Superior Company provided the following data for the year ended December 31 (all raw materials are used in production as direct materials): $ 218,000 $ 265,000 Selling expenses Purchases of raw materials Direct labor Administrative expenses Manufacturing overhead applied to work in process Actual manufacturing overhead cost $ 152,000 $ 374,000 $ 357,000 Inventory balances at the beginning and end of the year were as follows: Beginning $ 51,000 Ending Raw materials Work in process Finished goods 2$ 33,000 $ 23,000 $ 31,000 The total manufacturing costs added to production for the year were $680,000; the cost of goods available for sale totaled $730,000 the unadjusted cost of goods sold totaled $665,000; and the net operating income was $33,000. The company's underapplied or overapplied overhead is closed to Cost of Goods Sold.

Superior Company provided the following data for the year ended December 31 (all raw materials are used in production as direct materials): $ 218,000 $ 265,000 Selling expenses Purchases of raw materials Direct labor Administrative expenses Manufacturing overhead applied to work in process Actual manufacturing overhead cost $ 152,000 $ 374,000 $ 357,000 Inventory balances at the beginning and end of the year were as follows: Beginning $ 51,000 Ending Raw materials Work in process Finished goods 2$ 33,000 $ 23,000 $ 31,000 The total manufacturing costs added to production for the year were $680,000; the cost of goods available for sale totaled $730,000 the unadjusted cost of goods sold totaled $665,000; and the net operating income was $33,000. The company's underapplied or overapplied overhead is closed to Cost of Goods Sold.

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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How do i calculate ending inventory and cost of goods sold using LIFO?
1) What type of account is Cost of Goods Sold? What statment does it appear on? Is it a Real or Nominal account? Is it temporary? Is it a CR or DR balance.2) I have read on the internet that it is an expense, however looking at my workbook showing the Income Statement it is lilsted under Sales & Revenues and added together to obtain Gross Profit.
Which of the following is not affected by an error related to ending inventory? Multiple Choice O O O O O Sales. Net income. Current assets. Gross profit. Cost of goods sold.
What is the treatment of the following items in connection with the retail inventory method? g. Sales return h. Employee discount i. Normal and abnormal shortage, shrinkage, spoilage and breakage
8) ____________________ method can be applied in situations where different purchases can be physically separated. a. Weighted Average b. Specific Identification c. First In First Out (FIFO) d. All Clear my choice
Which of the following is a difference between the periodic inventory system and the perpetual inventory system? a. The Merchandise Inventory account is used under the perpetual inventory system but not under the periodic inventory system. Ob. The Purchases account is used under the periodic inventory system but not under the perpetual inventory system. c. The Merchandise Inventory account is used under the periodic inventory system but not under the perpetual inventory system. Od. The Purchases account is used under the perpetual inventory system but not under the periodic inventory system.
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The accountant for the Fred Company did not record a purchase of merchandise on credit or include the items in the ending inventory. The effect of these omissions on assets, liabilities, and retained earnings would be (assume a periodic inventory system): Assets Liabilities Retained Earnings a. Understate Understate Understateb. Understate Understate No effectc. No effect Understate No effectd. Understate No effect Understate
According to IAS 2, inventory must be reflected at the lower of cost and net realisable value. Which one of the following is not an indicator of possible adjustments to the net 8. realisable value? 1. A decline in selling prices. 2. Decrease in selling costs. 3. Damaged inventories. 4. Wholly or partially obsolete inventories.
Inventory cost flow assumptions address accounting issues except when a.identical units of merchandise are acquired at different unit costs during the period. b.an item is sold and it is necessary to determine its cost. c.both of these choices address inventory accounting issues. d.neither of these choices addresses inventory accounting issues.
Petco Inc. uses the periodic inventory system. Assess the effect on net income of including goods in transit f.o.b shipping point in purchases, but not in ending inventory. a. Overstate net income. b. No effect on net income. O c. Not sufficient information is provided to assess the effect on net income. O d. Understate net income.