The following information for Dorado Corporation relates to the three-month period ending September 30.Price perSalesUnits525,000Unit$ 56Beginning inventoryPurchases55,00038500,000Ending inventory30,00044?Dorado expects to purchase 250,000 units of inventory in the fourth quarter of the current calendar year at a cost of $45 per unit, andto have on hand 85,000 units of inventory at year-end. Dorado uses the last-in, first-out (LIFO) method to account for inventory costs.a. Determine the cost of goods sold and gross profit amounts Dorado should record for the three months ending September 30.b. Prepare journal entries to reflect these amounts.Complete this question by entering your answers in the tabs below.Required ARequired BDetermine the cost of goods sold and gross profit amounts Dorado should record for the three months ending September 30.Cost of goods soldGross profit

Given Data:Sales: 525,000 units at $56 per unitBeginning Inventory: 55,000 units at $38 per…

Answered: The following information for Dorado…

Excel Applications for Accounting Principles

4th Edition

ISBN:9781111581565

Author:Gaylord N. Smith

Publisher:Gaylord N. Smith

ChapterC: Cases

Section: Chapter Questions

Problem 1C

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Comprehensive The following information for 2019 is available for Marino Company: 1. The beginning inventory is 100,000. 2. Purchases returns of 4,000 were made. 3. Purchases of 300,000 were made on terms of 2/10, n/30. Eighty percent of the discounts were taken. 4. At December 31, purchases of 20,000 were in transit, FOB destination, on terms of 2/10, n/30. 5. The company made sales of 640,000. The gross selling price per unit is twice the net cost of each unit sold. 6. Sales allowances of 6,000 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. 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.
Ranger Industries has provided the following information at June 30: Other information: Average selling price, 196 Average purchase price per unit, 110 Desired ending inventory, 40% of next months unit sales Collections from customers: In month of sale20% In month after sale50% Two months after sale30% Projected cash payments: Inventory purchases are paid for in the month following acquisition. Variable cash expenses, other than inventory, are equal to 25% of each months sales and are paid in the month of sale. Fixed cash expenses are 40,000 per month and are paid in the month incurred. Depreciation on equipment is 2,000 per month. REQUIREMENT You have been asked to prepare a master budget for the upcoming quarter (July, August, and September). The components of this budget are a monthly sales budget, a monthly purchases budget, a monthly cash budget, a forecasted income statement for the quarter, and a forecasted September 30 balance sheet. The worksheet MASTER has been provided to assist you. Ranger Industries desires to maintain a minimum cash balance of 8,000 at the end of each month. If this goal cannot be met, the company borrows the exact amount needed to reach its goal. If the company has a cash balance greater than 8,000 and also has loans payable outstanding, the amount in excess of 8,000 is paid to the bank. Annual interest of 18% is paid on a monthly basis on the outstanding balance.
Langstons purchased $3,100 of merchandise during the month, and its monthly income statement shows a cost of goods sold of $3,000. What was the beginning inventory if the ending inventory was $1,250?
The following information for Dorado Corporation relates to the three-month period ending September 30. Units Price per unit Sales 425000 $36 Beginning Inventory 35000 18 Purchases 400000 24 Ending Inventory 10000 ? Dorado expects to purchase 150,000 units of inventory in the fourth quarter of the current calendar year at a cost of $25 per unit, and to have on hand 40,000 units of inventory at year-end. Dorado uses the last-in, first-out (LIFO) method to account for inventory costs.Determine the cost of goods sold and gross profit amounts Dorado should record for the three months ending September 30. Prepare journal entries to reflect these amounts.
The following information for Dorado Corporation relates to the three-month period ending September 30. Units Price per Unit Sales 485,000 $ 48 Beginning inventory 47,000 30 Purchases 460,000 36 Ending inventory 22,000 ? Dorado expects to purchase 210,000 units of inventory in the fourth quarter of the current calendar year at a cost of $37 per unit, and to have on hand 69,000 units of inventory at year-end. Dorado uses the last-in, first-out (LIFO) method to account for inventory costs. Determine the cost of goods sold and gross profit amounts Dorado should record for the three months ending September 30. Prepare journal entries to reflect these amounts.
In 2018, Mona Inc. started operations with an inventory costing P20,000. For the 2nd quarter of 2018, the purchase and sales were as follows: April May June TotalPurchases P5,000 P38,000 P70,400 P113,400Sales 24,000 51,000 75,500 150,500 The goods are sold at a gross profit of 20% of sales. For interim statement purposes, the inventory at the end of April, May and June, respectively are
Altis Company reported the following information for the currentyear: Sales (100,000 units atP150). Sales discount. Purchases Purchase discount. 15,000,000 1,000,000 9,300,000 400,000 The inventory purchases during the year were as follows: Unit cost Total cost 1,200,000 1,950,000 2,800,000 3,750,000 800,000 10,500,000 Units Beginning inventory, January 1 Purchases, quarter ended March 31 Purchases, quarter ended June 30 Purchases, quarter ended Sept. 30 Purchases, quarter ended Dec. 31 20,000 30,000 40,000 50,000 10,000 150,000 60 65 70 75 80 The accounting policy is to report inventory in the financial statements at the lower of cost and net realizable value. Cost is determined under the first-in, first-out method. Atyear-end,theentityhasdeterminedthatthereplacementcostofinventorywasP70perunitandthenetrealizable value was P72 per unit. The normal profit margin is P10 perunit. What amount should be reported as cost of goods sold for the currentyear? a.6,500,000 b.6,300,000 c.6,700,000…
ABC company's records included the following, assume 365 days in a year: Accounts Receivable, 12/31/20 $ 860,000 Accounts Receivable, 12/31/19 780,000 Merchandise Inventory, 12/31/20 900,000 Merchandise Inventory, 12/31/19 800,000 Net Sales during 2020 8,364,000 Cost of Saless during 2020 5,950,000 Compute the average length of time in days to sell inventory O 52.1 days 55.3 days 49.3 days O 48.7 days
ABC company's records included the following, assume 365 days in a year: Accounts Receivable, 12/31/20 $ 860,000 Accounts Receivable, 12/31/19 780,000 Merchandise Inventory, 12/31/20 900,000 Merchandise Inventory, 12/31/19 800,000 Net Sales.during 2020 8,364,000 Cost of Sales during 2020 5,950,000 Compute the inventory turnover for 2020. O7.4 times O 7 times 6.8 times 6.6 times
The beginning inventory at Dunne Co. and data on purchases and sales for a three-month period ending June 30 are as follows: Number Date Transaction of Units Per Unit Total Apr. 3 Inventory 25 $1,200 $30,000 8 Purchase 1,240 75 93,000 11 Sale 40 2,000 80,000 30 Sale 30 2,000 60,000 May 8 Purchase 60 1,260 75,600 10 Sale 50 2,000 100,000 19 Sale 20 2,000 40,000 28 Purchase 80 1,260 100,800 June 5 Sale 40 2,250 90,000 16 Sale 25 2,250 56,250 21 Purchase 35 1,264 44,240 28 Sale 44 2,250 000'66 Required: 1. Record the inventory, purchases, and cost of goods sold data in a perpetual inventory record similar to the one illustrated in Exhibit 3, using the first-in, first-out method. Under FIFO, if units are in inventory at two different costs, enter the units with the LOWER unit cost first in the Cost of Goods Sold Unit Cost column and in the Inventory Unit Cost column.
A company uses the average cost retail method to estimate inventories. Data for the first six months of 2024 include: beginning inventory at cost and retail were $60,000 and $120,000, net purchases at cost and retail were $312,000 and $480,000, and sales during the first six months totaled $490,000. The estimated inventory at June 30, 2024, would be:
On January 1, 2020, the merchandise inventory of Shoesmith Corp. was $600,000. During 2020, Shoesmith purchased $1,150,000 of merchandise and recorded sales of $1,350,000. The gross profit rate on these sales was 35%. What is the estimated dollar value of the inventory at December 31? Answer:

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