27. In December, Brown Company shipped 20 books on consignment to booksellers. The consignor maintains a cost accounting system and perpetual inventory records; The cost of producing each book is $30. At the end of December, the sales agent reported the sale of 6 books at a price of @ 49.75, per piece and remitted the proceeds after deducting the 20% commission and $15 freight charges, which the consignee paid when the books were received. What journal entries should be prepared in the consignor's book with the assumption that the profit from the consignment is not recorded separately in the consignor's book?

27. In December, Brown Company shipped 20 books on consignment to booksellers. The consignor maintains a cost accounting system and perpetual inventory records; The cost of producing each book is $30. At the end of December, the sales agent reported the sale of 6 books at a price of @ 49.75, per piece and remitted the proceeds after deducting the 20% commission and $15 freight charges, which the consignee paid when the books were received. What journal entries should be prepared in the consignor's book with the assumption that the profit from the consignment is not recorded separately in the consignor's book?

Excel Applications for Accounting Principles

4th Edition

ISBN:9781111581565

Author:Gaylord N. Smith

Publisher:Gaylord N. Smith

Chapter7: Inventory Cost Flow Assumptions (fifolifo)

Section: Chapter Questions

Problem 9R: Click the Chart sheet tab. On the screen is a column chart showing ending inventory costs. During a...

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Shaquille Corporation began the current year with inventory of 50,000. During the year, its purchases totaled 110,000. Shaquille paid freight charges of 8,500 for those purchases. At the end of the year, Shaquille had inventory of 47,800. Prepare a schedule to determine Shaquille's cost of goods sold for the current year.
Langstons purchased $3,100 of merchandise during the month, and its monthly income statement shows a cost of goods sold of $3,000. What was the beginning inventory if the ending inventory was $1,250?
Logo Gear purchased $2,250 worth of merchandise during the month, and its monthly income statement shows cost of goods sold of $2,000. What was the beginning inventory if the ending inventory was $1,000?
Click the Chart sheet tab. On the screen is a column chart showing ending inventory costs. During a deflationary period, which bar (A, B, or C) represents FIFO costing, which represents LIFO costing, and which represents weighted average? Explain your reasoning. On January 4 following year-end, Rio Enterprises received a shipment of 60 units of product costing 580 each. These units had been ordered by Del in December and had been shipped to him on December 27. They were shipped FOB shipping point. Revise the FIFOLIFO3 worksheet to include this shipment. Preview the printout to make sure that the worksheet will print neatly on one page, and then print the worksheet. Save the completed file as FIFOLIFOT. Using the FIFOLIFO3 file, prepare a 3-D bar (stacked) chart showing the cost of goods sold and ending inventory under each of the four inventory cost flow assumptions. No Chart Data Table is needed. Use the values in the Calculations Section of the worksheet for your chart. Enter your name somewhere on the chart. Save the file again as FIFOLIFO3. Print the chart.
Johnson Corporation had beginning inventory of 20,000 at cost and 35,000 at retail. During the year, it made net purchases of 180,000 at cost and 322,000 at retail. Johnson nude sales of 300,000. Assuming a price index of 100 at the beginning of the year and 110 at the end of the year, compute Johnsons ending inventory at cost using the dollar-value LIFO retail method.
Golden Eagle Company began operations on April 1 by selling a single product. Data on purchases and sales for the year are as follows: Purchases: Sales: The president of the company, Connie Kilmer, has asked for your advice on which inventory cost flow method should be used for the 32,000-unit physical inventory that was taken on December 31. The company plans to expand its product line in the future and uses the periodic inventory system. Write a brief memo to Ms. Kilmer comparing and contrasting the LIFO and FIFO inventory cost flow methods and their potential impacts on the companys financial statements.
Comprehensive The following information for 2019 is available for Marino Company: 1. The beginning inventory is 100,000. 2. Purchases returns of 4,000 were made. 3. Purchases of 300,000 were made on terms of 2/10, n/30. Eighty percent of the discounts were taken. 4. At December 31, purchases of 20,000 were in transit, FOB destination, on terms of 2/10, n/30. 5. The company made sales of 640,000. The gross selling price per unit is twice the net cost of each unit sold. 6. Sales allowances of 6,000 were made. 7. The company uses the LIFO periodic method and the gross method for purchase discounts. Required: 1. Compute the cost of the ending inventory before the physical inventory is taken. 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.
Blue Barns sold 136 gallons of paint at $31 per gallon on July 6 to a customer with a cost of $19 per gallon to Blue Barns. Terms of the sale are 2/15, n/45, invoice dated July 6. The customer pays their account in full on July 24. On July 28, the customer discovers 17 gallons are the wrong color and returns the paint for a full cash refund. Blue Barns returns the gallons to their inventory at the original cost per gallon. Record the journal entries to recognize these transactions for Blue Barns.
Reid Company uses the periodic inventory system. On January 1, it had an inventory balance of 250,000. During the year, it made 613,000 of net purchases. At the end of the year, a physical inventory showed it had ending inventory of 140,000. Calculate Reid Companys cost of goods sold for the year.
In December, Brown Company shipped 20 books on consignment to booksellers. The consignor maintains a cost accounting system and PERPETUAL inventory records; The cost of producing each book is $30. At the end of December, the sales agent reported the sale of 6 books at a price of @ 49.75, per piece and remitted the proceeds after deducting the 20% commission and $15 freight charges, which the consignee paid when the books were received. What journal entries should be prepared in: The consignee's book with the assumption that the profit from the consignment is not recorded separately in the consignee's book? the consignor's book with the assumption that the profit from the consignment is not recorded separately in the consignor's book?
YE Company ships inventory to its branch at a mark-up of 125% of cost. The required balance of the allowance for overvaluation account is P1,425,000. During the year, the home office sent merchandise to the branch costing P9,000,000. At the start of the year, the branch's Statement of Financial Position shows P1,800,000 of inventory on hand that was acquired from the home office. How much is the amount to be debited to the allowance for overvaluation in branch inventory at the end of the year? A.1,225,000B.2,610,000C.1,425,000D.1,185,000
A Consignor shipped 100 units of its inventories to the consignee on consignment. Each unit costs. P450 and has a standard retail price of P750. The 100 units had a freight-in charge of P3,750. After a month, the consignee returned 10 units of inventory and remitted P32,850 to the consignor with an account sales with the following items included: • Commission of 20% • Cartage on consigned goods, P750 • Marketing expenses, P1,500 Delivery to customer and installation, P900. -How many units were sold by the consignee? -How much is the cost of inventory still on consignment at the end of the month? -How much is the total consignment profit (loss) by the consignor?