Get correct answer accounting Williamson Corporation acquired two inventory itemsat a lump-sum cost of $40,000. The acquisition included3,000 units of product CF and 7,000 units of product 3B.CF normally sells for $12 per unit and 3B for $4 per unit.If Williamson sells 1,000 units of CF, what amount ofgross profit should it recognize?

Step 1: Determine the total sales value of each productStep 2: Allocate the lump-sum acquisition…

Answered: Williamson Corporation acquired two…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

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Chapter11: Long-term Assets

Section: Chapter Questions

Problem 10PA: Buchanan Imports purchased McLaren Corporation for $5,000,000 cash when McLaren had net assets worth...

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Oriole Corporation acquired two inventory items at a lump-sum cost of $123000. The acquisition included 3090 units of product LF, and 6180 units of product 1B. LF normally sells for $30 per unit, and 1B for $10 per unit. If Oriole sells 1030 units of LF, what amount of gross profit should it recognize?
Sandhill Corporation acquired two inventory items at a lump-sum cost of $128000. The acquisition included 3240 units of product LF, and 6480 units of product 1B. LF normally sells for $30 per unit, and 1B for $10 per unit. If Sandhill sells 1080 units of LF, what amount of gross profit should it recognize? O $2267. O $32400. O $36720. O $6800.
Sandhill Corporation acquired two inventory items at a lump-sum cost of $62500. The acquisition included 5700 units of knife X001, and 5700 units of knife X002. X001 normally sells for $40 per unit, and X002 for $10 per unit. If Sandhill sells 1200 units of X002. what amount of gross profit should it recognize? (Round percentage value and per unit value to 2 decimal places, eg 52.75) O $9372. $2628. O $12000, O$1200.
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How much is the cost of the inventories purchased?
Greer Manufacturing purchases property that includes land, buildings and equipment for $4,600,000. In addition, the company pays $171,000 in legal fees, $219,000 in commissions, and $100,000 in appraisal fees. The land is estimated at 27%, the buildings are at 37%, and the equipment at 36% of the property value. Required: Determine the total acquisition cost of this "basket purchase". Allocate the total acquisition cost to the individual assets acquired. Prepare the journal entry to record the purchase assuming that the company paid 55% of the amounts using cash and signed a note (due in five years) for the remainder.
Kramer Corporation made a basket purchase of three items. Item X was appraised at $40,000; item Y was appraised at $56,000; and item Z was appraised at S64,000. The purchase price was $129,000. The amount at which item X should be recorded is: (Round any intermediary calculations to the nearest cent and your final answer to the nearest dollar.) O A. $49,612. O B. $40,000 O C. $9,000 O D. $32,250.
Star Company expects to sell Division S next year. Division S meets the criteria to be a component unit of Star Company. At the end of this year, Star Company estimates the fair value of Division S at $320,000, and the net book value of Division S is $280,000. Based on the information, what is Star Company's pretax gain (loss) on the held-for-sale component? a. $320,000 gain b. $40,000 gain c. $40,000 loss d. $320,000 loss
a. What is the consolidated inventory for 20x6? b. What is the consolidated cost of goods sold for 20x6?
Company XYZ manufactures a tangible product and sells the product at wholesale. In its first year of operations, XYZ manufactured 1,900 units of product and incurred $351,500 direct material cost and $194,750 direct labor costs. For financial statement purposes, XYZ capitalized $149,750 indirect costs to inventory. For tax purposes, it had to capitalize $180,750 indirect costs to inventory under the UNICAP rules. At the end of its first year, XYZ held 190 units in inventory. In its second year of operations, XYZ manufactured 3,800 units of product and incurred $722,000 direct material cost and $418,000 direct labor costs. For financial statement purposes, XYZ capitalized $282,000 indirect costs to inventory. For tax purposes, it had to capitalize $336,000 indirect costs to inventory under the UNICAP rules. At the end of its second year, XYZ held 380 items in inventory. Required: a. Compute XYZ's cost of goods sold for book purposes and for tax purposes for second year assuming that XYZ…

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