Question

In: Accounting

Cost of goods available for sales for Sigma Company is 420050, gross profit was 25%, sales...

Cost of goods available for sales for Sigma Company is 420050, gross profit was 25%, sales 200500. What is the cost of ending finished goods inventory?

Solutions

Expert Solution

Ans-

Closing stock = (opening stock + purchase/ cost of goods sold + gross profit ) - sales

Opening stock - Nil

Cost of goods sold- 420050

Gross profit - 25% of sales ( 200500*25%)- 50125

Sales- 200500

closing stock = (420050+50125)- 200500

Closing stock= 269675


Related Solutions

Sales $ 471,000 $ 416,000 Cost of goods sold 330,000 268,000 Gross profit $ 141,000 $...
Sales $ 471,000 $ 416,000 Cost of goods sold 330,000 268,000 Gross profit $ 141,000 $ 148,000 Operating expenses 130,000 116,000 Net income $ 11,000 $ 32,000 a. Prepare common size income statements for Price Company, a sole proprietorship, for the two years shown as above by converting the dollar amounts into percentages. For each year, sales will appear as 100 percent and other items will be expressed as a percentage of sales. (Income taxes are not involved as the...
Sales $ 471,000 $ 416,000 Cost of goods sold 330,000 268,000 Gross profit $ 141,000 $...
Sales $ 471,000 $ 416,000 Cost of goods sold 330,000 268,000 Gross profit $ 141,000 $ 148,000 Operating expenses 130,000 116,000 Net income $ 11,000 $ 32,000 a. Prepare common size income statements for Price Company, a sole proprietorship, for the two years shown as above by converting the dollar amounts into percentages. For each year, sales will appear as 100 percent and other items will be expressed as a percentage of sales. (Income taxes are not involved as the...
The Brenmar Sales Company had a gross profit margin (gross profit/sales) of 28% and sales of...
The Brenmar Sales Company had a gross profit margin (gross profit/sales) of 28% and sales of $8.6 million last year. 70% of the firm’s sales are in credit, and the remainder are cash sales. Brenmar’s current assets equal $1.4 million, its current liabilities equal $299,000, and it has $106,000 in cash plus marketable securities. A. If Brenmar’s accounts receivable equal $562,600, what is its average collection period? B. If Brenmar reduces its average collection period is 25 days, what will...
Distinguish between gross profit as a percentage of cost and gross profit as a percentage of sales price.
Distinguish between gross profit as a percentage of cost and gross profit as a percentage of sales price. Convert the following gross profit percentages based on cost to gross profit percentages based on sales price: 25% and 33 1 /3%. Convert the following gross profit percentages based on sales price to gross profit percentages based on cost: 33 1 /3% and 60%.
Using LIFO, calculate ending inventory, cost of goods sold, sales revenue, and gross profit.
Exercise 6-4A Calculate inventory amounts when costs are rising (LO6-3)During the year, TRC Corporation has the following inventory transactions.DateTransactionNumber of UnitsUnit CostTotal CostJan.1Beginning inventory52$44$2,288Apr.7Purchase132466,072Jul.16Purchase202499,898Oct.6Purchase112505,600498$23,858For the entire year, the company sells 432 units of inventory for $62 each.Exercise 6-4A Part 22. Using LIFO, calculate ending inventory, cost of goods sold, sales revenue, and gross profit.
XYZ Company Income Statement Sales $140,000 Cost of Goods Sold 117,000 Gross Profit 23,000 Operating Expenses...
XYZ Company Income Statement Sales $140,000 Cost of Goods Sold 117,000 Gross Profit 23,000 Operating Expenses 12,830 EBIT 10,170 Taxes @39% 2168 Net income 3,392 Dividend 1,018 Addition to Retained Earnings $2,374 XYZ Company Balance Sheet Current Assets Cash $7,500 Accounts Receivable 12,100 Inventory 10,400 Prepaid Items 5,900 Other CA 4,300 Total Current Assets $40,200 Net Plant $ Equipment 82,300 Total Assets $122,500 XYZ Company Balance Sheet Current Liabilities Accounts Payable $7,200 Wages Payable 3,600 Notes payable 5,400 Taxes Payable...
Compute ending inventory, cost of goods sold, and gross profit.
My question: Assume the company uses three inventory pools instead of one. Compute ending inventory, cost of goods sold, and gross profit. (Round price index to 2 decimal places, e.g. 1.45 and final answers to 0 decimal places, e.g. 6,548.)   William’s Televisions produces television sets in three categories: portable, midsize, and flat-screen. On January 1, 2020, William adopted dollar-value LIFO and decided to use a single inventory pool. The company’s January 1 inventory consists of: Category   Quantity  ...
Royal Gorge Company uses the gross profit method to estimateending inventory and cost of goods...
Royal Gorge Company uses the gross profit method to estimate ending inventory and cost of goods sold when preparing monthly financial statements required by its bank. Inventory on hand at the end of October was $60,100. The following information for the month of November was available from company records:    Purchases$126,000  Freight-in4,600  Sales260,000  Sales returns7,500  Purchases returns6,500In addition, the controller is aware of $7,500 of inventory that was stolen during November from one of the company’s warehouses.1.Calculate the estimated inventory at the end of November, assuming...
Royal Gorge Company uses the gross profit method to estimateending inventory and cost of goods...
Royal Gorge Company uses the gross profit method to estimate ending inventory and cost of goods sold when preparing monthly financial statements required by its bank. Inventory on hand at the end of October was $60,100. The following information for the month of November was available from company records:Purchases$126,000Freight-in4,600Sales260,000Sales returns7,500Purchases returns6,500In addition, the controller is aware of $7,500 of inventory that was stolen during November from one of the company's warehouses.Required:1. Calculate the estimated inventory at the end of November,...
Gap Inc.'s Sales, Cost of Goods Sold, and Gross Profit The consolidated balance sheets of Gap...
Gap Inc.'s Sales, Cost of Goods Sold, and Gross Profit The consolidated balance sheets of Gap Inc. included merchandise inventory in the amount of $1,619 as of January 30, 2016 (the end of fiscal year 2015) and $1,637 as of January 31, 2015 (the end of fiscal year 2014). Net sales were $14,531 and $14,658 at the end of fiscal years 2015 and 2014, respectively. Cost of goods sold and occupancy expenses were $9,271 and $8,799 at the end of...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT