od. $425 All work saved.
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3A company with an accounting date of 31 October carried out a physical check of inventory on 4 November 20X3, leading to an inventory value at cost at this date of $483,700. Between 1 November 20X3 and 4 November 20X3 the following transactions took place: (1) Goods costing $38, 400 were received from suppliers. (2) Goods that had cost $ 14,800 were sold for $20,000. (3) A customer returned, in good condition, some goods which had been sold to him in Octoberfor $600 and which had cost $400. (4) The company returned goods that had cost $1,800 in October to the supplier, and received a credit note for them.REQUIRED: Please calculate the figure should be appeared in the company's financial statements at 31 October 20X3 for closing inventory, based on this information.
QUESTION 3 EPR Industries is a wholesaler that distributes boxes of toy cars to local shops. Thecompany has a 31 December financial year end. The following inventory transactions occurred during January 2018: January Purchases January Sales1 220 boxes at R220 10 220 boxes at R2863 440 boxes at R231 14 110 boxes at R28616 110 boxes at R236 18 220 boxes at R26425 660 boxes at R249 24 110 boxes at R28628 220 boxes at R253 26 220 boxes at R26429 220 boxes at R264 27 330 boxes at R30831 330 boxes at R308 There was no opening inventory in January 2018.Required:Calculate the gross profit using:3.1. FIFO method (10) 3.2. Weighted average method (10)
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Instructions Long Horn Music Store uses a perpetual inventory system and had the following transactions during July. 1 Sold merchandise on account for $1,475. The cost of inventory sold was $785. 4 Purchased $1,500 of inventory, paying $1,000 cash with the remainder on account. 7 Sold equipment that cost $1,900 for $2,300. The equipment was fully depreciated and had no salvage value. 10 Paid wages of $1,250 and salaries of $3,250. Neither had been previously accrued. 12 Sold merchandise for $4,450 cash and for $3,250 on account. The cost of inventory sold was $4,050. 18 Purchased new equipment for $3,780, paying $1,780 cash and signing a 90-day note for the remainder. 24 Sold merchandise for $1,235 cash. The cost of inventory sold was $650. Paid wages of $1,470 and salaries of $3,250. Neither had been previously accrued. 29 Paid the July 4 invoice on account. Required: Record the preceding transactions in a general journal. Chart of Accounts
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