The following information for 2019 is available for Marino Company: 1. The beginning inventory is $118,000. 2. Purchases returns of $3,000 were made. 3. Purchases of $292,000 were made on terms of 3/10, n/30. Eighty percent of the discounts were taken. 4. At December 31, purchases of $22,000 were in transit, FOB destination, on terms of 3/10, n/30. 5. The company made sales of $645,000. The gross selling price per unit is twice the net cost of each unit sold. 6. Sales allowances of $4,000 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. Ignore Sales allowances in your computations. 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. Cost of sales from purchases Cost of sales from beginning inventory Total cost of goods sold

The following information for 2019 is available for Marino Company: 1. The beginning inventory is $118,000. 2. Purchases returns of $3,000 were made. 3. Purchases of $292,000 were made on terms of 3/10, n/30. Eighty percent of the discounts were taken. 4. At December 31, purchases of $22,000 were in transit, FOB destination, on terms of 3/10, n/30. 5. The company made sales of $645,000. The gross selling price per unit is twice the net cost of each unit sold. 6. Sales allowances of $4,000 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. Ignore Sales allowances in your computations. 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. Cost of sales from purchases Cost of sales from beginning inventory Total 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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Required information [The following information applies to the questions displayed below.] Altira Corporation provides the following information related to its merchandise inventory during the month of August 2021: Aug.1 Inventory on hand—3,700 units; cost $7.80 each. 8 Purchased 18,500 units for $7.20 each. 14 Sold 14,800 units for $13.70 each. 18 Purchased 11,100 units for $6.40 each. 25 Sold 13,800 units for $12.70 each. 28 Purchased 5,700 units for $5.80 each. 31 Inventory on hand—10,400 units. Required:1. Using calculations based on a perpetual inventory system, determine the inventory balance Altira would report in its August 31, 2021, balance sheet and the cost of goods sold it would report in its August 2021 income statement using the FIFO method.
Bevo Corp. started 2022 with $101,000 of inventory on hand. During 2022, $500,000 in inventory was purchased on account with credit terms of 3/15, n/45. Purchases were all made f.o.b. shipping point. All discounts were taken. Cost of goods sold for the year was $366,000. Inventory with an invoice amount of $3,200 was returned for credit. Bevo Corp. paid freight charges of $9,300. Bevo Corp. uses a perpetual inventory system. Calculate the cost of goods available for sale, assuming Bevo Corp. uses the gross method to record purchases. a) 592,100 b) 592,196 c) 607,100 d) 606,700
Abacus Ltd undertook the following transactions during May 2022. Purchased $18,480 inventory; terms 1/10, n/30. May. 1 8 Returned $1,980 of the inventory purchased on May 1. 16 Sold inventory on credit for $8,745. Cost of the inventory sold was $5,700. Required: a) Prepare the journal entries to record the transactions using periodic inventory system. GST apply, and assuming that all the prices are GST inclusive. b) Prepare the journal entries to record the 8th and 16th transactions using perpetual inventory system. Ignore GST.
1. On January 1, 2022 the company purchased 200,000 materials on account, with terms: 6%, 5/20, n/60. Compute the amount of purchase in a Periodic Inventory System on January 1. 2. In connection with number 1, if on January 15, the payment is made, how much is the recorded Purchase discount in the Perpetual Inventory System? 3. On February 3, the company purchased materials amounting to 950,000 on account. Transportation costs amounted to 5,000. Terms: 8%, 3/15, n/60. Using the Perpetual Inventory System, how much is the recorded purchases on February 3? 4. On February 3, how much is the Raw Materials Inventory using the Perpetual Inventory System?
The Reuschel Company began 2021 with inventory of 11,000 units at a cost of $6 per unit. During 2021, 51,000 units were purchased for $7.60 each. Sales for the year totaled 55,500 units leaving 6,500 units on hand at the end of 2021. Reuschel uses a periodic inventory system and the LIFO inventory cost method. Required:1. Calculate cost of goods sold for 2021.2. Calculate the effect of the use of LIFO on Income.
Stitch Ships Inc. has the following inventory purchases during the fiscal year ended December 31, 2020. Jan 14 Purchased $30,000 of inventory on credit. Feb 19 Sold merchandise for cash $14,000. Original cost was $9,500. Aug 4 Sold merchandise for cash $22,000. Original cost was $14,500. Sep 20 Purchased $10,000 of inventory for cash. Required: a). Prepare all the journal entries assuming Stitch Ships Inc. uses the perpetual inventory system. b) What is the dollar value of Stitch Ships Inc. ending inventory if its beginning inventory was $7500.
Assume the perpetual inventory system is used unless stated otherwise. Round all numbers to the nearest whole dollar unless stated otherwise. Estimating sales returns On December 31, Jack Photography Supplies estimated that approximately 2% of merchandise sold will be returned. Sales Revenue for the year was $80,000 with a cost of $48,000. Journalize the adjusting entries needed to account for the estimated returns.
Altira Corporation provides the following information related to its merchandise inventory during the month of August 2021: Aug.1 Inventory on hand—2,500 units; cost $6.60 each. 8 Purchased 12,500 units for $6.00 each. 14 Sold 10,000 units for $12.50 each. 18 Purchased 7,500 units for $5.20 each. 25 Sold 9,000 units for $11.50 each. 28 Purchased 4,500 units for $5.80 each. 31 Inventory on hand—8,000 units. Using calculations based on a perpetual inventory system, determine the inventory balance Altira would report in its August 31, 2021, balance sheet and the cost of goods sold it would report in its August 2021 income statement using last-in, first-out (LIFO).
During 2025, which was the first year of operations, Ivanhoe Company purchased inventory with a cost of $973000 before cash discounts. All purchases were made on terms of 2/10, n/30. Three-fourths of the items purchased were paid for within 10 days of purchase. All of the goods available had been sold at year end. Which of the following recording procedures would result in the highest cost of goods sold for 2025? 1. Recording purchases at gross amounts 2. Recording purchases at net amounts, with the amount of discounts not taken shown under "other expenses" in the income statement 01 02 O Either 1 or 2 will result in the same cost of goods sold. O Cannot be determined from the information provided.
The company uses the periodic inventory system. A physical count of inventory on December 31 resulted in an inventory amount of $50,000. Instructions: 3. Prepare a Statement of Financial Position as at December 31, 2019. a. Report Form b. Account Form
During 2021, a company sells 280 units of inventory for $89 each. The company has the following inventory purchase transactions for 2021: Number of Units 69 169 189 Unit Cost $64 Date Transaction Jan. 1 Beginning inventory May 5 Purchase Nov. 3 Purchase Total Cost $ 4,416 10,985 12,663 $28,064 65 67 427 Calculate ending inventory and cost of goods sold for 2021 assuming the company uses FIFO. Ending inventory %24 147 Cost of goods sold