Explanation Formula to calculate the missing amounts: Particulars Amount ($) Amount ($) Net sales XXX Less: Cost of goods sold Beginning inventory XXX Add: Purchases XXX Cost of goods available XXX Less: Closing inventory XXX Cost of goods sold available at the year end XXX Less: Expenses XXX Net income XXX Table (1) Find out the missing amounts: Table (2) Working note: Calculate the amount of cost of goods sold: Cost of goods sold = ( Beginning inventoty + Net purchases − Ending inventory ) = $ 76 , 000 + $ 104 , 000 − $ 35 , 200 = $ 144 , 800 (1) Calculate the amount of net income or net loss: Net income/Net loss = Gross profit − Expenses = $ 95 , 200 − $ 72 , 000 = $ 23 , 200 (2) Calculate the amount of ending inventory: Ending inventory = Beginning inventory + Purchases − Cost of goods sold = $ 72 , 000 + $ 272 , 000 − $ 264 , 000 = $ 80 , 000 (3) Calculate the amount of gross profit: Gross profit = Net sales − Cost of goods sold = $ 480 , 000 − $ 264 , 000 = $ 216 , 000 (4) Calculate the amount of expenses: Expenses = Gross profit − Net income = $ 216 , 000 − $ 20 , 000 = $ 196 , 000 (5) Calculate the amount of net purchases: Net purhcases = Cost of goods sold + Ending inventory − Beginning inventory = $441,000

Gen Combo Loose Leaf Financial Accounting; Connect Access Card

18th Edition

ISBN: 9781264094295

Author: williams

Publisher: MCG

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Inventory Valuation

Before discussing the topic inventory valuation let’s discuss the meaning of inventory. In accounting, inventory is also known as stock. Inventory means all the finished goods, materials, merchandise that a business holds for the purpose of selling it in…

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Chapter 6, Problem 8E

To determine

Find out the missing amounts.

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Chapter 6 Solutions

Gen Combo Loose Leaf Financial Accounting; Connect Access Card

Ch. 6 - Prob. 1STQ Ch. 6 - 2. Which of the following statements about...Ch. 6 - Prob. 3STQ Ch. 6 - Prob. 4STQ Ch. 6 - Prob. 5STQ Ch. 6 - 6. The two basic approaches to accounting for...Ch. 6 - Prob. 7STQ Ch. 6 - Prob. 8STQ Ch. 6 - Prob. 1DQ Ch. 6 - 2. During the current year, Green Bay Company...

Ch. 6 - Prob. 3DQ Ch. 6 - 4. Define the term inventory shrinkage. How is the...Ch. 6 - Prob. 5DQ Ch. 6 - Prob. 6DQ Ch. 6 - Prob. 7DQ Ch. 6 - 8. How does a balance arise in the Purchase...Ch. 6 - Prob. 9DQ Ch. 6 - Prob. 10DQ Ch. 6 - Prob. 11DQ Ch. 6 - Prob. 12DQ Ch. 6 - 13. Define the term gross profit margin. Explain...Ch. 6 - Prob. 14DQ Ch. 6 - Prob. 15DQ Ch. 6 - Prob. 1BE Ch. 6 - Prob. 2BE Ch. 6 - Prob. 3BE Ch. 6 - BRIEF EXERCISE 6.4 Periodic Inventory...Ch. 6 - Prob. 5BE Ch. 6 - BRIEF EXERCISE 6.6 Periodic Inventory...Ch. 6 - Prob. 7BE Ch. 6 - Prob. 8BE Ch. 6 - Prob. 9BE Ch. 6 - Prob. 10BE Ch. 6 - Prob. 11BE Ch. 6 - Prob. 1E Ch. 6 - EXERCISE 6.2 Effects of Basic Merchandising...Ch. 6 - Prob. 3E Ch. 6 - EXERCISE 6.4 Perpetual Inventory Systems Ranns...Ch. 6 - Prob. 5E Ch. 6 - Prob. 6E Ch. 6 - EXERCISE 6.7 Periodic Inventory Systems Boston...Ch. 6 - Prob. 8E Ch. 6 - Prob. 9E Ch. 6 - Prob. 10E Ch. 6 - Prob. 11E Ch. 6 - Prob. 12E Ch. 6 - Prob. 13E Ch. 6 - Prob. 14E Ch. 6 - Prob. 15E Ch. 6 - Prob. 1AP Ch. 6 - Prob. 2AP Ch. 6 - Prob. 3AP Ch. 6 - Prob. 4AP Ch. 6 - Prob. 5AP Ch. 6 - PROBLEM 6.6A Correcting Errors—Recording of...Ch. 6 - Prob. 7AP Ch. 6 - Prob. 8AP Ch. 6 - Prob. 1BP Ch. 6 - Prob. 2BP Ch. 6 - PROBLEM 6.3B Trend Analysis Shown as follows is...Ch. 6 - Prob. 4BP Ch. 6 - Prob. 5BP Ch. 6 - PROBLEM6.6B Correcting Errors—Recording of...Ch. 6 - Prob. 7BP Ch. 6 - Prob. 8BP Ch. 6 - Prob. 1CTC Ch. 6 - Prob. 2CTC Ch. 6 - Prob. 4CTC

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Chapter 6 Merchandise Inventory; Author: Vicki Stewart;https://www.youtube.com/watch?v=DnrcQLD2yKU;License: Standard YouTube License, CC-BY

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