on number 1 I have the ending correct but I'm not getting the correct COG. and I'm stuck on #2 and #4thank you for your help. Johnson Corporation began the year with inventory of 25,000 units of its only product. The units cost $9 each. The company uses aperpetual inventory system and the FIFO cost method. The following transactions occured during the yeara. Purchased 125,000 additional units at a cost of $10 per unit. Terms of the purchases were 3/10, n/30, and 70% of the purchaseswere paid for within the 10-day discount period. The company uses the gross method to record purchase discounts, Themetchandise was purchasedfo.b shipping point and freight charges of $0.60 per unit were paid by Johnson.b. 2,500 units purehased during the year were returhed to suppliers for credit. Johnson was also given cCredit for the freight charges of$0.60 per unit it had paid on the original purchase The units were defective and were returned two days after they were receivedC. Sales for the year totaled 120,000 units at $16 per unit.d. On December 28, Johnson purchased 6,500 additional units at $11 each. The goods were shipped fo.b destination and arrived atJohnson's warehouse on January 4 of the following year.e. 27,500 units were on hand at the end of the year.Required:1. Determine ending inventory and cost of goods sold at the end of the year2. Assuming that operating expenses other than those indicated in the above transactions amounted to $180,000, determine incomebefore income taxes for the year.3. For financial reporting purposes, the company uses LIFO (amounts based on a periodic inventory system). Record the year endadjusting entry for the LIFO Teserve, assuming the balance in the LIFO reserve at the beginning of the year is $18,00.4. Determine the amount the company would report as income before taxes for the year underLIFO Operating expenses other thanthose indicated in the above transactions amounted to $180,000Answer is not complete.Complete this question by entering your answers in the tabs below.Required 1Required 2Required 3Required 4Determine ending inventory and cost of goads sold at the end of the yearEnding inventory283,250ICost of annde cold1 203 E00Next

IS OHly p Cost $9 each. The CO petual inventory system and the FIFO cost method The following transactions occurred during the year Purchased 125.000 additional units at a cost of $10 per unit. Terms of the purchases were 3/10, n/30, and 70% of the were paid for within the 10-day discount period. The company uses the gross method to record purchase discounts, metchandise was purchasedfo.b shipping point and freight charges of $060 per unit were paid by Johnson. 2,500 units purchased during the year were returhed to suppliers for credit Johnson was also given credit for the fre $0.60 per unit it had paid on the original purchase The units were defective and were retuned two days after they w Sales for the year totaled 12O,000 units at $16 per unit. On December 28, Johnsoh purchased 6,500 additional units at $11 each. The goods were shinned fah destination at

IS OHly p Cost $9 each. The CO petual inventory system and the FIFO cost method The following transactions occurred during the year Purchased 125.000 additional units at a cost of $10 per unit. Terms of the purchases were 3/10, n/30, and 70% of the were paid for within the 10-day discount period. The company uses the gross method to record purchase discounts, metchandise was purchasedfo.b shipping point and freight charges of $060 per unit were paid by Johnson. 2,500 units purchased during the year were returhed to suppliers for credit Johnson was also given credit for the fre $0.60 per unit it had paid on the original purchase The units were defective and were retuned two days after they w Sales for the year totaled 12O,000 units at $16 per unit. On December 28, Johnsoh purchased 6,500 additional units at $11 each. The goods were shinned fah destination at

Century 21 Accounting Multicolumn Journal

11th Edition

ISBN:9781337679503

Author:Gilbertson

Publisher:Gilbertson

Chapter20: Accounting For Inventory

Section: Chapter Questions

Problem 1MP

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Langstons 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?
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.
Johnson Corporation had beginning inventory of 20,000 at cost and 35,000 at retail. During the year, it made net purchases of 180,000 at cost and 322,000 at retail. Johnson nude sales of 300,000. Assuming a price index of 100 at the beginning of the year and 110 at the end of the year, compute Johnsons ending inventory at cost using the dollar-value LIFO retail method.
Reid Company uses the periodic inventory system. On January 1, it had an inventory balance of 250,000. During the year, it made 613,000 of net purchases. At the end of the year, a physical inventory showed it had ending inventory of 140,000. Calculate Reid Companys cost of goods sold for the year.
Golden Eagle Company began operations on April 1 by selling a single product. Data on purchases and sales for the year are as follows: Purchases: Sales: The president of the company, Connie Kilmer, has asked for your advice on which inventory cost flow method should be used for the 32,000-unit physical inventory that was taken on December 31. The company plans to expand its product line in the future and uses the periodic inventory system. Write a brief memo to Ms. Kilmer comparing and contrasting the LIFO and FIFO inventory cost flow methods and their potential impacts on the companys financial statements.
On January 1, Pope Enterprises inventory was 625,000. Pope made 950,000 of net purchases during the year. On its year-end income statement, Pope reported cost of goods sold of 1,025,000. Calculate Popes December 31 ending inventory.
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.
Denali Company manufactures household products such as windows, light fixtures, ladders, and work tables. During the year it produced 10,000 Model 10X windows but only sold 5,000 units at $40 each. The remaining units cannot be sold through normal channels. Cost for inventory purposes on December 31 included the following data on the unsold units: Denali can sell the 5,000 windows at a liquidation price of $20.00 per window, but it will incur a packaging and shipping charge of $7.50 per window. Required: Identify the relevant costs and revenues for the liquidation sale alternative. Is Denali better off accepting the liquidation price rather than doing nothing? Assume that Model 10X can be reprocessed to another size window, Model 20X, which will require the same amount of labor and overhead as was required to initially produce, but sells for only $33. Determine the most profitable course of action—liquidate or reprocess.
Assume your company uses the periodic inventory costing method, and the inventory count left out an entire warehouse of goods that were in stock at the end of the year, with a cost value of $222,000. How will this affect your net income in the current year? How will it affect next years net income?
Click the Chart sheet tab. On the screen is a column chart showing ending inventory costs. During a deflationary period, which bar (A, B, or C) represents FIFO costing, which represents LIFO costing, and which represents weighted average? Explain your reasoning. On January 4 following year-end, Rio Enterprises received a shipment of 60 units of product costing 580 each. These units had been ordered by Del in December and had been shipped to him on December 27. They were shipped FOB shipping point. Revise the FIFOLIFO3 worksheet to include this shipment. Preview the printout to make sure that the worksheet will print neatly on one page, and then print the worksheet. Save the completed file as FIFOLIFOT. Using the FIFOLIFO3 file, prepare a 3-D bar (stacked) chart showing the cost of goods sold and ending inventory under each of the four inventory cost flow assumptions. No Chart Data Table is needed. Use the values in the Calculations Section of the worksheet for your chart. Enter your name somewhere on the chart. Save the file again as FIFOLIFO3. Print the chart.
For each of the following independent situations, calculate the missing values: 1. The Belen plant purchased 78,300 of direct materials during June. Beginning direct materials inventory was 2,500, and direct materials used in production were 73,500. What is ending direct materials inventory? 2. Forster Company produced 14,000 units at an average cost of 5.90 each. The beginning inventory of finished goods was 3,422. (The average unit cost was 5.90.) Forster sold 14,120 units. How many units remain in ending finished goods inventory? 3. Beginning work in process (WIP) was 116,000, and ending WIP was 117,300. If total manufacturing costs were 349,000, what was the cost of goods manufactured? 4. If the conversion cost is 84 per unit, the prime cost is 55, and the manufacturing cost per unit is 105, what is the direct materials cost per unit? 5. Total manufacturing costs for August were 412,000. Prime cost was 64,000, and beginning WIP was 76,000. The cost of goods manufactured was 434,000. Calculate the cost of overhead for August and the cost of ending WIP.
Bleistine Company had the following transactions for the month. Calculate the gross margin for the period for each of the following cost allocation methods, using periodic inventory updating. Assume that all units were sold for $50 each. Provide your calculations. A. first-in, first-out (FIFO) B. last-in, first-out (LIFO) C. weighted average (AVG)