Songbird Company has sales of $150,000 and the cost of goods available for sale of $135,000. If the gross profit rate is 30%, the estimated cost of the ending inventory under the gross profit method is: a. $15,000 b. $30,000 c. $90,000 d. $105,000

Songbird Company has sales of $150,000 and the cost of goods available for sale of $135,000. If the gross profit rate is 30%, the estimated cost of the ending inventory under the gross profit method is: a. $15,000 b. $30,000 c. $90,000 d. $105,000

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter5: The Income Statement And The Statement Of Cash Flows

Section: Chapter Questions

Problem 2MC: The following information is available for Cooke Company for the current year: The gross margin is...

See similar textbooks

Related questions

Q: Need answer the general accounting question not use ai

A: Explanation: The formula to calculate the average no. of days it takes to sell inventory is =…

Q: If revenue = $135 and variable cost = 45% of revenue, then contribution margin = $79.25. a. True. b.…

A: Explanation of Revenue: Revenue represents the total amount of money earned from selling goods or…

Q: Need help with this accounting questions

A: Step 1: Definition of Cost of EquipmentThe cost of equipment includes all expenditures necessary to…

Q: If Gap'o has no beginning or ending work in process inventory, how many bolts of fabric must the…

A: Step 1: Calculate Total Gowns to Be ProducedOctober sales: 325,000 gownsDesired ending inventory:…

Q: If an inventory is updated perpetually, which of the equations is correct? A. Cost of goods sold =…

A: Correct Answer:C. Ending inventory = Beginning inventory + Purchases - Cost of goods sold…

Q: Can you please provide correct answer the general accounting question?

A: Step 1: Define Break-Even Sales in DollarsBreak-Even Sales in Dollars is the amount of sales revenue…

Q: Get correct answer accounting questions

A: Step 1: Define Balance SheetA balance sheet is a financial statement that shows three broad sections…

Q: Use the following information to calculate cash paid for income taxes... Please answer the general…

A: Approach to solving the question: debitcredit58,00014,80012,500 70,50014,80055,700 or Income tax…

Q: A company performed $8,635 of services and received $3,000 in cash with the remaining amount to be…

A: Correct Answer:B. $8,635 increase in Assets; No effect on Liabilities; $8,635 increase in…

Q: 5 PTS

A: Explanation of Asset Turnover:Asset turnover is a financial ratio that measures how efficiently a…

Q: help

A: Explanation of Equivalent Units for Conversion Costs:Equivalent units for conversion costs refer to…

Q: Hi teacher please help me this question general accounting

A: Step 1: Define Net amount to be received by the firmThe net amount to be received by the firm is…

Q: I want to this question answer general Accounting

A: Step 1: Calculation of total selling priceCash received: $50,000Assumed liability: $7,000Total…

Q: None

A: Step 1: Define Profit Margin RatioProfit margin ratio also called net margin ratio or net profit…

Q: Accounting

A: Analysis of the TransactionThe company provided $25,905 of services, received $9,000 in cash, and…

Q: On January 1, 2009, Teja Corporation purchased for $987,000, equipment having a useful life of ten…

A: Explanation of Depreciable Amount: The depreciable amount of $902,600 represents the total cost of…

Q: Please provide solution for this general accounting

A: Step 1: Define Accounting EquationThe accounting equation is the foundation of the balance sheet and…

Q: Subject:- General Accounting - During FY 2018, Towson Manufacturing had a beginning finished goods…

A: Step 1: Understanding the ProblemThe formula to calculate Cost of Goods Sold (COGS) is:…

Q: Kindly help me with accounting questions

A: Step 1: Definitions of Net Sales: The total sales revenue after deducting sales returns and…

Q: I want to this question answer general Accounting

A: Step 1: Define Return on EquityIn the domain of finance, the return on equity financial ratio gives…

Q: General Accounting Questions

A: To calculate Darwin Company's product costs, we need to identify the costs that are directly related…

Q: Based on this information, company B's return on sales

A: 1. Identify the Relevant FiguresWe need the Net Income and Sales Revenue for Company B from the…

Q: financial accounting question

A: Step 1: Define LeverageLeverage is the extent of change in one financial measurement with respect to…

Q: Sales commission is a: a. Product and direct material cost. b. Product and direct labor cost. c.…

A: The correct answer is:d. Period cost and Selling and Marketing expense. Explanation:Sales…

Q: Dolce Co. estimates its sales at 180,000 units in the first quarter and that sales will increase by…

A: Step 1: Understand the given dataFirst-quarter sales: 180,000 units.Sales increase by: 18,000 units…

Q: Kindly help me with accounting questions

A: Step 1: Definition of the Gross Profit MethodThe gross profit method estimates the ending inventory…

Q: Please solve this question general accounting

A: Step 1: Define Total gainThe total cash value of the Institution's realized investment income on a…

Q: Financial accounting

A: Step 1: Define GoodwillGoodwill is the excess amount paid by an acquiring company over the fair…

Q: Do fast answer of this accounting questions

A: Step 1: Define Operating ratioOperating ratio is the difference between combined ratio and…

Q: Crane Construction Co. has consistently used the percentage-of- completion method of recognizing…

A: Given DataContract Price: $27,000,000Percentage of Completion:2018: 10%2019: 40%Estimated Total…

Q: A hardware store has budgeted sales of $46,000 for its power tools in August. Management wants to…

A: Formula for Merchandise Purchases BudgetThe formula for calculating budgeted merchandise purchases…

Q: Will recognize on the sale ?

A: **Step 1: Determine the Amount Realized**The amount realized includes: - The **cash** received:…

Q: A forward contract's fair value at inception is typically: [A] Equal to the notional amount [B] Zero…

A: Explanation of all incorrect options:A. Equal to the notional amount:Notional amount is the amount…

Q: ?? Financial accounting question

A: We are tasked to compute for the stock's expected return. The expected return of a stock is the…

Q: Accurate Answer

A: Fair value is zero at contract inception, forward contracts are designed so that neither party…

Q: Please solve this question general accounting

A: Step 1: Define Cash Conversion CycleThe time length between the payment for raw material purchases…

Q: Atlantic Air Solutions has purchased air.... Please need answer the general accounting question

A: Step 1: Define Annual ProfitAnnual profit is the total amount earned by a company after deducting…

Q: What entry will they report to record the supplies use for the year ?

A: Step 1: Define Adjusting EntriesIn accounting, the recognition of adjusting entries is necessary to…

Q: A firm has net working capital of $980, net fixed assets of $4,418, sales of $9,250, and current…

A: First, we need to calculate the total assets. Total assets can be found by adding net working…

Q: Tokyo ended the year with an inventory of

A: Explanation of Cost of Goods Sold (COGS): Cost of goods sold, reported as $6,109,000 for Tokyo,…

Q: Accounting

A: Why the Answer is [B] Zero:A forward contract is a financial derivative where two parties agree to…

Q: cost Accounting

A: Step 1: Formula for PurchasesThe formula to calculate direct materials purchases is: Direct…

Q: Accurate Answer

A: Concept of Direct Material and Direct Labor:Direct material refers to raw materials that are…

Q: Equivalent units of production are equal to: a. The number of units that could have been started and…

A: The correct answer is:a. The number of units that could have been started and completed given the…

Q: Please give me answer general accounting question

A: Part 1: Calculation of Gross ProfitGross Profit = Net Sales - Cost of Goods Sold…

Q: Hi expert please give me answer general accounting question

A: Detailed explanation:Total cost of production for the month of June :Total Cost of Production:…

Q: Need help with this general accounting question

A: Step 1: Use the formula for the adjusted basisStep 2: Rearrange the formula to solve for Capital…

Q: Please solve this question general accounting

A: Step 1: Define Cost of SalesThe cost of sales is the amount that the business has incurred to make…

Q: ?

A: Explanation of Direct Labor Price Variance:Direct Labor Price Variance measures the difference…

Q: Financial accounting question

A: Explanation: Cash cycle is calculated by adding days sales outstanding with days inventory…

Question

Need help this question general accounting

Songbird Company has sales of $150,000
and the cost of goods available for sale
of $135,000. If the gross profit rate is
30%, the estimated cost of the ending
inventory under the gross profit method
is:
a. $15,000
b. $30,000
c. $90,000
d. $105,000

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Similar questions

Johnson Corporation had beginning inventory of 20,000 at cost and 35,000 at retail. During the year, it made net purchases of 180,000 at cost and 322,000 at retail. Johnson nude sales of 300,000. Assuming a price index of 100 at the beginning of the year and 110 at the end of the year, compute Johnsons ending inventory at cost using the dollar-value LIFO retail method.
Provide correct answer general accounting
Boston Company sells ten items for $1,100 per unit and has a cost of goods sold per unit of $660. The gross profit to be reported for sellling 10 items is? A. $4,400. B. $11,000. C. $440. D. $6,600.
If cost of goods sold is $520,000 and the gross profit rate is 20%, what is the gross profit? Select one: a. $2,600,000. b. $130,000. c. $ 520,000. d. $416,000.
A company has sales of $695,000 and cost of goods sold of $278,000. Its gross profit equals: Multiple Choice $(417,000). $695,000. $278,000. $417,000. $973,000.
Can you please answer the question
Cushman Company had $814,000 in sales, sales discounts of $12,210, sales returns and allowances of $18,315, cost of goods sold of $386,650, and $280,015 in operating expenses. Gross profit equals: O Multiple Choice $396,825. O $415,140. $409,035. $783,475. $116,810.
A retailer has net annual sales of $3,000,000. Retail expenses are $260,000. Net profit is $400,000. Calculate the maintained markup at retail. The retail selling price is $10.00. What are the merchandise costs? a. $3.33 b. $6.67 c. $12.00 d. $14.92 The answer must be 6.67$
What is the net sales amount?
Sisyphus Inc. records total sales of $657,500 in the current period, with a cost of goods sold of $389,000 . Sisyphus expects 4% of sales to be returned. How much in net sales will Sisyphus recognize for the current period? Group of answer choices $373,400 $268,500 $631,200 $657,500 $257,760 The Sisyphus Inc’s (SSY) Company’s annual statement of cash flows reported the following (in millions): Net cash from financing activities $63,864 Net cash from investing activities -62,512 Cash at the beginning of the year 13,152 Cash at the end of the year 18,948 What did SSY report for “Net cash from operating activities” during the year? Group of answer choices $71,220 million cash inflow None of the above $4,444 million cash outflow $4,444 million cash inflow $71,220 million cash outflow
please provide correct option
The weighted-average cost method is used by Mendez, Inc. Sales are $80,000, the number of units available for sale is 100, the number of units sold during the period is 75, and the weighted average cost of the goods available for sale is $200 each. How much is gross profit for the company?