EBK HORNGREN'S COST ACCOUNTING
16th Edition
ISBN: 9780134475950
Author: Datar
Publisher: PEARSON CO
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Textbook Question
Chapter 2, Problem 2.34P
Computing cost of goods purchased and cost of goods sold. The following data are for Marvin Department Store. The account balances (in thousands) are for 2017.
| Marketing, distribution, and customer-service costs | $ 37,000 |
| Merchandise inventory, January 1, 2017 | 27,000 |
| Utilities | 17,000 |
| General and administrative costs | 43,000 |
| Merchandise inventory, December 31, 2017 | 34,000 |
| Purchases | 155,000 |
| Miscellaneous costs | 4,000 |
| Transportation-in | 7,000 |
| Purchase returns and allowances | 4,000 |
| Purchase discounts | 6,000 |
| Revenues | 280,000 |
- 1. Compute (a) the cost of goods purchased and (b) the cost of goods sold.
Required
- 2. Prepare the income statement for 2017.
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Students have asked these similar questions
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.
Presented below is information for Obley Company for the month of March 2010.
Cost of goods sold $212,000 Rent expense $ 32,000
Freight-out 7,000 Sales discounts 8,000
Insurance expense 12,000 Sales returns and allowances 13,000
Salary expense 58,000 Sales 370,000
Instructions
Prepare a multiple-step income statement.
Crystal Inc. is a merchandiser of stone ornaments. The company sold 15,000 units in 2015. The company has provided the following information:
Sales Revenue
$557,000
Purchases (excluding freight in)
300,000
Selling and Administrative Expenses
69,000
Freight In
15,000
Beginning Merchandise Inventory
45,000
Ending Merchandise Inventory
55,700
What is the cost per unit sold?
A) $20.29
B) $15.00
C) $23.88
D) $12.25
Chapter 2 Solutions
EBK HORNGREN'S COST ACCOUNTING
Ch. 2 - Define cost object and give three examples.Ch. 2 - Define direct costs and indirect costs.Ch. 2 - Prob. 2.3QCh. 2 - Name three factors that will affect the...Ch. 2 - Define variable cost and fixed cost. Give an...Ch. 2 - What is a cost driver? Give one example.Ch. 2 - What is the relevant range? What role does the...Ch. 2 - Explain why unit costs must often be interpreted...Ch. 2 - Prob. 2.9QCh. 2 - What are three different types of inventory that...
Ch. 2 - Distinguish between inventoriable costs and period...Ch. 2 - Define the following: direct material costs,...Ch. 2 - Describe the overtime-premium and idle-time...Ch. 2 - Define product cost. Describe three different...Ch. 2 - What are three common features of cost accounting...Ch. 2 - Prob. 2.16MCQCh. 2 - Comprehensive Care Nursing Home is required by...Ch. 2 - Frisco Corporation is analyzing its fixed and...Ch. 2 - Year 1 financial data for the ABC Company is as...Ch. 2 - The following information was extracted from the...Ch. 2 - Computing and interpreting manufacturing unit...Ch. 2 - Direct, indirect, fixed, and variable costs....Ch. 2 - Classification of costs, service sector. Market...Ch. 2 - Classification of costs, merchandising sector....Ch. 2 - Classification of costs, manufacturing sector. The...Ch. 2 - Variable costs, fixed costs, total costs. Bridget...Ch. 2 - Variable and Fixed Costs. Consolidated Motors...Ch. 2 - Variable costs, fixed costs, relevant range. Gummy...Ch. 2 - Prob. 2.29ECh. 2 - Cost drivers and functions. The representative...Ch. 2 - Total costs and unit costs, service setting....Ch. 2 - Total and unit cost, decision making. Gayles...Ch. 2 - Inventoriable costs versus period costs. Each of...Ch. 2 - Computing cost of goods purchased and cost of...Ch. 2 - Cost of goods purchased, cost of goods sold, and...Ch. 2 - Flow of Inventoriable Costs. Renkas Heaters...Ch. 2 - Cost of goods manufactured, income statement,...Ch. 2 - Cost of goods manufactured, income statement,...Ch. 2 - Income statement and schedule of cost of goods...Ch. 2 - Interpretation of statements (continuation of...Ch. 2 - Income statement and schedule of cost of goods...Ch. 2 - Terminology, interpretation of statements...Ch. 2 - Labor cost, overtime, and idle time. David...Ch. 2 - Missing records, computing inventory costs. Ron...Ch. 2 - Comprehensive problem on unit costs, product...Ch. 2 - Prob. 2.46PCh. 2 - Cost classification; ethics. Paul Howard, the new...Ch. 2 - Prob. 2.48P
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