E8.6 (LO 2) (Determining Merchandise Amounts-Periodic) Two or more items are omitted in each of the following tabulations of income statement data. Fill in the amounts that are missing.201920202021Sales revenue$290,000$ ?$410,000Sales returns and allowances11,00013,000?Net sales347,000Beginning inventoryEnding inventory20,00032,000????Purchases?260,000298,000Purchase returns and allowances5,0008,00010,000Freight-inCost of goods soldGross profit on sales8,0009,00012,000233,000?293,00046,00091,00097,000

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Description: E8.6 (LO 2) (Determining Merchandise Amounts-Periodic) Two or more items are omitted in each of the following tabulations of income statement data. Fill in the amounts that are missing.201920202021Sales revenue$290,000$ ?$410,000Sales returns and al

Periodic inventory system: It involves the physical count of inventory at specific interval of time.

Business

Accounting

O (Determining Merchandise Amounts-Periodic) Two or more items are omitted in each of the following tabulations of income statement data. Fill in the amounts that are missing. 2019 $290,000 2020 2021 Sales revenue $410,000 11,000 ? Sales returns and allowances 13,000 Net sales 347,000 Beginning inventory Ending inventory Purchases 20,000 32,000 260,000 298.000 Purchase returns and allowances 5.000 8,000 10,000 Freight-in Cost of goods sold Gross profit on sales 8,000 9,000 12,000 233.000 46,000 293.000 97,000 91,000

O (Determining Merchandise Amounts-Periodic) Two or more items are omitted in each of the following tabulations of income statement data. Fill in the amounts that are missing. 2019 $290,000 2020 2021 Sales revenue $410,000 11,000 ? Sales returns and allowances 13,000 Net sales 347,000 Beginning inventory Ending inventory Purchases 20,000 32,000 260,000 298.000 Purchase returns and allowances 5.000 8,000 10,000 Freight-in Cost of goods sold Gross profit on sales 8,000 9,000 12,000 233.000 46,000 293.000 97,000 91,000

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter10: Inventory

Section: Chapter Questions

Problem 13PA: Company Elmira reported the following cost of goods sold but later realized that an error had been...

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LO2 Under the perpetual system of accounting for inventory, the current merchandise inventory and the cost of goods sold are not determined until the end of the accounting period when a physical inventory is taken.
Company 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?
Two or more items are omitted in each of the following tabulations of income statement data. Fill in the amounts that are missing. 2019 2020 2021 Sales revenue $290,220 $ $406,640 Sales returns and allowances (10,120) (13,630) Net sales 347,802 Beginning inventory 21,500 30,300 Ending inventory Purchases 258,310 297,477 Purchase returns and allowances (5,090) (7,370) (10,330) Freight-in 8,390 8,240 11,340 Cost of goods sold (230,540) (295,670) Gross profit on sales 49,560 93,400 89,130
Company A uses the FIFO method for internal reporting purposes and LIFO for external reporting purposes. The following information is available for 2025 and 2024 : 12//31//2025 12//31//2024 FIFO Inventory $182,000 $187,000 LIFO Inventory $174,000 $176,000 What is the appropriate journal entry at 12//31//2025 to adjust the account balances from FIFO-based to LIFO-based amounts? LIFO Reserve 8,000 8,000 Cost of Goods Sold LIFO Reserve 3,000 3,000 Cost of Goods Sold 3,00 Cost of Goods Sold 8,000 LIFO Reserve 8,000 Cost of Goods Sold 3,000 LIFO Reserve 3,000
Two or more items are omitted in each of the following tabulations of income statement data. Fill in the amounts that are missing. 2019 2020 2021 Sales revenue $290,000 $ ? $410,000Sales returns and allowances11,00013,000? Net sales? 347,000? Beginning inventory20,00032,000? Ending inventory? ? ? Purchases? 260,000298,000Purchase returns and allowances5,0008,00010,000Freight-in8,0009,00012,000Cost of goods sold233,000? 293,000Gross profit on sales46,00091,00097,000
P7-3 Valuation of Inventory The inventory on hand at the end of 2019 for Reddall Company is valued at a cost of $94,550. The following items were not included in this inventory: 1. Purchased goods in transit, under terms FOB shipping point, invoice price $4,100, freight costs $220. 2. Goods out on consignment to Marlman Company, sales price $4,200, shipping costs of $250. 3. Goods sold to Grina Co. under terms FOB destination, invoiced for $1,900 which included $178 freight charges to deliver the goods. Goods are in transit. 4. Goods held on consignment by Reddall at a sales price of $2,700 which included sales commission of 20% of sales price. 5. Purchased goods in transit, shipped FOB destination, invoice price $2,100 which included freight charges of $190. Required: Determine the cost of the ending inventory that Reddall should report on its December 31, 2019, balance sheet, assuming that its selling price is 140% of the cost of the inventory.
How to compute this problem? Problem:The data shown below were obtained from the financial records of the BST Corporation for the year ended December 31, 2020. Sound Break CorporationIncome and Retained Earnings StatementFor the year Ended December 31, 2020Net Sales P1,000,000Cost of Goods Sold:Inventory, Dec. 31, 2019 P250,000Purchases 720,000Total Goods Available P970,000Inventory 220,000 750,000Gross Margin on Sales P 250,000Selling and Administrative (including Depreciation of P20,000) 125,000Net Income before Tax P 125,000Provision for Income Tax 35,000Net Income for the Year P 90,000Retained Earnings, beginning 130,000Total P 220,000Dividends Paid 30,000Retained Earnings, December 31, 2020 P 190,000 Sound Break CorporationBALANCE SHEETDecember 31, 2019 and 2020 ASSETS 2019 2020Current Assets:Cash P 75,000 P 85,000Marketable Securities 25,000 25,000Trade Receivables, net 185,000 245,000Inventory, at cost 250,000 220,000Prepaid Expenses 15,000 10,000Total Current Assets…
MM Co. has the following information pertaining to its merchandise inventory as of December 31, 2020: Inventory on Hand (including inventory on consignment of P20,000) P200,000 Inventory purchased with the right of return P100,000 Merchandise purchased in transit, FOB shipping point P160,000 Merchandise sold in transit, FOB destination P247,000 Merchandise not in warehouse, held by the consignee P183,000. What amount should MM Co. report as the value of its inventory in its 2020 balance sheet? A. P749,000 B. P760,000 C. P770,000 D. P876,000 E. answer not given
MM Co. has the following information pertaining to its merchandise inventory as of December 31, 2020: Inventory on Hand (including inventory on consignment of P20,000) P200,000 Inventory purchased with the right of return P100,000 Merchandise purchased in transit, FOB shipping point P160,000 Merchandise sold in transit, FOB destination P247,000 Merchandise not in warehouse, held by the consignee P183,000. What amount should MM Co. report as the value of its inventory in its 2020 balance sheet?
M7-17 Calculating Effect of Inventory Errors For each of the following scenarios, determine the effect of the error on income in the current period and in the subsequent period. To answer these questions, rely on the inventory equation: Beginning inventory + Purchases - Cost of goods sold = Ending inventory a. Porter Company received a shipment of merchandise costing $32,000 near the end of the ﬁscal year. The shipment was mistakenly recorded at a cost of $23,000. b. Chiu, Inc., purchased merchandise costing $16,000. When the shipment was received, it was determined that the merchandise was damaged in shipment. The goods were returned to the supplier, but the accounting department was not notiﬁed and the invoice was paid. c. After taking a physical count of its inventory, Murray Corporation determined that it had “shrink” of $12,500, and the books were adjusted accordingly. However, inventory costing $5,000 was never counted
E6-4 Inferring Shrinkage Using a Perpetual Inventory System [LO 6-2] In fiscal 2015, Madi's reported cost of goods sold (before shrinkage) of $15.6 billion, ending inventory for 2015 of $6.7 billion, and ending inventory for the previous year (2014) of $6.4 billion. Required: If the cost of inventory purchases was $16.5 billion, what was the cost of shrinkage during 2015? (Enter your answer in billions rounded to 1 decimal place.)
The following data are given for ABC Co. on Dec. 31, 2019 are:I nventory, beg. P600,000 Purchases 2,530,000 Purchase return 15,000 Purchase allowance 5,000 Purchase discount 10,000 Freight-in 50,000 Sales 3,100,000 Sales return 100,000 Sales allowance 50,000Sales discount 150,000 1. If the gross profit rate is 25% on sales, what is the ending Inventory? 2. In the same question, assuming that gross profit rate is 25% on cost what should be the ending inventory? a. P750,000 b. P600,000 c. P750,000 d. P900,000