Summit Trading has provided the following information for its most recent month of operations: Sales: $24,000 Ending inventory: $5,500 Purchases: $12,000 Gross profit: $15,000 How much was Summit's beginning inventory? a. $4,500 b. $8,500 c. $3,500 d. $10,000

Summit Trading has provided the following information for its most recent month of operations: Sales: $24,000 Ending inventory: $5,500 Purchases: $12,000 Gross profit: $15,000 How much was Summit's beginning inventory? a. $4,500 b. $8,500 c. $3,500 d. $10,000

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

Chapter7: Inventories: Cost Measurement And Flow Assumptions

Section: Chapter Questions

Problem 2RE: On January 1, Pope Enterprises inventory was 625,000. Pope made 950,000 of net purchases during the...

See similar textbooks

Related questions

Q: Provide correct answer general accounting

A: Step 1: Define Applied OverheadApplied overhead refers to the fixed charges applied to a particular…

Q: Hi expart give answer the accounting question not use ai

A: Hello student! The PAR VALUE of a stock is its value upon issuance of the shares. It is also known…

Q: in Byzu Engineering has $60,000 in assets. They also have $25,000 in liabilities and $5,000…

A: Explanation of Extended Accounting Equation: The extended accounting equation expands on the basic…

Q: I need this question general accounting

A: Step 1: Define Variable Costing Income StatementVariable costing income statement assumes that all…

Q: answer with all working steps

A: Explanation of Manufacturing Margin: The manufacturing margin represents the difference between…

Q: general account

A: To determine the appropriate valuation of inventory, the Lower of Cost or Net Realizable Value…

Q: Please provide correct answer general accounting

A: Step 1: Define Degree of Operating LeverageThe degree of operating leverage is an accounting term…

Q: Can you answer this general accounting question?

A: Step 1: Define Percentage ChangePercentage change is a mathematical expression that shows the change…

Q: The standard costs and actual costs for direct materials for the manufacture of 2500 actual units of…

A: Explanation of Direct Materials Quantity Variance: This represents the difference between the…

Q: Why does organizational learning affect accounting evolution? a) Evolution creates problems b)…

A: Explanation of Organizational Learning: Organizational learning is the process by which companies…

Q: Hi expert please give me answer general accounting

A: Step 1: Define Methods Of DepreciationIFRS and GAAP allow mainly 4 types of methods that can be used…

Q: Atlas industries applies manufacturing solve this accounting questions

A: Step 1: Definition of Applied Manufacturing OverheadApplied manufacturing overhead refers to the…

Q: Romtech Company sold 51,000 units of its product at a price of $348 per unit. The total variable…

A: Key DefinitionsSales Revenue: Total revenue generated by selling the product.Variable Production…

Q: 10-31 An energy efficiency project has a first cost of G $400,000, a life of 10 years, and no…

A: Part (a):Expected Annual Savings: A probability of saving each value is then obtained and each value…

Q: Can you answer this financial accounting question?

A: Step 1: Define Cost RecoveryCost recovery refers to the tool through which real estate holds income.…

Q: General Account - Dorothy Fonda is an unmarried head of household with the following income for the…

A: Municipal Bond Interest and Gift from the father are not taxable, thus not included in the…

Q: solution want

A: To determine the unit values for Herman Company's products under the Net Realizable Value (NRV)…

Q: Financial accounting

A: Step 1: Define Balance SheetAssets, Liabilities, and Stockholders' equity are the main sections…

Q: I want to correct answer general accounting

A: Step 1: Calculation of ContributionContribution Margin = Sales × Contribution margin…

Q: Can you please give me true answer this general accounting question?

A: Step 1: Define P/E ratioP/E ratio of the price earnings ratio is given as the market price per share…

Q: Hi expert please give me answer general accounting

A: Step 1: Define CVP Income StatementCVP income statement is a statement that shows the change in cost…

Q: Zurich Company reports pretax financial income of $84,270 for 2014. The following items cause…

A: Step 1: Calculate Taxable IncomeStart with pretax financial income and adjust for temporary and…

Q: Theoretical Question of General Accounting 6 points

A: Definitions Related to the Conservatism PrincipleConservatism Principle in Accounting:The…

Q: Accounting question

A: Step 4: Determine if the variance is positive or negativeSince the actual waste ($425) is greater…

Q: What is the material price variance on these general accounting question?

A: Step 1: Define Direct Materials VariancesThe direct materials variances are the standard cost…

Q: Please given answer the question

A: Step 1: Define Net Realizable ValueNet realizable value refers to the total amount that will be…

Q: Please provide answer the following requirements a and b on this general accounting question

A: Step 1: Define Flotation CostFlotation cost can be defined as the total amount of money spent by the…

Q: A company that produces a single product had a net operating income of $87,000 using variable…

A: To determine the change in inventory, we analyze the difference in net operating income between…

Q: Financial Accounting

A: Step 1: Define Debt-to-Equity RatioThe debt-to-equity ratio is the amount of the equity and debt…

Q: General accounting

A: Step 1: Define Price-Earnings RatioThe valuation of a share of a given firm can be ascertained by…

Q: At the time of his death, James owned stock as follows.

A: The amount of the value of James estate is calculated in accordance with the regulations of the…

Q: Please provide this question solution general accounting

A: Solution= quick assets / current liabilities= (cash + accounts receivable) / accounts payable= ($62…

Q: Altira Corporation provides the following information related to its inventory during the month of…

A: The cost of goods available for sale is the sum of the beginning inventory and the cost of all…

Q: The following is camp hill corporation solving this general accounting question

A: Step 1: The degree of operating leverage shows the relationship between the contribution margin and…

Q: Please need answer the general accounting question

A: Step 1: Calculate the purchase priceCline Co. paid $800,000 in cash to acquire Renn Corp. Step 2:…

Q: Nu Company reported the following pretax data for its first year of operations. Net sales 2,880…

A: Under the Last-In, First-Out (LIFO) method, the latest inventory is assumed to be sold first.…

Q: Can you please answer the accounting question?

A: To calculate the Yield to Call (YTC) for the bond, we follow these steps step-by-step:Given DataPar…

Q: Please provide correct answer financial accounting

A: Step 1: Define Capital GainA capital gain yield on a stock indicates a growth rate of the stock…

Q: Give me right answer with proper way

A: Explanation of Profit-Sharing Obligations: Profit-sharing obligations are commitments made by…

Q: Financial accounting

A: Step 1: Define Total CostTotal cost indicates the entire costs incurred during the process of…

Q: Solve these general accounting question

A: Step 1: Calculate Direct Materials per unitStep 2: Calculate Direct Labor per unitStep 3: Calculate…

Q: ACCOUNTING

A: Explanation of Absorption Costing:Absorption costing is an accounting method where all production…

Q: ?

A: Explanation of Cost Plus Reasonable Markup:This method calculates transfer prices by adding a markup…

Q: None

A: Requirement 1-a: Computation of the ROI and Residual income Return on investment (ROI): Residual…

Q: What is the 2016 net income?

A: Step 1: Pretax Accounting IncomePretax accounting income: $68 millionStep 2: Identify and Classify…

Q: Iverson corporation variable expenses are 60% of sales solve this accounting questions

A: Step 1:First, calculate the current operating income and contribution margin: Contribution margin =…

Q: Miracle, Incorporated provided the following balance sheets and income statement for the current…

A: Operating Activities Section - Direct MethodWe are calculating cash flows by adjusting the income…

Q: I need this question general accounting

A: Step 1: Define Sales RevenueSales revenue is the amount paid to the company by the buyers for the…

Q: Hello please this chapter of account answer me

A: The Lower of Cost or Market (LCM) rule requires that inventory be valued at the lower of its…

Q: General accounting

A: FV = Future Value ($5,000)PVPVPV = Present Value ($3,000)rrr = Interest Rate (to solve for)ttt =…

Question

I want to correct answer general accounting

Summit Trading has provided the following
information for its most recent month of
operations:
Sales: $24,000 Ending inventory: $5,500
Purchases: $12,000 Gross profit: $15,000
How much was Summit's beginning inventory?
a. $4,500
b. $8,500
c. $3,500
d. $10,000

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

On January 1, Pope Enterprises inventory was 625,000. Pope made 950,000 of net purchases during the year. On its year-end income statement, Pope reported cost of goods sold of 1,025,000. Calculate Popes December 31 ending inventory.
Langstons purchased $3,100 of merchandise during the month, and its monthly income statement shows a cost of goods sold of $3,000. What was the beginning inventory if the ending inventory was $1,250?
Last year, Nikkola Company had net sales of 2,299,500,000 and cost of goods sold of 1,755,000,000. Nikkola had the following balances: Refer to the information for Nikkola Company above. Required: Note: Round answers to one decimal place. 1. Calculate the average inventory. 2. Calculate the inventory turnover ratio. 3. Calculate the inventory turnover in days. 4. CONCEPTUAL CONNECTION Based on these ratios, does Nikkola appear to be performing well or poorly?
Reid Company uses the periodic inventory system. On January 1, it had an inventory balance of 250,000. During the year, it made 613,000 of net purchases. At the end of the year, a physical inventory showed it had ending inventory of 140,000. Calculate Reid Companys cost of goods sold for the year.
Financial statement data for years ending December 31 for Holland Company follow: a. Determine the inventory turnover for 20Y4 and 20Y3. b. Determine the days sales in inventory for 20Y4 and 20Y3. Use 365 days and round to one decimal place. c. Does the change in inventory turnover and the days sales in inventory from 20Y3 to 20Y4 indicate a favorable or an unfavorable trend?
Financial statement data for years ending December 31 for Tango Company follow: a. Determine the inventory turnover for 20Y7 and 20Y6. b. Determine the days sales in inventory for 20Y7 and 20Y6. Use 365 days and round to one decimal place. c. Does the change in inventory turnover and the days sales in inventory from 20Y6 to 20Y7 indicate a favorable or an unfavorable trend?
Logo Gear purchased $2,250 worth of merchandise during the month, and its monthly income statement shows cost of goods sold of $2,000. What was the beginning inventory if the ending inventory was $1,000?
Comprehensive The following information for 2019 is available for Marino Company: 1. The beginning inventory is 100,000. 2. Purchases returns of 4,000 were made. 3. Purchases of 300,000 were made on terms of 2/10, n/30. Eighty percent of the discounts were taken. 4. At December 31, purchases of 20,000 were in transit, FOB destination, on terms of 2/10, n/30. 5. The company made sales of 640,000. The gross selling price per unit is twice the net cost of each unit sold. 6. Sales allowances of 6,000 were made. 7. The company uses the LIFO periodic method and the gross method for purchase discounts. Required: 1. Compute the cost of the ending inventory before the physical inventory is taken. 2. Compute the amount of the cost of goods sold that came from the purchases of the period and the amount that came from the beginning inventory.
Hurst Companys beginning inventory and purchases during the fiscal year ended December 31, 20-2, were as follows: There are 1,200 units of inventory on hand on December 31, 20-2. REQUIRED 1. Calculate the total amount to be assigned to the cost of goods sold for 20-2 and ending inventory on December 31 under each of the following periodic inventory methods: (a) FIFO (b) LIFO (c) Weighted-average (round calculations to two decimal places) 2. Assume that the market price per unit (cost to replace) of Hursts inventory on December 31 was 18. Calculate the total amount to be assigned to the ending inventory on December 31 under each of the following methods: (a) FIFO lower-of-cost-or-market (b) Weighted-average lower-of-cost-or-market 3. In addition to taking a physical inventory on December 31, Hurst decides to estimate the ending inventory and cost of goods sold. During the fiscal year ended December 31, 20-2, net sales of 100,000 were made at a normal gross profit rate of 35%. Use the gross profit method to estimate the cost of goods sold for the fiscal year ended December 31 and the inventory on December 31.
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.
Carr Corporation has provided the following information for its most recent month of operation: sales $8,300; beginning inventory $1,150; ending inventory $2,150 and gross profit $5,450. How much were Carr's inventory purchases during the period? Multiple Choice O $9,450. $5,450. $3,850. $6,150.
Bernie Bird Company provided the following information for the current year: Inventory, January 1 2,000,000 Purchases 7,500,000 Purchase returns and 500,000 allowances Sales returns and 750,000 allowances Inventory, December 31 20% Gross profit rate on net sales What is the amount of gross sales for the current year? O P7,000,000 P7,750,000 O P8,500,000 O P9,125,000