Answered: Presented below are selected account…

Presented below are selected account balances for Bonita Co. as of December 31.2020. Inventory 12/31/20 $61,120 Cost of Goods Sold $228,331

Excel Applications for Accounting Principles

4th Edition

ISBN:9781111581565

Author:Gaylord N. Smith

Publisher:Gaylord N. Smith

Chapter8: Gross Profit Method (gp)

Section: Chapter Questions

Problem 3R: On December 31, 2013, the year-to-date account balances of selected accounts were as follows:...

See similar textbooks

Related questions

Q: The following is selected information from Mars Corp. Inventory, February 28, 2018 $455,000…

A: Formula: Net purchases = Gross purchases - Purchase discounts - Purchase returns and allowances.…

Q: During 2021, a company sells 374 units of inventory for $94 each. The company has the following…

A: Under LIFO Method, cost of goods sold and value of ending inventory is calculated on the assumption…

Q: The following data were available from Hegge Department Store's records for the year ended December…

A: Retail inventory method: Under this method, the closing stock of inventory is measured using cost…

Q: The following balances were reported by ABC Co. at December 31, 2019 and 2020: 12/31/20 P2,600,000…

A: Cost of goods sold:- Cost of goods sold is defined as the cost which includes all direct costs that…

Q: Given: Below are some data of the Income Statement accounts of Wishing Well Company for the year…

A: Cost of goods sold = Cost of goods available for sale - Ending Inventory where, Cost of goods…

Q: During 2021, a company sells 374 units of inventory for $95 each. The company has the following…

A: Last- in-First-out(LIFO) is one of the method to know the records of the inventory accounts which…

Q: On January 2020, Roel Corp. Has the following inventory purchases. January…

A: FIFO is first in first out inventory valuation method in which inventories purchased at first will…

Q: Sheffield’s days in inventory in 2018 was

A: Information provided: Beginning inventory= $106,000 Ending inventory= $94,000 Cost of goods sold=…

Q: The following information was taken from the accounting records of Chicoutimi Ltée. and Jonquière…

A: Formula: Average inventory=Opening inventory+Closing inventory2

Q: The following information was available for Oriole Company at December 31, 2022: beginning inventory…

A: Inventory Turnover Ratio means the number of times the company has been providing a given product at…

Q: ANC reported the following data: Beginning inventory, 500 units at P2.40 each. Purchased on January…

A: Formula: Average cost per unit = ( Beginning cost + Purchases cost ) / Number of units Division of…

Q: The following balances were reported by ABC Co. at December 31, 2019 and 2020: 12/31/20 12/31/19…

A: The cost of goods sold refers to the cost of purchase or manufacturing of the goods which have been…

Q: The following selected information is presented for Bramble Limited for the year ended February 28,…

A: The income statement is prepared to find the net income or loss incurred during the period.

Q: The records of Earthly Goods provided the following Information for the year ended December 31,…

A: The closing inventory represents the value of inventory that remains at the end of accounting…

Q: The Income Statement section of the Johnson Company worksheet for the year ended December 31, 2019,…

A: Merchandise Inventory requires special treatment under the periodic inventory system because…

Q: During 2021, a company sells 379 units of inventory for $92 each. The company has the following…

A: LIFO: LIFO stands for Last-In, First-Out. As its name suggest, this method assumes that the most…

Q: The following selected account data is taken from the records of Reese Industries for 2019. Assume…

A: Formula: Net Income = Revenues - expenses Deduction of expenses from revenues derives the net…

Q: Scott Equine Supplies had the following beginning inventory, net purchases, net sales,and gross…

A: Definition: Merchandise Inventory: Merchandise is the stock of goods bought by a wholesaler, or a…

Q: The Kwok Company’s inventory balance on December 31, 2021, was $165,000 (based on a 12/31/2021…

A: Inventory or stock of the business at the end should be recognised at lower of cost and market…

Q: Cansela Corporation reports inventory and cost of goods sold based on calculations from a LIFO…

A: LIFO (LIFO stands for Last-in Last-Out) refers to the process of inventory valuation on the basis of…

Q: Notts Ltd's cost of sales on its statement of profit or loss for the ended 31 December 2020 is…

A: Purchases can be calculated with the help of the cost of sales formula which is as follows Cost of…

Q: The following information pertains to ABC Company for 2021: Inventory at December 31, 2021 P16,000…

A: Inventory (beginning) = Cost of goods sold - Purchases + Inventory Dec 31=80,000-72,000+16000=24,000

Q: Presented below are selected account balances for Waterway Co. as of December 31, 2020. Inventory…

A: The closing entries are prepared to close the temporary accounts to income summary account.

Q: The inventory records of Machiatto Company in January 2020 show the following informations Balance…

A: FIFO is a method of valuing the inventories in which the goods purchased first are sold on a…

Q: You are assigned to prepare the financial statements of LIVA Company for the year 2021. The…

A: Average Cost Method: The average cost technique gives a cost to inventory items based on the overall…

Q: Estimate ending inventory in 2022 using the dollar-value LIFO retail method. (Round your…

A: The solution are as follows

Q: The following selected account data is taken from the records of Reese Industries for 2019. Assume…

A: As posted multiple sub parts we are answering only first three sub parts kindly repost the…

Q: During 2021, a company sells 25 units of inventory. The company has the following inventory purchase…

A: Average cost per unit = Cost of goods available for sales / Total units available for sale = $1,780…

Q: Use the following information to calculate Honest Tea, Inc.'s Cost of Goods Sold for the year. Note:…

A: Cost of goods sold (COGS) : Cost of goods sold shows the expenses incurred for producing a product.…

Q: Cansela Corporation reports inventory and cost of goods sold based on calculations from a LIFO…

A: 1. 2021: Out of Beginning Inventory 1,000 (11000- 10000) $ 16 $16,000 Out of…

Q: The following selected account data is taken from the records of Reese Industries for 2019. Assume…

A: Income Statement is one of the financial statements that provide the net income earned during a…

Q: The following selected account data is taken from the records of Reese Industries for 2019. Assume…

A: "Since you have posted a question with multiple sub parts, we will solve first three sub parts for…

Q: At December 31, 2020, the following information was available from HIBISCUS Company's accounting…

A: The retail Inventory Method is an accounting method used to ascertain the value of the Closing…

Q: Cansela Corporation reports inventory and cost of goods sold based on calculations from a LIFO…

A: Under the LIFO method, the goods which are purchased in the last are sold first. The ending…

Q: The following is selected information from Mars Corp. Inventory, February 28, 2018 $456,000…

A: Cost of Goods sold is the amount incurred to produce the products sold by the business during the…

Q: Based upon the following data for a business with a periodic inventory system, determine the cost of…

A: Cost of goods sold means the total cost of our service which we are providing or the product cost…

Q: The records of Earthly Goods provided the following information for the year ended December 31,…

A: Closing inventory represents the inventory that remains at the end of the accounting period.

Q: Apollo reported the following in its 2021 financial statements: 2021 Sales P420,000 Cost of goods…

A: formula used: Inventory turnover = Cost of goods sold / Average inventory

Q: The records of Earthly Goods provided the following Information for the year ended December 31,…

A: Year end inventory means cost of ending inventory which is left at the end of the period.

Q: Given: Below are some data of the Income Statement accounts of Wishing Well Company for the year…

A: Solution: Net purchases = 611,340 Merchandise available for sale = 798,400 Merchandise available for…

Q: A company has the following information available that was used to report inventory using the…

A: The cost index represents the cost fluctuations incurred by businesses as a result of the…

Q: UMET's Stores had the following inventory transactions in 2020: Transaction…

A: Inventory: It refers to the items held by an organization which were in various forms like raw…

Q: During 2020, Liberty Company has the following inventory transactions. Date Transaction Units…

A: LIFO: In Last-in-first-out it is assumed that the last purchased item will be sold first. So, the…

Q: You are assigned to prepare the financial statements of LIVA Company for the year 2021. The…

A: Calculation of Net Sales Net Sales = Gross Sales - Sales Discount Net Sales = 2,843,000 - 16,000 Net…

Q: Given: Below are some data of the Income Statement accounts of Wishing Well Company for the year…

A: Cost of goods sold = Cost of goods available for sale - Ending Inventory where, Cost of goods…

Q: The following selected account data is taken from the records of Reese Industries for 2019. Assume…

A: Income statement: The income statement shows the company's revenues and expenses earned during the…

Q: During 2021, a company sells 356 units of inventory for $93 each. The company has the following…

A: The LIFO method states that the goods purchased at last are sold first.

Q: This information is available for Kingbird, Inc. for 2017, 2018, and 20 2017 2018 2019 Beginning…

A: SOLUTION- FORMULA OF INVENTORY TURNOVER RATIO = COST OF GOOD SOLD/AVERAGE STOCK AVERAGE STOCK =…

Q: Using the following data taken from Hsu’s Imports Inc., prepare Statement of cost of goods sold and…

A: Cost of goods sold: Cost of goods sold is the total of all the expenses incurred by a company to…

Q: Data on the physical inventory of Katus Products Co. as of December 31 follow: Market Value per Unit…

A: Determine the value of inventory using first in first out method under lower-of-cost or market…

Question

100%

Presented below are selected account balances for Bonita Co. as of December 31.2020.
Inventory 12/31/20
$61,120
Cost of Goods Sold
$228,331

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps with 1 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

The following items were included in Venicio Corporations inventory account on December 31, 2019: What amount should Venicio report as inventory at December 31, 2019? a. 21,000 b. 20,400 c. 26,000 d. 35,000
At December 31, 2019, the following information was available from Crisford Companys books: Sales for the year totaled 110,600; markdowns amounted to 1,400. Under the approximate lower of average cost or market retail method, Crisfords inventory at December 31, 2019, was: a. 30,800 b. 28.000 c. 21,560 d. 19,600
Beginning inventory, purchases, and sales for 30xT are as follows: Assuming a perpetual inventory system and using the weighted average method, determine (a) the weighted average unit cost after the May 23 purchase, (b) the cost of the merchandise sold on May 26, and (c) the inventory on May 31.
On June 30, 2019, 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, 2019. The merchandise inventory as of June 30, 2019, was 508,000. The adjustment for estimated returns inventory for sales for the year ending December 31, 2019, was 33,000. 3. Prepare the closing entries for Simkins Company as of June 30, 2019. 4. What would the net income have been if the perpetual inventory system had been used?
On December 31, 2019, the balances of the accounts appearing in the ledger of Wyman Company are as follows: Instructions 1. Does Wyman Company use a periodic or perpetual inventory system? Explain. 2. Prepare a multiple-step income statement for Wyman Company for the year ended December 31, 2019. The merchandise inventory as of December 31, 2019, was 305,000. The adjustment for estimated returns inventory for sales for the year ending December 31, 2019, was 30,000. 3. Prepare the closing entries for Wyman Company as of December 31, 2019. 4. What would the net income have been if the perpetual inventory system had been used?
Reid Company uses the periodic inventory system. On January 1, it had an inventory balance of 250,000. During the year, it made 613,000 of net purchases. At the end of the year, a physical inventory showed it had ending inventory of 140,000. Calculate Reid Companys cost of goods sold for the year.
Beginning inventory, purchases, and sales for WCS12 are as follows: Assuming a perpetual inventory system and using the weighted average method, determine (a) the weighted average unit cost after the October 22 purchase, (b) the cost of the merchandise sold on October 29, and (c) the inventory on October 31.
Beginning inventory, purchases, and sales for WCS12 are as follows: Assuming a perpetual inventory system and using the weighted average method, determine (a) the weighted average unit cost after the October 22 purchase, (b) the cost of goods sold on October 29, and (c) the inventory on October 31.
Retail Inventory Method The following data were available from Hegge Department Stores records for the year ended December 31, 2019: Required: Using the retail method, what is the estimate of the merchandise inventory at December 31, 2019, valued at the lower of cost or market: Round the cost-to-retail ratio to 3 decimal places.
Hurst Companys beginning inventory and purchases during the fiscal year ended December 31, 20-2, were as follows: There are 1,200 units of inventory on hand on December 31, 20-2. REQUIRED 1. Calculate the total amount to be assigned to the cost of goods sold for 20-2 and ending inventory on December 31 under each of the following periodic inventory methods: (a) FIFO (b) LIFO (c) Weighted-average (round calculations to two decimal places) 2. Assume that the market price per unit (cost to replace) of Hursts inventory on December 31 was 18. Calculate the total amount to be assigned to the ending inventory on December 31 under each of the following methods: (a) FIFO lower-of-cost-or-market (b) Weighted-average lower-of-cost-or-market 3. In addition to taking a physical inventory on December 31, Hurst decides to estimate the ending inventory and cost of goods sold. During the fiscal year ended December 31, 20-2, net sales of 100,000 were made at a normal gross profit rate of 35%. Use the gross profit method to estimate the cost of goods sold for the fiscal year ended December 31 and the inventory on December 31.
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 inventory system?
Basga Company uses the periodic inventory system. Beginning inventory amounted to 241,072. A physical count reveals that the latest inventory amount is 256,339. Record the adjusting entries, using T accounts.