Horngren's Accounting (11th Edition)
11th Edition
ISBN: 9780133856781
Author: Tracie L. Miller-Nobles, Brenda L. Mattison, Ella Mae Matsumura
Publisher: PEARSON
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Textbook Question
Chapter 18, Problem S18.7SE
Computing cost of goods sold and operating income, merchandising company
Learning Objective 3
Consider the following partially completed income statements for merchandising companies and compute the missing amounts:
| Smith, Inc. | Allen, Inc. | |
| Net Sales Revenue | $ 101,000 | $ (d) |
| Cost of Goods Sold: | ||
| Beginning Merchandise Inventory | (a) | 29,000 |
| Purchases and Freight In | 50,000 | (e) |
| Cost of Goods Available for Sale | (b) | 89,000 |
| Ending Merchandise Inventory | (2,200) | (2,200) |
| Cost of Goods Sold | 61,000 | (f) |
| Gross Profit | 40,000 | 114,000 |
| Selling and Administrative Expenses | (c) | 84,000 |
| Operating Income | $ 12,000 | $ (g) |
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PROBLEM 2: FOR CLASSROOM DISCUSSION
Gross profit rate
1. The following data relate to the records of Poweli Corp. for the
month of September:
Sales .
P160,000
Beginning inventory
Purchases ..
P 20,000
180,000
P200,000
Goods available for sale
Requirements: Using these data, estimate the cost of ending
inventory for each situation below:
a)
b)
Markup is 50 percent on cost.
Markup is 60 percent on sales.
Markup is 25 percent on cost.
Markup is 40 percent on sales.
c)
d)
Beginning inventory
Merchandise
Finished goods
Cost of merchandise purchased
Cost of goods manufactured
Ending inventory
Merch
Business
Mfg Business
Merchandise
Finished goods
Compute cost of goods sold for each of these two companies.
Unimart
$ 331,000
490,000
Cost of goods sold
Complete this question by entering your answers in the tabs below.
Goods available for sale
231,000
UNIMART
Computation of Cost of Goods Sold
Cost of goods sold
Bare
Manufacturing
Compute cost of goods sold for the company in Merchandising Business.
$ 662,000
810,000
225,000
Merch Business
Mfg Business >
E6A-27 Computim
Learning Objective 7
Appendix 6A
ventory
Consider the data of the following companies which use the PEHOUI
system:
Beginning
Merchandise
Inventory
Ending
Merchandise
Inventory
Cost of
Goods Sold
Net Cost of
Net Sales
Gross Profit
Purchases
Company
Revenue
$ 105,000
$ 23,000
$ 59,000
$ 22,000
24
(a)
$ 45,000
Large
Small
(b)
27,000
94,000
(c)
99,000
40,000
Medium
96,000
(d)
58,000
24,000
68,000
(e)
Petite
80,000
8,000
(f)
6,500
(g)
44,000
Requirements
1. Supply the missing amounts in the preceding table.
2. Prepare the income statement for the year ended December 31, 2019, for Large
Company, which uses the periodic inventory system. Include a complete headıng
and show the full computation of cost of goods sold. Large's operating expenses
for the year were $12,000.
Chapter 18 Solutions
Horngren's Accounting (11th Edition)
Ch. 18 - Prob. 1QCCh. 18 - Prob. 2QCCh. 18 - Dunaway Company reports the following costs for...Ch. 18 - Which of the following is a direct cost of...Ch. 18 - Which of the following is not part of...Ch. 18 - Which of the following accounts does a...Ch. 18 - Questions 7 and 8 use the data that follow....Ch. 18 - Questions 7 and 8 use the data that follow....Ch. 18 - World-class businesses use which of these systems...Ch. 18 - Prob. 10QC
Ch. 18 - What is the primary purpose of managerial...Ch. 18 - List six differences between financial accounting...Ch. 18 - Explain the difference between line positions and...Ch. 18 - Explain the differences between planning,...Ch. 18 - Prob. 5RQCh. 18 - Describe a service company, and give an example.Ch. 18 - Describe a merchandising company, and give an...Ch. 18 - How do manufacturing companies differ from...Ch. 18 - List the three inventory accounts used by...Ch. 18 - Explain the difference between a direct cost and...Ch. 18 - What are the three manufacturing costs for a...Ch. 18 - Give five examples of manufacturing overhead.Ch. 18 - What are prime costs? Conversion costs?Ch. 18 - What are product costs?Ch. 18 - How do period costs differ from product costs?Ch. 18 - How is cost of goods manufactured calculated?Ch. 18 - How does a manufacturing company calculate cost of...Ch. 18 - How does a manufacturing company calculate unit...Ch. 18 - How does a service company calculate unit cost per...Ch. 18 - How does a merchandising company calculate unit...Ch. 18 - Prob. S18.1SECh. 18 - Prob. S18.2SECh. 18 - Prob. S18.3SECh. 18 - Computing manufacturing overhead Learning...Ch. 18 - Prob. S18.5SECh. 18 - Prob. S18.6SECh. 18 - Computing cost of goods sold and operating income,...Ch. 18 - Prob. S18.8SECh. 18 - Prob. S18.9SECh. 18 - Prob. S18.10SECh. 18 - Prob. S18.11SECh. 18 - Prob. S18.12SECh. 18 - Prob. S18.13SECh. 18 - Prob. E18.14ECh. 18 - Prob. E18.15ECh. 18 - Prob. E18.16ECh. 18 - Prob. E18.17ECh. 18 - Prob. E18.18ECh. 18 - Prob. E18.19ECh. 18 - Computing cost of goods manufactured Learning...Ch. 18 - Computing cost of goods manufactured Consider the...Ch. 18 - Prob. E18.22ECh. 18 - Prob. E18.23ECh. 18 - Prob. E18.24ECh. 18 - Prob. E18.25ECh. 18 - Prob. P18.26APGACh. 18 - Classifying period costs and product costs...Ch. 18 - Prob. P18.28APGACh. 18 - Prob. P18.29APGACh. 18 - Prob. P18.30APGACh. 18 - Prob. P18.31APGACh. 18 - Prob. P18.32APGACh. 18 - Prob. P18.33APGACh. 18 - Prob. P18.34BPGBCh. 18 - Prob. P18.35BPGBCh. 18 - Prob. P18.36BPGBCh. 18 - Prob. P18.37BPGBCh. 18 - Prob. P18.38BPGBCh. 18 - Prob. P18.39BPGBCh. 18 - Prob. P18.40BPGBCh. 18 - Prob. P18.41BPGBCh. 18 - Prob. P18.42CPCh. 18 - Prob. 18.1DCCh. 18 - Prob. 18.1EI
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- dont give answer in image formatarrow_forward5arrow_forwardBeginning inventory Merchandise Finished goods Cost of merchandise purchased Cost of goods manufactured Ending inventory Unimart $ 278,000 500,000 Merch Business Merchandise Finished goods Compute cost of goods sold for each of these two companies. 178,000 Bare Manufacturing Cost of goods sold $ 556,000 850,000 Complete this question by entering your answers in the tabs below. 172,000 Mfg Business Compute cost of goods sold for the company in Merchandising Business. UNIMART Computation of Cost of Goods Soldarrow_forward
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