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reported as gross pro 31, 2021?

reported as gross pro 31, 2021?

Intermediate Accounting: Reporting And Analysis
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
Chapter8: Inventories: Special Valuation Issues
Section: Chapter Questions
Problem 5C: Gross Profit Shelly Corporation is an importer and wholesaler. Its merchandise is purchased from...
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1. What amount should be reported as gross profit for the eleven months ended May 31, 2021? a. 1,680,000 b. 1,725,000 c. 1,735,000 d. 1,670,000 2. What amount should be reported as sales for the month of June? a. 1,100,000 b. 1,200,000 c. 1,300,000 d. 1,400,000 3. What amount should be reported as cost of goods sold for the month of June ? a. 960,000 b. 880,000 c. 980,000 d. 950,000 4. What amount should be reported as inventory on June 3o, 2021? a. 1,160,000 b. 1,240,000 c. 1,340,000 d. 1,140,000
Transcribed Image Text:1. What amount should be reported as gross profit for the eleven months ended May 31, 2021? a. 1,680,000 b. 1,725,000 c. 1,735,000 d. 1,670,000 2. What amount should be reported as sales for the month of June? a. 1,100,000 b. 1,200,000 c. 1,300,000 d. 1,400,000 3. What amount should be reported as cost of goods sold for the month of June ? a. 960,000 b. 880,000 c. 980,000 d. 950,000 4. What amount should be reported as inventory on June 3o, 2021? a. 1,160,000 b. 1,240,000 c. 1,340,000 d. 1,140,000
Problem 13-16 (AICPA Adapted) In conducting an audit of Ultimate Company for the year ended June 30, 2021, the CPA observed the physical inventory at an interim date, May 31, 2021, instead of at fiscal year end. The following information was obtained from the general ledger: Inventory, July 1, 2020 Physical inventory, May 31, 2021 Sales for 11 months ended May 31, 2021 Sales for year ended June 30, 2021 Purchases for 11 months ended May 31, 2021 before audit adjustments Purchases for year ended June 30, 2021 before audit adjustments 875,000 8,400,000 9,600,000 6,750,000 8,000,000 a. Shipments received in May and included in the physical inventory but recorded as June purchases 75,000 b. Shipments received in unsalable condition and excluded from physical inventory. Credit memos had not been received nor had chargebacks to vendors been recorded: Total at May 31, 2021 Total at June 30, 2021, including the May unrecorded chargebacks 15,000 c. Deposit made with vendor and charged to purchases in April, 2021. Product was shipped in July, 2021 d. Deposit made with vendor and charged to purchases in May, 2021. Product was shipped FOB destination, on May 29, 2021 and was included in May 31, 2021 physical inventory as goods in transit 55,000 Through the carelessness of the receiving department a June shipment was damaged by rain. This shipment was later sold in June at its cost of e. 100,000 401
Transcribed Image Text:Problem 13-16 (AICPA Adapted) In conducting an audit of Ultimate Company for the year ended June 30, 2021, the CPA observed the physical inventory at an interim date, May 31, 2021, instead of at fiscal year end. The following information was obtained from the general ledger: Inventory, July 1, 2020 Physical inventory, May 31, 2021 Sales for 11 months ended May 31, 2021 Sales for year ended June 30, 2021 Purchases for 11 months ended May 31, 2021 before audit adjustments Purchases for year ended June 30, 2021 before audit adjustments 875,000 8,400,000 9,600,000 6,750,000 8,000,000 a. Shipments received in May and included in the physical inventory but recorded as June purchases 75,000 b. Shipments received in unsalable condition and excluded from physical inventory. Credit memos had not been received nor had chargebacks to vendors been recorded: Total at May 31, 2021 Total at June 30, 2021, including the May unrecorded chargebacks 15,000 c. Deposit made with vendor and charged to purchases in April, 2021. Product was shipped in July, 2021 d. Deposit made with vendor and charged to purchases in May, 2021. Product was shipped FOB destination, on May 29, 2021 and was included in May 31, 2021 physical inventory as goods in transit 55,000 Through the carelessness of the receiving department a June shipment was damaged by rain. This shipment was later sold in June at its cost of e. 100,000 401
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