,Stuff Company is a subsidiary of Pland Corporation and is located in Madrid, Spain, where the currency is the euro (€). Data on Stuff'sInventory and purchases are as follows:BookinterencesInventory, January 1, 20x71Purchases during 2007Inventory, December 31, 20x7€224,000849,000188,000The beginning inventory was acquired during the fourth quarter of 20X6, and the ending inventory was acquired during the fourthquarter of 20X7. Purchases were made evenly over the year. Exchange rates were as follows:Fourth quarter of 20x61-1.29015January 1, 20x71-1.320301Average during 20x71-1.39655Fourth quarter of 20071-1.45000December 31, 20x71-1.47280

Certainly, I can assist you with calculating the cost of Stuff Company's inventory and purchases…

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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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Stuff Company is a subsidiary of Pland Corporation and is located in Madrid, Spain, where the currency is the euro (€). Data on Stuff’s inventory and purchases are as follows: Inventory, January 1, 20X7 € 230,000 Purchases during 20X7 858,000 Inventory, December 31, 20X7 183,000 The beginning inventory was acquired during the fourth quarter of 20X6, and the ending inventory was acquired during the fourth quarter of 20X7. Purchases were made evenly over the year. Exchange rates were as follows: Fourth quarter of 20X6 € 1 = $ 1.29015 January 1, 20X7 € 1 = $ 1.32030 Average during 20X7 € 1 = $ 1.39655 Fourth quarter of 20X7 € 1 = $ 1.45000 December 31, 20X7 € 1 = $ 1.47280 Required: Show the remeasurement of cost of goods sold for 20X7, assuming that the U.S. dollar is the functional currency. Note: Round your intermediate calculations and final answer to nearest dollar amount. Show the translation of cost of goods sold for 20X7, assuming that the euro is the…
Stuff Company is a subsidiary of Pland Corporation and is located in Madrid, Spain, where the currency is the euro (€). Data on Stuff's inventory and purchases are as follows: Inventory, January 1, 20X7 Purchases during 20x7 Inventory, December 31, 20x7 The beginning inventory was acquired during the fourth quarter of 20X6, and the ending inventory was acquired during the fourth quarter of 20X7. Purchases were made evenly over the year. Exchange rates were as follows: Fourth quarter of 20x6 January 1, 20X7 Average during 20x7 Fourth quarter of 20x7 December 31, 20x7 € 226,000 866,000 194,000 €1-$1.29015 €1$ 1.32030 € 1$ 1.39655 €1-$1.45000 € 1$ 1.47280 Required: a. Show the remeasurement of cost of goods sold for 20X7, assuming that the U.S. dollar is the functional currency. Note: Round your intermediate calculations and final answer to nearest dollar amount. a. Cost of goods sold b. Cost of goods sold b. Show the translation of cost of goods sold for 20X7, assuming that the euro is…
Austin Powers plc, the British subsidiary of a U.S. company reported cost of goods sold in Great Britain Pounds for the current year ended December 31. The beginning inventory was £18300, and the ending inventory was £15100. Purchases of £22600 were made evenly throughout the year. Spot rates for various dates are as follows: Date the beginning inventory was acquired Rate at the start of the year £1 = $1.11 £1 = $1.11 £1 = $1.14 £1 = $1.18 Average rate for the year Date the ending inventory was acquired Assume that the U.S.dollar is the functional currency of the British subsidiary. Given the facts above, the amount of cost of goods sold, restated in US $, that should appear in the consolidated income statement is: BE SURE TO TYPE A SIMPLE NUMBER WITH NO COMMAS OR DOLLAR SIGNS. FOR EXAMPLE, TYPE 1000 INSTEAD OF $1,000. Your Answer:
Basil plc, the British subsidiary of a U.S. company reported cost of goods sold in Great Britain Pounds for the current year ended December 31. The beginning inventory was £18800, and the ending inventory was £13100. Purchases of £27600 were made evenly throughout the year. Spot rates for various dates are as follows: Date the beginning inventory was acquired Rate at the start of the year £1 = $1.11 £1 = $1.10 £1 = $1.14 £1 = $1.19 Average rate for the year Date the ending inventory was acquired Assume that the Great Britain Pound is the functional currency of the British subsidiary. Given the facts above, the amount of cost of goods sold, restated in US $, that should appear in the consolidated income statement is: BE SURE TO TYPE A SIMPLE NUMBER WITH NO COMMAS OR DOLLAR SIGNS. FOR EXAMPLE, TYPE 1000 INSTEAD OF $1,000. Vour Answer:
Assume that Merryland’s Markets had an inventory balance of $32 570 at the close of the last accounting period. The following sales and purchase transactions are for the current period. NOTE: GST at 10% is included in the amount where applicable. 1. 2. 3. 4. Purchased goods on account for $29,909. Returned part of the above purchase that had an original invoice price of $1,749. Paid for the balance of the purchase in time to receive a discount of 2% of the invoice price. Sold goods on account costing $24 900 for an invoice price of $54 802. Required (a) Prepare general journal entries assuming the perpetual inventory system is used. (b) Suppose that a physical count of the inventory at the end of the current period shows inventory of $30,420 to be on hand. Present the entries (if any) required to adjust for any discrepancy.
Fall Company began operations in the current year. The entity used perpetual inventory system. 1. During the year, Fall Company purchased merchandise having a gross invoice cost of P1,000,000. All purchases were made under the terms 2/10, n/30, FOB destination. 2. Fall Company paid freight charge of P50,000. 3. During the year, Fall Company paid for 80% of the merchandise within the discount period. 4. The remaining 20% was paid beyond the discount period. 5. Fall Company sold 70% of the merchandise it acquired for cash of P1,200,000. The other 30% remained in inventory at year-end. Required: Prepare journal entries to record the transacions using gross method and net method.
Fall Company began operations in the current year. The entity used perpetual inventory system.1. During the year, Fall Company purchased merchandise having a gross invoice cost of P1,000,000. All purchases were made under the terms 2/10, n/30, FOB destination.2. Fall Company paid freight charge of P50,000.3. During the year, Fall Company paid for 80% of the merchandise within the discount period.4. The remaining 20% was paid beyond the discount period.5. Fall Company sold 70% of the merchandise it acquired for cash of P1,200,000. The other 30% remained in inventory at year-end. Required:Prepare journal entries to record the transactions using gross method and net method.
Barefoot Co. purchased inventory from Nakasakasaka Co., a foreign supplier, on November 15, 20x1 for Y100,000, when the spot rate was P0.4295. On December 31, 20x1, the spot rate was P0.4245. Barefoot Co. settled the account on January 15, 20x2 when the spot rate was P 0.4345. Requirement: Provide the journal entries in 20x1 and 20x2
Required information [The following information applies to the questions displayed below.] Lewis Incorporated and Clark Enterprises report the following amounts for the year. Inventory (beginning) Inventory (ending) Purchases Purchase returns. Lewis Lewis $ 30,000 24,000 355, 200 21,000 Clark 3. Calculate the average days in inventory for each company. (Round your intermediate calculations to 1 decimal place.) Clark $ 56,000 66,000 Average Days in Inventory 185,800 66,000 = = days days
Company A began operations in the current year. The entity used perpetual inventory system. During the year, the company purchased merchandise having a gross invoice cost of P1,500,000. All purchases were made under the terms 5/10, n/30, FOB destination. Relative to this, the company paid freight expenses of P100,000. The company was able to pay 80% of the purchases within the discount period but the remaining purchases were paid beyond 10 days. 70% of the purchases were sold for P1,200,000. Prepare journal entries to record the transactions using gross method and net method
The following inventory cost information is taken from the records of Trypho Corporation: At Base- At Current- Year Cost Year Cost 1/1/Year 1 $10,000 $10,000 Year 1 layer 8,000 8,000 Year 2 layer 7,000 12,000 Year 3 layer 5,000 7,500 Year 4 layer 10,000 14,500 Year 5 layer 12,000 20,800 Trypho measures its inventories using dollar-value LIFO. Complete Trypho's year-end inventory using the information above. Enter the appropriate amounts in the designated cells below. Enter all amounts as positive values. Dollar-value LIFO cost December 31 123 123 1. Year 1 123 2. Year 2 123 3. Year 3 123 4. Year 4 5. Year 5
At December 31, the Selig Company has ending inventory with a historical cost of $633,000. Assume the company uses the FIFO perpetual inventory system. The net realizable value is $617,000. The normal profit on this inventory is $50,000. Before any adjustments at the end of the period, the cost of goods sold account has a balance of $900,000. Following U.S. GAAP, which journal entry is required on December 31 to adjust the ending balance of inventory if the direct method is used? Group of answer choices Debit Inventory for $34,000 and credit Cost of Goods Sold for $34,000. Debit Cost of Goods Sold for $16,000 and credit Inventory for $16,000. Debit Inventory for $16,000 and credit Cost of Goods Sold for $16,000. Debit Cost of Goods Sold for $34,000 and credit Inventory for $34,000.

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