a v2.cengagenow.comIllinois State University : ACC 131 001 FA2021 - Fina.CengageNOwv2 | Online teaching and learning reso...at G...* Start PageеВookApplying the Cost of Goods Sold ModelMilton Company reported beginning inventory of $109,000 on Jandary 1. During the year, it purchased inventory of $625,000 and sold inventory for $950,000. A count ofinventory at the end of the year determined that the cost of inventory on hand was $59,950.Required:1. What was Milton's cost of goods sold?2. What is Milton's gross margin?

1. COST OF GOODS SOLD : = OPENING INVENTORY + PURCHASES - CLOSING INVENTORY 2. GROSS MARGIN : =…

Answered: Applying the Cost of Goods Sold Model…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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The following information pertains to the Leopoldo Valdez School Chairs Transportation in P 172,000Merchandise Inventory 1/1/2019 1,200,000Merchandise invenoty 12/31/2019 1,900,000Purchases 4,300,000Purchase Returns and allowances 129,000Purchase Discounts 215,000Required: Prepare the cost of goods sold section of the income statement for the year ended Dece. 31, 2020
(Learning Objectives 1, 2: Show how to account for inventory transactions; applythe FIFO cost method) Spear Corporation’s inventory records for its retail division show thefollowing at May 31:May 1 Beginning inventory ............... 10 units @ $160 = $1,60015 Purchase................................. 5 units @ 161 = 80526 Purchase................................. 14 units @ 170 = 2,380At May 31, 11 of these units are on hand. Journalize the following for Spear Corporation underthe perpetual system:1. Total May purchases in one summary entry. All purchases were on credit.2. Total May sales and cost of goods sold in two summary entries. The selling price was $560per unit, and all sales were on credit. Assume that Spear uses the FIFO inventory method.3. Under FIFO, how much gross profit would Spear earn for the month ending May 31? Whatis the FIFO cost of Spear Corporation’s ending inventory?
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Please show the complete solution. Thank you so much. 1. On January 5, CRYSTAL LANCER Company purchased 5,000 units of Class A inventory at P100 each and 10,000 units of Class B inventory at P80 each under credit terms of 3/10, EOM. The Class A type was paid on January 15 and the Class B type on January 25. Q1. Under the gross method, what amount of net purchases should be included in computing total goods available for sale?a. P1,300,000b. P1,261,000c. P1,285,000d. P1,276,000 Q2. Under the net method, what amount of net purchases should be included in computing total goods available for sale?a. P1,300,000b. P1,261,000c. P1,285,000d. P1,276,000
Sarah furniture Materials inventory Details, beginning P80,000.00, Purchases P55,000.00, Freight In P5,000.00, Freight out P2,000.00, Purchase discount P1,000.00 and Ending Materials inventory ending P38,000.00. How much is the material used in the production?
Lauer Corporation uses the periodic inventory system and thefollowing information about their laptop computer is available: Date Transaction Number of Units Cost per Unit 1/1 BeginningInventory 100 $800 5/5 Purchase 200 $900 8/10 Purchase 300 $1,000 10/15 Purchase 200 $1,050 During the year, 750 laptop computers were sold.What was ending inventory and cost of goods sold on 12/31 under the FIFO costflow assumption? A. $60,000 and $710,000 B. $52,500 and $717,500 C. $52,000 and $718,000 D. None of the answers is correct
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36) BigB furn mart has the opening inventory of RO 34,600, purchases of RO 52,800, purchase discount of RO 2,400, purchases return and allowances of RO 3,600, Transportation In of RO 1,350, sales discount of RO 900 and closing inventory of RO 48,500 for the year ended 2019. Calculate the Cost of goods sold of BigB furn mart for the year 2019? a. RO 48,150 b. RO 62,050 c. RO 34,250 d. RO 35,150
Prepare the entries for transaction below and indicate what journal it is 2 Aug business sold merchandize inventory to micro universe co. For $4800, terms: 3/10, n/60 FOB. The merchandize had cost $3000

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