Selected accounts follow of Riverbed Limited at December 31, 2020: Finished Goods Inventory $166,000 Cost of Goods Sold $3,800,000 Unearned Revenue 102,000 Notes Receivable 44,000 Bank Overdraft 8,700 Accounts Receivable 241,000 Equipment 393,000 Raw Materials Inventory 237,000 Work-in-Process Inventory 50,000 Supplies Expense 64,000 Cash 62,000 Allowance for Doubtful Accounts 26,000 FV-NI Investments 43,000 Intangible Assets-Trade Names 38,000 Interest Payable 54,000 Contributed Surplus 15,000 Restricted Cash (for Plant Expansion) 62,000 Common Shares 315,000 The following additional information is available: 1. Inventory is valued at the lower of cost and net realizable value using FIFO. 2. Equipment is recorded at cost. Accumulated depreciation, calculated on a straight-line basis, is $59,600. 3. The FV-NI investments have a fair value of $35,000. The notes receivable are due April 30, 2021, with interest receivable every April 30. The notes bear interest at 6%. (Hint: Accrue interest due on December 31, 2020.) 4. 5. The allowance for doubtful accounts applies to the accounts receivable. Accounts receivable of $62,000 are pledged as

Selected accounts follow of Riverbed Limited at December 31, 2020: Finished Goods Inventory $166,000 Cost of Goods Sold $3,800,000 Unearned Revenue 102,000 Notes Receivable 44,000 Bank Overdraft 8,700 Accounts Receivable 241,000 Equipment 393,000 Raw Materials Inventory 237,000 Work-in-Process Inventory 50,000 Supplies Expense 64,000 Cash 62,000 Allowance for Doubtful Accounts 26,000 FV-NI Investments 43,000 Intangible Assets-Trade Names 38,000 Interest Payable 54,000 Contributed Surplus 15,000 Restricted Cash (for Plant Expansion) 62,000 Common Shares 315,000 The following additional information is available: 1. Inventory is valued at the lower of cost and net realizable value using FIFO. 2. Equipment is recorded at cost. Accumulated depreciation, calculated on a straight-line basis, is $59,600. 3. The FV-NI investments have a fair value of $35,000. The notes receivable are due April 30, 2021, with interest receivable every April 30. The notes bear interest at 6%. (Hint: Accrue interest due on December 31, 2020.) 4. 5. The allowance for doubtful accounts applies to the accounts receivable. Accounts receivable of $62,000 are pledged as

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter10: Inventory

Section: Chapter Questions

Problem 4PA: Calculate the cost of goods sold dollar value for A74 Company for the sale on March 11, considering...

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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.
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