J-Hope Company started operations in 2019. The following data are abstracted from the company’s production and sales records: Number of units produced Number of units sold 2019 240,000 150,000 2020 232,500 217,500 2021 202,500 195,000 Unit production cost Sales revenue 4.50 5.20 5.80 1,200,000 1,800,000 1,950,000 Using the FIFO cost flow assumption, the gross profit for the year ended December 31, 2021 is

J-Hope Company started operations in 2019. The following data are abstracted from the company’s production and sales records: Number of units produced Number of units sold 2019 240,000 150,000 2020 232,500 217,500 2021 202,500 195,000 Unit production cost Sales revenue 4.50 5.20 5.80 1,200,000 1,800,000 1,950,000 Using the FIFO cost flow assumption, the gross profit for the year ended December 31, 2021 is

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter7: Operating Assets

Section: Chapter Questions

Problem 6MCQ: Refer to the information for Cox Inc. above. What amount would Cox record as depreciation expense...

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Habicht Company was formed in 2018 to produce a single product. The production and sales for the next 4 years were as follows: Required: 1. Determine the gross profit for each year under each of the following periodic inventory methods: a. FIFO b. LIFO c. Average cost (Round unit costs to 3 decimal places.) 2. Next Level Explain whether the companys return on assets (net income divided by average total assets) would be higher under FIFO or LIFO.
Refer to RE22-2. Assume the pretax cumulative effect adjustment is 50,000. Prepare the journal entry that Heller Company would make at the beginning of 2020 to record the cumulative effect of the change from LIFO to FIFO. 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.
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.
Allen Company is a wholesale distributor of automotive replacement parts. Initial amounts taken from Allens accounting records are as follows: Accounts payable at December 31, 2019: Additional information is as follows: 1. Parts held on consignment from Charlie to Allen, the consignee, amounting to 155,000 were included in the physical count of goods in Allens warehouse on December 31, 2019, and in accounts payable at December 31, 2019. 2. 22,000 of parts, which were purchased from Full and paid for in December 2019, were sold in the last week of 2019 and appropriately recorded as sales of 28,000. The parts were included in the physical count of goods in Allens warehouse on December 31, 2019, because the parts were on the loading dock waiting to be picked up by customers. 3. Parts in transit to customers on December 31, 2019, shipped FOB shipping point on December 28, 2019, amounted to 34,000. The customers received the parts on January 7, 2020. Sales of 40,000 to the customers for the parts were recorded by Allen on January 3, 2020. 4. Retailers were holding 210,000 at cost (250,000 at retail) of goods on consignment from Allen, the consignor, at their stores on December 31, 2019. 5. Goods were in transit from Greg to Allen on December 31, 2019. The cost of the goods was 25,000, and they were shipped FOB shipping point on December 29, 2019. 6. A quarterly freight bill in the amount of 2,000 specifically relating to merchandise purchases in December 2019, all of which was still in the inventory at December 31, 2019, was received on January 4, 2020. The freight bill was not included in either the inventory or in accounts payable at December 31, 2019. 7. All of the purchases from Baker occurred during the last 7 days of the year. These items have been recorded in accounts payable and accounted for in the physical inventory at cost before discount. Allens policy is to pay invoices in time to take advantage of all cash discounts, adjust inventory accordingly, and record accounts payable, net of cash discounts. Required: Prepare a schedule of adjustments to the initial amounts of inventory, accounts payable, and sales. Show the effect, if any, of each of the transactions separately and indicate if the transactions would have no effect on the amount.
Refer to the information for Cox Inc. above. What amount would Cox record as depreciation expense for 2019 if the units-of-production method were used ( Note: Round your answer to the nearest dollar)? a. $179,400 b. $184,000 c. $218,400 d. $224,000
Information concerning sales and production for ABC Co. for November 2019 are summarized asfollows:A. Estimated Sales:Product X: 80,000 units at $60, per unitProduct Y: 40,000 units at $130 per unitB. Estimated inventories, November 1, 2019Material A: 8,000 lbs Product X: 6,000 units at $34 per unit $204,000Material B: 7,000 lbs Product Y: 5,400 units at $70 per unit 378,000Total $582,000C. Desired inventories at November 30,2019Material A: 6,000 lbs Product X: 5,000 units at $34 per unit $170,000Material B: 5,000 lbs Product Y: 4,000 units at $70 per unit 280,000Total $450,000D. Direct materials used in productionProduct X Product YMaterial A 1.4 lbs per unit 7.0 lbs per unitMaterial B 2.4 lbs per unit 3.6 lbs per unitE. Unit costs for direct materialsMaterial A: $ 8.0 per lbMaterial B: $ 4.0 per lbF. Direct labor requirementsDepartment 1 Department 2Product X 0.8 hr per unit 0.30 hr per unitProduct Y 1.2 hr per unit 0.50 hr per unitWhat to do:1. Prepare a sales budget for November2.…
Presented below is information related to Kaisson Corporation for the last 3 years. Base-Year Cost Current-Year Cost Item Quantitiesin EndingInventories Unit Cost Amount Unit Cost Amount December 31, 2019 A 9,000 $2.00 $18,000 $2.20 $19,800 B 6,000 3.00 18,000 3.55 21,300 C 4,000 5.00 20,000 5.40 21,600 Totals $56,000 $62,700 December 31, 2020 A 9,000 $2.00 $18,000 $2.60 $23,400 B 6,800 3.00 20,400 3.75 25,500 C 6,000 5.00 30,000 6.40 38,400 Totals $68,400 $87,300 December 31, 2021 A 8,000 $2.00 $16,000 $2.70 $21,600 B 8,000 3.00 24,000 4.00 32,000 C 6,000 5.00 30,000 6.20 37,200 Totals $70,000 $90,800 Instructions Compute the ending inventories under the dollar-value LIFO method for 2019, 2020, and 2021. The base period is January 1, 2019, and the beginning inventory cost at that date was $45,000. Compute indexes to two decimal places.
Numbers Company manufactures 3 consumer products, namely One, Two, and Three. Sales and other information related to the said products are as follows: 2019 = Product One: Units sold - 15,000Unit Price - P10, Unit Cost - ; Product Two: Units sold - 20,000, Unit Price - Unit Cost - P7; Product Three: Units Sold - 5, 000 , Unit Price - P6, Unit Cost - 4.50 2020 = Product One: Units Sold - 20,000Total Price - P240,000, Total Cost - P180,000 ; Product Two: Units Sold - 20,000 Total Price - P180,000 Total Cost - P150,000 ; Product Three: Units Sold - 4,000 , Total Price - P20,000 Total Cost - P16,000 . Compute for the following: The Sales Price factor shows a variance of? The Cost Price Factor shows a variance of? The Sales-mix Factor shows a variance of?
Numbers Company manufactures 3 consumer products, namely One, Two, and Three. Sales and other information related to the said products are as follows: 2019 = Product One: Units sold - 15,000Unit Price - P10, Unit Cost - ; Product Two: Units sold - 20,000, Unit Price - Unit Cost - P7; Product Three: Units Sold - 5, 000 , Unit Price - P6, Unit Cost - 4.50 2020 = Product One: Units Sold - 20,000Total Price - P240,000, Total Cost - P180,000 ; Product Two: Units Sold - 20,000 Total Price - P180,000 Total Cost - P150,000 ; Product Three: Units Sold - 4,000 , Total Price - P20,000 Total Cost - P16,000. The Sales-mix Factor shows a variance of? A. 2500F B. 4000U C. 5750 F D. 5750 U
The sales of Flamingo Manufacturing Corp. in 2021 is P6,100,000. The cost of goods manufactured is P4,800,000. The beginning inventories of goods in process and finished goods are P820,000 and P650,000 respectively. The ending inventories are: Goods in process - P750,000; Finished Goods - P550,000. The selling expenses and general and administrative expenses are 5% and 2.5% of cost of goods sold, respectively. Sales returns and sales discounts are P100,000 and P200,000 respectively. What is Flamingo's profit for the year 2021?
Scott Manufacturing makes only one product with total unit manufacturing costs of $54, of which $40 is variable. No units were on hand at the beginning of 2019. During 2019 and 2020, the only product manufactured was sold for $65 per unit, and the cost structure did not change. Scott uses the first in, first out inventory method and has the following production and sales for 2019 and 2020. Units Manufactured Units Sold 2019 110,000 90,000 2020 110,000 120,000 a) Prepare gross profit computations for 2019 and 2020 using absortion costing b) Prepare gross profit compuations for 2019 and 2020 using variable costing c) Explain how your answers illustrate the impact of differences between production and sales volumes on the gross profits reported each year under absortion and variable costing.
The following information is taking from Wei Min Enterprise for the year ended 31December 2020: Particulars RM Inventory at 1 January 2020:Raw materialsWork in progressFinished goods 25,40031,10023,260Purchases : raw materials 91,535Carriage on raw materials 1,960Direct labour 84,208Office salaries 33,419Rent 5,200Office lighting and heating 4,420Depreciation:Works machineryOffice equipment 10,2002,300Sales 318,622Factory fuel and power 8,120 Prepared by: Puan Siti Nor Junita Mohd Radzi Additional information:i. Rent is to be apportioned: factory 3⁄4; office 1⁄4ii. Inventory at 31 December 2020 was:a. Raw materials RM28,900b. Work in progress RM24,600c. Finished goods RM28,840Required: b) Prepare statement of comprehensive income for the year ended 31 December 2020.