The company has beginning inventory for the year of $50,000, during the year cost of goods sold was $725,000 and the company's ending inventory equals $32,000. What were purchases for the year? O $775,00O O $707,00O O $757,000 O $743,00O

The company has beginning inventory for the year of $50,000, during the year cost of goods sold was $725,000 and the company's ending inventory equals $32,000. What were purchases for the year? O $775,00O O $707,00O O $757,000 O $743,00O

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 3RE: Reid Company uses the periodic inventory system. On January 1, it had an inventory balance of...

See similar textbooks

Related questions

Q: Output (units ) Total Cost ($) 200 7000 300…

A: Variable cost per unit = Change in total cost/change in output

Q: SkyChefs, Inc., prepares in-flight meals for a number of major airlines. One of the company's…

A: Formulas: Labor spending variance = Standard Labor cost - Actual Labor cost Labor rate variance =…

Q: PROBLEM 23-10A IS MY QUESTION. POSTED 23-9A FOR REFERENCE FOR 23-10A. Problem 23-9A: Zowine…

A: The cash flow statement is prepared to record the cash flow from various activities including…

Q: Match each item on the left to the appropriate cash flow classification on the right. (You may use…

A: Solution: While preparing cash flow statement, cash flows are categories in three categories as…

Q: Palmgren Company produces consumer products. The sales budget for four months of the year is…

A: Note: Units produced = Total needed - Beginning inventory Total needed = Unit sales + Desired ending…

Q: Rooney Company reported the following data regarding the product it sells: Sales price Contribution…

A: Break even point means a situation where the is neither profit nor loss. Sales revenue is sufficient…

Q: Ending amounts on the statement of changes in equity are the same as those on the Balance sheet…

A: The statement of changes in equity reconciles a corporation's beginning and ending equity holdings…

Q: omputational. From the following information, determine the amount of ending inventory. Beginning…

A: The value of ending inventory can be calculated by subtracting the cost of goods sold from the…

Q: Daily demand for day-glo hyacinths at Florida Flo's Fluorescent Florals is 130 pots, with a dally…

A: Standard deviation measures both the risks: Systematic risk and unsystematic risk

Q: Cornerstone Exercise 6.8 Cost Information and FIFO Gunnison Company had the following equivalent…

A: The first in, first-out (FIFO) inventory valuation method is based on the cost flow assumption that…

Q: Problem 5 Prepare a cash budget by month for the month quarter ending September 30, 2009, from the…

A: Cash Budget refers to Future Estimation of Expected cash receipts and Payments to be incurred during…

Q: For the fiscal year 2015, Zeus Inc. recorded $1,750,000 in credit sales. On December 31, 2015, the…

A: Solution:- Preparation of necessary adjusting journal entries as follows under:- Journal entry is…

Q: Holiday Corp. has two divisions, Quail and Marlin. Quail produces a widget that Marlin could use in…

A: If widgets are produced in the excess capacity, only variable cost is relevant because fixed cost do…

Q: W Ltd has budgeted sales of 650 units but actually sold only 600 units .Its standard cost card is as…

A: Sales variance = Actual sales - Budgeted sales = (Actual Price*Actual…

Q: needed in 10 minutes Computational. From the following information, determine the amount of ending…

A: Inventory means the amount of stock which is held for used in production or for resale purpose.…

Q: Jessie Stores uses the periodic system of calculating inventory. The following information is…

A: The first in, first-out (FIFO) inventory valuation method is based on the cost flow assumption that…

Q: of the year, more three-fourth (3/4) of the plantation was worthless. Towards the midd 2017, the…

A: Basic concept of accounting.

Q: On June 30, 2017 Naruto Company sold to Sasuke Company P1,000,000, 8% 5 year term bonds. The bonds…

A: Carrying value of the bonds on December 31, 2017 = Issue price + Interest accrued - Interest paid

Q: Directions: Compute the amount of the missing element of financ (A= L+OE). Write your answers on a…

A: "Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…

Q: 2. Looking Glass Photography is owned by Cymon Ken. Prepare the Income Statement of the business…

A: Income statement means a statement in which all revenue and gain are shown on one side and all…

Q: The Marine Division of Pacific Corp. has average invested assets of $110,000,000. Sales revenue of…

A: Solution:- a)Calculation of Return on investments as follows under:- It Indicates how well an…

Q: Modupe owns a retail shop. The following are the list of balances extracted from his books of…

A: Statement of income means the statement which shows all the nominal account and balancing figure is…

Q: Restricted stock awards for 3,000 shares of common stock (par $5) are granted to the CEO of Siri…

A: Introduction A Restricted stock award is the stock allotted to the employees by the employer with…

Q: Internet giant Zoidle, a U.S. company, generated sales of £2.5 billion in the United Kingdom in 2013…

A: Generally we can say that tax avoidance is not illegal but avoiding tax is avoiding a social…

Q: A company can increase its return on assets by doing which of the following: O a. Decreasing…

A: Return on assets = Net Income / Total assets Decreasing expenses while maintaining revenues:…

Q: unt should be reported as adjusted net income for 2019? 5. What amount should b

A: The answer has been mentioned below.

Q: On January 1, 2023, Jones Corporation issued $2.982.000, 9%, 5-year bonds with interest payable on…

A: Interest expense on bonds is calculated at the market rate of interest on the issue value of the…

Q: Willie Walker, a widower, died on February 1, 20X8. He had no living relatives. The following…

A: After the death of a person, all his assets and liabilities are transferred to his executors'…

Q: Overhead Budget Johnston Company cleans and applies powder coat paint to metal items on a…

A: The question is based on the concept of Cost Accounting,

Q: Please prepare a bank reconciliation and journal entries for the month ended April 30th for Bannon…

A: The bank reconciliation statement is prepared to adjust the balances of cash book and pass book with…

Q: Goldfarb's Book and Music Store has two service departments, Warehouse and Data Center. Warehouse…

A: Overhead means the cost incurred indirect in factory for the production of goods. Manufacturing…

Q: 5.6A Applications were invited by the directors of Grobigg Ltd for 150,000 of its £1 ordinary shares…

A: Company means a form of business where shares are allotted to the owner of the company and…

Q: Toole Corporation uses a job order costing system and allocates manufacturing overhead at a rate of…

A: Journal entries are recorded in the books of an entity so as to maintain a proper record of…

Q: Use the following to answer the questions DO NOT INCLUDE COMMAS OR DOLLAR SIGNS IN YOUR ANSWERS…

A: Introduction: Current ratio: It tells the ability of the Company to pay to its short term…

Q: Ponderosa, Inc., produces wiring harness assemblies used in the production of semi-trailer trucks.…

A: Sales budget is that budget which shows estimated sales revenue to be earned from sales of goods and…

Q: Problem 4. Norris Corporation was organized on January 1, 2015. It is authorized to issue 20,000…

Q: Ponderosa, Inc., produces wiring harness assemblies used in the production of semi-trailer trucks.…

A: Production Budget: Production budget is a plan which is drawn to determine the number of units…

Q: 5. Overhead budget. Round your answers to two decimal places, if required. January February March…

A: The overhead budget is prepared to record the overhead costs to be incurred for budgeted sales unit.…

Q: Calculate the following ratios based on the balance sheet, income statement and cash flow prepared…

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

Q: Weekend Warriors, Inc., has 35% debt and 65% equity in its capital structure. The firm’s estimated…

A: Weighted average cost of capital is the overall cost of capital. It is calculating by multiplying…

Q: Q Corporation buys several new passenger vehicles for its sales staff. Which of the following is…

A: The cost recovery means recovering the expense incurred in purchasing the assets. The cost of the…

Q: The difference between a merchant wholesaler and an agent/broker is based on the type of goods they…

A: Solution: A merchant wholesaler buys the goods from manufacturer and sell it to retailer.…

Q: Terminology Matching Continued FASB Comparability Verifiable Consistency Free Cash Flow Chart of…

A: Accounting: It implies to a process including recording, analyzing, and presenting the financial…

Q: Zhao Co. has fixed costs of $354,000. Its single product sells for $175 per unit, and variable costs…

A: Margin of safety units = Actual sales - Break even sales Deduction of break even sales from actual…

Q: The allowance method of estimating uncollectible accounts receivable based on an analysis of…

A: Introduction: Journals: Recording of a business transactions in a chronological order. Each and…

Q: ales Budget FlashKick Company manufactures and sells soccer balls for teams of children in…

A: The sales budget is prepared to estimate the sales revenue to be earned during the period with…

Q: e year are expected to total 960,000 units. Quarterly sales are 22%, 27%, 27%, and 24%,…

A: The production budget calculates the number of units of products that must be manufactured, and is…

Q: 1. Construct a marketing expense budget for Hair-Again for the coming year. Show total amounts by…

A: Marketing Budget outlines all the money a business intends to use on marketing activities over a…

Q: Practice Balls Match Balls Units Selling Price Units Selling Price January 50,000 $8.25 6,000 $16.00…

A: Budget means the expected value of future. Sales budget means the number of units , price and total…

Q: A company budgets sales of $800,000 for June. The company pays a sales manager a monthly salary of…

A: Selling expenses mean the costs incurred in selling the products of the business to customer.

Concept explainers

Market Efficiency

Market efficiency refers to the market's ability to provide investors with all available information about investment options for buying and selling securities. Market efficiency reflects the true value of securities without undervaluing or overvaluing them. When the quality and quantity of information increase, the market becomes more efficient, allowing it to reduce arbitrage and obtain higher market returns from investment. In a well-functioning market, everyone receives all information completely and immediately at no cost. It opens up a plethora of opportunities for investors to access various investment options.

Question

The company has beginning inventory for the year of $50,000, during the year cost of goods sold was
$725,000 and the company's ending inventory equals $32,000. What were purchases for the year?
O $775,00O
O $707,00O
O $757,000
O $743,00O

Expert Solution

This question has been solved!

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

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

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

On January 1, Pope Enterprises inventory was 625,000. Pope made 950,000 of net purchases during the year. On its year-end income statement, Pope reported cost of goods sold of 1,025,000. Calculate Popes December 31 ending inventory.
Assume your company uses the periodic inventory costing method, and the inventory count left out an entire warehouse of goods that were in stock at the end of the year, with a cost value of $222,000. How will this affect your net income in the current year? How will it affect next years net income?
Shaquille Corporation began the current year with inventory of 50,000. During the year, its purchases totaled 110,000. Shaquille paid freight charges of 8,500 for those purchases. At the end of the year, Shaquille had inventory of 47,800. Prepare a schedule to determine Shaquille's cost of goods sold for the current year.
On January 1 of Year 1, Dorso Company adopted the dollar-value LIFO method of inventory costing. Dorsos December 31 ending inventory records are as follows: Year 1: Current cost, 20,000; Index, 100 Year 2: Current cost, 33,600; Index, 120 Using the dollar-value LIFO method, compute Dorsos December 31 ending inventory for Year 2.
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.
Kulsrud Company would like to estimate the current inventory level. Using the gross profit method and the following information, estimate the current inventory level for Kulsrud Company. Goods available for sale 100,000 Net sales 150,000 Normal gross profit as a percent of sales 40%
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?
Shetland Company reported net income on the year-end financial statements of $125,000. However, errors in inventory were discovered after the reports were issued. If inventory was understated by $15,000, how much net income did the company actually earn?
Langstons purchased $3,100 of merchandise during the month, and its monthly income statement shows a cost of goods sold of $3,000. What was the beginning inventory if the ending inventory was $1,250?
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.