OSE Trading provides the following information for the year 2020: Sales Sales returns and allowances Sales discounts 7,800,000.00 180,000.00 120,000.00 Merchandise inventory, January 1 800,000.00 Merchandise inventory, December 31 1,200,000.00 Purchases 4,500,000.00 150,000.00 110,000.00 140,000.00 250,000.00 150,000.00 Freight in Purchase returns and allowances Purchase discounts Rent income Devidend income Interest income Doubtful accounts Distribution expenses: Sales salaries SSS contribution PagIBIG contribution Sales staff commission Depreciation expenses delivery vehicle Administrative expenses: Officer and staff salaries Depreciation office furniture SSS contribution PagIBIG contribution Advertising expenses Office supplies Store supplies Interest expense on bank loan The applicable tax rate is 30 percent 100,000.00 50,000.00 300,000.00 15,000.00 5,000.00 100,000.00 40,000.00 500,000.00 50,000.00 18,000.00 12,000.00 20,000.00 10,000.00 15,000.00 20,000.00

OSE Trading provides the following information for the year 2020: Sales Sales returns and allowances Sales discounts 7,800,000.00 180,000.00 120,000.00 Merchandise inventory, January 1 800,000.00 Merchandise inventory, December 31 1,200,000.00 Purchases 4,500,000.00 150,000.00 110,000.00 140,000.00 250,000.00 150,000.00 Freight in Purchase returns and allowances Purchase discounts Rent income Devidend income Interest income Doubtful accounts Distribution expenses: Sales salaries SSS contribution PagIBIG contribution Sales staff commission Depreciation expenses delivery vehicle Administrative expenses: Officer and staff salaries Depreciation office furniture SSS contribution PagIBIG contribution Advertising expenses Office supplies Store supplies Interest expense on bank loan The applicable tax rate is 30 percent 100,000.00 50,000.00 300,000.00 15,000.00 5,000.00 100,000.00 40,000.00 500,000.00 50,000.00 18,000.00 12,000.00 20,000.00 10,000.00 15,000.00 20,000.00

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter7: Inventories: Cost Measurement And Flow Assumptions

Section: Chapter Questions

Problem 8P: Comprehensive The following information for 2019 is available for Marino Company: 1. The beginning...

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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.
Refer to RE22-2. Assume Heller Company had sales revenue of 510,000 in 2019 and 650,000 in 2020. Prepare Hellers partial income statements (through gross profit) for 2019 and 2020. 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.
Rowland company reported the following balances at December 31,2020 sales return abd allowance 5000 sales discount 4000 COGS 70000 operating expense 10000 gross profit 21000 Net sales is
onahue adopted the dollar-value LIFO retail inventory method on January 1, 2020. The following information for 2020 was taken from the company's records: Cost Retail Sales $189,000 Net markups 6,000 Inventory, January 1, 2020 $21,000 30,000 Purchases 147,000 200,000 Net markdowns 10,700 The price index on January 1, 2020, was 100. On December 31, 2020, it was 110. Round cost/retail percentages to the nearest whole percent if necessary. Required:Compute the inventory value for December 31, 2020. Round intermediate calculations to two decimal places and the final amount to the nearest dollar.
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Corporation provided the following net income and inventory 2019 2020 Net income using LIFO 2,750,000 3,000,000 Year-end inventory- FIFO 1,400,000 2,000,000 Year-end inventory-LIFO 900,000 1,600,000 What is the net income for 2020 using the FIFO cost method? A.P3,100,000 B.P2,900,000 C.P2,600,000 D.P P3,500,000
Using the information provided below:Rubialac PaintsSelected Income Statement Items, 2020Cash Sales $2,500,000Credit Sales $9,500,000Total Sales $12,000,000COGS 7,000,000 Rubialac PaintsSelected Balance Sheet Accounts12/31/2020 12/31/19 ChangeAccounts Receivable $550,000 $400,000 $150,000Inventory $275,000 $250,000 $25,000Accounts Payable $150,000 $110,000 $40,000 What is the inventory turnover for Rubialac Paints? What is the average production cycle for the firm? What is the average collection cycle? What could Eagle Paints do to reduce the average collection cycle?
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On January 1 20201 The Brunswick Hat Company adopted the dollar value LIFO retail method. The following data are avaliable for 2021 Cost Beginning inventory $ 71,280 $ 132,000 Net purchases 112,500 255,000 Net markups 6,000 Net markdowns 11,000 Net sales 232,000 Retail price index, 12/31/2021 1.04 Calculate: Ending Inventory at retail Ending Inventory at cost Cost of Goods Sold
You are given the following information relating to Boy Band Trading:Gross profit rate based on sales- 20%Accounts Receivable, Dec. 31, 2020 - P1,200,000Collections on accounts receivable during 2021 - P4,450,000Cost of goods available for sale during 2021 - P6,700,000Merchandise Inventory, Dec. 31, 2021 - P1,500,000Of the total sales during the year, seventy-five percent (75%) were made on account.What was the company’s Accounts Receivable balance at December 31, 2021?
CAC Co. provided these information for 2020: Inventory - January 1 : P400,000; Freight in : P300,000; Purchase Returns : P900,000; Inventory - December 31 : P500,000; Selling expenses: P1,250,000; Sales Discount: P250,000. The cost of sales is six times the selling expenses. How much is the gross purchases for 2020?