buys and sells coffee machines. At 1 August 2019, his inventory valuation for 20 coffee machines was $18 600. 1 2 hal blo Karsten's purchases for the year ended 31 July 2020 were as follows: Cost Date 2019 August 7 September 12 December 2020 5 February 28 April 10 July Number of coffee machines purchased 20 15 40 25 20 18 $ 18000 11 250 29 400 18 525 14 800 13 860 Additional information Karsten uses the FIFO (First In First Out) method of inventory valuation. During the year ended 31 July 2020, Karsten sold 110 coffee machines at $1 300 each. REQUIRED (a) Calculate the cost of sales for the year ended 31 July 2020. (b) Calculate the inventory value at 31 July 2020. (c) Calculate the gross profit for the year ended 31 July 2020. The net realisable value of Karsten's inventory at 31 July 2020 was $20 185.

buys and sells coffee machines. At 1 August 2019, his inventory valuation for 20 coffee machines was $18 600. 1 2 hal blo Karsten's purchases for the year ended 31 July 2020 were as follows: Cost Date 2019 August 7 September 12 December 2020 5 February 28 April 10 July Number of coffee machines purchased 20 15 40 25 20 18 $ 18000 11 250 29 400 18 525 14 800 13 860 Additional information Karsten uses the FIFO (First In First Out) method of inventory valuation. During the year ended 31 July 2020, Karsten sold 110 coffee machines at $1 300 each. REQUIRED (a) Calculate the cost of sales for the year ended 31 July 2020. (b) Calculate the inventory value at 31 July 2020. (c) Calculate the gross profit for the year ended 31 July 2020. The net realisable value of Karsten's inventory at 31 July 2020 was $20 185.

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,...

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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.
Inventory Costing and LCM Ortman Enterprises sells a chemical used in various manufacturing processes. On January 1, 2019, Ortman had 5,000,000 gallons on hand, for which it had paid $0.50 per gallon. During 2019, Ortman made the following purchases: During 2019, Ortman sold 65 000,000 gallons at $0.75 per gallon (35,000,000 gallons were sold on June 29 and 30,000,000 gallons were sold on Nov. 22), leaving an ending inventory of 7,000,000 gallons. Assume that Ortman uses a perpetual inventory system. Ortman uses the lower of cost or market for its inventories, as required by generally accepted accounting principles. Required: 1. Assume that the market value of the chemical is $0.76 per gallon on December 31, 2019. Compute the cost of ending inventory using the FIFO and average cost methods, and then apply LCM. ( Note: Use four decimal places for per-unit calculations and round all other numbers to the nearest dollar.) 2. Assume that the market value of the chemical is $0.58 per gallon on December 31, 2019. Compute the cost of ending inventory using the FIFO and average cost methods, and then apply LCM. ( Note: Use four decimal places for per-unit calculations and round all other numbers to the nearest dollar.)
On January 2020, Tony Corporation has the following inventory purchases:January 2 Bought 5,750 units at a total amount of P7,500January 7 Bought 5,100 units at a total amount of P5,850January 15 Bought 7,600 units at a total amount of P6,300January 25 Bought 6,600 units at a total amount of P4,950A physical count of inventory on January 30 reveals that there are 1,000 units on hand.Using the FIFO inventory method, what is the value of the ending inventory on January 30?
The following data was obtained from the records of ABC Inc., for the current year. Sales during the year were 210 units. Jan 1, 2021 Beginning Inventory 80 units at $8 Jan 11, 2021 Purchases 65 units at $10 Jan 23, 2021 Purchases 55 units at $ 12 January 31 Purchases 53 units at $14 IF THE TAX RATE IS 30%, HOW MUCH IN TAXES WILL ABC SAVE IN THE CURRENT YEAR IF THEY CHOOSE TO USE LIFO INSTEAD OF FIFO?
April 4, 2020 Smith and West, who uses the Perpetual inventory system, purchased 1000 widgets from ABC company on account, at a cost of $5 each. HST is applied and they charged the goods, PI-26. Terms: 5/10 n/30. On April 10, Smith and West sold 200 widgets to Mr. T on account at a price of $14 each. HST was collected. Terms: 5/10 n/30. Debit - A/R - Mr. T $3,164 </> Credit - Sales $2,800, HST Payable $364 25) What would be the 2nd journal entry to record this transaction? 1.Debit - Cost of Goods Sold $1,000 </> Credit - Inventory $1,000 2.Debit - Inventory $1,000 </> Credit - Cost of Goods Sold $1,000 3.Debit - Cost of Goods Sold $1,000 </> Credit - Purchases $1,000 4.Debit - Cash $1,000 </> Credit - Inventory $1,000
The business had 400 units in inventory at 1st March 2019 valued at RO 40. On 10th March Purchase made 800 units at RO 60 each. On 31st March Sales made 600 units at RO 80 each. What will be the cost of goods sold value at the end of March 2019 assuming that the business uses FIFO method? a. OMR 64,000 b. OMR 32,000 c. OMR 36,000 d. OMR 28,000
In 2017 the Moncrief Company purchased from Jim Lester the right to be the sole distributor in the western statesof a product called Zelenex. In payment, Moncrief agreed to pay Lester 20% of the gross profit recognized fromthe sale of Zelenex in 2018.Moncrief uses a periodic inventory system and the LIFO inventory method. Late in 2018, the following information is available concerning the inventory of Zelenex:Beginning inventory, 1/1/2018 (10,000 units @ $30) $ 300,000Purchases (40,000 units @ $30) 1,200,000Sales (35,000 units @ $60) 2,100,000By the end of the year, the purchase price of Zelenex had risen to $40 per unit. On December 28, 2018, threedays before year-end, Moncrief is in a position to purchase 20,000 additional units of Zelenex at the $40 per unitprice. Due to the increase in purchase price, Moncrief will increase the selling price in 2019 to $80 per unit. Inventory on hand before the purchase, 15,000 units, is sufficient to meet the next six months’ sales and the…
Al Wardi marketing company purchases mobiles directly from manufacturers and sells it to small retailers. The following transactions occurred during 2020: January, 12th: 75 mobiles on hand @ RO 30 each March, 21st: 80 mobiles purchased @ RO 40 each. May, 14th: 120 mobiles purchased @ RO 50 each. July, 10th: 80 mobiles purchased @ RO 60 each. September 16th: 50 mobiles purchased @ RO 80 each During 2020 Al Wardi company sold 300 mobiles. Required: Compute the Cost of Inventory sold and the value of closing inventory during 2020 under the following cost inventory methods. (a). First in, first out (FIFO) (b). Last in, first out (LIFO) (c) Average cost method
The company completed the following transactions during 2020. • Jan 10 sold inventory to Natty Paul, $11,000, on account • May 15 wrote off as uncollectible the accounts of Terry Carter, $2,500 and Maggie Cube $400 • August 04 received 70% of the amount owed by Natty Paul and wrote off the remainder as uncollectible • October 26 received 30% of the funds owed from Maggie Cube as part payment of her account which had been written off earlier as uncollectible. • December 31, The Aging schedule showed an estimated $116,500 as uncollectible Requirements: 1. Prepare journal entries for each transaction (No narrations required) 2. Prepare the Allowance for Uncollectible and the Accounts Receivable accounts based on the information presented and balance off each account. 3. Prepare the balance sheet extract as at Dec 31, 2020, to show the net realizable value for the Accounts Receivable. 4. Assume credit sales for 2019 were $312,000 and that on December 31, 10% of credit…
The company completed the following transactions during 2020. Jan 10 sold inventory to Natty Paul, $11,000, on account May 15 wrote off as uncollectible the accounts of Terry Carter, $2,500 and Maggie Cube $400 August 04 received 70% of the amount owed by Natty Paul and wrote off the remainder as uncollectible October 26 received 30% of the funds owed from Maggie Cube as part payment of her account which had been written off earlier as uncollectible. December 31, The Aging schedule showed an estimated $116,500 as uncollectible Requirements: Prepare journal entries for each transaction (No narrations required) Prepare the Allowance for Uncollectible and the Accounts Receivable accounts based on the information presented and balance off each account. Prepare the balance sheet extract as at Dec 31, 2020, to show the net realizable value for the Accounts Receivable. Assume credit sales for 2019 were $312,000 and that on December 31, 10% of credit sales are estimated to be uncollectible.…
Assuming that a ABC merchandise business purchased 500 numbers of Office chairs for OMR 40 each on 1st December 2020 from JKD merchandise business under the credit terms of 5/20, n/60. On 3rd December 2020 ABC merchandise business discovers that 100 numbers of office chairs are office table. Therefore, the business returned the goods to JKD merchandise. On 5th December 2020 the ABC merchandise business settles full cash. The business uses periodic inventory system. Which of the following journal entry is correct for the ABC merchandise business on 5th December 2020? a. Debit Cash OMR 15,200 Debit Discount OMR 800 Credit Accounts receivable OMR 16000 b. Debit Accounts payable OMR 16,000 Credit Cash OMR 15,200 Credit Discount OMR 800 c. Debit Accounts payable OMR 4000 Credit Purchase returns and allowances OMR 4000 d. Debit Purchase OMR 20,000 Credit Accounts payable OMR 20,000
The ace company completed the following transactions during 2020. Jan 10 sold inventory to Natty Paul, $11,000, on account May 15 wrote off as uncollectible the accounts of Terry Carter, $2,500 and Maggie Cube $400 August 04 received 70% of the amount owed by Natty Paul and wrote off the remainder as uncollectible October 26 received 30% of the funds owed from Maggie Cube as part payment of her account which had been written off earlier as uncollectible. December 31, The Aging schedule showed an estimated $116,500 as uncollectible Requirements: Prepare journal entries for each transaction (No narrations required) Prepare the Allowance for Uncollectible and the Accounts Receivable accounts based on the information presented and balance off each account. Prepare the balance sheet extract as at Dec 31, 2020, to show the net realizable value for the Accounts Receivable. Assume credit sales for 2019 were $312,000 and that on December 31, 10% of credit sales are estimated to be…