8. Compute for the net sales that would be reported in LIVA company’s Income Statement. You are assigned to prepare the financial statements of LIVACompany for the year 2021. The following data were madeavailable for you:Ending Inventory at Cost739,1603,930,00016,000Goods Available for Sale at retailSales DiscountNet markdowns48,500Net markups30,000Beginning inventory at retail1,450,0002,422,000Purchases at retailThe company adopts the average cost approach to estimatethe value of its inventory and the cost ratio is computed at68%.

Calculation of Gross Sales Gross Sales = Goods available for sale at retail - Ending inventory at…

Answered: available for you: Ending Inventory at…

Business

Accounting

available for you: Ending Inventory at Cost Goods Available for Sale at retail

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter7: Inventories: Cost Measurement And Flow Assumptions

Section: Chapter Questions

Problem 13P: Webster Company adopted do liar-value LIFO on January 1, 2019. Webster produces three products: X,...

See similar textbooks

Related questions

Q: Interest on balance with Central bank RO 3500 Interest on fixed deposit RO 1100 Locker rent RO 520 T...

A: Lets understand the basics. Operating profit is a operating revenue less operating expense. Operatin...

Q: Ayo Company started 2022 with P94,000 of merchandise inventory on hand. During 2022, P400,000 in mer...

A: Since you have asked multiple question, we will solve the first question for you. If you want any sp...

Q: Angela Corporation (a private company) acquired all of the outstanding voting stock of Eddy Tech, In...

A: A consolidated financial financial statement that includes all of the divisions or subsidiaries of a...

Q: . Nectarine Company lost most of its inventory in a fire in December, 2021, just before the year- en...

A: The question is related to calculation of loss as a result of fire. We will first calculate the gros...

Q: The inventory account of Leni Company at December 31, 2021 has a balance of P1,800,000 and was found...

A: Under FOB destination, titles of goods are transferred to the buyer only when goods are delivered to...

Q: Mr. Bon Hok A/c Cash A/c (Being cash withdraw) Jan 1 P20,000 P20,000 Cash A/c Mr. Ok A/c (Being addi...

A: Ledger refers to the worksheet which is prepared after recording the journal entries in the books of...

Q: In 2022, Red Corp., a C corporation, donated shares of stock to a qualified charitable organization....

A: Charitable Institute is an institute created for the purpose of charity. Charity can be of any type ...

Q: Dur personal opinion is that security X has an expected rate of return of 0.16. Its bela is qual to ...

A: solution dear student as per the Q&A guideline we are required to answer the first question only...

Q: E21.14 (LO 2) (Lessee Entries) Use the information for the Phelps/Walsh lease in E21.13. In this ins...

A: Capital Lease - It is an agreement where lessor has agreed to transfer ownership of the assets to th...

Q: A group of thirty 2-year old cattle was held at January 1, 2021. On this same date, additional five...

A: Fair value with no growth: December 31, 2021 Fair value with no growth (Same Age) 2 years old = 35 ...

Q: Foxx Corporation acquired all of Greenburg Company's outstanding stock on January 1, 2019, for $743,...

A: Solution: Since As per Chegg's guidelines each question is answered to a maximum of four sub parts. ...

Q: The inventory records of Cattle Company show the following purchases during the first quarter operat...

A: FIFO means the first in first out which means that goods purchased first will be sold first. Weight...

Q: On April 1, Anita Strods created a new travel agency, Strods Travel. The following transactions occu...

Q: Bonnie's Family is a non-profit organization which assists families with low-income, special needs c...

A: Mortgage is a liability which is to be repaid by the firm to the lender over the period of time. A m...

Q: YNA Inc. operates a jewelry store. On the morning of February 14, an inventory was conducted after d...

A: Cost of goods sold = Sales - Gross profit where, Gross profit = Sales x Gross profit ratio

Q: Ir Dolieov received the followin tion and benefits during the entire

A: In Phillipines certain allowances called de minimus benefits are...

Q: 6. If as of December 31, 2021 the rent of P10,000 for the month of December had not been recorded or...

A: Increase in expense should be debited. Increase in liabilitie should be credited.

Q: The actual cash received from cash sales was $14,953 and the amount indicated by the cash register t...

A: Theory part: Journalizing: Each and every business transactions are recorded in Journal books. Anoth...

Q: Redwood Company sells craft kits and supplies to retail outlets and through its catalog. Some of the...

A: Activity based Costing - In this type of costing, cost are allocated on the basis on no of cost pool...

Q: If I am in the United States military and I was in training for three months and I generated income,...

A: Internal Revenue Service: The Internal Revenue Service is the country's expense assortment office an...

Q: How much shall be reported as interest income for 2022? ALVR Digital Bank granted a loan to a client...

A: Interest Income - It is the amount of money paid by the borrower over and above the loan amount to t...

Q: Bally Manufacturing sent Intel Corporation an invoice for machinery with a $14,400 list price. Bally...

A: Trade discount = List price x Trade discount rate Cash discount = (List price - Trade discount ) x...

Q: Transactions for the Flounder Company, which provides welding services, for the month of June are pr...

A: Flounder company provides Welding services. The question requires to provide the journal entries for...

Q: Lanson Corporation Co's trial balance included the following account balances at December 31, 2021: ...

A: Current Liabilities are those liabilities which are to be paid within 1 year from the Balance Sheet....

Q: Sandy Company owns 15,000 of the 100,000 ordinary shares of X Corporation. The investment is account...

A: Answer: If she opted to receive cash instead of share dividend, then she will receive deividend @ P2...

Q: Problem 9-13 Two firms have sales of $0.9 million each. Other financial information is as follows: ...

A: 1)Calculation of the operating profit margins and the net profit margins for these two firms as foll...

Q: Tveslor Elliot buys shares of stock A for $10,000, while investor Michael takes a short -osition in ...

A: Solution Note : As per Q&A guideline we are required to answer first question only . Please repo...

Q: AJUMA Farms operates a farm with various plants and a herd of animals. On January 1, 2021, it had te...

A: Biological assets available at the end of the year (December 31, 2021): 2-year old animals = 10 - 3 ...

Q: Sheridan Tool Company’s December 31 year-end financial statements contained the following errors. ...

A: Solutions: A)Total Effect of errors on 2021 Net income Understatement of 2020 ending inventory ...

Q: The Blueberry Company values its inventory by using the FIFO retail method.. The following informati...

Q: tnership interest in a tax shelte the partnership's losses was $ assive losses is $133,500.

A: Loss from rental house is treated as passive loss. Passive loss is the loss from activities which is...

Q: Boeing Truck Company received an invoice showing 12 tires at $114 each, 15 tires at $157 each, and 1...

A: An account payable is defined as the amount a business owed for purchases they made on credit. they ...

Q: This is a situation where the seller actually paid the freight charges but is not legally responsibl...

A: FOB Destination, Freight Collect: If the products are sent FOB destination, the customer is responsi...

Q: The following information concerns production in the Forging Department for November. All direct mat...

A: Note: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question...

Q: Give example of personal assets

A: An asset is a resource owened by individual or business that provides p...

Q: The printing costs and legal fees associated with the issuance of bonds should Select one: a. be exp...

A: As per IFRS 9 and IAS 39, bonds issuance costs shall be accounted for as a reduction from the issue ...

Q: Beginning inventory: P186,196 at cost; P302,250 at retail Purchases: P703,740 at cost; P...

A: Answer-Banana company using retail method of inventory valuation.The estimated cost of the ending in...

Q: View Policies Show Attempt History Current Attempt in Progress Blue Limited uses a perpetual invento...

A: Inventory valuation is an important activity that has to be undertaken by the businesses involved in...

Q: Sarah Jones earns $555 per week selling life insurance for Farmer's Insurance plus 6% of sales over ...

A: Solution: Sarah earnings = weekly salary*4 + 4% of excess sales = 555*4 + (24000-5750)*4% = 2220 + 7...

Q: From the details given below prepare aTrial Balance as at March 31, 2018. Purchases 80,000 Sala...

A: Trial Balance: Trial balance is a statement in which the closing balance of all ledger accounts are ...

Q: Which of the following assumptions is not used in CAPM?

A: As per our protocol we provide solution to the one question only but you have asked two multiple cho...

Q: The information is taken from the records of Paul Company for 2020: Payment of dividends $4,000 Incr...

A: Cash flow from operating activities indicates the cash inflow or outflow transactions related to the...

Q: Which of the following costs are variable, fixed, or mixed costs? Units of Output Direct materials 3...

A: Variable cost per unit = Total costs / No. of units Fixed cost means costs that remain the same at a...

Q: Required: Determine the following 2021 balance sheet items: 1. Current assets 2. Shareholders' equit...

A: Solution Formula used Current ratio =current assets / current liabilities Acid test ratio =c...

Q: The journal entry needed to record P5,000 of advertising for Westwood Manufacturing would include: O...

A: Advertising Expense is a financial statement account that reports the dollar amount of advertisement...

Q: ow much were the discounts lost? epson Company is specializing on sale of printers and related gadge...

A: Solution Concept Discount term 3/10 net 30 means that if the payment is made within 10 days of invoi...

Q: Apricot Company sells a variety of items to its customers. At December 31, the balance of Apricot’s ...

A: Inventory should be valued at cost or net realizable value (NRV) whichever is lower on December 31.

Q: 1 Aug Started business with $150, 000 in the bank 3 Aug Bought supplies on c...

A: Introduction:- The act of recording or keeping track of any financial or non-financial action is kno...

Q: Simone Massy works for Canada Couriers in Nunavut and is provVided with a company-leased automobile....

A: Operating Cost It is the total amount of expenditure spent in the process of production of goods or ...

Question

8. Compute for the net sales that would be reported in LIVA company’s Income Statement.

You are assigned to prepare the financial statements of LIVA
Company for the year 2021. The following data were made
available for you:
Ending Inventory at Cost
739,160
3,930,000
16,000
Goods Available for Sale at retail
Sales Discount
Net markdowns
48,500
Net markups
30,000
Beginning inventory at retail
1,450,000
2,422,000
Purchases at retail
The company adopts the average cost approach to estimate
the value of its inventory and the cost ratio is computed at
68%.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Answer

VIEW

Answer

VIEW

Working Notes

VIEW

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Webster Company adopted do liar-value LIFO on January 1, 2019. Webster produces three products: X, Y, and Z. Websters beginning inventory consisted of the following: During 2019, Webster had the following purchases and sales: Required: 1. Compute the LIFO cost of the ending inventory assuming Webster uses a single inventory pool. Round cost index to 4 decimal places. 2. Compute the LIFO cost of the ending inventory assuming Webster uses three inventory pools. Round cost indexes to 4 decimal places.
At December 31, 2019, the following information was available from Crisford Companys books: Sales for the year totaled 110,600; markdowns amounted to 1,400. Under the approximate lower of average cost or market retail method, Crisfords inventory at December 31, 2019, was: a. 30,800 b. 28.000 c. 21,560 d. 19,600
Calculate the cost of goods sold dollar value for A65 Company for the month, considering the following transactions under three different cost allocation methods and using perpetual inventory updating. Provide calculations for first-in, first-out (FIFO).
Refer to the information for Morgan Inc. above. If Morgan uses a perpetual inventory system, what is the cost of ending inventory under FIFO at April 30? a. $32,500 b. $38,400 c. $63,600 d. $69,500
Refer to the information provided in RE8-4. If Paul Corporations inventory at January 1, 2019, had a cost and net realizable value of 300,000, prepare the journal entry to record the reductions to NRV for Paul Corporation assuming that Paul uses a periodic inventory system and the allowance method. Paul Corporation uses FIFO and reports the following inventory information: Assuming Paul uses a perpetual inventory system and the direct method, prepare the journal entry to record the write-down of inventory.
Refer to the information provided in RE8-4. If Paul Corporations inventory at January 1, 2019, had a cost and net realizable value of 300,000, prepare the journal entry to record the reductions to NRV for Paul Corporation assuming that Paul uses a periodic inventory system and the direct method. Paul Corporation uses FIFO and reports the following inventory information: Assuming Paul uses a perpetual inventory system and the direct method, prepare the journal entry to record the write-down of inventory.
Calculate the cost of goods sold dollar value for A66 Company for the month, considering the following transactions under three different cost allocation methods and using perpetual inventory updating. Provide calculations for last-in, first-out (LIFO).
The following data were extracted from the accounting records of Harkins Company for the year ended April 30, 2019: a. Prepare the cost of merchandise sold section of the income statement for the year ended April 30, 2019, using the periodic inventory system. b. Determine the gross profit to be reported on the income statement for the year ended April 30, 2019. c. Would gross profit be different if the perpetual inventory system was used instead of the periodic inventory system?
Effects of Inventory Costing Methods Jefferson Enterprises has the following income statement data available for 2019: Jefferson uses a perpetual inventory accounting system and the average cost method. Jefferson is considering adopting the FIFO or LIFO method for costing inventory. Jeffersons accountant prepared the following data: Required: 1. Compute income before taxes, income taxes expense, and net income for each of the three inventory costing methods. (Round to the nearest dollar.) 2. CONCEPTUAL CONNECTION Why are the cost of goods sold and ending inventory amounts different for each of the three methods? What do these amounts tell us about the purchase price of inventory during the year? 3. CONCEPTUAL CONNECTION Which method produces the most realistic amount for net income? For inventory? Explain your answer.
Trini Company had the following transactions for the month. Calculate the ending inventory dollar value for each of the following cost allocation methods, using periodic inventory updating. Provide your calculations. A. first-in, first-out (FIFO) B. last-in, first-out (LIFO) C. weighted average (AVG)
Bleistine Company had the following transactions for the month. Calculate the ending inventory dollar value for each of the following cost allocation methods, using periodic inventory updating. Provide your calculations. A. first-in, first-out (FIFO) B. last-in, first-out (LIFO) C. weighted average (AVG)
Data on the physical inventory of Katus Products Co. as of December 31 follow: Quantity and cost data from the last purchases invoice of the year and the next-to-the-last purchases invoice are summarized as follows: Instructions Determine the inventory at cost as well as at the lower of cost or market, using the first-in, first-out method. Record the appropriate unit costs on the inventory sheet and complete the pricing of the inventory. When there are two different unit costs applicable to an item: 1. Draw a line through the quantity and insert the quantity and unit cost of the last purchase. 2. On the following line, insert the quantity and unit cost of the next-to-the-last purchase. 3. Total the cost and market columns and insert the lower of the two totals in the LCM column. The first item on the inventory sheet has been completed as an example.