PROBLEM 20 Cayden Company provided the following information: Inventory, January1 Cost Retail P350,000 650,000 Purchases during the year Cost 2,900,000 Retail 4,800,000 Freight in Purchase Returns 230,000 Cost 100,000 Retail 175,000 Purchase Discount 210,000 Sales 5,000,000 Sales Discount 115,000 Sales Returns Markups Markups cancellation Markdown 200,000 150,000 70,000 60,000 Estimated normalshrinkage Shoplifting losses (abnormal) 2% of sales 50,000 Requirements: Compute the ending inventory using the 1 LCNRV approach 2. Average approach 3. FIFO approach

PROBLEM 20 Cayden Company provided the following information: Inventory, January1 Cost Retail P350,000 650,000 Purchases during the year Cost 2,900,000 Retail 4,800,000 Freight in Purchase Returns 230,000 Cost 100,000 Retail 175,000 Purchase Discount 210,000 Sales 5,000,000 Sales Discount 115,000 Sales Returns Markups Markups cancellation Markdown 200,000 150,000 70,000 60,000 Estimated normalshrinkage Shoplifting losses (abnormal) 2% of sales 50,000 Requirements: Compute the ending inventory using the 1 LCNRV approach 2. Average approach 3. FIFO approach

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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What is the average inventory at retail? [round off numbers] BOM EOM January $50,500 $53,400 February $52,900 $54,100 March $54,200 $55,800 April $53,300 S56,300 May $56,300 $57,500 June $53,900 $54,300 O $53,034 O $54,527 $54,573 $53,629
A company began January with 6,000 units of its principal product. The cost of each unit is $8. Inventory transactions fo the month of January are as follows: Date of Purchase January 10 January 18 Totals Total Date of Sale January 5 January 12 January 20 Total Sales Units * Includes purchase price and cost of freight. Average Cost Beginning Inventory Purchases: 5,000 6,000 11,000 Problem 8-5 (Static) Part 4 January 10 January 18 Units 3,000 2,000 4,000 9,000 8,000 units were on hand at the end of the month. 4. Calculate January's ending inventory and cost of goods sold for the month using Average cost, periodic system. Unit Cost* Purchases Number Unit of units Cost $9 10 Cost of Goods Available for Sale Cost of Goods Available for Sale 48,000 6,000 $8.00 $ 5,000 $9.00 6,000 $10.00 17,000 $ Total Cost $ 45,000 60,000 $ 105,000 45,000 60,000 153,000 Cost of Goods Sold - Average Cost Average Cost per Unit Number of units sold Cost of Goods Sold 0 Ending Inventory - Average Cost Number of…
Exercise 9-17 (Algo) Conventional and average cost retail methods; employee discounts [LO9-3, 9-4] LeMay Department Store uses the retail inventory method to estimate ending inventory for its monthly financial statements. The following data pertain to one of its largest departments for the month of March 2021: Cost Retail Beginning inventory Purchases $ 55,000 $ 75,000 222,000 22,680 7,000 415,000 Freight-in Purchase returns 9,500 Net markups 7,300 5,000 9,500 295,000 1,700 Net markdowns Normal breakage Net sales Employee discounts Sales are recorded net of employee discounts. Exercise 9-17 (Algo) Part 1 Required: 1. Compute estimated ending inventory and cost calculation to 2 decimal places (i.e., 0.1234 should be entered as 12.34%.). Enter amounts to be deducted with a minus sign.) goods sold for March applying the conventional retail method. (Round ratio Answer is not complete. Cost-to- Cost Retail Retail Ratio 24 55,000 75,000 Beginning inventory 222,000 415,000 Purchases 22 GRN…
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Question 32 Choose the correct answer from the choices.
Sales revenue First Quarter $ 15,800 Second Quarter $21,300 Cost of goods sold Beginning inventory Purchases $ 5,200 $ 4,700 3,800 13,200 Goods available for sale 9,000 17,900 Ending inventory 4,700 10,000 Cost of goods sold Gross profit 4,300 11,500 7,900 13,400 Expenses 6,300 Pretax income 5,800 $ 5,700 $ 7,100 During the third quarter, it was discovered that the ending Inventory for the first quarter should have been $5,180. Required: 1. What effect did this error have on the combined pretax Income of the two quarters? 2. Which quarter's or quarters' (if any) EPS amounts were affected by this error? 3. Prepare corrected Income statements for each quarter. 4. Prepare the schedule to reflect the comparative effects of the correct and Incorrect amounts on the Income statement. Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Prepare the schedule to reflect the comparative effects…
Required information [The following information applies to the questions displayed below.] Ferris Company began January with 6,000 units of its principal product. The cost of each unit is $8. Merchandise transactions for the month of January are as follows: Date of Purchase Jan. 10 Jan. 18 Totals Sales Units 5,000 6,000 11,000 Date of Sale Jan. 5 Jan. 12 Jan. 20 Total Purchases Includes purchase price and cost of freight. Units 3,000 2,000 4,000 9,000 Unit Cost* $9 10 8,000 units were on hand at the end of the month. Total Cost $ 45,000 60,000 $105,000 4. Calculate January's ending inventory and cost of goods sold for the month using Average cost, periodic system.
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