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Snyder’s cost of goods sold using the LIFO method would be:
a. $7,200.
b. $7,400.
c. $7,475.
d. $7,700.
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- Sound Break CorporationIncome and Retained Earnings StatementFor the year Ended December 31, 2020Net Sales P1,000,000Cost of Goods Sold:Inventory, Dec. 31, 2019 P250,000Purchases 720,000Total Goods Available P970,000Inventory 220,000 750,000Gross Margin on Sales P 250,000Selling and Administrative (including Depreciation of P20,000) 125,000Net Income before Tax P 125,000Provision for Income Tax 35,000Net Income for the Year P 90,000Retained Earnings, beginning 130,000Total P 220,000Dividends Paid 30,000Retained Earnings, December 31, 2020 P 190,000 Sound Break CorporationBALANCE SHEETDecember 31, 2019 and 2020 ASSETS 2019 2020Current Assets:Cash P 75,000 P 85,000Marketable Securities 25,000 25,000Trade Receivables, net 185,000 245,000Inventory, at cost 250,000 220,000Prepaid Expenses 15,000 10,000Total Current Assets P550,000 P585,000Property and Other Assets:Equipment, net P340,000 P320,000Other Assets 15,000 15,000Total Property and Other Assets P355,000 P335,000 Total Assets…At what figure should the inventory be valued? *a. P 880,000b. P 760,000c. P 980,000d. P 940,000What is the adjusted balance of inventory on December 31, 2021? a. P250,000 b. P274,000 c. P260,000 d. P300,000
- FE9Advice the closing inventory value as at July 31stProduct Qty On Hand Cost NRVWJ01 225 $0.05 $1.00WJ02 114 $0.20 $0.90WJ03 74 $2.00 $1.60WJ04 35 $6.20 $6.18WJ05 3 $2,500.00 $2,550.00WJ06 58 $1.50 $1.55a) 7,986.05b) 7,955.75c) 8,402.20d) 7,960.655. During 2020 an entity decided to change from the FIFO method of inventory valuation to the weighted averagemethod. Inventory balances under each method were: FIFO Weighted AverageDecember 31, 2017 4,500,000 5,400,000December 31, 2018 7,800,000 7,100,000December 31, 2019 8,300,000 7,800,000The income tax rate is 30%. What amount should be reported as the effect of this accounting change in thestatement of retained earnings for 2020?a. 350,000 decrease c. 490,000 decreaseb. 350,000 increase d. 490,000 increasePKT Ltd wanted to achieve a 25% GP for each sale completed. Inventory sales between AB and CFLtd amounted to R1875 000 for the year ended 31 December 2022. Inventory on hand in CF Ltd previouslypurchased from PKT Ltd: R620 000 (31 December 2022) R750 000 (31 December 2021)Prepare the journal entries (with narrations) for the year ended 31 December 2022. Assume a tax rate of30%.
- Mustard Seed PLC adheres to IFRS. It recently purchased inventory for €100 million andspent €5 million for storage prior to selling the goods. Th e amount it charged to inventoryexpense (€ millions) was closest to:A. €95.B. €100.C. €105.The estimated inventory amount is: A. P720,000 B. P600,000 C. P784,000 D. P840,000 E. P550,000An item of inventory was purchased by company X for £500. Company X expects to sell the inventory for£700 and has to date incurred conversion costs of £130. A further £60 is expected to be incurred. Salesstaff will receive a commission of 4% from the sale.Compute the value at which this inventory item will be measured in company X’s statement of financialposition.
- A. FF Co. changed its inventory valuation from the FIFO cost method to the weighted averagemethod during 2020:FIFO Weighted AverageJanuary 1, 2020 inventory 4,000,000 4,500,000December 31, 2020 inventory 4,800,000 5,100,000Required: Ignoring income taxes,1. Prepare the journal entry to adjust the 2020 opening balance of retained earnings account.2. Determine the net income under the weighted average method assuming that the netincome under FIFO was determined to be P900,000.After the business combination on the basis of full-goodwill approach, what amount of inventory will be reported? a. P179,000 b. P200,000 c. P210,500 d. P215,000FF Co. changed its inventory valuation from the FIFO cost method to the weighted average method during 2020:FIFO Weighted AverageJanuary 1, 2020 inventory 4,000,000 4,500,000December 31, 2020 inventory 4,800,000 5,100,000Required: Ignoring income taxes,1. Prepare the journal entry to adjust the 2020 opening balance of retained earnings ac-count.2. Determine the net income under the weighted average method assuming that the net income under FIFO was determined to be P900,000.