QS 5-26B (Algo) Estimating inventories-gross profit method LO P4Confucius Bookstore's inventory is destroyed by a fire on September 5. The following data for the current year are available from theaccounting records.Beginning inventory, January 1January 1 through September 5 purchases (net)January 1 through September 5 sales (net)Current year's estimated gross profit rateEstimate the cost of the inventory destroyed.X Answer is not complete.Beginning inventoryNet cost of goods purchasedCost of goods available for saleSalesEstimated September 5 inventory destroyed$$220,000319,000539,000638,000$ 220,000$ 319,000$ 638,00031%

COST OF GOODS SOLDCost of Goods Sold States the Amount of Cost Included in the Number of Units Sold…

Answered: QS 5-26B (Algo) Estimating…

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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Exercise 8.7 (Algo) Costing Inventory in a Periodic System (LO 8-4) Rogers Products uses a periodic inventory system. The company's records show the beginning inventory of PH4 oil filters on January 1 and the purchases of this item during the current year to be as follows. Jan. 1 Feb. 23 Apr. 201 May 4 Nov. 30 Beginning inventory Purchase Purchase Purchase Purchase Totals a. Average cost b. FIFO C. LIFO A physical count indicates 24 units in inventory at year-end. Determine the cost of the ending inventory on the basis of each of the following methods of inventory valuation. (Remember to use periodic inventory costing procedures.) (Round your intermediate and final answers to 2 decimal places.) 13 units@ $3.00 $ 39.00 16 units@ $3.50 56.00 28 units@ $3.80 106.40 140.00 35 units@ $4.00 19 units@ $5.00 111 units 95.00 $436.40 Ending Inventory
Question Content Area Boxwood Company sells blankets for $34 each. The following was taken from the inventory records during May. The company had no beginning inventory on May 1. Date Blankets Units Cost May 3 Purchase 5 $15 10 Sale 4 17 Purchase 15 16 20 Sale 5 23 Sale 3 30 Purchase 15 22 Assuming that the company uses the perpetual inventory system, determine the ending inventory value for the month of May using the FIFO inventory cost method. a. $330 b. $264 c. $458 d. $612
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Question Content Area Boxwood Company sells blankets for $33 each. The following information was taken from the inventory records during May. The company had no beginning inventory on May 1. Boxwood uses a perpetual inventory system. Date Blankets Units Cost May 3 Purchase 8 $18 10 Sale 3 17 Purchase 11 $16 20 Sale 6 23 Sale 3 30 Purchase 9 $20 Determine the May 31 inventory balance using the FIFO inventory costing method. a. $288 b. $256 c. $320 d. $292
7 3 ences Given the following: Mc Graw Hill January 1 inventory April 1 June 1 November 1 Cost of ending inventory Number purchased 40 60 50 55 205 Cost of goods sold Cost per unit $ 4 7 8 9 a. Calculate the cost of ending inventory using the weighted-average method (ending inventory shows 61 units_ Note: Round the "average unit cost" and final answer to the nearest cent. AS
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ACC 301 Gross Profit Method Raynor Company lost most of its inventory in a fire just before the company was to take it's year-end physical inventory. The company's records disclosed the following. Beginning inventory Purchases Purchase returns 80,000 290,000 28,000 Gross profit based on selling price = 35% Sales revenue Sales returns 415,000 21,000 Merchandise with a selling price of $80,000 was not damaged by the fire. The damaged merchandise has a net realizable value of $8,150. Required: Prepare a schedule computing the fire loss (Do not use the retail inventory method)
Current assets at 30 June 20-7 Martha's capital at 1 July 20-7 Gross profit for the year ending 30 June 20-8 Current assets at 30 June 20-8 TIP Parts a-e of this question require the skill of knowledge and understanding. You need to know the principles of inventory valuation and understand how this is applied to a given scenario. Part frequires the skill of analysis. You need to analyse the effect of the error. 13 Yee's payments for the year ended 31 December 20-8 included the following: Wages 2$ Insurance (for 12 months to 30 June 20-9) 2400 At 1 January 20-8, wages due amounted to $1300 and insurance prepaid amounted to $1140. At 31 December 20-8, wages due amounted to $1550. Write up the wages account and the insurance account as they would appear in Yee's ledger for the year ended 31 December 20-8. Balance the accounts and show the amounts transferred to the income statement. 14 Zeema's financial year ends on 30 September. She sublets part of her premises to Faith at an annual rent…
Required information Exercise 5-5 (Algo) Effect of inventory cost flow on ending inventory balance and gross margin LO 5-1 [The following information applies to the questions displayed below.] The Shirt Shop had the following transactions for T-shirts for Year 1, its first year of operations: Purchased 400 units @ $4 = Purchased 90 units $5 = $ 1,600 450 January 20 April 21 July 25 September 19 Purchased 250 units @ $7 = Purchased 60 units @ $9 = During the year, The Shirt Shop sold 650 T-shirts for $14 each. Exercise 5-5 (Algo) Part a Required a. Compute the amount of ending inventory The Shirt Shop would report on the balance sheet, assuming the following cost flow assumptions: (1) FIFO, (2) LIFO, and (3) weighted average. Note: Round intermediate calculations to 2 decimal places and final answers to nearest whole dollar amount. Ending inventory FIFO $ LIFO 450 1,750 540 Weighted Average

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