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

Expert Solution


Related 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.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT