Virgo Merchandising The following are the accounts of Regina Merchandising for December 31, 2017: Sales 4,000,000 Salaries Expense (80,000) Supplies Expense (120,000) Depreciation Expense (96,000) Utilities Expense (64,000) Insurance Expense (32,000) Rent Expense (144,000) Beginning Inventory 6,250 Purchases (187,500) Ending Inventory (12,500) Sales Discount (625) You were employed by the entity as its bookkeeper in its first year operations. You are now to prepare the necessary financial statements for the current year. Accordingly, 25% of rent, depreciation and utility expenses pertain to the sales office while the rest pertains to the corporate office. Instructions:  How much is the net sales for the year?  How much is the cost of sales for the year?  How much is the gross profit for the year?

Virgo Merchandising The following are the accounts of Regina Merchandising for December 31, 2017: Sales 4,000,000 Salaries Expense (80,000) Supplies Expense (120,000) Depreciation Expense (96,000) Utilities Expense (64,000) Insurance Expense (32,000) Rent Expense (144,000) Beginning Inventory 6,250 Purchases (187,500) Ending Inventory (12,500) Sales Discount (625) You were employed by the entity as its bookkeeper in its first year operations. You are now to prepare the necessary financial statements for the current year. Accordingly, 25% of rent, depreciation and utility expenses pertain to the sales office while the rest pertains to the corporate office. Instructions:  How much is the net sales for the year?  How much is the cost of sales for the year?  How much is the gross profit for the year?

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter6: Cost Of Goods Sold And Inventory

Section: Chapter Questions

Problem 33BE

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5. Virgo MerchandisingThe following are the accounts of Regina Merchandising for December 31, 2017:Sales 4,000,000Salaries Expense (80,000)Supplies Expense (120,000)Depreciation Expense (96,000)Utilities Expense (64,000)Insurance Expense (32,000)Rent Expense (144,000)Beginning Inventory 6,250Purchases (187,500)Ending Inventory (12,500)Sales Discount (625)GENERAL & ADMINISTRATIVE EXPENSES14 | P a g e Fundamentals of Accountancy, Business, and Management 2You were employed by the entity as its bookkeeper in its first year operations. You are now to prepare the necessary financial statements for the current year Accordingly, 25% of rent, depreciation and utility expenses pertain to the sales office while the rest pertains to the corporate office. Instructions:  How much is the net sales for the year?  How much is the cost of sales for the year?  How much is the gross profit for the year?  How much is the net income for the year?  Prepare a statement of comprehensive income.
On January 1, 2017, Manuel Company's merchandise inventory was $300,000. During 2017, Manuel purchased $1,900,000 of merchandise and recorded sales of $2,000,000. The gross profit margin on these sales was 20% of the selling price. Required: 1. What is Manuel's merchandise inventory at December 31, 2017?
Questions 4 and 5 are based on the following information. The income statement submitted by Loon Branch to the Home Office for the month of December 31, 2013 follows: Sales P600,000 Cost of Sales: Inventory, December 31, 2013 P80,000 Shipments from Home office 350,000 Purchased locally by branch 30,000 Total P460,000 Inventory, December 31, 2013 (100,000) 360,000 Gross Margin P240,000 Operating Expenses (180,000) Net Income for the month P 60,000 The Branch inventories consisted of: Merchandise purchased from home P70,000 P84,000 Local purchases P10,000 P16,000 Total P80,000 P100,000 After effecting the necessary adjustments, the Home Office ascertained the true net income of the Branch to be P156,000. 4. At what percentage of cost did the home office bill the branch for merchandise shipped to it? a. 100% c. 120% b. 140% d. 150%
Instructions: Prepare the functional income statement of Anne Curtis Company on December 31, 2016. It must be supported by Notes. Sales - 9,630,000 Purchases - 4,720,000 Merchandise Inventory January 1 - 2,170,000 Merchandise Inventory, Dec. 31 - 1,430,000 Salaries Expense-Selling - 1,140,000 Salaries Expense-Administrative - 920,000 Depreciation Expense-office Equipment - 460,000 Sales Return and Allowances - 280,000 Insurance Expense - 55,000 Sale Discounts - 210,000 Transpotation Out - 170,000 Depreciation Expense-Store Equipment - 160,000 Purchase Return and Allowances - 110,000 Selling Supplies Expense - 80,000 Purchase Discounts - 70,000 Freight In - 50,000 Miscellaneous Expense - 30,000
The business had 200 units in inventory at 1st February 2018 valued at RO 20. On 10th February Purchase made 400 units at RO 30 each. On 28th February Sales made 500 units at RO 40 each. What will be the cost of goods sold value at the end of February 2018 assuming that the business uses LIFO method?
The sales of Super Store for the month is P 80,756.00. Beginning inventory was P 24,435.00; and purchases of P 18,200.00. Ending inventory is amounting to P 12,500.50. The stores total expenses is P 18,780.00 . Find the following : a.) Cost of goods sold b) Net profit or net loss
Martinez Retailers produced the following information for the most recent year: 1. Sales revenue £290,000 2. Opening inventories £65,000 3. Gross profit 15% of sales revenue 4. Closing inventories 145% of opening inventories What were the purchases for the period?
Using the following information, what is the amount of gross profit? Purchases$44,000Merchandise inventory, September 16,600Selling expense1,550Merchandise inventory, September 307,100Sales94,000Interest expense1,240Administrative expense1,110Rent revenue2,200
Following are the account balances from Samuel Company's statement of comprehensive income:Inventory, January 1, 2017 $25,000Purchases 35,000Purchase returns 2,000Purchase discounts 4,000Freight-in 5,000Inventory, December 31, 2017 10,000Freight-out 6,000 Given this information, the cost of merchandise available for sale during 2017 is?
Problem- The following accounts were taken from the ledger of Dada Merchandising as of May 31, 2012; Inventory, May 1 30,000 Inventory, May 31 80,000 Office Supplies Used 5,000 Office Supplies Inventory 6,000 Store Supplies Used 4,000 Store Supplies on Hand 6,000 Freight In 1,000 Freight Out 2,000 Dividend Income 4,000 Rent Income 6,000 Interest Expense 3,000 Purchases 350,000 Purchase Returns and Allowances 20,000 Purchase Discount 3,000 Accounts Payable 25,000 Notes Payable 15,000 Taxes Payable 3,000 Mortgage Payable 300,000 Miscellaneous Selling Expenses 7,000 Miscellaneous General Expenses 3,000 Postage and Telegraph…
The following data are for Arizona Retail Outlet Stores. The account balances (in thousands) are for 2017.Marketing and advertising costs $ 55,200 . Merchandise inventory, January 1, 2017 103,500 Shipping of merchandise to customers 4,600 Depreciation on store fixtures 9,660 Purchases 598,000 General and administrative costs 73,600 Merchandise inventory, December 31, 2017 119,600 Merchandise freight-in 23,000 Purchase returns and allowances 25,300 Purchase discounts 20,700 Revenues 736,000 1. Compute (a) the cost of goods purchased and (b) the cost of goods sold. 2. Prepare the income statement for 2017.
13. Presented below is information for OB Company for the month of April 2019. Cost of goods sold $106,000 Rent expense $ 16,000 Freight-out 3,500 Sales discounts 4,000 Insurance expense 6,000 Sales returns and allowances 6,500 Salary expense 29,000 Sales 185,000 Instructions (a) Prepare a multiple-step income statement. (b) Compute the gross profit rate.