The following accounts and balances are taken from the books of Bosox Company which             uses the periodic inventory system.                                         Sales     $470,000       Sales returns and allowances     15,000       Sales discounts     2,500       Purchases     255,000       Purchases returns and allowances     18,000       Purchases discounts     5,000       Transportation-In     1,500       Operating expenses     125,000                     Beginning inventory     $40,000       Ending inventory     35,000                     a. Calculate the cost of good sold             b. Calculate the gross profit             c. Calculate the net income

Q: During the current year, merchandise is sold for $8,780,000. The cost of the goods sold is…

A: Given: Merchandise sold =$8780000Cost of goods sold =$5531400

Q: Enter the missing dollar amounts for the income statement for each of the following independent…

A: A financial document called an income statement provides a summary of a business's financial results…

Q: The cost of goods sold computations for Novak Company and Flounder Company are shown below. Compute…

A: The question is based on the cost accounting.

Q: Jones Co. uses the retail inventory method. Given the following data, what's the ending inventory at…

A: Sales at retail: $80,000Net purchases at cost: $41,200Net purchases at retail: $66,800Beginning…

Q: Based on the information that follows, prepare the cost of goods sold section of a multiple-step…

A: Cost of goods manufactured means the cost incurred for manufacturing the finished product. Cost of…

Q: Funky Dance sold inventory for $250,000, terms 1/10, n/30. Cost of goods sold was $168,000. How much…

A: Formula: Reported sales revenue = Sales value - Discount amount

Q: Use a tabular summary to record the following transactions for Sunland Company using a perpetual…

A: Accounting Equation is calculated using following equation -Assets = Liabilities + EquityEvery…

Q: Using the following information, what is the amount of gross profit? Purchases $ 27,259 Selling…

A: Gross profit = Sales -  Cost of goods sold

Q: Use a tabular summary to record the following transactions for Wildhorse Company using a perpetual…

A: Detailed explanation:a. Sales on accountIncrease in asset,  accounts receivable,  976000Increase in…

Q: Perform a vertical analysis for the entry "Sales Returns and Allowances" on the portion of an income…

A: VERTICAL ANALYSIS OF BALANCE SHEETVertical analysis is a proportional analysis of financial…

Q: Perform a vertical analysis for the entry "Gross Sales" on the portion of an income statement shown…

A: Vertical analysis of an income statement is a financial analysis technique that involves expressing…

Q: Based on the information below: a. Seller sold merchandise on account to the buyer, $4,750, terms…

A: The journal entries are prepared to record daily transactions of the business.

Q: pplying the Cost of Goods Sold Model The following amounts were obtained from the accounting…

A: Total cost of goods available for sale = Beg, inventory + net purchasesCost of goods sold = Total…

Q: Using the following information, determine the cost of merchandise sold. $28,581 Selling expenses…

A: Cost of merchandise sold means the total cost of the goods that a trader incurred for the…

Q: g. Sold 15 of the items purchased (in f) for $120 each and amount in cash. Record the sales…

A: Under perpetual inventory system for sale of inventory there are two separate entries first for…

Q: Our company uses a perpetual inventory system. On July 3, we sold merchandise with a cost of $3,000…

A: The correct option with proper explanation are as follows

Q: Data Table Sales 24 90,000 S 104,000 $ 65,600 (f) Sales Returns and Allowances 920 (b) 1,610 840…

A: Different given values are to be used to find the required data.

Q: Paul Company uses its periodic inventory system and you are given the following information:…

A: Calculate cost of goods sold:

Q: Sayers Co. sold merchandise on account to a customer for $90,000 terms 1/10, n/30. The cost of the…

A: Journal entries are used to record the financial transaction. It helps to prepare the ledger and…

Q: Suppose that Crane uses a periodic inventory system and has the following financial information:…

A: The net sales are calculated as Gross purchase less purchase return and allowance. The freight in…

Q: Sales during the year were 545 units. Beginning inventory was 430 units at a cost of $6 per unit.…

A: The inventory can be valued using various methods as FIFO, LIFO and average method. Using FIFO, the…

Q: D P Sales S 68,000 $ 43,600 $ 56,000 $ 25,500 Cost of goods sold Merchandise inventory, beginning…

A: We use the following formulas for determine the amount  Sales  = Cost of goods sold  + Gross…

Q: Hider Company had a customer return merchandise purchased with cash with a sales price of $7,500.…

A: The journal entries are prepared to record the transactions on regular basis. Under estimated…

Q: Using the following information, what is the amount of gross profit? Purchases $30,118   Selling…

A: Gross profit = sales + Merchandise inventory September 30 - Purchases - Merchandise inventory…

Q: Refer to the following selected financial information from Phantom Corp. Compute the company's days'…

A: Step 1:Step 2:Step 3: Step 4:

Q: Fill in the blanks in the following separate income statements a through e. b. Sales $ 62,000 $…

A: Gross profit is calculated by deducting the cost of goods sold from the sales amount and net profit…

Q: Suppose Perfect Picture Photography Supply's Inventory account showed a balance of $44,700. A…

A: Inventory is the current assets held by the company in the ordinary course of business. The primary…

Q: Using the followlng Information, answer the questions. Net sales $198,000 Purchases 92,000 Purchases…

A: Cost of goods sold means total cost incurred on goods that are being sold by the business in the…

Q: Calculate the cost of goods sold for a merchandiser using the periodic inventory system from the…

A: Cost of Goods Sold(COGS) is total which is incurred by business firm to produce the trading product…

Q: Jake Thomas Corporation uses the conventional retail method for financial reporting. The​ company's…

A: Cost to retail ratio is calculated by dividing the cost of goods available for sale at cost with the…

Q: ales                                                               $63,000        $43,600…

A: Solution Formulas used Cost of goods sold       =merchandise inventory (beginning ) + total cost of…

Q: Enter the missing dollar amounts for the income statement for each of the following independent…

A: INCOME STATEMENTIncome Statement is one of the Important Financial Statement of the Company. Income…

Q: Comprest Company has the following account balances: Purchases of $ 10,551, Purchase Returns and…

A: COST OF GOODS AVAILABLE FOR SALECost of Goods Available for sale is the amount of cost included in…

Q: Assume the perpetual inventory system is used. Sales $642,363 Merchandise Inventory 582,620 Sales…

A: Net sales is the sum of a company's gross sales minus its returns, allowances, and discounts. Net…

Q: Suppose that Ivanhoe uses a periodic inventory system and has these account balances: Purchases…

A: The cost of goods manufactured includes all the costs that are related to the production of goods…

Inventory Valuation

Before discussing the topic inventory valuation let’s discuss the meaning of inventory. In accounting, inventory is also known as stock. Inventory means all the finished goods, materials, merchandise that a business holds for the purpose of selling it in the market with the motive of earning profit.