Question
In: Accounting
The following information for 2016 is available for Marino Company: The beginning inventory is $111000. Purchases...
The following information for 2016 is available for Marino Company: The beginning inventory is $111000. Purchases returns of $5000 were made. Purchases of $300000 were made on terms of 2/10, n/30. Eighty percent of the discounts were taken. At December 31, purchases of $17000 were in transit, FOB destination, on terms of 2/10, n/30. The company made sales of $640000. The gross selling price per unit is twice the net cost of each unit sold. Sales allowances of $9000 were made. The company uses the LIFO periodic method and the gross method for purchase discounts.
1.
Compute the cost of the ending inventory before the physical
inventory is taken. Ignore Sales allowances in your
computations.
$
2. Compute the amount of the cost of goods sold that came from the purchases of the period and the amount that came from the beginning inventory.
| Cost of sales from purchases | $ |
| Cost of sales from beginning inventory | |
| Total cost of goods sold | $ |
Solutions
ekkarill92 answered 1 year agoRelated Solutions
A company had the following information available for the year: Beginning inventory of goods in process...
A company had the following information available for the year:
Beginning inventory of goods in process (40% complete, $1,100),
ending inventory of goods in process (80% complete) 400 units,
total units started during the year 3,200 units. What is the number
of units transferred to finished goods during the year? b)FIFO
equivalent units of production for the year are?
Relationship between Inventory and COGS: Beginning Inventory + Purchases = Goods Available for Sale. Goods Available...
Relationship between Inventory and COGS:
Beginning Inventory + Purchases = Goods Available for Sale.
Goods Available for Sale = COGS + Ending Inventory
1. Which method yields higher net income? (Hint: Higher
Ending Inventory means lower COGS. Lower COGS (COGS is an expense
account) = Higher Net Income)
2. Which method would a business choose under the income
statement approach?
3. Which method would a business choose under the
Balance Sheet approach?
Ivanhoe Company was formed on December 1, 2016. The following information is available from Ivanhoe’s inventory...
Ivanhoe Company was formed on December 1, 2016. The following
information is available from Ivanhoe’s inventory records for
Product BAP.
Units
Unit Cost
January 1, 2017 (beginning inventory)
732
$ 8.00
Purchases:
January 5, 2017
1,464
9.00
January 25, 2017
1,586
10.00
February 16, 2017
976
11.00
March 26, 2017
732
12.00
A physical inventory on March 31, 2017, shows 1,952 units on
hand.
-Prepare schedule to compute the ending inventory at March 31,
2017, under FIFO inventory method.
-Prepare...
Shamrock Company was formed on December 1, 2016. The following information is available from Shamrock’s inventory...
Shamrock Company was formed on December 1, 2016. The following
information is available from Shamrock’s inventory records for
Product BAP. Units Unit Cost January 1, 2017 (beginning inventory)
726 $ 7.00 Purchases: January 5, 2017 1,452 8.00 January 25, 2017
1,573 9.00 February 16, 2017 968 10.00 March 26, 2017 726 11.00 A
physical inventory on March 31, 2017, shows 1,936 units on hand. 1)
Prepare schedule to compute the ending inventory at March 31, 2017,
under LIFO inventory method....
Riverbed Company was formed on December 1, 2016. The following information is available from Riverbed’s inventory...
Riverbed Company was formed on December 1, 2016. The following
information is available from Riverbed’s inventory records for
Product BAP.
Units
Unit Cost
January 1, 2017 (beginning inventory)
732
$ 8.00
Purchases:
January 5, 2017
1,464
9.00
January 25, 2017
1,586
10.00
February 16, 2017
976
11.00
March 26, 2017
732
12.00
A physical inventory on March 31, 2017, shows 1,952 units on
hand.
Prepare schedule to compute the ending inventory at March 31,
2017, under FIFO inventory method.
Units...
The following information was available for Waterway Company at December 31, 2018: beginning inventory $107000; ending...
The following information was available for Waterway Company at
December 31, 2018: beginning inventory $107000; ending inventory
$61000; cost of goods sold $6132000; and sales $1440000. Waterway’s
days in inventory in 2018 was 3.6 days. 21.3 days. 6.4 days. 5.0
days.
The following information is available for Sheffield Company at December 31, 2018: beginning inventory $139000; ending...
The following information is available for Sheffield Company at
December 31, 2018: beginning inventory $139000; ending inventory
$121000; cost of goods sold $845000; and sales $1880000.
Sheffield’s inventory turnover in 2018 is 14.5 times. 6.2 times.
6.5 times. 6.9 times.
The following information is available for Harold Company: Beginning inventory 500 units at $5 First purchase &n
The following information is available for Harold Company:
Beginning
inventory
500 units at $5
First
purchase
900 units at $6
Second
purchase
600 units at $7
Assume that Harold uses a periodic inventory system and that
there are 750 units left at the end of the month.
Instructions
Compute the cost of goods sold under the
LIFO
FIFO
Average Cost
Enter calculation and answer below.
The following information is available for Harold Company: Beginning inventory 500 units at $5 First purchase &n
The following information is available for Harold Company:
Beginning
inventory
500 units at $5
First
purchase
900 units at $6
Second
purchase
600 units at $7
Assume that Harold uses a periodic inventory system and that
there are 750 units left at the end of the month.
Instructions
Compute the cost of goods sold under the
LIFO
FIFO
Average Cost
Enter calculation and answer below.
The following information is available for the Johnson Corporation for 2018: Beginning inventory $ 32,000 Merchandise...
The following information is available for the Johnson
Corporation for 2018:
Beginning inventory
$
32,000
Merchandise purchases (on
account)
162,000
Freight charges on purchases
(paid in cash)
17,000
Merchandise returned to supplier
(for credit)
19,000
Ending inventory
37,000
Sales (on account)
257,000
Cost of merchandise sold
155,000
Required:
Applying both a perpetual and a periodic inventory system, prepare
the journal entries that summarize the transactions that created
these balances. Include all end-of-period adjusting entries
indicated.
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