You are required to prepare Departmental Trading Account of Brahma Limited assuming that the rate of profit on sales is uniform in each case.
Q: Required information [The following information applies to the questions displayed below.] Allied…
A: Solution:- Preparation of the journal entries to record the following transactions for Allied…
Q: Brutus Corporation, a newly formed corporation, has the following transactions during May, its first…
A: Perpetual inventory system: Under this accounting method for companies moving large amounts of…
Q: Required information [The following Information applies to the questions displayed below.] Ferris…
A:
Q: The income statement submitted by Loon Branch to the Home Office for the month of December 31, 2013…
A: 1) Billing price based on cost imposed by the home office to the branch = 140% of cost Explanation…
Q: Golden Eagle Company began operations in 2014 by selling a single product. Data on purchases and…
A: Inventory refers to the amount of goods which are available for sale and the raw materials which are…
Q: Financial information is presented below for three companies. Financial information is presented…
A: Net Sales is the sales revenue after deducting sales returns from the gross sales. Cost of goods…
Q: Brutus Corporation, a newly formed corporation, has the following transactions during May, its first…
A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…
Q: The following information appeared in the accounting records of a retail store for the year ended…
A: Answer) Calculation of Gross Margin Gross Margin = Sales – Cost of Goods sold – Sales Commission…
Q: Plum Corporation began the month of May with $700,000 of current assets, a current ratio of 2.50:1,…
A: As question has to calculate the current ratio , acid test ratio and working capital after each…
Q: Plum Corporation began the month of May with $900,000 of current assets, a current ratio of 2.60:1,…
A: A Current Ratio is a liquidity ratio i.e asset that can be converted into cash. A strong liquidity…
Q: at cost $70,000 for $118,000. 15 Collected a $30,000 account receivable. 17 Paid a $32,000 account…
A: The schedule is calculated as,
Q: 5,500 @ ksh. 49 7 4,000 @ ksh. 50 11 7,000 @ ksh. 61 12 5,000 @ ksh. 50 13 6,000 @ ksh. 47…
A: Inventory valuation is the techniques of valuing the inventory in the store so as to maintain a…
Q: had 12,000 units of product W32 in inventory included at cost of GHS6 per unit. During April and May…
A: SOLUTION- AS PER NRV METHOD, VALUE SHOULD BE RECOGNIZED AT MARKET PRICE OR COST WHICHEVER IS LOWER.
Q: The following information is taken from the financial statement of Al Reem Manufacturing LLC for the…
A: Given that the company follows FIFO method and the following data: Opening balance 1st March 2021 –…
Q: Zeal Inc. Incorporation completed the following merchandising transactions in the month of May. At…
A: Journal entries are used to record various accounting transactions which was done by the business…
Q: Use the following to answer questions 7– 17 During September, KC Company sells 730 mountain bikes…
A: Using weighted average method, cost per unit is calculated as total cost of goods available for sale…
Q: For the year ended 2012 Wendy Retail Store's Net income is PI50,000 (10% of Net Sales). Operating…
A: Net sales = Net income/10% = 150,000/10% = 1,500,000 Operating expense = Net sales…
Q: E5-27 Computing the gross profit percentage Cauy Cookies earned net sales revenue of $66,000,000 in…
A: The formula for calculating gross profit percentage is as follows:
Q: Seemore Lens Company (SLC) sells contact lenses FOB destination. For the year endedDecember 31, the…
A: Definition: Merchandise Inventory: Merchandise is the stock of goods bought by a wholesaler, or a…
Q: a. Assume the company uses a periodic system. Prepare all required journal entries, including the…
A: a. Prepare the working note for computing COGS as follows: Result:
Q: The purchases of Liver Inc. during the year are as follows: 1st quarter- P1,368,000 2nd quarter-…
A: As we know that inventory in values at cost or NRV whichever is lower, and if we follow the…
Q: ABC sells item A as part of its product line. Information as to balances on hand, purchases, and…
A: In Weighted average cost method the inventory cost is calculated using average cost. Average cost =…
Q: B. For Multi-Method SCI: Dan Bam Company is in its second year of operation. Information on its…
A: Income statement means the statement which show the cost of goods sold and selling price and give…
Q: following information is taken from the financial statement of Al Reem Manufacturing LLC for the…
A: Opening balance – 50 units @ RO 4 Receipts:::: 5th March: 100 units @ RO 5 12th March: 200 units @…
Q: The following information is taken from the financial statement of Al Reem Manufacturing LLC for the…
A: Here in this question, we are required to calculate total issue amount under FIFO basis. First In…
Q: Brutus Corporation, a newly formed corporation, has the following transactions during May, its first…
A: Inventory valuation refers to valuation of closing stock in hand which is reflected in Balance Sheet…
Q: Required information [The following information applies to the questions displayed below)…
A: The inventory can be valued using various methods as LIFO, FIFO and weighted average method.
Q: Vincenzo Cassano Company sells one product, which it purchases from various suppliers. The trial…
A: The cost of goods sold means the cost of producing the goods which are being sold by the…
Q: A company begins the year with inventory of $52,000 and ends the year with inventory of $42,000.…
A: Formula: Cost of goods available for sale = Beginning inventory + Purchases
Q: A record of transactions for the month of May is as follows: Purchases Sales Units Unit…
A: Let's start with a basic understanding of the FIFO method, First-in first-out (FIFO) is an inventory…
Q: Concord uses the FIFO cost flow assumption. All purchases and sales are on account. 1.…
A: Periodic inventory is a system of inventory in which updates are made on a periodic basis. This…
Q: Minnie Co. does business in three segments: Theme Parks, Movie Production, and Merchandise. The…
A: Vertical analysis: The comparison of an item of a financial statement against the total amount of…
Q: Problem 1- Pertinent accounts gathered from the record of ABC Corporation for 2020 are as follows:…
A: The income statement is an important financial statement of the business which represents the net…
Q: Required information Use the following information for the Exercises 6-8 below. (Algo) [The…
A: On May 5 th, Cost of goods sold = $5000
Q: X Limited has three departments and submits the following information for the year ending on 31st…
A:
Q: The Shirt Shop had the following transactions for T-shirts for Year 1, its first year of operations.…
A: Under FIFO Method, the assets which are purchased or acquired first are sold first.
Q: Required information Use the following information for the Exercises below. [The following…
A: In the context of the given question, we can solve this using the gross profit method. The gross…
Q: Bns displayed below.] Allied Merchandisers was organized on May 1. Macy Company is a major customer…
A: A perpetual inventory system appears to be a tool that continuously examines your inventory using…
Q: Neo concerned business on 1* April, 2014. During the year ended 31* March, 2015 purchases amounted…
A:
Q: Use the following to answer questions 7– 17 During September, KC Company sells 730 mountain bikes…
A: 1. FIFO Method - Under FIFO Method, Inventory purchased first is sold first. 2. LIFO Method - Under…
Q: Departmental Income Statement Elgin Flooring Company sells floor coverings through two departments,…
A: One of a company's basic financial statements, the Income Statement, depicts the company's profit…
Q: Required information [The following information applies to the questions displayed below.] Hemming…
A: Available goods Units Cost per Unit Sale from Units Ending Inventory from Cost per Unit Jan 01…
Q: The following information is taken from the financial statement of Al Reem Manufacturing LLC for the…
A: Solution: total receipts amount for the month of March 2021 for Al Reem Manufacturing LLC = (100*5)…
Q: Brutus Corporation, a newly formed corporation, has the following transactions during May, its first…
A: Note: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question…
Q: Use the following to answer questions 7– 17 During September, KC Company sells 730 mountain bikes…
A: Using FIFO method, older units are sold first and using LIFO method newer units are sold first. Cost…
Q: Required information [The following information applies to the questions displayed below.] Allied…
A: The journal entries are prepared to keep the record of day to day transactions of the business.
Q: The following information is taken from the financial statement of Al Reem Manufacturing LLC for the…
A: Total no. of units issue = 30 + 150 + 100 = 280 units
Q: Requlred Information [The following information applies to the questions displayed below.] The Shirt…
A: FIFO is first in first out method for inventory valuation, in which units purchased first will be…
Brahma Limited has three departments and submits the following information for the year ending on 31st March, 2013 :
|
Particulars |
A |
B |
C |
Total (~) |
|
Purchases (units) |
5,000 |
10,000 |
15,000 |
---- |
|
Purchases (Amount) |
---- |
---- |
---- |
8,40,000 |
|
Sales (units) |
5,200 |
9,800 |
15,300 |
---- |
|
Selling price (~ per unit) |
40 |
45 |
50 |
---- |
|
Opening stock (units) |
400 |
600 |
700 |
---- |
You are required to prepare Departmental Trading Account of Brahma Limited assuming that the rate of profit on sales is uniform in each case.
Step by step
Solved in 4 steps
- Comprehensive The following information for 2019 is available for Marino Company: 1. The beginning inventory is 100,000. 2. Purchases returns of 4,000 were made. 3. Purchases of 300,000 were made on terms of 2/10, n/30. Eighty percent of the discounts were taken. 4. At December 31, purchases of 20,000 were in transit, FOB destination, on terms of 2/10, n/30. 5. The company made sales of 640,000. The gross selling price per unit is twice the net cost of each unit sold. 6. Sales allowances of 6,000 were made. 7. The company uses the LIFO periodic method and the gross method for purchase discounts. Required: 1. Compute the cost of the ending inventory before the physical inventory is taken. 2. Compute the amount of the cost of goods sold that came from the purchases of the period and the amount that came from the beginning inventory.The purchases of Liver Inc. during the year are as follows: 1st quarter- P1,368,000 2nd quarter- P1,320,000 3rd quarter- P2,175,000 4th quarter- P840,000 The entity’s physical count revealed the following balances of cost and NRV, respectively: January 1- P20,000; P19,000 June 30- P40,000; P38,500 December 31- P35,000; P34,600 The gross profit ratio for the year is 35%. If the company uses the allowance method, how much is the loss on inventory write-down to be recognized in the 2nd quarter?During the fiscal year 20x4, the initial inventory of the goods of company A is 15.000 €, purchases of goods for the fiscal year 25.000,00 € and the final stock of goods 10.000,00 €. The revenue from the sales of goods is 75.000,00 €, the operating expenses 30.000,00 € and the tax rate is 40%. An employee of the accounting department registered as the final stock of goods the amount of 12.000 €. What is the effect on the cost of sales during the use of 20X4?
- The following data were reported by Lechon Corporation during the current year.· Accounts payable, January 1- P200,000· Accounts payable, December 31- P250,000· Inventory, January 1- P400,000· Inventory, December 31- P210,000· Purchase returns and allowances- P6,000· Purchase discounts- P3,000· Payment- P800,000· Cash purchase- P10,000How much is the total cost of sales under accrual basis of accounting?The data shown below were obtained from the financial records of the BST Corporation for the year ended December 31, 2020. 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…The data shown below were obtained from the financial records of the BST Corporation for the year ended December 31, 2020. 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…
- The data shown below were obtained from the financial records of the BST Corporation for the year ended December 31, 2020. 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…The following are extracted from the records of DONATELLO CO. and its branch MICHELANGELO Co. on December 31, 2008, the third year of the corporation's existence: DONATELLO CO. MICHELANGELO CO. Allowance for Overvaluation $72,500 Sales $600,000 Expenses $200,000 Shipment from Home Office $444,000 The branch acquires all of its merchandise from the Home Office. The inventories of the Branch at billed prices are: January 1, 2008-$47,717.18 December 31, 2008-$84,000 Determine the branch profit-adjusted. a)107,500 b)49,000 c)25,766 d)58,500Oreo reported the following for the period:Sales P1,000,000Cost of Sales P300,000Operating expenses P100,000Determine the OSD assuming that Oreo is a corporation
- [The following information applies to the questions displayed below.] Lewis Incorporated and Clark Enterprises report the following amounts for the year. Lewis Clark Inventory (beginning) $ 14,000 $ 40,000 Inventory (ending) 8,000 50,000 Purchases 120,000 150,000 Purchase returns 5,000 50,000 Required: 1. Calculate cost of goods sold for each company.Supposing EQR Trading has completed the following transactions for the month of October, 2020. 1. Sale of goods to company A on credit P200,000. 2. Purchase of goods of P400,000 from company B on credit 3. Purchase of goods of P500,000from company C on credit. 4. Sales of office-use equipment of P100,000 to company D on credit. What is the total amount recorded in the Sales account for this month?The following information of ABC Merchandise Business for the year ended 31st December 2020 Account Amount (OMR) Sales Discounts 2200 Sales returns 22,000 Sales 257,000 Interest revenue 1000 Gain on Sale of land 2000 Interest expense 7,000 Salesman Salaries 38,000 Office rent 1400 Cost of Goods sold 160,000 Electricity expense – Office 300 Rent expense - office 100 Salesman commission 12500 Advertising expense 3500 Marketing expense 2500 Other non-operating expense 1000 What will be the Total General and Administration expenses assumes that the business follows Multi-step Income statement? a. OMR 66300 b. OMR 56500 c. OMR 2800 d. OMR 1800
