Yui Sum Ltd commenced business on 1 January Year 9. During the year ending on 31 December Year 9, they bought a quantity of leather briefcases at a uniform cost and sold 5,800 of them at £60 each. An inventories check on 31 December Year 9 established that they hold 650 unsold briefcases. The gross profit for the year was £116,000. How much was the cost of each briefcase? O A. £17.85 OB. £40.00 O C. £35.69 O D. £20.00

Yui Sum Ltd commenced business on 1 January Year 9. During the year ending on 31 December Year 9, they bought a quantity of leather briefcases at a uniform cost and sold 5,800 of them at £60 each. An inventories check on 31 December Year 9 established that they hold 650 unsold briefcases. The gross profit for the year was £116,000. How much was the cost of each briefcase? O A. £17.85 OB. £40.00 O C. £35.69 O D. £20.00

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter5: The Income Statement And The Statement Of Cash Flows

Section: Chapter Questions

Problem 3RE: Shaquille Corporation began the current year with inventory of 50,000. During the year, its...

See similar textbooks

Similar questions

Shaquille Corporation began the current year with inventory of 50,000. During the year, its purchases totaled 110,000. Shaquille paid freight charges of 8,500 for those purchases. At the end of the year, Shaquille had inventory of 47,800. Prepare a schedule to determine Shaquille's cost of goods sold for the current year.
Langstons purchased $3,100 of merchandise during the month, and its monthly income statement shows a cost of goods sold of $3,000. What was the beginning inventory if the ending inventory was $1,250?
Mercado Ltd started its business with £21,000 in cash on 1 Jan 20X1, and immediately purchased 400 items of inventory at the price of £50 per item and put the remaining £1,000 in a bank account without any fees or interests. On 1 July 20X1, it sold all items at the price of £80 per item and received the payment in cash. The general price index during the year was as follows: 01-Jan 01-Jul 31-Dec General price index 100 120 150 What is the cash balance at the year end 31 Dec 20X1 under current purchasing power accounting? a. £33,000 b. £41,500 c. £40,000 d. £32,000 e. £1,000
In its first year of operations, Dulany Company, a clothing store, purchased $18,000 of merchandisefrom a supplier on account, terms 2/10, n 30. Dulany Company returned $3,000 of defectivemerchandise, and then paid the amount due within the discount period. During the year, the companysold merchandise inventory costing $12,000 to its customers. What would be the balance in Dulany’sCompany’s Merchandise Inventory account at the end of the year?A. $2,700B. $3,200C. $3,300D. $2,640
The earbuds are sold in cases, with each case containing a pair of earbuds. The last quarter (October to December) of 2021 began with 30 cases of earbuds at a total cost of $187,800. During the quarter the business completed the following transactions relating to the earbuds October 8 98 cases were purchased at a cost of $6,202 each. In addition, the business paid a freight charge of $248 cash on each case to have the inventory shipped from the point of purchase to their place of business. October 31 The sales for October were 85 cases which yielded total sales revenue of $809,030. (25 of these cases were sold on account to three longstanding customers) November 4 A new batch of 67 cases was purchased at a total cost of $465,650 November 10 5 of the cases purchased on November 4 were returned to the supplier, as they were not of the type nor model ordered. November 30 During the month 60 cases were sold at a price of $10,350 each. December 4 A…
The earbuds are sold in cases, with each case containing a pair of earbuds. The last quarter (October to December) of 2021 began with 30 cases of earbuds at a total cost of $187,800. During the quarter the business completed the following transactions relating to the earbuds October 8 98 cases were purchased at a cost of $6,202 each. In addition, the business paid a freight charge of $248 cash on each case to have the inventory shipped from the point of purchase to their place of business. October 31 The sales for October were 85 cases which yielded total sales revenue of $809,030. (25 of these cases were sold on account to three longstanding customers) November 4 A new batch of 67 cases was purchased at a total cost of $465,650 November 10 5 of the cases purchased on November 4 were returned to the supplier, as they were not of the type nor model ordered. November 30 During the month 60 cases were sold at a price of $10,350 each. December 4 A…
The earbuds are sold in cases, with each case containing a pair of earbuds. The last quarter (October to December) of 2021 began with 30 cases of earbuds at a total cost of $187,800. During the quarter the business completed the following transactions relating to the earbuds October 8 98 cases were purchased at a cost of $6,202 each. In addition, the business paid a freight charge of $248 cash on each case to have the inventory shipped from the point of purchase to their place of business. October 31 The sales for October were 85 cases which yielded total sales revenue of $809,030. (25 of these cases were sold on account to three longstanding customers) November 4 A new batch of 67 cases was purchased at a total cost of $465,650 November 10 5 of the cases purchased on November 4 were returned to the supplier, as they were not of the type nor model ordered. November 30 During the month 60 cases were sold at a price of $10,350 each. December 4 A…
At beginning of July 2021, Idah & Faith (IF) Co had 25 microwave ovens in inventory costing of K750 per unit. Over the next three months, the company made the following purchases.Date Quantity Unit cost K6 July 5 770 5 August 4 800 1 September 8 850 14 September 6 880 During that period, there were sales of 35 units, generating a total sales revenue of K38,500. REQUIRED: a) Prepare the stores ledger card for the materials in stock that records all material movements using: (i) FIFO method (ii) LIFO method b) Based on the work done in (a) above, determine the cost of sales and profit for three months to 30 September using FIFO and also based on LIFO. c) Compare the reported profit of the company in (b) above over the three months to 30 September based on the two methods (FIFO and LIFO) and comment on the results Explain each of these cost…
During its first month of business, Dig the Dogs, Inc. purchased $700 of hotdogs of which it paid $300 and owes the rest. During the month, it sold 3/4 of its inventory for $1,000 on account. What is the amount of Cost of Goods Sold for the month ended?
Murphy Co. is a high-end retailer of fine fashions for men. Murphy’s inventory balance at thebeginning of the year is $300,000, and Murphy purchases $600,000 of goods during the year. Itsinventory balance at the end of the year is $250,000. What is the cost of goods sold for the year?
Plum Corporation began the month of May with $1,300,000 of current assets, a current ratio of 1.80:1, and an acid-test ratio of 1.40:1. During the month, it completed the following transactions (the company uses a perpetual inventory system). May 2 Purchased $75,000 of merchandise inventory on credit. May 8 Sold merchandise inventory that cost $45,000 for $150,000 cash. May 10 Collected $23,000 cash on an account receivable. May 15 Paid $31,500 cash to settle an account payable. May 17 Wrote off a $5,000 bad debt against the Allowance for Doubtful Accounts account. May 22 Declared a $1 per share cash dividend on its 58,000 shares of outstanding common stock. May 26 Paid the dividend declared on May 22. May 27 Borrowed $115,000 cash by giving the bank a 30-day, 10% note. May 28 Borrowed $130,000 cash by signing a long-term secured note. May 29 Used the $245,000 cash proceeds from the notes to buy new machinery. Required: Complete the table below showing Plum's…
YE Company ships inventory to its branch at a mark-up of 125% of cost. The required balance of the allowance for overvaluation account is P1,425,000. During the year, the home office sent merchandise to the branch costing P9,000,000. At the start of the year, the branch's Statement of Financial Position shows P1,800,000 of inventory on hand that was acquired from the home office. How much is the amount to be debited to the allowance for overvaluation in branch inventory at the end of the year? A.1,225,000B.2,610,000C.1,425,000D.1,185,000