The home office consistently billed its branch 130% of cost and the following data were ascertained for the year 2020 for the home office and branch: Home Office Sales P370,500 Branch 400,000 Purchases 288,900 124,800 Shipments 178,800 ? OPEX 75,300 45,900 Home Office Branch Beginning Inventory 12,500 Home Office Ending Inventory 50,700 Vendors 35% of total branch beginning inventory 35,700 Home Office 62% of total branch ending inventory Vendors 1. What is the cost of goods sold reported by the branch? 30,875 2. What is the balance of the mark-up on the merchandise available for sale from the home office? 3. What is the combined ending inventory?

The home office consistently billed its branch 130% of cost and the following data were ascertained for the year 2020 for the home office and branch: Home Office Sales P370,500 Branch 400,000 Purchases 288,900 124,800 Shipments 178,800 ? OPEX 75,300 45,900 Home Office Branch Beginning Inventory 12,500 Home Office Ending Inventory 50,700 Vendors 35% of total branch beginning inventory 35,700 Home Office 62% of total branch ending inventory Vendors 1. What is the cost of goods sold reported by the branch? 30,875 2. What is the balance of the mark-up on the merchandise available for sale from the home office? 3. What is the combined ending inventory?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Cari Furniture has the following information in respect of Coffee tables for 2021: Production specifications: Beginning Inventory Target Ending Inventory Direct Materials: Particle board 20,000 b.f. 18,000 b.f. Teak 25,000 b.f. 22,000 b.f. Finished goods: Coffee tables 5,000 units 3,000 units Revenue expected for 2021 are: Selling price $392 per table Units sold 52,000 coffee tables Each coffee table requires 9.00 b.f. of particle board and 10.00 b.f. of Teak. Costs for 2020 and expected for 2021 include: 2020 2021 Particle board (per b.f.) $ 3.90 $ 4.00 Teak (per b.f.) $ 5.80 $ 6.00 Laminating labor (per hour) $24.00 $25.00 Machining labor (per hour) $29.00 $30.00 Prepare the materials usage budget.
Financial Report for Store: A typical annual income statement for a pre-plan Ladbreck store before fixed charges, taxes, and incidentals looks as follows. Sales... Cost of goods sold. Gross profit.... Employee salaries. Profit before fixed charges.. Total 10,000,000 6,300,000 3,700,000 800,000 2,900,000 Percent 100 63 37 8 29 A store also has substantial charges for rent, management salaries, insurance, etc., but they are fixed with respect to the incentive plan. Required a. Suppose the goal of the firm is to now provide superior customer service by having the sales con- sultant identify and sell to the specific needs of the customer. What does this goal suggest about a change in managerial accounting and control systems? b. Provide an estimate of the impact of the incentive plan on sales. c. Did the sales impact occur all at once, or did it occur gradually?
You are the vice president of finance of Sandy Alomar Corporation, a retail company that prepared two different schedules of gross margin for the first quarter ended March 31, 2020. These schedules appear below. Sales($5 per unit) Cost ofGoods Sold GrossMarginSchedule 1 $150,000 $124,900 $25,100Schedule 2 150,000 129,400 20,600The computation of cost of goods sold in each schedule is based on the following data. Units Costper Unit TotalCostBeginning inventory, January 110,000$4.00$40,000Purchase, January 108,0004.2033,600Purchase, January 306,0004.2525,500Purchase, February 119,0004.3038,700Purchase, March 1711,0004.4048,400Jane Torville, the president of the corporation, cannot understand how two different gross margins can be computed from the same set of data. As the vice president of finance, you have explained to Ms. Torville that the two schedules are based on different assumptions concerning the flow of inventory costs, i.e., FIFO and LIFO. Schedules 1 and 2 were not…
The following information is available for the past year for a retail store: Sales $121,000 Sales Returns $1,000 Markups $11,000 Markup cancellations $1,000 Markdowns $9,000 Purchases (at cost) $40,000 Purchases (at retail) $90,000 Beginning inventory (at cost) $30,000 Beginning inventory (at retail) $40,000 What is the cost-to-retail ratio to estimate the cost of ending inventory using the conventional retail method? (Round cost-to-retail ratios to four decimal places.) Group of answer choices 53.85% 75% 58.33% 50%
The Cena and Lesnar, a retail clothier, has had average sales of $400,000 for the last five years,| 2019-2015. The firm's total assets at the end of 2017 were $400,000. An internal staff cost analyst has prepared the following financial data from the annual reports. You have been hired as a consultant to help analyze the financial position. 2019 2018 2017 2016 2015 Current Ratio 2.80 2.43 2.36 2.10 2.00 Acid Test Ratio 2.03 1.93 1.82 1.61 1.47 Days' Sales in Receivables Merchandise Inventory Turnover Debt Ratio 61 58 54 42 35 4.20 4.10 4.10 3.90 3.70 0.48 0.50 0.49 0.47 0.47 Times Interest Earned 4.60 4.80 5.90 5.70 6.00 Sales as a Percent of 1996 Sales 1.46 1.23 1.12 1.06 1.00 Net Income as a Percent of 1996 Income 1.31 1.20 1.10 1.06 1.00 Gross Profit Margin Operating Expenses to Net Sales Net Profit Margin 38.5% 38.8% 38.9% 40.0% 39.7% 11.4% 11.3% 11.5% 11.4% 11.7% 7.6% 8.6% 8.9% 9.4% 9.3% Return on Total Assets 9.4% 9.6% 9.6% 10.0% 10.7% Required: Have Cena and Lesnar utilized its…
DEF Inc. had the following information for the year 2022: Beginning inventory: $50,000 Purchases: $100,000 Sales revenue: $200,000 Ending inventory: $40,000 Gross profit margin: 40% Calculate the cost of goods sold for the year.
CAN SOMEONE HELP ME WITH THIS WORD PROBLEM? Selected account balances for Pharoah Company at January 1, 2020, are presented below. Accounts Payable $13,200 Accounts Receivable 22,600 Cash 16,400 Inventory 13,800 Pharoah’s sales journal for January shows a total of $110,000 in the selling-price column, and its one-column purchases journal for January shows a total of $77,700.The column totals in Pharoah’s cash receipts journal are Cash Dr. $60,900; Sales Discounts Dr. $2,500; Accounts Receivable Cr. $45,400; Sales Revenue Cr. $6,300; and Other Accounts Cr. $11,700.The column totals in Pharoah's cash payments journal for January are Cash Cr. $55,900; Inventory Cr. $1,800; Accounts Payable Dr. $46,700; and Other Accounts Dr. $11,000. Hulse’s total cost of goods sold for January is $63,900.Accounts Payable, Accounts Receivable, Cash, Inventory, and Sales Revenue are not involved in the Other Accounts column in either the cash receipts or cash payments…
Activities/Assessments: Activity 9 Solve the following EOQ model problems: 1. Each year, Y Company purchases 20,000 units of an item that costs P 640 per unit. The cost of placing an order is P 480, and the cost to hold the item in inventory for one year is P 150. a. Determine the EOQ. b. What is the average inventory level, assuming that the minimum inventory level is zero? c. Determine the total annual ordering cost and the total annual holding cost for the item if the EOQ is used. 2. A toy manufacturer uses approximately 32,000 silicon chips annually. The chips are used at a steady rate during the 240 days the plant operates. Annual holding cost is P27 per chip and ordering cost is P1,080. Lead time = 1 week. a. Find the EOQ. b. Find the reorder point. c. What would be your ordering policy for this item? d. Find the total annual cost of ordering and carrying silicon chips. 3. A large bakery buys sugar in 50-kg bags. The bakery uses an average of 1,344 bags a year. Preparing an order…
PROBLEM U: The following information came from the books and records of the Home Office and its branch. The balances as of December 31, 2020 are as follows: Branch 170,000 Home office 300,000 Sales Shipments to branch Shipments from home office Purchases Operating expenses Inventory, December 31, 2019 Allowance for overvaluation of branch inventory 48,000 60,000 36,000 42,000 32,000 120,000 80,000 50,000 17,200 There were no shipment in transit between the Home office and the branch. Both shipment accounts are properly recorded. The closing inventory of the branch at billed price is P16,800, P6,000 of which were acquired from outside suppliers. The closing inventory of the home office is P18,000. The home office applies a uniform percentage markup on the shipments of inventory to the branch from year to year. 25. How much is the overvaluation in branch's ending inventory as of December 31, 2020? A. С. 15,040 17,200 В. 2,160 D. 26. How much is the net income (loss) of the branch for…
Please Do both questions Delphino’s has sales for the year of $127,300 and cost of goods sold of $86,700. The firm carries an average inventory of $14,300 and has an average accounts payable balance of $13,600. What is the inventory period? 81.36 days 60.20 days 58.68 days 89.02 days The Lumber Yard has projected sales for April through July of $152,400, $161,800, $189,700, and $196,400, respectively. The firm collects 52 percent of its sales in the month of sale, 46 percent in the month following the month of sale, and the remainder in the second month following the month of sale. What is the amount of the July collections? $181,508 $122,852 $189,819 $192,626
Calculate cost of sales for the year: A company uses the periodic method and reported the following amounts for the year. Ending inventory = 40,000 Opening inventory= 41,500 Sales revenue =114,000 Purchases=77000 Purchase discounts = 7000 Purchase returns and allowances = 5800
The general merchandise retail industry has a number of segments represented by the following companies: Company Name Costco Wholesale Corporation Merchandise Concept Membership warehouse Wal-Mart Discount general merchandise JCPenney Company Department store For a recent year, the following cost of merchandise sold and beginning and ending inventories have been provided from corporate annual reports (in millions) for these three companies: Wal-Mart Costco JCPenney $365,086 Cost of merchandise sold $101,065 $8,074 Merchandise inventory, beginning Merchandise inventory, ending 45,141 8,908 2,721 8,456 44,858 2,652 a. Determine the inventory turnover ratio for all three companies. Round to two decimal places. b. Determine the days' sales in inventory for all three companies. Use 365 days and round to one decimal place. c. Interpret these results based on each company's merchandise concept.