Explanation Periodic inventory system: The method or system of recording the transactions related to inventory occasionally or periodically is referred as periodic inventory system. Perpetual inventory system: The method or system of maintaining, recording, and adjusting the inventory perpetually throughout the year, is referred to as perpetual inventory system. Calculate the missing amounts: Particulars 2016 2017 Amount Amount Amount Amount Net sales $381,220 $423,150 Cost of goods sold Beginning balance $ 36,800 (d) $ 41,870 Add: Net Purchases (a)$ 273,840 $ 296,700 Total available for sale (b)$ 310,640 (e) $338,570 Ending inventory $ 41,870 (f) $ 43,370 Cost of goods sold (c) $ 268,770 $295,200 Gross Margin $112,450 (g) $127,950 Table (1) Working note (c): Compute the cost of goods sold. Cost of goods sold for 2017 = Net sales − Gross margin = $ 381 , 220 − $ 112 , 450 = $ 268 , 770 Working note (b): Compute the total available for sale 2016. Total available for sale 2016= Cost of goods sold + Ending inventory = $ 268 , 770 + $ 41 , 870 = $ 310 , 640 Working note (a): Compute the purchases

Intermediate Accounting: Reporting and Analysis, 2017 Update

2nd Edition

ISBN: 9781337116619

Author: James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher: Cengage Learning

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Chapter 7, Problem 1P

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Identify the missing amounts.

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Chapter 7, Problem 20E

Chapter 7, Problem 2P

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At the beginning of the year, Elevator Manufacturing estimates the following manufacturing costs for the next period: direct labor, $940,000; direct materials, $610,000; and factory overhead, $282,000. 1. Compute its predetermined overhead rate as a percent of direct labor. 2. Compute its overhead cost as a percent of direct materials.

Chapter 7 Solutions

Intermediate Accounting: Reporting and Analysis, 2017 Update

Ch. 7 - Distinguish among the types of inventory accounts...Ch. 7 - Prob. 2GI Ch. 7 - Describe the flow of costs for o merchandising...Ch. 7 - Describe the relationship between cost of goods...Ch. 7 - Explain the differences between the perpetual and...Ch. 7 - Prob. 6GI Ch. 7 - Prob. 7GI Ch. 7 - Prob. 8GI Ch. 7 - Prob. 9GI Ch. 7 - Prob. 10GI

Ch. 7 - Prob. 11GI Ch. 7 - Prob. 12GI Ch. 7 - Prob. 13GI Ch. 7 - Prob. 14GI Ch. 7 - Discuss the LIFO and FIFO cost flow assumptions...Ch. 7 - Prob. 16GI Ch. 7 - Prob. 17GI Ch. 7 - List the acceptable cost flow assumptions under...Ch. 7 - Prob. 19GI Ch. 7 - Describe the double-extension and link-chain...Ch. 7 - Prob. 21GI Ch. 7 - What is the impact of LIFO inventory liquidation...Ch. 7 - Goods on consignment should be included in the...Ch. 7 - Prob. 2MC Ch. 7 - Prob. 3MC Ch. 7 - Prob. 4MC Ch. 7 - Prob. 5MC Ch. 7 - Prob. 6MC Ch. 7 - Prob. 7MC Ch. 7 - Assuming no beginning inventory, what can be said...Ch. 7 - Prob. 9MC Ch. 7 - When the double-extension approach to the...Ch. 7 - On December 31, Pitts Manufacturing Company...Ch. 7 - On January 1, Pope Enterprises inventory was...Ch. 7 - Reid Company uses the periodic inventory system....Ch. 7 - Billings Company uses a periodic inventory system....Ch. 7 - Dani Corporation signed a binding commitment on...Ch. 7 - Prob. 6RE Ch. 7 - Prob. 7RE Ch. 7 - On October 23, Johnson Company purchased 100,000...Ch. 7 - Prob. 9RE Ch. 7 - Jessie Stores uses the periodic system of...Ch. 7 - Jessie Stores uses the periodic system of...Ch. 7 - Carla Company uses the perpetual inventory system....Ch. 7 - Carla Company uses the perpetual inventory system....Ch. 7 - On January 1 of Year 1, Dorso Company adopted the...Ch. 7 - An evaluation of Bryces Bookstores inventory was...Ch. 7 - Inventory Accounts for a Manufacturing Company...Ch. 7 - Prob. 2E Ch. 7 - Perpetual versus Periodic Inventory Systems Graham...Ch. 7 - Determining Net Purchases The following amounts...Ch. 7 - Prob. 5E Ch. 7 - Items Included in Inventory The following are...Ch. 7 - Prob. 7E Ch. 7 - Prob. 8E Ch. 7 - Discounts Nelson Company bought inventory for...Ch. 7 - Alternative Inventory Methods Nevens Company uses...Ch. 7 - Alternative Inventory Methods Park Companys...Ch. 7 - Alternative Inventory Methods Frate Company was...Ch. 7 - LIFO, Perpetual and Periodic Riedel Companys...Ch. 7 - Dollar-Value LIFO A company adopted the LIFO...Ch. 7 - Prob. 15E Ch. 7 - Prob. 16E Ch. 7 - Prob. 17E Ch. 7 - Prob. 18E Ch. 7 - Prob. 19E Ch. 7 - Prob. 20E Ch. 7 - Prob. 1P Ch. 7 - Prob. 2P Ch. 7 - Prob. 3P Ch. 7 - Prob. 4P Ch. 7 - Cost of Goods Sold As an accountant for Lee...Ch. 7 - Alternative Inventory Methods Garrett Company has...Ch. 7 - Totman Company has the following transactions...Ch. 7 - Prob. 8P Ch. 7 - Prob. 9P Ch. 7 - Prob. 10P Ch. 7 - Prob. 11P Ch. 7 - Prob. 12P Ch. 7 - Prob. 13P Ch. 7 - Prob. 14P Ch. 7 - Prob. 15P Ch. 7 - Prob. 16P Ch. 7 - Prob. 17P Ch. 7 - Prob. 18P Ch. 7 - FIFO and LIFO A company may compute inventory...Ch. 7 - Prob. 2C Ch. 7 - In January, Broome Inc. requested and secured...Ch. 7 - Prob. 4C Ch. 7 - Prob. 5C Ch. 7 - Interpretation of GAAP and Ethical Issues Robin...Ch. 7 - Selection of an Inventory Method and Ethical...Ch. 7 - Prob. 8C Ch. 7 - Analyzing Nestls Cash and Receivables Disclosures...Ch. 7 - Fenimore Manufacturing Company uses the average...

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