Use the following information to answer the next two (2) items Your sales cut-off examination of Indigo, Inc. revealed the following information: • The December 31 inventory was determined by a physical count on December 29 and based on such count, the inventory was recorded by: Inventory P450,000 Cost of Sales P450,000 • The 2021 ledger shows a Sales balance of P1,820,000 • The company sells at a markup of 25% based on cost. • All customers are within a four-day delivery area of the company plant. • The sales register for December 2021 and January 2022 showed the following details: December 2021 Register Invoice Number 101 102 FOB Terms Date Shipped 12/30 12/27 Amount P12,000 9,000 17,500 7,200 18,000 Shipping point Destination 103 104 Shipping point Destination 12/29 12/29 105 Shipping point 12/28 January 2022 Register Invoice Number 106 Date Shipped 12/31 FOB Terms Destination Shipping point Destination Amount 107 108 109 12/29 01/02 12/27 P24,000 15,000 22,500 30,000 5,000 Destination 110 Shipping point 12/31 1. How much is the adjusted sales in 2021? 2. How much is the adjusted inventory balance as of December 31, 2021?

Use the following information to answer the next two (2) items Your sales cut-off examination of Indigo, Inc. revealed the following information: • The December 31 inventory was determined by a physical count on December 29 and based on such count, the inventory was recorded by: Inventory P450,000 Cost of Sales P450,000 • The 2021 ledger shows a Sales balance of P1,820,000 • The company sells at a markup of 25% based on cost. • All customers are within a four-day delivery area of the company plant. • The sales register for December 2021 and January 2022 showed the following details: December 2021 Register Invoice Number 101 102 FOB Terms Date Shipped 12/30 12/27 Amount P12,000 9,000 17,500 7,200 18,000 Shipping point Destination 103 104 Shipping point Destination 12/29 12/29 105 Shipping point 12/28 January 2022 Register Invoice Number 106 Date Shipped 12/31 FOB Terms Destination Shipping point Destination Amount 107 108 109 12/29 01/02 12/27 P24,000 15,000 22,500 30,000 5,000 Destination 110 Shipping point 12/31 1. How much is the adjusted sales in 2021? 2. How much is the adjusted inventory balance as of December 31, 2021?

Name: Use the following information to answer the next two (2) itemsYour sa
Uploaded: 2024-03-20T06:32:37.000Z
Channel: Bartleby
Description: Use the following information to answer the next two (2) itemsYour sales cut-off examination of Indigo, Inc. revealed the following information:• The December 31 inventory was determined by a physical count on December 29 and based onsuch count, the

Century 21 Accounting General Journal

11th Edition

ISBN:9781337680059

Author:Gilbertson

Publisher:Gilbertson

Chapter20: Accounting For Inventory

Section: Chapter Questions

Problem 3AP

See similar textbooks

Similar questions

Golden Eagle Company began operations on April 1 by selling a single product. Data on purchases and sales for the year are as follows: Purchases: Sales: The president of the company, Connie Kilmer, has asked for your advice on which inventory cost flow method should be used for the 32,000-unit physical inventory that was taken on December 31. The company plans to expand its product line in the future and uses the periodic inventory system. Write a brief memo to Ms. Kilmer comparing and contrasting the LIFO and FIFO inventory cost flow methods and their potential impacts on the companys financial statements.
Last year, Nikkola Company had net sales of 2,299,500,000 and cost of goods sold of 1,755,000,000. Nikkola had the following balances: Refer to the information for Nikkola Company above. Required: Note: Round answers to one decimal place. 1. Calculate the average inventory. 2. Calculate the inventory turnover ratio. 3. Calculate the inventory turnover in days. 4. CONCEPTUAL CONNECTION Based on these ratios, does Nikkola appear to be performing well or poorly?
Cost of Goods Sold and Income Statement Schuch Company presents you with the following account balances taken from its December 31 adjusted trial balance: Additional data: 1. A physical count reveals an ending-inventory of 22,500 on December 31. 2. Twenty-five thousand shares of common stock have been outstanding the entire year. 3. The income tax rate is 30% on all items of income. Required: 1. As a supporting document for Requirements 2 and 3, prepare a separate schedule for Schuchs cost of goods sold. 2. Prepare a multiple-step income statement. 3. Prepare a single-step income statement.
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.
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.
At December 31, 2019, the following information was available from Crisford Companys books: Sales for the year totaled 110,600; markdowns amounted to 1,400. Under the approximate lower of average cost or market retail method, Crisfords inventory at December 31, 2019, was: a. 30,800 b. 28.000 c. 21,560 d. 19,600
Calculate the cost of goods sold dollar value for A66 Company for the month, considering the following transactions under three different cost allocation methods and using perpetual inventory updating. Provide calculations for last-in, first-out (LIFO).
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?
Data on the physical inventory of Katus Products Co. as of December 31 follow: Quantity and cost data from the last purchases invoice of the year and the next-to-the-last purchases invoice are summarized as follows: Instructions Determine the inventory at cost as well as at the lower of cost or market, using the first-in, first-out method. Record the appropriate unit costs on the inventory sheet and complete the pricing of the inventory. When there are two different unit costs applicable to an item: 1. Draw a line through the quantity and insert the quantity and unit cost of the last purchase. 2. On the following line, insert the quantity and unit cost of the next-to-the-last purchase. 3. Total the cost and market columns and insert the lower of the two totals in the LCM column. The first item on the inventory sheet has been completed as an example.
Data on the physical inventory of Ashwood Products Company as of December 31 follow: Quantity and cost data from the last purchases invoice of the year and the next-to-the-last purchases invoice are summarized as follows: Instructions Determine the inventory at cost as well as at the lower of cost or market, using the first-in, first-out method. Record the appropriate unit costs on the inventory sheet and complete the pricing of the inventory. When there are two different unit costs applicable to an item, proceed as follows: 1. Draw a line through the quantity and insert the quantity and unit cost of the last purchase. 2. On the following line, insert the quantity and unit cost of the next-to-the-last purchase. 3. Total the cost and market columns and insert the lower of the two totals in the Lower of C or M column. The first item on the inventory sheet has been completed as an example.
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.
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).