Southern Distributors, Incorporated, supplies ice cream shops with various toppings for making sundaes.On November 17, 2024, a fire resulted in the loss of all of the toppings stored in one section of thewarehouse. The company must provide its insurance company with an estimate of the amount ofinventory lost. The following information is available from the company's accounting records:Inventory, January 1, 2024Net purchases through November 17Net sales through November 17Historical gross profit ratioFruitToppingsRequired:1. Calculate the estimated cost of each of the toppings lost in the fire.MarshmallowChocolateFruitToppings$ 24,000170,000220,000Estimated cost of lostInventory20%MarshmallowToppings$ 7,40040,00059,00030%ChocolateToppings$3,40012,40020,40030%

Gross profit is the difference between sales revenue and cost of goods sold. The cost of goods sold…

Answered: Southern Distributors, Incorporated,…

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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15.Your review of ABC Company's inventory and related records for the year revealed the following information:Inventory, 1/1 - 450,000Purchases -3,150,000Sales -4,200,000You conducted a physical inventory on December 31 and determined P450,000 was in the company's warehouse. The management suspects some new employees may have pilfered a portion of the merchandise inventory.What is the cost of the missing inventory assuming that ABC's gross profit remains at 30% of sales?
income tax? Taking Inventory At the end of the last fiscal period, employees for Trans-Canada Distributors counted all merchandise on hand. However, a complete section of the warehouse was missed when the inventory was taken. The cost of the merchandise that was not included in the ending inventory figure was $7500. Questions 1. What effect has this error on the income statement and on the balance sheet this year? 2. If the error went undiscovered, would the net income in the second year be too high or too low? 3. Over the two-year period, what is the total error in the net income (assuming the second year's inventory is done correctly)? 4. Is the owner's equity total correct or incorrect in the second-year balance sheet? Explain your answer. ©P
Under the perpetual inventory system, what is the journal entry?
The following transactions are for Angela’s Disc Golf Emporium: (1) In December, customers purchased $3,000 of gift cards from Angela’s. (2) At December 31, gift cards totaling $1,900 remained unused. (3) Angela’s took a physical count of its inventory and determined the correct value of inventory should be $20,000. The unadjusted balance in the Inventory account was $20,450. What amount is reported as Inventory in the 12/31 balance sheet? Inventory $
BAYWEST Stationery & Supplies located in Montego Bay, Jamaica, sells a variety of school supplies including several brands of tablets. The business uses a perpetual inventory system and adjusts cost of goods sold for any shortage or excess inventory. BAYWEST began the third quarter (July to September) of 2020 with 30 (Alcatel) tablets at a total cost of $187,800. During the quarter, with the onset of the COVID-19 pandemic, the business completed the following transactions relating to the “Alcatel” tablets. Subpart (D) to be solved July 31 - The sales for July were 85 tablets which yielded total sales revenue of $809,030. (25 of these tablets were sold on account to longstanding customers) August 4 - A new batch of 67 tablets was purchased at a total cost of $465,650 August 10 - 5 of the tablets purchased on August 4 were returned to the supplier, as they were not of the model ordered. August 31 - During the month 60 tablets were sold at a price of $10,350 each. September 4 -…
19.Your review of ABC Company's inventory and related records for the year revealed the following information:Inventory, 1/1 - 450,000Purchases -3,150,000Sales -4,200,000You conducted a physical inventory on December 31 and determined P450,000 was in the company's warehouse. The management suspects some new employees may have pilfered a portion of the merchandise inventory.What is the cost of the missing inventory assuming that ABC's gross profit remains at 30% of sales?
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Quiz Sandoval needs to determine its year-end inventory. The warehouse contains 22,000 units, of which 3,200 were damaged by flood and are not sellable. Another 2,200 units were purchased from Markor Company, FOB shipping point, and are currently in transit. The company also consigns goods and has 4,200 units at a consignee's location. How many units should Sandoval include in its year-end inventory? Multiple Choice 23,000 31,600 20,800 25,200 28,400

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