The following information was taken from the records of a branch: Sales by branch Beginning inventory Billings to branch by home office Operating expenses 2,800,000 2,500,000 400,000 Ending inventory at billed price 1,000,000 The following information was taken from the records of the home office: Branch current account 2,600,000 Shipments to branch Allowance for markup - Unadjusted 2,000,000 500,000

The following information was taken from the records of a branch: Sales by branch Beginning inventory Billings to branch by home office Operating expenses 2,800,000 2,500,000 400,000 Ending inventory at billed price 1,000,000 The following information was taken from the records of the home office: Branch current account 2,600,000 Shipments to branch Allowance for markup - Unadjusted 2,000,000 500,000

Century 21 Accounting General Journal

11th Edition

ISBN:9781337680059

Author:Gilbertson

Publisher:Gilbertson

Chapter20: Accounting For Inventory

Section: Chapter Questions

Problem 3AP

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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?
Inventory analysis Costco Wholesale Corporation (COST) and Wal-Mart Stores Inc. (WMT) compete against each other in general merchandise retailing, gas stations, pharmacies, and optical centers. Below is selected financial information for both companies from a recent year's financial statements (in millions): a. Determine for bom companies (1) the inventory turnover and (2) the days' sales in inventory. Round to one decimal place. b. Compare and interpret the inventory metrics computed in (a).
Selected data on merchandise inventory, purchases, and sales for Celebrity Tan Co. and Ranchworks Co. are as follows: Instructions 1. Determine the estimated cost of the merchandise inventory of Celebrity Tan Co. on August 31 by the retail method, presenting details of the computations. 2. a. Estimate the cost of the merchandise inventory of Ranchworks Co. on November 30 by the gross profit method, presenting details of the computations. b. Assume that Ranchworks Co. took a physical inventory on November 30 and discovered that 369,750 of merchandise was on hand. What was the estimated loss of inventory due to theft or damage during March through November?
Selected data on merchandise inventory, purchases, and sales for Jaffe Co. and Coronado Co. are as follows: Instructions 1. Determine the estimated cost of the merchandise inventory of Jaffe Co. on February 28 by the retail method, presenting details of the computations. 2. a. Estimate the cost of the merchandise inventory of Coronado Co. on October 31 by the gross profit method, presenting details of the computations. b. Assume that Coronado Co. took a physical inventory on October 31 and discovered that 366,500 of merchandise was on hand. What was the estimated loss of inventory due to theft or damage during May through October?
Information relating to inventory for Janie Par Gifts is provided below. Beginning merchandise inventory 120,000 Ending merchandise inventory 90,000 Purchases 250,000 1. Set up a spreadsheet similar to the one provided below. 2. Enter the appropriate information from above into the Trial Balance columns. 3. Prepare appropriate adjustments and extensions to the Adjusted Trial Balance columns.
The moving average inventory cost flow assumption is applicable to which of the following inventory systems? Questions M7-6 and M7-7 are based on the following data: City Stationers Inc. had 200 calculators on hand on January 1, 2019, costing 18 each. Purchases and sales of calculators during the month of January were as follows: City uses a periodic inventory system. According to a physical count, 150 calculators were on hand at January 31, 2019.
Sandren Co. purchased inventory on credit from Acto Supply Co. for $4,000. Sandren Co. would record this transaction in the ________. A. general journal B. cash receipts journal C. cash disbursements journal D. purchases journal E. sales journal
Bay Book and Software has two sales departments: Book and Software. After recording and posting all adjustments, including the adjustments for merchandise inventory, the accountant prepared the adjusted trial balance (shown on the next page) at the end of the fiscal year. Merchandise inventories at the beginning of the year were as follows: Book Department, 53,410; Software Department, 23,839. The bases (and sources of figures) for apportioning expenses to the two departments are as follows (rounded to the nearest dollar): Sales Salary Expense (payroll register): Book Department, 45,559; Software Department, 35,629 Advertising Expense (newspaper column inches): Book Department, 550 inches; Software Department, 450 inches Depreciation Expense, Store Equipment (property and equipment ledger): Book Department, 7,851; Software Department, 2,682 Store Supplies Expense (requisitions): Book Department, 205; Software Department, 199 Miscellaneous Selling Expense (volume of gross sales): Book Department, 240; Software Department, 110 Rent Expense and Utilities Expense (floor space): Book Department, 9,000 square feet; Software Department, 7,000 square feet Bad Debts Expense (volume of gross sales): Book Department, 1,029; Software Department, 441 Miscellaneous General Expense (volume of gross sales): Book Department, 364; Software Department, 156 Required Prepare an income statement by department to show income from operations, as well as a nondepartmentalized income statement (using the Total columns) to show net income for the entire company.
A branch office allowed to make sales, carry inventory for resale to customers,and incur normal operating expenses. The home office ships merchandise to the branch office at cost plus a 20% markup. The home office account is used in its customary fashion, it will track: A. Unrealized inventory profits and overall branch profits lossesB. Unrealized inventory profits onlyC. Overall branch profits and losses but not unrealized inventory profitsD. Unrealized inventory profits and overall branch profits but not branch losses
ABC Co. provides the following data with respect to its inventory:Items counted in the bodega, P4,500,000Items included in count specifically segregated per sales contract, P100,000Items returned by customer, P20,000Items ordered and in receiving department, P400,000Items shipped out today, FOB destination, P175,000Items for display, P220,000Items on counter for sale, P800,000Damaged and unsalable items included in count, P75,000Items in the shipping department, P350,000Items ordered, invoice received but goods not received; freight is paid by seller, P200,000Items shipped out today, FOB shipping point, P250,000Required:Determine the correct amount of inventory.
A home office ships inventory to its branch at 125% of cost. The required balance of the Deferred Profit account is P236,250. During the year, the home office sent merchandise to the branch costing P2,352,000. At the start of the year, the branch’s balance sheet shows P945,000 of inventory on hand that was acquired from the home office. By what amount is the cost of goods sold overstated?* a. P 777,000 b. P 540,750 c. P 236,250 d. P 588,000 pls. answer it asap thanks
Selected information from the trial balances for the home office and the branch of Lalay Company at December 31, 2012 is provided. The branch acquires merchandise from the home office and outside suppliers. Home Office Branch Sales P60,000 P30,000 Shipments to branch 8,000 Allowance for overvaluation of branch inventory 3,600 Shipments from home office 10,000 Purchase (outsiders) 35,000 5,500 Merchandise inventory 12.01.12 20,000 15,000 Expenses 14,000 6,000 Additional information: Merchandise inventory, December 31, 2012: Home office P20,000 Branch (P7,500 from home office and P2,500 from outsiders) 10,000 1. The combined net income for Home office and branch operations is a. P22,500 c. P25,100 b. P24,600 d. P21,500