Nichols, Inc. had the following balances and transactions during 2018:
|
Beginning Merchandise Inventory as of January 1, 2018 |
300 units at $80 |
|
March 10 |
Sold
60 units |
|
June 10 |
Purchased
600 units at $85 |
|
October 30 |
Sold
360 units |
What would be reported for Ending Merchandise Inventory on the balance sheet at December 31, 2018 if the perpetual inventory system and the
first−in, first−out inventory costing method are used?
A. 40,800
B. 51,000
C. 24,000
D. 4,800
In: Accounting
Inventory Turnover and Days’ Sales in Inventory The Southern Corporation installed a new in-
ventory management system at the beginning of 2018. Shown below are data from the company’s
accounting records as reported by the new system:
2018 2019
Sales revenue. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $19,000,000 $20,000,000
Cost of goods sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,600,000 9,200,000
Beginning inventory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,500,000 2,530,000
Ending inventory. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,530,000 2,600,00
Calculate the company’s (a) inventory turnover (round to three decimal places) and (b) days’ sales in
inventory for 2018 and 2019. Comment on your results
explain he results :
In: Accounting
On January 1, 2018,
the Brunswick Hat Company adopted the dollar-value LIFO retail
method. The following data are available for 2018:
| Cost | Retail | |||
| Beginning inventory | $ | 84,600 | $ | 141,000 |
| Net purchases | 129,500 | 264,000 | ||
| Net markups | 5,000 | |||
| Net markdowns | 10,000 | |||
| Net sales | 229,000 | |||
| Retail price index, 12/31/18 | 1.20 | |||
Required:
Calculate the estimated ending inventory and cost of goods sold for
2018.
| 171000 |
|
|||||||||
In: Accounting
On January 1, 2018, the Brunswick Hat Company adopted the
dollar-value LIFO retail method. The following data are available
for 2018:
| Cost | Retail | |||
| Beginning inventory | $ | 73,150 | $ | 133,000 |
| Net purchases | 113,400 | 257,000 | ||
| Net markups | 8,000 | |||
| Net markdowns | 13,000 | |||
| Net sales | 224,000 | |||
| Retail price index, 12/31/18 | 1.12 | |||
Required:
Calculate the estimated ending inventory and cost of goods sold for
2018.
1.Ending inventory at retail-
2.Ending inventory at cost-
3.Cost of goods sold-
In: Accounting
Harwell Company manufactures automobile tires. On July 15, 2018,
the company sold 2,700 tires to the Nixon Car Company for $80 each.
The terms of the sale were 3/10, n/30. Harwell uses the net method
of accounting for cash discounts.
Required:
1. Prepare the journal entries to record the sale on July
15 (ignore cost of goods) and payment on July 23, 2018.
2. Prepare the journal entries to record the sale
on July 15 (ignore cost of goods) and payment on August 15,
2018
In: Accounting
On December 20, 2017, Butanta Company (a U.S. company headquartered in Miami, Florida) sold parts to a foreign customer at a price of 55,000 ostras. Payment is received on January 10, 2018. Currency exchange rates for 1 ostra are as follows:
| December 20, 2017 | $ | 1.15 |
| December 31, 2017 | 1.12 | |
| January 10, 2018 | 1.08 | |
In: Accounting
On December 20, 2017, Butanta Company (a U.S. company headquartered in Miami, Florida) sold parts to a foreign customer at a price of 135,000 ostras. Payment is received on January 10, 2018. Currency exchange rates for 1 ostra are as follows:
| December 20, 2017 | $ | 1.23 |
| December 31, 2017 | 1.20 | |
| January 10, 2018 | 1.16 | |
In: Accounting
The table below shows a series of market transactions in the life of an automobile. Transaction Time Frame Cost Parts sold to car maker Fall 2017 $13,000 in parts Factory labor leads to assembled car Winter 2017 $11,000 in labor Dealer buys car Spring 2018 $28,000 for the car Dealer sells car to customer Summer 2018 $33,000 for the car Describe two different ways that these transactions could contribute to gross domestic product (GDP) for the years 2017 and 2018. Which way is used in practice?
In: Economics
At the beginning of 2018, Heinz Corp. started construction on a new office building. Construction expenditures during 2018 were as follows:
January 1 $400,000
May 1 150,000
July 1 300,000
December 31 100,000
Heinz has the following debts outstanding during 2018; the bonds payable is directly related to the construction projects; none of the others are related to the construction project.
|
Liability |
Annual Percent |
Loan Amount |
|
Notes Payable |
4% |
$200,000 |
|
Bonds Payable |
6% |
$400,000 |
|
Mortgage Payable |
5% |
$300,000 |
In: Accounting
Harwell Company manufactures automobile tires. On July 15, 2018,
the company sold 1,400 tires to the Nixon Car Company for $40 each.
The terms of the sale were 3/10, n/30. Harwell uses the gross
method of accounting for cash discounts.
Required:
1. Prepare the journal entries to record the
sale on July 15 (ignore cost of goods) and collection on July 23,
2018.
2. Prepare the journal entries to record the sale
on July 15 (ignore cost of goods) and collection on August 15,
2018.
In: Accounting