When Mercator Manufacturing Inc. checked its stores, it had the following inventory on hand as at December 31, 2020: (i) 5,000 litres of lubricating oil that had cost $2.50 per litre: As at December 31, the selling price was $3.00 per litre. (ii) 50,000 kg of steel that had cost $0.50 per kg: As at December 31, 4. ups the market price was $0.48 per kg. (iii) Spare parts that had cost $25,000: Mostly for production machinery sldslisve od bluow that was no longer in use, so it was unlikely they could be used. 9sw They have no resale value. (iv) A replacement control unit for a customer's milling machine, which has a resale value of $10,000: The control unit was bought by the customer so that Mercator could use it to repair their milling machine. 5ont ou bobean ti ar s0303

When Mercator Manufacturing Inc. checked its stores, it had the following inventory on hand as at December 31, 2020: (i) 5,000 litres of lubricating oil that had cost $2.50 per litre: As at December 31, the selling price was $3.00 per litre. (ii) 50,000 kg of steel that had cost $0.50 per kg: As at December 31, 4. ups the market price was $0.48 per kg. (iii) Spare parts that had cost $25,000: Mostly for production machinery sldslisve od bluow that was no longer in use, so it was unlikely they could be used. 9sw They have no resale value. (iv) A replacement control unit for a customer's milling machine, which has a resale value of $10,000: The control unit was bought by the customer so that Mercator could use it to repair their milling machine. 5ont ou bobean ti ar s0303

Name: 4. When Mercator Manufacturing Inc. checked its stores, it had thefol
Uploaded: 2024-03-20T06:32:37.000Z
Channel: Bartleby
Description: 4. When Mercator Manufacturing Inc. checked its stores, it had thefollowing inventory on hand as at December 31, 2020:(i) 5,000 litres of lubricating oil that had cost $2.50 per litre: As atDecember 31, the selling price was $3.00 per(ii) 50,000 kg

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

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-3,600 units; cost $7.70 each. 8 Purchased 18,000 units for $7.10 each. 14 Sold 14, 400 units for $13.60 each. 18 Purchased 10,800 units for $6.60 each. 25 Sold 13,400 units for $12.60 each. 28 Purchased 5,600 units for $5.80 each. 31 Inventory on hand-10,200 units. Required: 1. Using calculations based on a perpetual inventory system, determine the inventory Balance Altira would report in its August 31, 2021, palance sheet and the cost of goods sold it would report in its August 2021 income statement using the FIFO method. Cost of Goods Sold - August 25 Inventory Balance Cost of Goods Available for Sale Cost of Goods Sold - August 14 Cost of Goods # of units in Cost per End # of units sold Total Cost of Goods Sold Perpetual FIFO: Cost per unit Cost…
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.
[The following information applies to the questions displayed below.] Home Hardware reported beginning inventory of 30 shovels, for a total cost of $90. The company had the following transactions during the month: January 2 Sold 7 shovels on account at a selling price of $10 per unit. January 16 Sold 12 shovels on account at a selling price of $10 per unit. January 18 Bought 4 shovels on account at a cost of $3 per unit. January 19 Sold 12 shovels on account at a selling price of $10 per unit. January 24 Bought 12 shovels on account at a cost of $3 per unit. January 31 Counted inventory and determined that 13 units were on hand. 3-a. What is the dollar amount of shrinkage that you were able to determine in periodic inventory system? 3-b. What is the dollar amount of shrinkage that you were able to determine in perpetual inventory system? Do not give answer in image
A local college bookstore has a beginning inventory costing $80,000 and an ending inventory costing $84,000. Sales for the year were $300,000. Assume the bookstore markup rate on selling price is 70%. Based on the selling price, what is the inventory turnover at cost?
Altira Corporation provides the following information related to its inventory during the month of August 2024: August 1 Inventory on hand-2,900 units; cost $7.00 each. August 8 Purchased 14,500 units for $6.40 each. August 14 Sold 11,600 units for $12.90 each. August 18 Purchased 8,700 units for $6.00 each. August 25 Sold 10,600 units for $11.90 each. August 28 Purchased 4,900 units for $5.80 each. August 31 Inventory on hand-8,800 units. Using calculations based on a perpetual inventory system, determine the inventory balance Altira would report in its August 31, 2024, balance sheet and the cost of goods sold it would report in its August 2024 income statement using last-in, first-out (LIFO). Cost of Goods Available for Sale Cost of Goods Sold - August 14 Cost of Goods Sold - August 25 Inventory Balance Perpetual LIFO: Number of units Cost per unit Cost of Goods Available for Sale Number of Cost Cost of units sold per unit Goods Sold Number of units sold Cost per unit Cost of Goods…
On January 1, 2024, the Brunswick Hat Company adopted the dollar-value LIFO retail method. The following data are available for 2024: Cost Retail Beginning inventory $ 72,900 $ 135,000 Net purchases 102,150 232,000 Net markups 5,000 Net markdowns 10,000 Net sales 200,000 Retail price index, 12/31/2024 1.08 Required: Calculate the estimated ending inventory and cost of goods sold for 2024 using the information provided. Ending inventory at retail:_________ Ending inventory at cost:__________ Cost of goods sold:_______________
The inventory of Royal Decking consisted of five products. Information about the December 31, 2021, inventory is as follows: Per Unit Product Cost Replacement Cost Selling Price A $40 35 60 B 80 70 100 C 40 55 80 D 100 70 130 E 20 28 30 Selling costs consist of a sales commission equal to 10% of selling price and shipping costs equal to 5% of cost. The normal profit is 30% of selling price. Required:What unit value should Royal Decking use for each of its products when applying the lower of cost or market (LCM) rule to units of ending inventory? Product Cost Replacement cost NRV NRV - NP Market Per Unit Inventory Value A $40 $35 B 80 70 C 40 55 D 100 70 E 20 28
Suppose The Style Fashions, a specialty retailer, had these records for evening gowns during 2018: (Click the icon to view inventory data.) Assume that The Style sold 120 gowns during 2018 and uses the LIFO method to account for inventory. The Style's income tax rate is 35%. Read the requirements. Requirement 1. Compute The Style's cost of goods sold for evening gowns in 2018. Unit price Total Units From beginning inventory From purchase in February From purchase in June From purchase in December LIFO cost of goods sold Requirement 2. Compute what cost of goods sold would have been if The Style had purchased enough inventory in December-at $1,325 per evening gown-to keep year-end inventory at the same level it was at the beginning of the year. Cost of goods sold without LIFO liquidation 18 $ 23 52 27 Units 950 1,225 1,275 1,325 $ 17,100 28,175 66,300 35,775 147,350 Unit price Total
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-2,800 units; cost $6.90 each. 8 Purchased 14,000 units for $6.30 each. 14 Sold 11, 200 units for $12.80 each. 18 Purchased 8,400 units for $5.80 each. 25 Sold 10, 200 units for $11.80 each. 28 Purchased 4,800 units for $5.80 each. 31 Inventory on hand-8,600 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. Cost of Goods Available for Sale Cost of Goods Sold - August 14 Cost of Goods Sold - August 25 Inventory Balance Cost of Goods Available for Perpetual FIFO: Cost per unit # of units sold Cost per unit Cost of Goods Sold # of units…
Music, Inc. had the following beginning and ending values in its three inventory accounts: Jan 1, 2021 Dec. 31, 2021 Raw Materials Inventory $500 $800 Work-in-Progress Inventory $1,200 $1,300 Finished Goods Inventory $600 $750 Additional information for the year ending December 31, 2021: Manufacturing costs: $2,875 Sales revenue: $15,900 Selling & Admin expenses: $3,600 Interest expense: $160 Income tax rate: 20% What amount will Music, Inc. report as 2021 Cost of Goods Sold on its year ending 2021 Income Statement? Question 8 options: $2,875 $2,775 $2,850 $2,625
Altira Corporation provides the following information related to its inventory during the month of August 2024: August 1 Inventory on hand—2,300 units; cost $6.40 each. August 8 Purchased 11,500 units for $5.80 each. August 14 Sold 9,200 units for $12.30 each. August 18 Purchased 6,900 units for $5.00 each. August 25 Sold 8,200 units for $11.30 each. August 28 Purchased 4,300 units for $5.80 each. August 31 Inventory on hand—7,600 units. 1. Using calculations based on a perpetual inventory system, determine the inventory balance Altira would report in its August 31, 2024, balance sheet and the cost of goods sold it would report in its August 2024 income statement using the FIFO method.
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—3,600 units; cost $7.70 each. 8 Purchased 18,000 units for $7.10 each. 14 Sold 14,400 units for $13.60 each. 18 Purchased 10,800 units for $6.60 each. 25 Sold 13,400 units for $12.60 each. 28 Purchased 5,600 units for $5.80 each. 31 Inventory on hand—10,200 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.