Question
In: Accounting
McMillan Company uses the periodic inventory system. It has compiled the following information in order to...
McMillan Company uses the periodic inventory system. It has compiled the following information in order to prepare the financial statements at December 31, 2014:
| Gross sales during 2014 | $2,000,000 |
| Sales returns and allowances during 2014 | 50,000 |
| Begining inventory, January 1, 2014 | 100,000 |
| Ending inventory, December 31, 2014 | 120,000 |
| Purchases during 2014 | 750,000 |
Required:
Calculate each of the following:
A. Cost of goods available for sale
B. Cost of goods sold
C. Gross profit
Solutions
Expert Solution
A. Cost of goods available for sale = Beginning inventory +
Purchases
= $100,000 + $750,000 = $850,000
B. Cost of goods sold = Cost of goods available for sale –
Ending Inventory
= $850,000 - $120,000 = $730,000
C. Gross profit = Net sales - Cost of goods sold
= $2,000,000 – $50,000 - $730,000 = $1,220,000
ekkarill92 answered 2 years agoRelated Solutions
Calvin Company uses a periodic inventory system. They had the following information concerning their inventory for...
Calvin Company uses a periodic inventory system. They had the
following information concerning their inventory for the month of
March.
Units Cost Per Unit
Beginning Inventory (March 1) 250 $12
Purchase (March 25th) 130 $13
Purchase (March 28th) 285 $15
Sale (March 30th) 350
1. If the company uses a FIFO inventory method, what will be
COST OF GOODS SOLD for the month of March? (please only enter
positive numbers)
Use the same information as for Question 1 If the...
Rabin Ltd uses a perpetual FIFO inventory system and has compiled the following cost information for...
Rabin Ltd uses a perpetual FIFO inventory system and has
compiled the following cost information for the year ended December
31, 2017. Opening inventory consisted of 100 units. The cost per
unit of opening inventory is $100 DM, $60 DL and $110 MOH (of which
20% is variable). Robin produced 1,400 units and sold 1,250 units
during 2017. The selling price per unit is $320.
Direct materials
$135,000
Wages for assembly workers
104,000
Utilities on factory (of which 25,000 is...
Crane Company uses a periodic inventory system and its accounting records include the following inventory information...
Crane Company uses a periodic inventory system and its
accounting records include the following inventory information for
the month of July:
Units
Unit Cost
Total Cost
July 1
Inventory on hand
150
$6.00
$900.00
12
Purchase
230
7.00
1,610.00
20
Sale
(250)
0
28
Purchase
490
9.00
4,410.00
A physical inventory count determined that 620 units were on hand
at July 31.
(a)
Calculate the ending inventory and the cost of goods sold under (1)
FIFO and (2) weighted average....
Bailey Company uses a periodic inventory system and its inventory records contain the following information: Units...
Bailey Company uses a periodic inventory system and its
inventory records contain the following information:
Units
Total
Cost
Beginning Inventory:
300
$780
Purchased on May 10
400
1,170
Purchased on June 15
500
1,260
Purchased on August 28
300
990
1,500
$4,200
The company sold 1,000 units during June. There were no additional
purchases or sales during the remainder of the year. The company
had 500 units were in its ending inventory at the end of the
year....
Broadhead Company uses a periodic inventory system.
Broadhead Company uses a periodic inventory system. At the end
of the annual accounting period, December 31 of the current year,
the accounting records provided the following information for
product 2: Required: 1. Prepare a separate income statement through pretax income that details cost of goods sold for (a) Case A: FIFO and (b) Case B: LIFO.
Consider the following information for Maynor Company, which uses a periodic inventory system: Transaction Units...
Consider the following information for Maynor Company, which
uses a periodic inventory system:
Transaction
Units
Unit Cost
Total Cost
January 1
Beginning Inventory
19
$
69
$
1,311
March 28
Purchase
29
75
2,175
August 22
Purchase
38
79
3,002
October 14
Purchase
43
85
3,655
Goods Available for Sale
129
$
10,143
The company sold 43 units on May 1 and 38 units on October
28.
Required:
Calculate the company's ending inventory and cost of goods sold
using...
Consider the following information for Maynor Company, which uses a periodic inventory system: Transaction Units...
Consider the following information for Maynor Company, which
uses a periodic inventory system:
Transaction
Units
Unit Cost
Total Cost
January 1
Beginning Inventory
31
$
81
$
2,511
March 28
Purchase
41
87
3,567
August 22
Purchase
62
91
5,642
October 14
Purchase
67
97
6,499
Goods Available for Sale
201
$
18,219
The company sold 67 units on May 1 and 62 units on October
28.
Required:
Calculate the company's ending inventory and cost of goods sold
using...
Consider the following information for Maynor Company, which uses a periodic inventory system: Transaction Units...
Consider the following information for Maynor Company, which
uses a periodic inventory system:
Transaction
Units
Unit Cost
Total Cost
January 1
Beginning Inventory
21
$
71
$
1,491
March 28
Purchase
31
77
2,387
August 22
Purchase
42
81
3,402
October 14
Purchase
47
87
4,089
Goods Available for Sale
141
$
11,369
The company sold 47 units on May 1 and 42 units on October
28.
Required:
Calculate the company's ending inventory and cost of goods sold
using...
Consider the following information for Maynor Company, which uses a periodic inventory system: Transaction Units...
Consider the following information for Maynor Company, which
uses a periodic inventory system:
Transaction
Units
Unit Cost
Total Cost
January 1
Beginning Inventory
20
$
70
$
1,400
March 28
Purchase
30
76
2,280
August 22
Purchase
40
80
3,200
October 14
Purchase
45
86
3,870
Goods Available for Sale
135
$
10,750
The company sold 45 units on May 1 and 40 units on October
28.
Required:
Calculate the company's ending inventory and cost of goods sold
using...
The Xu Corporation uses a periodic inventory system. The company has a beginning inventory of 2,050...
The Xu Corporation uses a periodic inventory system. The company
has a beginning inventory of 2,050 units at $23 each on January 1.
Xu purchases 2,300 units at $22 each in February and 1,100 units at
$24 each in March. There were no additional purchases or sales
during the remainder of the year.
Xu sells 2,100 units during the quarter. If Xu uses the LIFO
method, what is its cost of goods sold?
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- Explain how advances in technology can force a software subsystem to undergo change or run the...
- Discuss whether you agree or disagree on whether you think E-mails need to be managed and...
- b. Do any unions represent employees in Microsoft? Describe which unions are involved. c. Have there been...
- Look up and use each of these Linux commands. (Each command will have two parts) Summarize...
- What was Lincoln 10 percent plan and what problems did it present?
- A cantilever beam 4m long carries a uniform load of 3.5 kN/m over a portion 1.5m...
- Our next optimization comes from using the brilliant Rabin-Karp substring matching algorithm (RK for short), invented...
ADVERTISEMENT