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
An economy produces the following products: burgers and coffee. Use the information in the following table to calculate
(a) The total cost of the consumption basket consisting of 8 burgers and 15 cups of coffee in 2010, 2018 and 2019
(b) Consumer Price Index for years 2018 and 2019 that measures the cost of the consumption basket relative to the base year.
(c) Inflation rate for 2019.
| Product | Quantity | Base Year Price (2010) | Price (2018) | Price (2019) |
|---|---|---|---|---|
| Burgers | 8 | $2.00 | $2.1 | $2.5 |
| Cups of coffee | 15 | $4.00 | $4.50 | $4.50 |
In: Economics
The records of Groot Corp. for calendar 2018 reflected the following correct pre-tax amounts:
• gain from discontinued operations, $50,000;
• cash dividends declared and paid, $45,000;
• retained earnings, January 1, 2018, $275,000,
• correction of accounting error, $35,000 debit;
• income before income taxes and before discontinued operations, $165,000.
The average income tax rate of 40 % applies to all items except the dividends.
Required
1. Calculate the December 31, 2018 ending balance of retained earnings.
In: Accounting
Prepare a horizontal analysis of revenues and gross profit—both in
dollar amounts and in percentages—for 2019 and 2018.
In millions)
2019 2018 2017
Revenue $9,575 $9,300 $8,975
Cost of Goods Sold 6,250 6,000 5,890
Begin by calculating the gross profit for each year, then prepare a horizontal analysis of revenues and gross profit—both in dollar amounts and in percentages—for 2019 and 2018. (Enter amounts in millions as provided to you in the problem statement. Round the percentages to one decimal place, X.X%. Use a minus sign or parentheses to indicate a decrease.)
In: Accounting