The following information for 2019 is available for Marino Company: 1. The beginning inventory is $119,000. 2. Purchases returns of $1,000 were made. 3. Purchases of $286,000 were made on terms of 1/10, n/30. Eighty percent of the discounts were taken. 4. At December 31, purchases of $10,000 were in transit, FOB destination, on terms of 1/10, 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 $5,000 were made. 7. The company uses the LIFO periodic method and the gross method for purchase discounts. Required: -Compute the cost of the ending inventory before the physical inventory is taken. Ignore Sales allowances in your computations. Compute the amount of the cost of goods sold that came from the purchases of the period and the amount that came from the beg ost of sales from purchases st of sales from beginning inventory cal cost of goods sold
The following information for 2019 is available for Marino Company: 1. The beginning inventory is $119,000. 2. Purchases returns of $1,000 were made. 3. Purchases of $286,000 were made on terms of 1/10, n/30. Eighty percent of the discounts were taken. 4. At December 31, purchases of $10,000 were in transit, FOB destination, on terms of 1/10, 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 $5,000 were made. 7. The company uses the LIFO periodic method and the gross method for purchase discounts. Required: -Compute the cost of the ending inventory before the physical inventory is taken. Ignore Sales allowances in your computations. Compute the amount of the cost of goods sold that came from the purchases of the period and the amount that came from the beg ost of sales from purchases st of sales from beginning inventory cal cost of goods sold
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:The following information for 2019 is available for Marino Company:
1. The beginning inventory is $119,000.
2. Purchases returns of $1,000 were made.
3. Purchases of $286,000 were made on terms of 1/10, n/30. Eighty percent of the discounts were taken.
4. At December 31, purchases of $10,000 were in transit, FOB destination, on terms of 1/10, 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 $5,000 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 beg
Cost of sales from purchases
Cost of sales from beginning inventory
otal cost of goods sold
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