Miguel's Hardware has the ff information for year 2016: Inventory (year end 2015) Cost - 5,000,000 USD Net Realizable Value - 4,800,000 USD Cost of Goods Purchased - 9, 500,000 USD Inventory (year end 2016) Cost - 6,000,000 USD Net Realizable Value - 5,700,000 USD How much should be reported as COGS by Miguel?

Miguel's Hardware has the ff information for year 2016: Inventory (year end 2015) Cost - 5,000,000 USD Net Realizable Value - 4,800,000 USD Cost of Goods Purchased - 9, 500,000 USD Inventory (year end 2016) Cost - 6,000,000 USD Net Realizable Value - 5,700,000 USD How much should be reported as COGS by Miguel?

Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter5: Inventories And Cost Of Goods Sold

Section: Chapter Questions

Problem 5.22MCE: Cost of Goods Sold, FIFO, and LIFO Kramer began operations early in 2016 and made the following...

See similar textbooks

Similar questions

Cost of Goods Sold, FIFO, and LIFO Kramer began operations early in 2016 and made the following purchases: Kramer used the FIFO method to value its inventory and reported cost of goods sold expense for the year of $4,000. Required Determine the cost of goods sold expense assuming Kramer had used the LIFO method instead of the FIFO method.
The following data pertain to 2012 activities of Twisp Industries: Use your completed worksheet to determine the firms cost of goods sold for 2012. Remember to change the year in row 24 and to enter new beginning inventory balances. Save the 2012 file as MFG3. Print the worksheet when done. If sales and other expenses were identical in 2011 and 2012, during which year did Twisp earn more income? Why?
The book value of the XYZ Trading’s inventory at year end of 2016 is P9, 500, 000. Included in the amount are the following items: Merchandise in transit, purchased FOB shipping point, P680, 000 Goods held on consignment, P500, 000 Goods out on consignment, at cost plus 50% mark up on cost plus P10, 000 delivery charge, P610, 0000 Required: What is the correct amount of inventory? The correct amount of inventory is
The Reuschel Company began 2016 with inventory of 10,000 units at a cost of $7 per unit. During 2016, 50,000 units were purchased for $8.50 each. Sales for the year totaled 54,000 units leaving 6,000 units on hand at the end of 2016. Reuschel uses a periodic inventory system and the LIFO inventory cost method. Required: 1. Calculate cost of goods sold for 2016. 2. From a financial reporting perspective, what problem is created by the use of LIFO in this situation? Describe the disclosure required to report the effects of this problem.
Miranda Company reported the following amounts on its 2018 income statement: Purchases, P100,000; Beginning inventory, P20,000; and Cost of goods sold, P110,000. Therefore, the 2018 COST OF GOOD AVAILABLE FOR SALE was ____.
For 2015, ff information is provided on YG Corporation's cost of inventory using the FIFO and average methods. FIFO Average Beginning Inventory USD 120, 000 USD 106, 000 Ending Inventory USD 148, 000 USD 112, 000 YG Corp currently employs a periodic inventory system as well as FIFO. In 2015, the company made a gross profit of USD 528, 000. What will YG's gross profit be in 2015 if it switches from the FIFO method to the average method?
Sheila’s company uses retail inventory method to estimate their ending inventory. For year 2015, here is the details for the company. Cost Retail Beginning Inventory USD 76, 000 USD 138, 000 Purchases USD 290, 000 USD 510, 600 Ending Inventory ? USD 152, 000 What is the net sales for year 2015? What is the estimated COGS of Sheila’s company.
During 2016, Jose Corporation transferred inventory from its home office to itsLaguna Branch at a billed price of P110,000. The inventory originally cost thecompany P90,000. The home office reported sales and cost of goods sold ofP1,400,000 and P590,000, respectively. The Laguna branch reported sales and costof goods sold of P675,000 and P300,000, respectively. All of the inventory had beensold by year – end. What is the cost of goods sold to be reported in the 2016 combined statement of comprehensive income?
At the beginning of 2016, the Joan Company had an inventory valued at $34,375 at cost ($50,000 at retail). During the year, Joan purchased inventory for $50,000 ($70,000 at retail), and made markdowns of $7,500. Joan's sales in 2016 were $62,500. What is Joan's estimated ending inventory at FIFO cost using the retail inventory method? A$34,375 B$37,500 C$39,000 D$40,000
The Lubao Company reported the following information for the year 2009: Gross profit -P560,000; Finished Goods Inventory, end - P240,000; and Cost of Goods Available for Sale - P360,000. How much is the total Sales for the year?
Causwell Company began 2016 with 10,000 units of inventory on hand. The cost of each unit was $5.00. During 2016 an additional 30,000 units were purchased at a single unit cost, and 20,000 units remained on hand at the end of 2016 (20,000 units therefore were sold during 2016). Causwell uses a periodic inventory system. Cost of goods sold for 2016, applying the average cost method, is $115,000. The company is interested in determining what cost of goods sold would have been if the FIFO or LIFO methods were used. Required: 1. Determine the cost of goods sold for 2016 using the FIFO method. [ Hint: Determine the cost per unit of 2016 purchases.] 2. Determine the cost of goods sold for 2016 using the LIFO method.
The Reuschel Company began 2018 with inventory of 10,000 units at a cost of $7 per unit. During 2018, 50,000units were purchased for $8.50 each. Sales for the year totaled 54,000 units leaving 6,000 units on hand at the endof 2018. Reuschel uses a periodic inventory system and the LIFO inventory cost method.Required:1. Calculate cost of goods sold for 2018.2. From a financial reporting perspective, what problem is created by the use of LIFO in this situation? Describethe disclosure required to report the effects of this problem.