Exercise 5-2 Inventory costs LO C2Walberg Associates, antique dealers, purchased goods for $38,700. Terms of the purchase were FOB shipping point, and the cost oftransporting the goods to Walberg Associates's warehouse was $1,80O. Walberg Associates insured the shipment at a cost of $270.Prior to putting the goods up for sale, they cleaned and refurbished them at a cost of $610.Determine the cost of inventory.Cost of inventoryTotal cost of inventory24< Prev5 of 5NextMacBook Air

Name: Exercise 5-2 Inventory costs LO C2Walberg Associates, antique dealers
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Description: Exercise 5-2 Inventory costs LO C2Walberg Associates, antique dealers, purchased goods for $38,700. Terms of the purchase were FOB shipping point, and the cost oftransporting the goods to Walberg Associates's warehouse was $1,80O. Walberg Associates

Solution: Cost of inventory includes all those costs which are incurred to bring the inventory in…

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lberg Associates, antique dealers, purchased goods for $38,700. Terms of the purchase were FOB shipping point, and the cost e nsporting the goods to Walberg Associates's warehouse was $1,800. Walberg Associates insured the shipment at a cost of $270 or to putting the goods up for sale, they cleaned and refurbished them at a cost of $610. etermine the cost of inventory. Cost of inventory

lberg Associates, antique dealers, purchased goods for $38,700. Terms of the purchase were FOB shipping point, and the cost e nsporting the goods to Walberg Associates's warehouse was $1,800. Walberg Associates insured the shipment at a cost of $270 or to putting the goods up for sale, they cleaned and refurbished them at a cost of $610. etermine the cost of inventory. Cost of inventory

Corporate Financial Accounting

14th Edition

ISBN:9781305653535

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter6: Inventories

Section: Chapter Questions

Problem 6.2BPR: LIFO perpetual inventory The beginning inventory for Dunne Co. and data on purchases and sales for a...

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Sales-related transactions using perpetual inventory system The following selected transactions were completed by Green Lawn Sup plies Co., which sells irrigation supplies primarily to wholesalers and occasionally to retail customers: July 1. Sold merchandise on account to Landscapes Co., 33,450, terms FOB shipping point, n/eom. The cost of the goods sold was 20,000. 2. Sold merchandise for 86,000 plus 8% sales tax to retail cash customers. The cost of the goods sold was 51,600. 5. Sold merchandise on account to Peacock Company, 17,500, terms FOB destination, 1/10, n/30. The cost of the goods sold was 10,000. 8. Sold merchandise for 112,000 plus 8% sales tax to retail customers who used VISA cards. The cost of the goods sold was 67,200. 13. Sold merchandise to customers who used MasterCard cards, 96,000. The cost of the goods sold was 57,600. 14. Sold merchandise on account to Loeb Co., 16,000, terms FOB shipping point, 1/10, n/30. The cost of the goods sold was 9,000. 15. Received check for amount due from Peacock Company for sale on July 5. 16. Issued credit memo for 3,000 to Loeb Co. for merchandise returned from the sale on July 14, The cost of the merchandise returned was 1,800. 18. Sold merchandise on account to Jennings Company, 11,350, terms FOB shipping point, 2/10, n/30. Paid 475 for freight and added it to the invoice. The cost of the goods sold was 6,800. 24. Received check for amount due from Loeb Co. for sale on July 14 less credit memo of July 16. 28. Received check for amount due from Jennings Company for sale of July 18. 31. Paid Black Lab Delivery Service 8,550 for merchandise delivered during July to customers under shipping terms of FOB destination. 31. Received check for amount due from Landscapes Co. for sale of July 1. Aug. 3. Paid Hays Federal Bank 3,770 for service fees for handling MasterCard and VISA sales during July. 10. Paid 41,260 to state sales tax division for taxes owed on sales. Instructions Journalize the entries to record the transactions of Green Lawn Supplies Co.
Appendix Cost of goods sold and related items The following data were extracted from the accounting records of Harkins Company for the year ended April 30, 20Y8: Estimated returns of current year sales 11,600 Inventory, May 1,20Y7 380,000 Inventory, April 30,20Y8 415,000 Purchases 3,800,000 Purchases returns and allowances 150,000 Purchases discounts 80,000 Sales 5,850,000 Freight in 16,600 a. Prepare the Cost of goods sold section of the income statement for the year ended April 30. 20Y8, using the periodic inventory system. b. Determine the gross profit to be-reported on the income statement for the year ended April 30, 20Y8. c. Would gross profit be different if the perpetual inventory system was used instead of the periodic inventors-system?
Periodic inventory accounts, multiple-step income statement, closing entries On June 30, 20Y9, the balances of the accounts appearing in the ledger of Simkins Company are as follows: Instructions 1. Does Simkins Company use a periodic or perpetual inventory system? Explain. 2. Prepare a multiple-step income statement for Simkins Company for the year ended June 30. 20Y9. The inventory as of June 30, 20Y9. was 308,000. The estimated cost of customer returns inventory for June 30, 20Y9, is estimated to increase to 33,000. 3. Prepare the closing entries for Simkins Company as of June 30. 20Y9- 4. What would be the net income if the perpetual inventory system had been used?
LIFO perpetual inventory The beginning inventory for Dunne Co. and data on purchases and sales for a three-month period are shown in Problem 6-IB. Instructions 1. Record the inventory, purchases, and cost of goods sold data in a perpetual inventory record similar to the one illustrated in Exhibit 4, using the last-in, first-out method. 2. Determine the total sales, the total cost of goods sold, and the gross profit from sales for the period. 3. Determine the ending inventory cost on June 30.
Retail method; gross profit method Selected data on inventory, purchases, and sales for Celebrity Tan Co. and Ranchworks Co. are as follows: Instructions 1. Determine the estimated cost of the inventory of Celebrity Tan Co. on August 31 by the retail method, presenting details of the computations. 2. A. Estimate the cost of the inventory of Ranchworks Co. on November 30 by the gross profit method, presenting details of the computations. B. Assume that Ranchworks Co. took a physical inventory on November 30 and discovered that 369,750 of inventory was on hand. What was the estimated loss of inventory due to theft or damage during March through November?
Appendix 2 Cost of goods sold Identify the errors in the: following schedule of the cost of goods sold for the year ended May 31, 20Y5: Cost of goods sold: Inventory, May 31, 20Y5 105,000 Cost of merchandise purchased: Purchases Purchases returns and allowances Purchases discounts Freight in Total cost of merchandise purchased 1,110,000 55,000 30,000 (22,000) 1,173,000 Inventory available for sale 1,278,000 Inventory, June 1, 20Y4 (91.300) Cost of goods sold before estimated returns S 1,186,700 Estimated returns of this years sales 43,300 Cost of goods sold 1,230,000
FIFO and UFO costs under perpetual inventory system The following units of an item were available for sale during the year: Beginning inventory 7,200 units at 160 Sale 4,800 units at 300 First purchase 16,000 units at 168 Sale 12,000 units at 300 Second purchase 15,000 units at176 Sale 11,000 units at 300 The firm uses the perpetual inventory system, and there are 10,400 units of the item on hand at the end of the year. What is the total cost of the ending inventory according to (A) FIFO and (B) UFO?