A woodland furniture trading company sells furniture to its customers. A table that cost the company OMR 2,250. This type of table usually sells for OMR 2,895 but it was damaged in a flood and will therefore be sold at a significant discount. It is expected to sell for OMR 1,950 and cost of repair to make it sell is OMR 35. The value of inventory in the books of woodland furniture trading company shall be;
Q: On Feb. 18, 2020, a fire destroyed the merchandise inventory of Cristina Santiago S The following…
A: The following computations are done in the records of Cristina Santiago.
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A: We have the following information: Closing Inventory: $41,875 Other items which were damaged:…
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Q: A woodland furniture trading company sells furniture to its customers. A table that cost the company…
A: After preparing an unadjusted trial balance, adjusting entries will be passed to prepare an adjusted…
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A: We have the following information: Sole trader fixes her prices by adding 50 per cent to the cost…
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A: Following are the calculation of realized gross profit as of December 31, 2013:
Q: entry would include a on December 31, 2019:
A: The appropriate option is shown below
Q: A small gift shop has a beginning inventory that is valued at $9,400. If the additional inventory…
A: COST OF GOODS SOLD : = BEGINNING INVENTORY + PURCHASES DURING THE YEAR - ENDING INVENTORY
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A: Cost of goods sold is the actual cost of goods that are being sold to the customers. It includes…
Q: Muller Computers stores its inventory in a warehouse that burned to the ground in late November,…
A: Cost of goods sold = Sales - Gross profit where, Gross profit = Sales x Gross profit rate
Q: On June 19, 20X0, a fire destroyed the entire uninsured merchandise inventory of the ABC…
A: Cost of goods sold means the cost incurred on the goods which has been sold including all direct…
Q: Al Aznar Company is manufacturer of furniture. At the end of 2018, they have inventory worth $ 14500…
A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…
Q: NorthWave Products has provided you with the following transactions for the month of September 2019.…
A: Journal Entries are the primary step to record transaction in the books of accounts. The total…
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A: Inventory refers to the goods that are available for sale or available for further production.
Q: On September 30, 2020, a fire at Cherimoya Company’s warehouse caused severe damage to its entire…
A: Gross profit means the difference between the sale revenue and cost of production. Cost of goods…
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A: 1 answer: Gross profit is GHS 28000
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A: Gross profit is the difference between Cost of goods sold and revenue from sale of products or…
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A: Step 1 Branch accounting is a bookkeeping system in which separate accounts are maintained for each…
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A: Formulas: Gross profit = Sales revenue - Cost of goods sold
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A: Under GAAP, inventory is valued at lower of the Cost or Market Value. Replacement cost can be…
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A: Net Purchases = Purchases - Purchase Return = P25,000 - P2,000…
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A: Under FOB destination, titles of goods are transferred to the buyer only when goods are delivered to…
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A: Cost of the inventory = Purchase price + Freight + Insurance during transit + Cleaned and…
Q: On September 30, 2020, a fire at Cherimoya Company's warehouse caused severe damage to its entire…
A: Under FOB destination, titles of goods are transferred to the buyer only when goods are delivered to…
Q: n September 30, 2020, a fire destroyed most of merchandise inventory of Karrie Company. All goods…
A: solution : step 1 first let us calculate average gross profit of past three years total sale =…
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A: Journal Entry: Journal entry is the act of keeping records of transactions in an accounting journal.…
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A: Gross profit ratio = Gross profit / Sales where, Gross profit = Sales - Cost of goods sold
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A: 1. Cost of goods sold for sales by branch = (Sales - Sales returns) / (1+markup) = ($48,000 -…
Q: You are preparing the financial statements for a business. The cost of the items in closing…
A: We have the following information: Cost of the item in closing inventory: $41,875 Items damaged in…
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A: Under FOB destination, titles of goods are transferred to the buyer only when goods are delivered to…
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A: Calculation of ending inventory Ending inventory = Beginning inventory + Purchases - Cost of Goods…
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A: Gross profit: Gross profit is calculated after deducting the costs associated with production of…
Q: A fire wiped out Plymouth Paper Company's Inventory. The insurance company will accept an estimate…
A:
Q: A buyer of $7,000 in merchandise inventory failed to take advantage of the vendor's credit terms of…
A: Discount amount = Purchases x discount rate = $7,000 x 2% = $140
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- Denali Company manufactures household products such as windows, light fixtures, ladders, and work tables. During the year it produced 10,000 Model 10X windows but only sold 5,000 units at $40 each. The remaining units cannot be sold through normal channels. Cost for inventory purposes on December 31 included the following data on the unsold units: Denali can sell the 5,000 windows at a liquidation price of $20.00 per window, but it will incur a packaging and shipping charge of $7.50 per window. Required: Identify the relevant costs and revenues for the liquidation sale alternative. Is Denali better off accepting the liquidation price rather than doing nothing? Assume that Model 10X can be reprocessed to another size window, Model 20X, which will require the same amount of labor and overhead as was required to initially produce, but sells for only $33. Determine the most profitable course of action—liquidate or reprocess.Company Elmira reported the following cost of goods sold but later realized that an error had been made in ending inventory for year 2021. The correct inventory amount for 2021 was 32,000. Once the error is corrected, (a) how much is the restated cost of goods sold for 2021? and (b) how much is the restated cost of goods sold for 2022?Company Edgar reported the following cost of goods sold but later realized that an error had been made in ending inventory for year 2021. The correct inventory amount for 2021 was 12,000. Once the error is corrected, (a) how much is the restated cost of goods sold for 2021? and (b) how much is the restated cost of goods sold for 2022?
- A retailer discovers that 50% of the total inventory items delivered from the manufacturer are damaged. The original purchase for all inventory was $1,100. The retailer decides to return 20% of the damaged inventory for a full refund and keep the remaining 80% of damaged inventory. What is the value of the merchandise returned?Kulsrud Company would like to estimate the current inventory level. Using the gross profit method and the following information, estimate the current inventory level for Kulsrud Company. Goods available for sale 100,000 Net sales 150,000 Normal gross profit as a percent of sales 40%The following are independent errors made by a company that uses the periodic inventory system: a. Goods in transit, purchased on credit and shipped FOB destination, 10,000, were included in purchases but not in the physical count of ending inventory. b. Purchase of a machine for 2,000 was expensed. The machine has a 4-year life, no residual value, and straight-line depreciation is used. c. Wages payable of 2,000 were not accrued. d. Payment of next years rent, 4,000, was recorded as rent expense. e. Allowance for doubtful accounts of 5,000 was not recorded. The company normally uses the aging method. f. Equipment with a book value of 70,000 and a fair value of 100,000 was sold at the beginning of the year. A 2-year, non-interest-bearing note for 129,960 was received and recorded at its face value, and a gain of 59,960 was recognized. No interest revenue was recorded and 14% is a fair rate of interest. Required: 1. Next Level Indicate the effect of each of the preceding errors on the companys assets, liabilities, shareholders equity, and net income in the year in which the error occurs. State whether the error causes an overstatement (+), an understatement (), or no effect (NE). 2. Prepare the correcting journal entry or entries required at the beginning of the year for each of the preceding errors, assuming the company discovers the error in the year after it was made. Ignore income taxes.
- Bhushan Company has been using LIFO for inventory purposes because it would prefer to keep gross profits low for tax purposes. In its second year of operation (20-2), the controller pointed out that this strategy did not appear to work and suggested that FIFO cost of goods sold would have been higher than LIFO cost of goods sold for 20-2. Is this possible? REQUIRED Using the information provided, compute the cost of goods sold for 20-1 and 20-2 comparing the LIFO and FIFO methods.Moore Company uses the LIFO cost flow assumption and carries Product A in inventory on December 31, 2019, at its unit cost of 9.50. Because of a sharp decline in demand for the product, the selling price was reduced to 10.00 per unit. Moores normal profit margin on Product A is 2.00, disposal costs are 1.00 per unit, and the replacement cost is 6.50. Under the lower of cost or market rule, Moores December 31, 2019, inventory of Product A should be valued at a unit cost of: a. 6.50 b. 9.00 c. 7.00 d. 9.50Business with gross receipts of $25 million or less may treat inventory as nonincidental materials and supplies. Find Regulation Section 1.162-3 and read paragraphs (a)(1) and (a)(2) to help answer the following: Frank owns an auto repair shop that serves a particular model of auto and so he tends to purchase parts in bulk. Frank is eligible to treat inventory as non-incidental materials and elects to do so. In December of 2019 he purchases 24 oil filters. He uses one to repair an auto in January 2020, and then about 2 per month and ends 2020 with 14 filters. Explain how Frank will treat his oil filter inventory.
- Bean Nursery sells bark to its customers at retail. Bean buys bark from a plywood mill in bulk and transports the bark in its own trucks. Information relating to the beginning inventory and purchases of bark is as follows: Required Find the cost of 1,200 cubic yards in the ending inventory by the weighted-average-cost method. Carry average cost per cubic yard to four decimals. Check Figure Cost of ending inventory, 519.24A customer discovers 60% of the total merchandise delivered from a retailer is damaged. The original purchase for all merchandise was $3,600. The customer decides to return 35% of the damaged merchandise for a full refund and keep the remaining 65%. What is the value of the merchandise returned?Refer to the information in E22-13. Required: Prepare the correcting journal entries if the company discovers each error 2 years after it is made and it has closed the books for the second year. Ignore income taxes. E22-13: The following are independent errors made by a company that uses the periodic inventory system: a. Goods in transit, purchased on credit and shipped FOB destination, 10,000, were included in purchases but not in the physical count of ending inventory. b. Purchase of a machine for 2,000 was expensed. The machine has a 4-vear life, no residual value, and straight-line depreciation is used. c. Wages payable of 2,000 were not accrued. d. Payment of next years rent, 4,000, was recorded as rent expense. e. Allowance for doubtful accounts of 5,000 was not recorded. The company normally uses the aging method. f. Equipment with a book value of 70,000 and a fair value of 100,000 was sold at the beginning of the year. A 2-year, non-interest-bearing note for 129,960 was received and recorded at its face value, and a gain of 59,960 was recognized. No interest revenue was recorded and 14% is a fair rate of interest.