*E6.5 (LO 5) Howsham Ltd. reports the following for the month of June.DateExplanationUnitsUnit CostTotal Cost£1,0001.800200£SInventoryPurchasePurchaseJune !123006235003,50030Inventory160insiructionsa. Calculate the cost of the ending inverntory and the cost of goods sold for (1) FIFO and (2) moving-average cost, using a perpetual inventory system. Assume a sale of 400 units occurred on June 15 fora selling price of £8 and a sale of 440 units on Junc 27 for £9.E Why is the average unit cost noi £6 [(£5 + £6 + £7) ÷ 3 = £6]?*E6. 16 (LO S) Information about Zhu Boaids is presented in E6.4. Additional data regarding Zhu's satesof Xpert snowboards are provided below. Assume that Zhu uses a perpetual inventory system.DateExplanationUnitsUnit PriceTotal RevenueHKS1,990HKS 23,880Sept. 5Sept. 16Sept. 29Sale1250592,0302,090Sale101.500Sale123,310Totals121HK$248,690Instructionsa. Compute ending inventory at September 30 using FIFO and moving-average cost.a Which inventory cost flow method (FIFO, moving-average cost) gives the same ending inventoryvalue under both periodic and perpetual? Which method gives different ending inveniory values?

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Answered: *E6.5 (LO 5) Howsham Ltd. reports the…

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter13: Accounting For Merchandise Inventory

Section: Chapter Questions

Problem 1CE: LO1 If the ending inventory is overstated by 10,000, indicate what, if anything, is incorrect about...

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LO1 If the ending inventory is overstated by 10,000, indicate what, if anything, is incorrect about the following: Cost of goods sold___________ Gross profit___________ Net income___________ Ending owners capital___________
E7.5 (LO 2) (Recording Sales Gross and Net) On June 3, Bolton plc sold toArquette Company merchandise having a sales price of £2,000 with terms of 2/10,n/60. An invoice totaling £90, terms n/30, was received by Arquette on June 8 fromJohn Booth Transport Service for the freight cost. On June 12, the company received acheck for the balance due from Arquette Company.Instructionsa. Prepare journal entries on the Bolton plc books to record sales and receivables forall the events noted above under each of the following bases.1. Sales and receivables are entered at gross selling price.2. Sales and receivables are entered at net of cash discounts.b. Prepare the journal entry under basis (a)(2), assuming that Arquette Companydid not remit payment until July 29.
The following information is available for NomerCompany for 2021: Freight-inPhp 30,000 Purchase returns75,000 Selling expenses150,000 Ending inventory260,000 The cost of goods sold is equal to 400% of selling expenses. What is the cost of goods available for sale?
E6.14 (LO 3), AP Deere & Company is a global manufacturer and distributor of agricultural, construction, and forestry equipment. The company reports inventory and cost of goods sold using the LIFO method. Suppose it reported the following information in its 2025 annual report. (in millions) 2025 2024 Inventories (LIFO) $2,397 $3,042 Current assets 30,857 Current liabilities 12,753 1,367 16,255 LIFO reserve Cost of goods sold Instructions a. Compute Deere's inventory turnover and days in inventory for 2025. (Round inventory turnover to 2 decimal places.) b. Compute Deere's current ratio using the 2025 data as presented, and then again after adjusting for the LIFO reserve. c. Comment on how ignoring the LIFO reserve might affect your evaluation of Deere's liquidity. Idi bried FIEO LIFO and average cost and evaluate impact on gross profil
The following relates to a single sale of goods made by Spurs in 2023: Selling price P500,000Freight costs 5,000Terms 3/15, n/30Shipping Date December 28, 2023Date goods received by the customer January 3, 2024Date payment is received by Spurs January 5, 2024 Question:9. If the term is FOB destination, how much sales should be recorded by Spurs for the year ended December 31, 2023? a. P0b. P490,000c. P495,000d. P500,000
(5) The company "Z" displays in its accounting records the following costs for the goods purchased to reach safely its warehouses: Invoice value of goods 150.000€, discounts given on the invoice value of the purchase of 11.000 €, transport paid for the transport of goods from the warehouse of the supplier to the premises of the buyer 2.500 €, insurance premiums of goods 3.150 € were paid, packing costs for the transport 8.450 €, fees and customs clearance costs 7.780 €, commissions purchases 4.140 €, administrative expenses 5.550 €, salaries and wages 6.750 €, light-water-phone 3.150€, advertising-promotion costs 3.550€ and financial interest (debit) 1.485€. Requested: To determine the cost of purchase of the quantities purchased.
The following information is available for Cheyenne Corp.: 2022 2021 Accounts receivable $ 373000 $ 346000 Inventory 287000 357000 Net credit sales 2911950 2621000 Cost of goods sold 1804000 861000 Net income 309000 176000 The accounts receivable turnover for 2022 is If Year 1 cost of goods sold equals $760, Year 2 cost of goods sold equals $820, and Year 3 cost of goods sold equals $580, the percentage to be assigned for Year 1 in a trend analysis, assuming that Year 1 is the base year, is If Year 1 sales equal $750, Year 2 sales equal $1500, and Year 3 sales equal $930, the percentage to be assigned for Year 2 in a trend analysis, assuming that Year 1 is the base year, is answer these three subparts
EB6. 4.3 Langston’s purchased $3,100 of merchandise during the month, and its monthly income statement shows a cost of goods sold of $3,000. What was the beginning inventory if the ending inventory was $1,250?
Calculate the gross profit from the following? Sales of OMR 20000, Cost of goods sold OMR 8000 and Return inwards OMR 6000, Return outwards 4000, Purchases 15000. a. OMR 5000 b. OMR 8000 c. OMR 6000 d. OMR 12000
Financial information is presented below: Operating Expenses $ 90000 Sales Returns and Allowances 22000 Sales Discounts 9000 Sales Revenue 281000 Cost of Goods Sold 157000 The gross profit rate would be 49.3%. 37.2%. 43.1%. 55.2%.
5-Al Shahba has net sales are RO 57500 and gross profit rate is 45% of net sales, then estimated cost of goods sold will be a. RO 28750 b. RO 25875 c. RO 31625 d. RO 23000
f. The adjustment for customer returns and allowances is $60,000 for sales and $35,000 for cost of goods sold. how would I journalize this?

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