The accountant of Cake Company is provided with the following information and was asked determine the cost of inventory purchased. Purchase price of materials, P330,000 Storage costs of finished goods, P20,000 Import duties and non-recoverable purchase taxes, P15,000 . Freight-in, P5,500 Freight-out, P4,000 Trade discount amounting to P30,000 was already deducted from the purchase price

The accountant of Cake Company is provided with the following information and was asked determine the cost of inventory purchased. Purchase price of materials, P330,000 Storage costs of finished goods, P20,000 Import duties and non-recoverable purchase taxes, P15,000 . Freight-in, P5,500 Freight-out, P4,000 Trade discount amounting to P30,000 was already deducted from the purchase price

Name: The accountant of Cake Company is provided with the following informa
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Description: The accountant of Cake Company is provided with the following information and was asked todetermine the cost of inventory purchased.Purchase price of materials, P330,000Storage costs of finished goods, P20,000Import duties and non-recoverable purcha

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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Suppose that Ivanhoe uses a periodic inventory system and has these account balances: Purchases $571,000; Purchase Returns and Allowances $11,800; Purchases Discounts $9,100; and Freight-In $14,300. Determine net purchases and cost of goods purchased. Net purchases tA Cost of goods purchased $
The following information is available for the Johnson Corporation: Beginning inventory $ 25,000 Inventory purchases (on account) 155,000 Freight charges on purchases (paid in cash) 10,000 Inventory returned to suppliers (for credit) 12,000 Ending inventory 30,000 Sales (on account) 250,000 Cost of inventory sold 148,000 Required:Applying both a perpetual and a periodic inventory system, prepare the journal entries that summarize the transactions that created these balances. Include all end-of-period adjusting entries indicated. Record merchandise purchased on account for $155,000. Record the payment of $10,000 in cash for freight charges. Record merchandise returned to supplier for credit of $12,000. Record sales on account of $250,000. Record cost of merchandise sold of $148,000. Record the end-of-period adjusting entry. Ending inventory is $30,000.
Hull Company reported the following income statement information for the current year. Sales Cost of goods sold: Beginning inventory Cost of goods purchased Cost of goods available for sale Ending inventory Cost of goods sold Gross profit Multiple Choice $120,000. The beginning inventory balance is correct. However, the ending inventory figure was overstated by $26,000. Given this information, the correct gross profit would be: O $146,000 $172,000. $133,000. $ 416,000 $115,000, $ 141,000 279,000 420,000 150,000 270,000 $ 146,000
Novak’s Market recorded the following events involving a recent purchase of inventory:Received goods for $112000, terms 2/11, n/30.Returned $2200 of the shipment for credit.Paid $400 freight on the shipment.Paid the invoice within the discount period.As a result of these events, the company’s inventory increased by $108004. increased by $107604. increased by $110200. increased by $107996.
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2. Assume that Breakthrough Company uses a periodic inventory system and has these account balances: Freight-In $19,000; Purchase Discounts $11,000; Net Sales of $750,000; inventory,4/1 of $45,000; Operating Expenses $39,500; Purchase Returns and Allowances $25,000; Freight-Out $ 24,000; inventory,4/30 of $55,000; and Purchases $630,000. Required: Using the appropriate account titles and subtotals prepare in proper format the detailed cost of goods sold section for the month ended Aoril 30, 2021
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