Concept explainers
Problem 18-5A Inventory computation and reporting C4 P1 Shown here are annual financial data taken from two different companies.
Musk World Wave-Board
Retail Manufacturing
Beginning inventory
Merchandise...................... $200,000
Finished goods..................... 1500,000
Cost of purchases..................... 300,000
Cost of goods manufactured............ 375,000
Ending inventory
Merchandise...................... 175,000
Finished goods..................... 225,000
Required
1. Compute the cost of goods sold section of the income statement for the year for each company.
Check (1) Wave-Board's cost of goods sold, $1,150,000
2. Identify the inventory accounts and describe where each is reported on the income statement and balance sheet for both companies.
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Chapter 18 Solutions
FUND OF ACCT PRIN(LOOSE-LEAF)+ACCESS
- Date 8-1 8-3 8-14 8-31 Transaction Beginning Inventory Purchase Purchase Purchase Goods Available for Sale $500 $602 $15 Units 5 14436 Unit Cost $100 125 130 135 Total Cost $500 500 520 405 $1,925 At the end of August, a physical count is taken and there are 5 units of inventory left on August 31. Using the information found in the table above. If the firm uses a periodic system and the weighted average cost flow assumption, the value of the ending inventory (roundedarrow_forwardProblem 14-6 (IAA) Airborne Company used the average cost retail inventory method. Cost Retail Beginning inventory Net purchases Departmental transfer - credit Net markup Inventory shortage - sales price Employee discounts Sales, including sales of P400,000 of items which were marked down from P500,000 1,650,000 3,725,000 200,000 2,200,000 4,950,000 300,000 150,000 100,000 200,000 4,000,000 What is the estimated cost of ending inventory? a. 1,950,000 b. 2,600,000 c. 1,924,000 d. 2,250,000arrow_forwardQuestion 5 Opening and closing inventory balances and purchases for the month of May2020for CardiniaHearing Ltd are as follows: Units Per unit 7,000 $4.00 Inventory, 1 May Purchase, 3 May Purchase, 15 May Purchase, 20 May Inventory, 31May 8,000 4.10 11,000 4.20 15,000 4.25 20,000 Required: Determine the cost of goods sold for May under each of the following cost flow assumptions: (a) FIFO (b) Weighted average (c) LIFOarrow_forward
- Problem 11-6 (IAA) Total cost Unit cost Units 40. 400,000 1 Beginning 31 Sale 1 Purchase 31 Sale 1 Purchase December 31 Sale 10,000 5,000 15,000 18,000 25,000 12,000 January 50 750,000 April July October 60 1,500,00 Required: Compute the cost of the ending inventory and cost of goods sold using: a. FIFO periodic b. Weighted average c. Moving averagearrow_forwardQUESTION 10 Hazards company had the following data: $380 Beginning inventory (on May 1) Purchases during May Cost of goods sold during May $5,400 $5,740 Based on the above data, calculate ending inventory as of May 30. O $5,740 $40 $340 O $380arrow_forward
- Accounting (Text Only)AccountingISBN:9781285743615Author:Carl Warren, James M. Reeve, Jonathan DuchacPublisher:Cengage LearningCorporate Financial AccountingAccountingISBN:9781305653535Author:Carl Warren, James M. Reeve, Jonathan DuchacPublisher:Cengage Learning
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