The records for Unity Pet Supplies showed the following: Sales Revenue Beginning Merchandise Inventory $245,000 $50,000 Purchases of Merchandise Inventory during the $160,000 period Cost of Goods Sold $180,000 What is the amount of the ending Merchandise Inventory? A. $30,000 B. $15,000 C. $25,000 D. $20,000 E. None of the above.

The records for Unity Pet Supplies showed the following: Sales Revenue Beginning Merchandise Inventory $245,000 $50,000 Purchases of Merchandise Inventory during the $160,000 period Cost of Goods Sold $180,000 What is the amount of the ending Merchandise Inventory? A. $30,000 B. $15,000 C. $25,000 D. $20,000 E. None of the above.

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter13: Accounting For Merchandise Inventory

Section: Chapter Questions

Problem 4CE: Kulsrud Company would like to estimate the current inventory level. Using the gross profit method...

See similar textbooks

Similar questions

Kulsrud Company would like to estimate the current inventory level. Using the gross profit method and the following information, estimate the current inventory level for Kulsrud Company. Goods available for sale 100,000 Net sales 150,000 Normal gross profit as a percent of sales 40%
The following information is available for Cooke Company for the current year: The gross margin is 40% of net sales. What is the cost of goods available for sale? a. 5840,000 b. 960,000 c. 1,200,000 d. 1,220,000
Selected data on merchandise inventory, purchases, and sales for Jaffe Co. and Coronado Co. are as follows: Instructions 1. Determine the estimated cost of the merchandise inventory of Jaffe Co. on February 28 by the retail method, presenting details of the computations. 2. a. Estimate the cost of the merchandise inventory of Coronado Co. on October 31 by the gross profit method, presenting details of the computations. b. Assume that Coronado Co. took a physical inventory on October 31 and discovered that 366,500 of merchandise was on hand. What was the estimated loss of inventory due to theft or damage during May through October?
Analyzing the Accounts Casey Company uses a perpetual inventory system and engaged in the following transactions: a. Made credit sales of $825,000. The cost of the merchandise sold was $560,000. b. Collected accounts receivable in the amount of $752,600. c. Purchased goods on credit in the amount of $574,300. d. Paid accounts payable in the amount of $536,200. Required: Prepare the journal entries necessary to record the transactions. Indicate whether each transaction increased cash, decreased cash, or had no effect on cash.
What is the amount of the ending merchandise inventory?
Presented below is information related to Bobby Engram Company. 00Cost00 0 Retail0 Beginning inventory $058,000 $100,000 Purchases (net) 122,000 200,000 Net markups 10,345 Net markdowns 26,135 Sales revenue 186,000 Instructions a. Compute the ending inventory at retail. b. Compute a cost-to-retail percentage (round to two decimals) under the following conditions. 1. Excluding both markups and markdowns. 2. Excluding markups but including markdowns. 3. Excluding markdowns but including markups. 4. Including both markdowns and markups. c. Which of the methods in (b) above (1, 2, 3, or 4) does the following? 1. Provides the most conservative estimate of ending inventory. 2. Provides an approximation of lower-of-cost-or-market. 3. Is used in the conventional retail method. d. Compute ending inventory at lower-of-cost-or-market (round to nearest dollar). e. Compute cost of goods sold based on (d). f. Compute…
General Account
Suppose Perfect Picture Photography Supply's Inventory account showed a balance of $44,700. A physical count showed $43,300 of goods on hand. To adjust the inventory account, Perfect Picture Photography Supply would make which of the following entries? ○ A. Cost of goods sold 1,400 Inventory 1,400 OB. Inventory 1,400 Accounts payable 1,400 ○ C. Accounts payable 1,400 Inventory 1,400 O D. Inventory 1,400 Cost of goods sold 1,400
Corbit Corp. sold merchandise for $10,000 cash. The cost of merchandise sold was $7,590. The journal entries to record this transaction under the perpetual inventory system would be Oa. Cash 10,000 Merchandise Inventory 10,000 Cost of Merchandise Sold 7,590 Sales 7,590 Ob. Cash 7,590 Sales 7,590 Cost of Merchandise Sold 7,590 Merchandise Inventory 7,590 Oc. Cash 10,000 Sales 10,000 Cost of Merchandise Sold 10,000 Merchandise Inventory 10,000 Od. Cash 10,000 Sales 10,000 Cost of Merchandise Sold 7,590 Merchandise Inventory 7,590
Fill in the blanks in the following separate income statements a through e. (amounts to be deducted should be indicated by a minus sign) a b c d e Sales $63,000 $43,600 $41,000 ________ $24,500 Cost of goods sold Merchandise inventory (beginning) $7,500 $16,290 $5,200 $7,700 $4,400 Total cost of merchandise purchases $33,000 _______ _______ $33,000 $6,800 Merchandise Inventory (ending) _______ $-2,700 $-8,300 $-7,400 ______ Cost of goods sold $33,450 $17,000 _______ ______ $6,400 Gross profit…
What is the amount of gross margin for this merchandise? General accounting
The following amounts are known: Beginning merchandise inventory $27,000 Ending merchandise inventory 28,000 Purchases 59,000 Purchases returns and allowances 2,500 Purchases discounts 3,100 Freight-in 290 Assume the business makes estimates for sales returns and allowances at year end. The balances for estimated returns inventory are provided below. Beginning estimated returns inventory $2,300 Ending estimated returns inventory 3,200 Required: Prepare the cost of goods sold section of the income statement for Havens Gift Shop. Amount Descriptions Cost of goods purchased Cost of goods sold Goods available for sale Estimated returns inventory, December 31 Estimated returns inventory, January 1 Freight-in Merchandise inventory, December 31 Merchandise inventory, January 1 Net purchases Purchases Purchases discounts Purchases returns & allowances Havens Gift Shop. Income Statement…