Use the following to answer questions 1 – 6 Case 1Case 2 Case 3 Case 4 Beginning inventory $20,000$85,000 S45,600 Ending inventory ? 65,000 66,000 36,500 Purchases 400,000 ? 758,000 614,000 Cost of goods sold 385,000 725,000| ? 595,000 1. $ For case 1, determine goods available for sale 2. $ For 1, determine ending case inventory 3. $ For case 2, determine goods available for sale 4. $ For case 2, determine Purchases 5. $ For case 3, determine cost of goods sold 6. $ For case 4, determine beginning inventory

Use the following to answer questions 1 – 6 Case 1Case 2 Case 3 Case 4 Beginning inventory $20,000$85,000 S45,600 Ending inventory ? 65,000 66,000 36,500 Purchases 400,000 ? 758,000 614,000 Cost of goods sold 385,000 725,000| ? 595,000 1. $ For case 1, determine goods available for sale 2. $ For 1, determine ending case inventory 3. $ For case 2, determine goods available for sale 4. $ For case 2, determine Purchases 5. $ For case 3, determine cost of goods sold 6. $ For case 4, determine beginning inventory

Corporate Financial Accounting

14th Edition

ISBN:9781305653535

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter6: Inventories

Section: Chapter Questions

Problem 6.2BE: Perpetual inventory using FIFO Beginning inventory, purchases, and sales for Item Zeta9 are as...

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( Appendix 6B) Refer to the information for Morgan Inc. above. If Morgan uses a periodic inventory system, what is the cost of ending inventory under LIFO at April 30? a. $32,800 b. $38,400 c. $63,600 d. $69,200
( Appendix 6B) Refer to the information for Morgan Inc. above. If Morgan uses a periodic inventory system, what is the cost of goods sold under FIFO at April 30? a. $32,800 b. $38,400 c. $63,600 d. $69,200
2. Net income, 185,000 Appendix 2 PR 5-10A Periodic inventory accounts, multiple-step income statement, closing entries On December 31, 20Y5, the balances of the accounts appearing in the ledger of Wyman Company are as follows: Instructions 1. Does Wyman Company use a periodic or perpetual inventory system? Explain. 2. Prepare a multiple-step income statement for Wyman Company for the year ended December 31, 20Y5. The inventory as of December 31, 20Y5, was 305,000. The estimated cost of customer returns inventory for December 31, 20Y5, is estimated to increase to 40,000. 3. Prepare the closing entries for Wyman Company as of December 31, 20Y5. 4. What would be the net income if the perpetual inventory system had been used?
Perpetual inventory using FIFO Beginning inventory, purchases, and sales for Item Zeta9 are as follows: Oct. 1 Inventory 175 units at 30 7 Sale 155 units 15 Purchase 200 units at 33 24 Sale 140 units Assuming a perpetual inventory system and using the first-in, first-out (FIFO) method, determine (A) the cost of goods sold on October 24 and (B) the inventory on October 31.
Appendix 2 Cost of goods sold Identify the errors in the: following schedule of the cost of goods sold for the year ended May 31, 20Y5: Cost of goods sold: Inventory, May 31, 20Y5 105,000 Cost of merchandise purchased: Purchases Purchases returns and allowances Purchases discounts Freight in Total cost of merchandise purchased 1,110,000 55,000 30,000 (22,000) 1,173,000 Inventory available for sale 1,278,000 Inventory, June 1, 20Y4 (91.300) Cost of goods sold before estimated returns S 1,186,700 Estimated returns of this years sales 43,300 Cost of goods sold 1,230,000
Lower-of-cost-or-market inventory Data on the physical inventory of Katus Products Co. as of December 31 follows: Description Inventory Quantity Market Value per Unit (Net Realizable Value) A54 37 56 C77 24 178 F66 30 132 H83 21 545 K12 375 5 Q58 90 18 S36 8 235 V97 140 20 Y88 17 744 Quantity and cost data from the last purchases invoice of the year and the next-to-the-last purchases invoice are summarized as follows: Description Last Purchases Invoice Next-to-the-Last Purchases Invoice Quantity Purchased Unit Cost Quantity Purchased Unit Cost A54 30 60 40 58 C77 25 174 15 180 F66 20 130 15 128 H83 6 547 15 540 K12 500 6 500 7 Q58 75 25 80 26 S36 5 256 4 260 V97 100 17 115 16 Y88 10 750 8 740 Instructions Determine the inventory at cost and also 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 LCM column. The first item on the inventory sheet has been completed as an example. Inventory Sheet December 31 Description Unit Inventory Quantity Cost per Unit Market Value per Unit(Net Realizable Value) Total Cost Market LCM A54 37 30 60 56 1,800 1,680 7 58 56 406 392 2,206 2,072 2,072
Appendix Periodic inventory accounts, multiple-step income statement, closing entries On June 30, 2018, the balances of the accounts appearing in the ledger of Simkins Company are as follows: Cash 125,000 Dividends 275,000 Accounts Receivable 72,000 Sales 6,590,000 Inventory, July 1, 2017 415,000 Purchases 4,100,000 Estimated Returns Inventory, July 1,2017 25,000 Purchases Returns and Allowances 32,000 Purchases Discounts 13,000 Office Supplies 9,000 Freight In 45,000 Prepaid Insurance 18,000 Sales Salaries Expense 580,000 Land 300,000 Advertising Expense 315,000 Store Equipment 550,000 Delivery Expense 18,000 Accumulated Depreciation Store Equipment 190,000 Depreciation Expense Store Equipment 12,000 Office Equipment 250,000 Miscellaneous Selling Expense 28,000 Accumulated Depreciation Office Equipment 110,000 Office Salaries Expense 375,000 Rent Expense 43,000 Accounts Payable 85,000 Insurance Expense 17,000 Salaries Payable 30,000 Office Supplies Expense 5,000 Customer Refunds Payable 9,000 Depreciation Expense Office Equipment 4,000 Unearned Rent 6,000 Notes Payable 50,000 Miscellaneous Administrative Expense 16,000 Common Stock 300,000 Rent Revenue 32,500 Retained Earnings 520,000 Interest Expense 2,500 Instructions 1. Does Simkins Company use a periodic or perpetual inventory system? Explain. 2. Prepare a multiple-step income statement for Simkins Company for the year ended June 30, 2018. The inventory as of June 30, 2018, was 508,000. The estimated cost of customer returns inventory for June 30, 2018, is estimated to increase to 33,000. 3. Prepare the closing entries for Simkins Company as of June 30, 2018. 4. What would be the net income if the perpetual inventory system had been used?
Appendix 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 inventors-system?