Cost5484,0001,750,000Retail$500,0003.450,000160,000Markup cancellations65,000Markdowns49,000Markdown10,000cancellationsSalesSales discount3.320,000140,000Required:Tompute the ending inventory at retail and at cost by the conventional retail Inventory method (Show your calculations,

Name: Cost5484,0001,750,000Retail$500,0003.450,000160,000Markup cancellatio
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Description: Cost5484,0001,750,000Retail$500,0003.450,000160,000Markup cancellations65,000Markdowns49,000Markdown10,000cancellationsSalesSales discount3.320,000140,000Required:Tompute the ending inventory at retail and at cost by the conventional retail Inventor

Retail method uses inventory to be shown at retail price which help in computing the cost of ending…

Business

Accounting

Cost 5454,000 1,750,000 Retai $500,000 3,450,000 160,000 65,000 49.000 cancellations 10,000 3,320,000 Sales discount 140,000 uired: pute the ending inventory at retail and at cost by the conventional retail inventory method (Show your calculationss

Cost 5454,000 1,750,000 Retai $500,000 3,450,000 160,000 65,000 49.000 cancellations 10,000 3,320,000 Sales discount 140,000 uired: pute the ending inventory at retail and at cost by the conventional retail inventory method (Show your calculationss

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter6: Cost Of Goods Sold And Inventory

Section: Chapter Questions

Problem 16MCQ: ( Appendix 6B) Refer to the information for Morgan Inc. above. If Morgan uses a periodic inventory...

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Discounts Nelson Company bought inventory for 50,000 on terms of 2/15, n/60. It pays for the first 37,500 of inventory purchased within the discount period and pays for the remaining 12,500 two months later. Required: 1. Prepare the journal entries to record the purchase and the payment under both the (a) gross price and (b) net price methods. Assume that Nelson uses the periodic inventory system. 2. Next Level Which of the two methods yields a conceptually preferable valuation of inventory?
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
Inventory Write-Down Stiles Corporation uses the FIFO cost flow assumption and is in the process of applying the LCNRV rule for each of two products in its ending inventory. A profit margin of 30% on the selling price is considered normal for each product. Specific data for each product are as follows: Inventory Write-Down Use the information in E8-1. Assume that Stiles uses the LIFO cost flow assumption and is applying the LCM rule. Required: 1. What is the correct inventory value for each product? 2. Next Level With regard to requirement 1, what effect does the imposition of the constraints on market value have on the inventory valuations?
Lower of Cost or Market Garcia Company uses FIFO, and its inventory at the end of the year was recorded in the accounting records at $17,800. Due to technological changes in the market, Garcia would be able to replace its inventory for $16,500. Required: 1. Using the lower of cost or market method, what amount should Garcia report for inventory on its balance sheet at the end of the year? 2. Prepare the journal entry required to value the inventory at the lower of cost or market.
RE7-8 Johnson Company uses a perpetual inventory system. On October 23, Johnson purchased 100,000 of inventory on credit with payment terms of 1/15, net 45. Using the net price method, prepare journal entries to record Johnsons purchases on October 23 and the subsequent payment on October 31. Using the information from RE7-8, prepare journal entries to record Johnsons purchase on October 23 and the subsequent payment on November 30.
Calculate the cost of goods sold dollar value for A74 Company for the sale on March 11, considering the following transactions under three different cost allocation methods and using perpetual inventory updating. Provide calculations for (a) first-in, first-out (FIFO); (b) last-in, first-out (LIFO); and (c) weighted average (AVG).
( Appendix 6B) Refer to the information for Morgan Inc. above. If Morgan uses a periodic inventory system, what is the cost of goods sold under FIFO at April 30? a. $32,800 b. $38,400 c. $63,600 d. $69,200
( Appendix 6B) Inventory Costing Methods: Periodic Inventory Systems. Refer to the information for Tyler Company in Brief Exercise 6-35 and assume that the company uses the periodic inventory system. Required: Calculate the cost of goods sold and the cost of ending inventory using the FIFO, LIFO, and average cost methods. ( Note: Use four decimal places for per-unit calculations and round all other numbers to the nearest whole dollar.)
( Appendix 6B) Inventory Costing Methods: Periodic System Harrington Company had the following data for inventory during a recent year: Assume that Harrington uses a periodic inventory accounting system. Required: 1. Using the FIFO, LIFO, and average cost methods, compute the ending inventory and cost of goods sold. ( Note: Use four decimal places for per-unit calculations and round all other numbers to the nearest dollar.) 2. CONCEPTUAL CONNECTION Which method will produce the most realistic amount for income? For inventory? 3. CONCEPTUAL CONNECTION Which method will produce the lowest amount paid for taxes?
Calculate the cost of goods sold dollar value for B74 Company for the sale on November 20, considering the following transactions under three different cost allocation methods and using perpetual inventory updating. Provide calculations for (a) first-in, first-out (FIFO); (b) last-in, first-out (LIFO); and (c) weighted average (AVG).
Serendipity Company uses the first-in, first-out retail method of inventory valuation. The following information is available: • Beginning inventory: P115,000 at cost; P300,000 at retail • Purchases: P600,000 at cost; P1,100,000 at retail • Net additional markups – P100,000; net markdowns – P200,000 • Sales revenue – P900,000 What is the estimated cost of the ending inventory using the FIFO retail method? A. P240,000 B. 200,000 C. 400,000 D. 220,000
Anna Company included the following items in its ending inventory: Merchandise out on consignment, at sales price, Including 40% markup on selling price P500,000 Goods purchased in transit, FOB shipping point 300,000 Goods held on consignment by Anna Company 400,000 By what amount should ending inventory be reduced? Choices: P900,000 P600,000 P1,200,000 P400,000