Problem 9-1The ledger of Bella Branch Store shows the following balances on December 31:Merchandise inventory, January 1 (cost)Shipments from home office (at cost)Freight-inSalesSales returnsP400,000P300,000P 50,000P500,000P 20,000A closing inventory is taken on December 31, and the sales price for merchandise isdetermined to be P520,000.Required: Compute the cost of ending merchandise inventory for the combined financialstatements.

Name: Problem 9-1The ledger of Bella Branch Store shows the following balan
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Description: Problem 9-1The ledger of Bella Branch Store shows the following balances on December 31:Merchandise inventory, January 1 (cost)Shipments from home office (at cost)Freight-inSalesSales returnsP400,000P300,000P 50,000P500,000P 20,000A closing inventor

The value of closing inventory includes all the expenses (fixed or variable) excluding Selling and…

Answered: Required: Compute the cost of ending…

Business

Accounting

Required: Compute the cost of ending merchandise inventory for the combined financial statements.

Accounting

27th Edition

ISBN:9781337272094

Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Chapter7: Inventories

Section: Chapter Questions

Problem 7.4CP: Communication Golden Eagle Company began operations on April 1 by selling a single product. Data on...

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Cost of merchandise sold and related items The following data were extracted from the accounting records of Harkins Company for the year ended April 30, 2019: Increase in estimated returns inventory 11,600 Merchandise inventory, May 1, 2018 380,000 Merchandise inventory, April 30, 2019 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 merchandise sold section of the income statement for the year ended April 30, 2019, using the periodic inventory system. b. Determine the gross profit to be reported on the income statement for the year ended April 30, 2019. c. Would gross profit be different if the perpetual inventory system was used instead of the periodic inventory system?
Communication Golden Eagle Company began operations on April 1 by selling a single product. Data on purchases and sales for the year are as follows: Sales April 16,000 units May 16,000 June 20,000 July 24,000 August 28,000 September 28,000 October 18,000 November 10,000 December 8,000 Total units 168,000 Total sales 10,000,000 The president of the company, Connie Kilmer, has asked for your advice on which inventory cost flow method should be used for the 32,000-unit physical inventory that was taken on December 31. The company plans to expand its product line in the future and uses the periodic inventory system. Write a brief memo to Ms. Kilmer comparing and contrasting the LIFO and FIFO inventory cost flow methods and their potential impacts on the companys financial statements.
Periodic inventory using FIFO, UFO, and weighted average cost methods The units of an item available for sale during the year were as follows: Jan. 1 Inventory 20 units at 360 7,200 Aug. 13 Purchase 260 units at 342 88,920 Nov. 30 Purchase 40 units at 357 14,280 Available for sale 320 units 110,400 There are 57 units of the item in the physical inventory at December 31. The periodic inventory system is used. Determine the inventory cost using the (A) first-in, first-out (FIFO) method; (B) last-in, first-out (LIFO) method; and (C) weighted average cost method.
Appendix 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 inventors-system?
SERIES B PROBLEM PERPETUAL: LIFO AND MOVING-AVERAGE Vozniak Company began business on January 1, 20-1. Purchases and sales during the month of January follow. REQUIRED Calculate the total amount to be assigned to cost of goods sold for January and the ending inventory on January 31, under each of the following methods: 1. Perpetual LIFO inventory method. 2. Perpetual moving-average inventory method.