For 2020, cost of goods available for sale for Crane Corporation was $5600000. The gross profit rate on sales was 20%. Sales for the year were $5100000. What was the amount of the ending inventory? $1120000. $1520000. $0. $1020000
Q: Vaughn Manufacturing had January 1 inventory of $295000 when it adopted dollar-value LIFO. During…
A: Last-in-First-Out Method, or simply called as LIFO Method, is an inventory system in accounting…
Q: Charlene Company uses the average cost retail method to estimate its inventory. Data relating to the…
A: Cost of goods sold is the total cost incurred to produce goods during the particular year. It is…
Q: sole proprietor had the following data for the year 2020. Sales P500,000; Beginning inventory,…
A: Supplies expense is the amount of expense which is debited to income statement.
Q: Bulalugaw's cost of sales in 2020 is 95,000. Their inventory in 2019 and 2020 are 50,000 and 40,000…
A: Cost of sales:-The cost of sales is defined as the accumulated total of all those costs that are…
Q: Small Company reported cost of goods sold of $179,000 on its 2020 income statement. The company’s…
A: Statement of cash flows: It is a financial statement that shows the increase or decrease in the…
Q: The sole proprietor had the following data for the year 2020. Sales P500,000; Beginning inventory,…
A: Cost of Goods sold = Beginning Inventory + Net Purchases - Ending Inventory Gross Profit = Sales -…
Q: For the year, your company's sales are $305,000, the gross profit is $250,000, and ending inventory…
A: Gross profit = Net sales - Cost of goods sold where, Cost of goods sold = Beginning inventory + Net…
Q: The management of Gresa Inc. is reevaluating the appropriateness of using its present inventory cost…
A: Calculation of COGS under FIFO method As per FIFO Method: Particulars Units Cost per unit Total…
Q: onahue adopted the dollar-value LIFO retail inventory method on January 1, 2020. The following…
A: Answer:
Q: On January 1, 2020, the merchandise inventory of Crane, Inc. was $2150000. During 2020 Crane…
A: The cost of goods sold represents the cost value of the inventory that is sold during the period.…
Q: Prepare a multi-step income statement for Prestige Traders and General Merchandise for the year…
A: Income statement means the statement which show the cost of goods sold and selling price and give…
Q: The records of Kaitlyn Corporation showed the following on December 31, 2020: Gross Purchases…
A: Solution.. Gross purchase = $380,000 Purchase return = $20,000 Gross profit = $420,000…
Q: A company adopted dollar-value LIFO on January 1, 2020, when the inventory value was $365,000 and…
A: The dollar-value method of valuing LIFO inventories is a method of determining cost by using…
Q: Bilboa, Inc. bought $82,000 of inventory during 2020. During the year the company sold inventory for…
A: Gross Profit Gross profit is the sum of total sales revenue minus cost of goods sold. The…
Q: In its 2019 annual report, Marin, Inc. reported inventory of $ 670 million on January 31, 2020, and…
A: Average inventory = (Beginning inventory + ending inventory)/2 = (670+546)/2 = $608 million
Q: During the year ended December 31, 2020, The Zuckerberg Company purchased inventory for $500 and…
A: Cost of Goods Sold :— Cost of goods sold is the total amount your business paid as a cost directly…
Q: At the beginning of 2020, Way Hardware has an inventory of Rs. 600,000. Because sales growth was…
A: Gross Profit = Sales Revenue - Cost of goods sold Cost of goods sold = Beginning Inventory +…
Q: What is the inventory turnover ratio for Fair Isle Inc. for 2020 if the inventory at the beginning…
A: The inventory turnover ratio indicates the number of times inventory turns to sales. It can be…
Q: The Lubao Company reported the following information for the year 2009: Gross profit -P560,000;…
A: The total sales is calculated as cost of goods sold and gross profit
Q: Required: Prepare correct income statement data for the two years. What is the cumulative effect of…
A: Given- Ending inventory at December 31, 2019 was overstated $5,000 So, correct value of ending…
Q: Selected data for ABC Co. for 2020 are as follows: Decrease in merchandise inventory: P20,000…
A: Cost of goods sold means the cost incurred on the goods which has been sold out. For calculating…
Q: Inventory, January 1 Inventory on hand, December 31 Inventory out on consignment, December 31…
A: The cost of goods sold is calculated using the below given formula: Cost of Goods Sold=Opening…
Q: Amiras Corporation began operations on January 1, 2020, with a beginning inventory of $30,100 at…
A: a. As per Conventional Retail Method, ending inventory is as follows: Formulation as below:…
Q: The 2020 financial statements of Crane Company reported a beginning inventory of $79000, an ending…
A: Inventory turnover ratio = Cost of goods sold / average inventory
Q: Oriole Company had January 1 inventory of $291000 when it adopted dollar-value LIFO. During the…
A: Gross Profit = Sales - Cost of goods sold Cost of goods sold = Beginning inventory + Purchases -…
Q: Data taken from the records of XYZ Co. revealed the following for 2020: Inventory - January 1…
A: Accounting is primarily concerned with identifying, recording, measuring, summarizing transactions…
Q: The following items were taken from the financial statements of Kramer Manufacturing, Inc., over a…
A: Horizontal analysis is done to evaluate the company's performance over multiple periods.
Q: Midori Company had ending inventory at end-of-year prices of $100,000 at December 31, 2019; $119,900…
A: Base year prices = Ending inventory / year-end price indexe 2019 = $100,000 / 1.0 = $100,000 2020 =…
Q: During January 2020, Hussain & Co made sales for an amount of OMR 155,000 which made a gross profit…
A: Cost of goods sold = Sales - Gross profit=155,000-40,000=115,000
Q: Concord Corporation had January 1 inventory of $305000 when it adopted dollar-value LIFO. During the…
A: Gross profit measures the direct profit of the business. it is the difference between the net sales…
Q: the value of ending inventory
A: Net sales $1,659,000 Less Gross profit ($768,225) Cost of goods sold $890,775
Q: Marine Corporation collected $120,000 during 2020. Of this amount, $2,000 was still unearned as of…
A: Cost of goods sold = Inventory purchases + (Beginning inventory - ending inventory) = $48,000 + 0 =…
Q: Company C had cost of goods sold in the year of sale 2019 of $1,500,000 and net sales was…
A: Inventory Turnover = Cost of Goods Sold/Average Inventory
Q: Waterway Industries had January 1 inventory of $310000 when it adopted dollar-value LIFO. During the…
A: LIFO- It is a method of valuation of inventory which calculate the inventory cost on the basis of…
Q: If a firm's beginning inventory is $35,000, goods purchased during the period cost $130,000, and the…
A: Cost of goods sold is calculated by adding the beginning inventory and purchases and deducting the…
Q: Compute the amount of the inventory at December 31, 2020, under the dollar-value LIFO method.
A: Dollar-value LIFO method: In this method, the valuation of inventory is calculated on the monetary…
Q: What is Seaside Surfing's COGS if the company had inventory of $20,000 at the beginning of 2019, had…
A: Cost of goods sold: Cost of goods sold is the total of all the expenses incurred by a company to…
Q: At the beginning of the year, Sheffield had an inventory of $350000. During the year, the company…
A: Formula: Cost of Goods sold = Beginning inventory + Purchases - Ending inventory Gross Profit rate =…
Q: Avila Corp. reported 2020 net income of $20,000. However, the ending inventory in 2019 had been…
A: Correct net income for 2020 = Reported net income - Beginning inventory understated - Ending…
Q: The following information was available for Concord Company at December 31, 2020: beginning…
A: Inventory turnover = cost of goods sold/Average inventory
Q: ABC Corporation reports the following information for 2020. Based on these figures, what is ABC's…
A: Inventory turnover = Cost of goods sold / Average inventory where, Average inventory = (beginning…
Q: Swifty Corporation has $18000 of ending finished goods inventory as of December 31, 2019. If…
A: Cost of goods manufactured is the total cost incurred to produce the products and transfer them into…
Q: The 2020 financial statements of Blossom Company reported a beginning inventory of $90000, an ending…
A: Ratio Analysis is used in accounting to convey information of company's liquidity, turnover, short…
Q: During 2020, Liberty Company has the following inventory transactions. Date Transaction Units…
A: LIFO: In Last-in-first-out it is assumed that the last purchased item will be sold first. So, the…
Q: For 2021, Hamilton Company had Sales of $5,700,000 and Cost of Goods Sold of $3,600,000. For 2020,…
A: Vertical analysis is one of the form of financial statement analysis,under which each item is being…
Q: Mabuhay Corporation generated these gross profits during the past recent ears when the sales price…
A: The profit a corporation makes after subtracting the expenses of producing and selling its goods, or…
Q: AAA Hardware uses the LIFO method to value its inventory. Inventory at the beginning of the year…
A: FIFO: Under this inventory method, the units that are purchased first, are sold first. Thus, it…
Q: In its 2019 annual report, Kingbird, Inc. reported inventory of $ 626 million on January 31, 2020,…
A: Inventory turnover is an accounting turnover ratio that determines the number of times inventory is…
Q: The goods are sold at a gross profit of 20% of sales. For interim statement purposes, the inventory…
A: Sales revenue: sales revenue is the revenue earned from selling a product Beginning inventory:…
Q: Data taken from the records of XYZ Co. revealed the following for 2020: Inventory - January 1…
A: Gross sales are the sales which are computed by adding gross profit to the cost of goods sold. When…
For 2020, cost of goods available for sale for Crane Corporation was $5600000. The gross profit rate on sales was 20%. Sales for the year were $5100000. What was the amount of the ending inventory?
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 2 images
- Comprehensive The following information for 2019 is available for Marino Company: 1. The beginning inventory is 100,000. 2. Purchases returns of 4,000 were made. 3. Purchases of 300,000 were made on terms of 2/10, n/30. Eighty percent of the discounts were taken. 4. At December 31, purchases of 20,000 were in transit, FOB destination, on terms of 2/10, n/30. 5. The company made sales of 640,000. The gross selling price per unit is twice the net cost of each unit sold. 6. Sales allowances of 6,000 were made. 7. The company uses the LIFO periodic method and the gross method for purchase discounts. Required: 1. Compute the cost of the ending inventory before the physical inventory is taken. 2. Compute the amount of the cost of goods sold that came from the purchases of the period and the amount that came from the beginning inventory.Heller Company began operations in 2019 and used the LIFO method to compute its 300,000 cost of goods sold for that year. At the beginning of 2020, Heller changed to the FIFO method. Heller determined that its cost of goods sold under FIFO would have been 250,000 in 2019. For 2020, Hellers cost of goods sold under FIFO was 360,000, while it would have been 410,000 under LIFO. Heller is subject to a 21% income tax rate. Compute the cumulative effect of the retrospective adjustment on prior years income (net of taxes) that Heller would report on its retained earnings statement for 2020.Refer to RE22-2. Assume Heller Company had sales revenue of 510,000 in 2019 and 650,000 in 2020. Prepare Hellers partial income statements (through gross profit) for 2019 and 2020. RE22-2 Heller Company began operations in 2019 and used the LIFO method to compute its 300,000 cost of goods sold for that year. At the beginning of 2020, Heller changed to the FIFO method. Heller determined that its cost of goods sold under FIFO would have been 250,000 in 2019. For 2020, Hellers cost of goods sold under FIFO was 360,000, while it would have been 410,000 under LIFO. Heller is subject to a 21% income tax rate. Compute the cumulative effect of the retrospective adjustment on prior years income (net of taxes) that Heller would report on its retained earnings statement for 2020.
- Use the following information relating to Medinas Company to calculate the inventory turnover ratio, gross margin, and the number of days sales in inventory ratio, for years 2022 and 2023.Use the following information relating to Clover Company to calculate the inventory turnover ratio, gross margin, and the number of days sales in inventory ratio, for years 2022 and 2023.Fava Company began operations in 2018 and used the LIFO inventory method for both financial reporting and income taxes. At the beginning of 2019, the anticipated cost trends in the industry had changed, so that it adopted the FIFO method for both financial reporting and income taxes. Fava reported revenues of 300,000 and 270,000 in 2019 and 2018, respectively. Fava reported expenses (excluding income tax expense) of 125,000 and 120,000 in 2019 and 2018, which included cost of goods sold of 55,000 and 45,000, respectively. An analysis indicates that the FIFO cost of goods sold would have been lower by 8,000 in 2018. The tax rate is 21%. Fava has a simple capital structure with 15,000 shares of common stock outstanding during 2018 and 2019. It paid no dividends in either year. Required: 1. Prepare the journal entry to reflect the change. 2. At the end of 2019, prepare the comparative income statements for 2019 and 2018. Notes to the financial statements are not necessary. 3. At the end of 2019, prepare the comparative retained earnings statements for 2019 and 2018.
- 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. 19,600Company Elmira reported the following cost of goods sold but later realized that an error had been made in ending inventory for year 2021. The correct inventory amount for 2021 was 32,000. Once the error is corrected, (a) how much is the restated cost of goods sold for 2021? and (b) how much is the restated cost of goods sold for 2022?In 2020, Frost Company, which began operations in 2018, decided to change from LIFO to FIFO because management believed that FIFO belter represented the flow of their inventory. Management prepared the following analysis showing the effect of this change: Frost reported net income of 2,500,000, 2,400,000, and 2,100,000 in 2018, 2019, and 2020, respectively. The tax rate is 21%. Required: 1. Prepare the journal entry necessary to record the change. 2. What amount of net income would Frost report in 2018, 2019, and 2020? 3. If Frosts employees received a bonus of 10% of income before deducting the bonus and income taxes in 2018 and 2019, what would be the effect on net income for 2018, 2019, and 2020?
- Company Edgar reported the following cost of goods sold but later realized that an error had been made in ending inventory for year 2021. The correct inventory amount for 2021 was 12,000. Once the error is corrected, (a) how much is the restated cost of goods sold for 2021? and (b) how much is the restated cost of goods sold for 2022?At the end of 2019, Manny Company recorded its ending inventory at 350,000 based on a physical count. During 2020, the company discovered that the correct inventory value at the end of 2019 should have been 400,000 because it made a counting error. Upon discovery of this error in 2020, what correcting journal entry will Manny make? Ignore income taxes.The following information is available for Cooke Company for the current year: The gross margin is 40% of net sales. What is the cost of goods available for sale? a. 5840,000 b. 960,000 c. 1,200,000 d. 1,220,000
