Bonita Industries had 640 units of “Tank” in its inventory at a cost of $6 each. It purchased 880 more units of “Tank” at a cost of $9 each. Bonita then sold 1070 units at a selling price of $15 each. The LIFO liquidation overstated normal gross profit by $ -0-. $570. $720. $1290.

Bonita Industries had 640 units of “Tank” in its inventory at a cost of $6 each. It purchased 880 more units of “Tank” at a cost of $9 each. Bonita then sold 1070 units at a selling price of $15 each. The LIFO liquidation overstated normal gross profit by $ -0-. $570. $720. $1290.

Name: Bonita Industries had 640 units of “Tank” in its inventory at a cost o
Uploaded: 2024-03-20T06:32:37.000Z
Channel: Bartleby
Description: Bonita Industries had 640 units of “Tank” in its inventory at a cost of $6 each. It purchased 880 more units of “Tank” at a cost of $9 each. Bonita then sold 1070 units at a selling price of $15 each. The LIFO liquidation overstated normal gross prof

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

Chapter5: The Income Statement And The Statement Of Cash Flows

Section: Chapter Questions

Problem 3RE: Shaquille Corporation began the current year with inventory of 50,000. During the year, its...

See similar textbooks

Similar questions

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.
Crane Company had 500 units of “Dink” in its inventory at a cost of $10 each. It purchased 800 more units of “Dink” at a cost of $16 each. Crane then sold 1000 units at a selling price of $26 each. The LIFO liquidation overstated normal gross profit by
Com plc bought 500 items of inventory at the price of $20 per item on 1 January 20X2, and another 200 items at the price of $25 per item on 1 July 20X2. On 31 December 20X2, the replacement cost was $30 per item. On that date, Com plc sold 600 items and reported a profit of $9,100 using the first-in-first-out (FIFO) method to calculate the cost of sales. What would the profit be under replacement cost accounting? a. $6,000 b. $4,200 c. $3,200 d. $11,500 e. $12,500 f. $3,600
Traylor Corporation began the year with three items in beginning inventory, each costing $5. During the year Traylor purchased five more items at a cost of $6 each and then two more items at a cost of $7 each. Traylor sold eight items for $10 each. If Traylor uses a periodic LIFO system, what would be Traylor’s gross profit for this year? 45 $45 $80 $80 $51 $51 $36
In its first month of operation, Waterway Industries purchased 340 units of inventory for $9, then 440 units for $10, and finally 380 units for $11. At the end of the month, 420 units remained.Compute the amount of phantom profit that would result if the company used FIFO rather than LIFO. Phantom Profit =?
In its first month of operation, Concord Corporation purchased 310 units of inventory for $11, then 410 units for $12, and finally 350 units for $13. At the end of the month, 390 units remained.Compute the amount of phantom profit that would result if the company used FIFO rather than LIFO.
Yam Yu Ltd had a closing inventory amounted to K116,400 excluding the following two inventory lines: 400 items which had cost K4 each. All were sold after the reporting period for K3 each, with selling expenses of K200 for the batch. 200 different items which had cost K30 each. These items were found to be defective at the end of the reporting period. Rectification work after the statement of financial position amounted to K1,200, after which they were sold for K35 each, with selling expenses totalling K300. Required: Calculate the inventory total figures that should appear in the statement of financial position.
Allied made its first and only purchase of inventory for the period on May 3 for 1,000 units at a price of $7 cash per unit (for a total cost of $7,000). Allied sold 500 of the units in inventory for $11 per unit (invoice total: $5,500) to Macy Co. under credit terms 2/10, n/60. Record the cost of goods sold. Macy returns 50 units because they did not fit the customer’s needs (invoice amount: $550). Allied restores the units, which cost $350, to its inventory. Macy discovers that 50 units are scuffed but are still of use and, therefore, keeps the units. Allied gives a price reduction (allowance) and credits Macy's accounts receivable for $150 to compensate for the damage. Allied receives payment from Macy for the amount owed on the May 5 purchase; payment is net of returns, allowances, and any cash discount.
The balance of work in process inventory account as of December 31, of the current year of Purewood Inc. amounted to P480,000. The estimated selling price is P450,000 while the estimate cost of completion and cost to sell amounted to P10,000 and P5,000 respectively. How much is the the loss on inventory write-down?
During the year, Rex Store purchased goods worth P150,000. There were P40,000 unsold goods at the end of the year but old stock brought forward from last year's purchases was P10,000. Cost of sales was
Hot Pepper Company had the following information in its accounting records at year end:Inventory Cost $4,000,000It estimates the net realizable value of this inventory is $3,500,000. As a result of this information Hot Pepper Co. would: Make a journal entry debiting a loss on inventory decline for $500,000 Make a journal entry debiting the allowance for inventory valuation for $500,000 Make a journal entry crediting the allowance for inventory valuation for $500,000 Make a journal entry debiting a gain on market appreciation for $500,000 Make no entry
Volcano Technology began the year with inventory of $275,000 and purchased $1,850,000 of goods during the year. Sales for the year are $2,600,000, and Volcano Technology’s gross profit percentage is 40% of sales. Compute Volcano Technology’s estimated cost of ending inventory by using the gross profit method.