The financial year of Mitex Co ended on 31 December 20X1. An inventory count on January 4 20X2gave a total inventory value of $527,300.The following transactions occurred between January 1 and January 4.$7,90015,000800Purchases of goodsSales of goods (gross profit margin 40% on sales)Goods returned to a supplierWhat inventory value should be included in Mitex Co's financial statements at 31 December 20X1?

We have the following information: Total Inventory as on January 4 20X2: $527,300 Purchase of…

The financial year of Mitex Co ended on 31 December 20X1. An inventory count on January 4 20X2 gave a total inventory value of $527,300. The following transactions occurred between January 1 and January 4. 24 7,900 15,000 Purchases of goods Sales of goods (gross profit margin 40% on sales) Goods returned to a supplier 800 What inventory value should be included in Mitex Co's financial statements at 31 December 20X1?

The financial year of Mitex Co ended on 31 December 20X1. An inventory count on January 4 20X2 gave a total inventory value of $527,300. The following transactions occurred between January 1 and January 4. 24 7,900 15,000 Purchases of goods Sales of goods (gross profit margin 40% on sales) Goods returned to a supplier 800 What inventory value should be included in Mitex Co's financial statements at 31 December 20X1?

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...

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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.
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?
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