Fundamental Accounting Principles
23rd Edition
ISBN: 9781259536359
Author: John J Wild, Ken Shaw Accounting Professor, Barbara Chiappetta Fundamental Accounting Principles
Publisher: McGraw-Hill Education
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Chapter 6, Problem 2E
Exercise 6-2
Inventory costs
C2
Walberg Associates, antique dealers, purchased the contents of an estate for $75,000. Terms of the purchase were FOB shipping point, and the cost of transporting the goods to Walberg Associates’s warehouse was $2,400. Walberg Associates insured the shipment at a cost of $300. Prior to putting the goods up for sale, they cleaned and refurbished them at a cost of $980. Determine the cost of the inventory acquired from the estate.
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Exercise 6-2 Inventory costs LO C2
Walberg Associates, antique dealers, purchased the contents of an estate for $37,700. Terms of the purchase were FOB shipping
point, and the cost of transporting the goods to Walberg Associates's warehouse was $1,300. Walberg Associates insured the
shipment at a cost of $170. Prior to putting the goods up for sale, they cleaned and refurbished them at a cost of $510.
Determine the cost of the inventory acquired from the estate.
Cost of inventory (estate's contents)
Total cost of inventory
Exercise 5-2 Inventory costs LO C2
Walberg Associates, antique dealers, purchased goods for $37,900. Terms of the purchase were FOB shipping point, and the cost of
transporting the goods to Walberg Associates's warehouse was $1,400. Walberg Associates insured the shipment at a cost of $190.
Prior to putting the goods up for sale, they cleaned and refurbished them at a cost of $530.
Determine the cost of inventory.
Cost of inventory
Total cost of inventory
ences
Mc
Graw
Hill
Exercise 5-2 (Algo) Inventory costs LO C1
Walberg Associates, antique dealers, purchased goods for $38,100. Terms of the purchase were FOB shipping point, and the cost of
transporting the goods to Walberg Associates's warehouse was $1,500. Walberg Associates insured the shipment at a cost of $210.
Prior to putting the goods up for sale, they cleaned and refurbished them at a cost of $550.
Determine the cost of inventory.
Cost of inventory
Total cost of inventory
$
0
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Chapter 6 Solutions
Fundamental Accounting Principles
Ch. 6 - Prob. 1DQCh. 6 - 2. Where is the amount of merchandise inventory...Ch. 6 - Prob. 3DQCh. 6 - Prob. 4DQCh. 6 - What does the full disclosure principle prescribe...Ch. 6 - Prob. 6DQCh. 6 - Prob. 7DQCh. 6 - Prob. 8DQCh. 6 - Prob. 9DQCh. 6 - What is the meaning of market as it is used in...
Ch. 6 - Prob. 11DQCh. 6 - Prob. 12DQCh. 6 - Prob. 13DQCh. 6 - Prob. 14DQCh. 6 - Prob. 15DQCh. 6 - Prob. 16DQCh. 6 - Prob. 17DQCh. 6 - Prob. 1QSCh. 6 - Prob. 2QSCh. 6 - Prob. 3QSCh. 6 - Prob. 4QSCh. 6 - Prob. 5QSCh. 6 - QS 64
Perpetual Inventory costing with weighted...Ch. 6 - Periodic: Inventory costing with FIFO P3 Refer to...Ch. 6 - Prob. 8AQSCh. 6 - Prob. 9AQSCh. 6 - Prob. 10QSCh. 6 - Prob. 11QSCh. 6 - Prob. 12QSCh. 6 - Prob. 13QSCh. 6 - Prob. 14AQSCh. 6 - Prob. 15AQSCh. 6 - Prob. 16AQSCh. 6 - Prob. 17AQSCh. 6 - Prob. 18QSCh. 6 - Prob. 19QSCh. 6 - Prob. 20QSCh. 6 - Prob. 21QSCh. 6 - Prob. 22BQSCh. 6 - International accounting standards C2 P2 Answer...Ch. 6 - Exercise 6.1 Inventory ownership I. At rear-end,...Ch. 6 - Exercise 6-2 Inventory costs C2 Walberg...Ch. 6 - Prob. 3ECh. 6 - Prob. 4ECh. 6 - Prob. 5AECh. 6 - Exercise 6-6A Periodic: Income effects of...Ch. 6 - Prob. 7ECh. 6 - Prob. 8ECh. 6 - Prob. 9AECh. 6 - Prob. 10ECh. 6 - Prob. 11ECh. 6 - Prob. 12ECh. 6 - Prob. 13ECh. 6 - Prob. 14AECh. 6 - Prob. 15AECh. 6 - Prob. 16BECh. 6 - Prob. 17BECh. 6 - Prob. 18ECh. 6 - Prob. 1APSACh. 6 - Prob. 2AAPSACh. 6 - Prob. 3APSACh. 6 - Prob. 4AAPSACh. 6 - Prob. 5APSACh. 6 - Prob. 6APSACh. 6 - Prob. 7AAPSACh. 6 - Prob. 8AAPSACh. 6 - Prob. 9ABPSACh. 6 - Prob. 10ABPSACh. 6 - Prob. 1BPSBCh. 6 - Problem 6-2BA
Periodic: Alternative cost...Ch. 6 - Prob. 3BPSBCh. 6 - Prob. 4BAPSBCh. 6 - Prob. 5BPSBCh. 6 - Prob. 6BPSBCh. 6 - Prob. 7BAPSBCh. 6 - Prob. 8BAPSBCh. 6 - Prob. 9BBPSBCh. 6 - Prob. 10BBPSBCh. 6 - Prob. 6SPCh. 6 - Prob. 1BTNCh. 6 - Prob. 2BTNCh. 6 - Prob. 3BTNCh. 6 - Prob. 4BTNCh. 6 - Prob. 5BTNCh. 6 - Prob. 6BTNCh. 6 - Review the chapter’s opening feature highlighting...Ch. 6 - Prob. 8BTNCh. 6 - Prob. 9BTN
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- Exercise 5-2 Inventory costs LO C2 Walberg Associates, antique dealers, purchased goods for $38,700. Terms of the purchase were FOB shipping point, and the cost of transporting the goods to Walberg Associates's warehouse was $1,80O. Walberg Associates insured the shipment at a cost of $270. Prior to putting the goods up for sale, they cleaned and refurbished them at a cost of $610. Determine the cost of inventory. Cost of inventory Total cost of inventory 24 < Prev 5 of 5 Next MacBook Airarrow_forwardChapter 1 46 Additional inforrmation: a Goods in transit, with an invoice cost of PS0,000 and purchased FOB shipping point, were recorded and included in the year-end physical count of inventory as "goods in transit." b. Goods in transit, with an invoice cost of P10,000 and purchased FOB destination, were recorded only on January 3, 20x2 when the shipment was received. c. Ego Co. returned damaged goods costing P20,000 on Dec. 29 20x1. However, Ego Co. recorded the related credit memo only on January 4, 20x2. d. On December 31, 20x1, Ego Co. recorded a P60,000 check payable to a supplier. The check was dated January 7, 20x2. How much are the adjusted balances of (1) Inventory and (2) Accounts payable on December 31, 20x1? a. 780,000; 1,000,000 b. 790,000; 1,010,000 c. 800,000; 1,000,000 d. 810,000; 1,010,000 9. Wooten Co. sells subscriptions for access to an online file sharing site. Subscriptions are collected in advance and credited to sales. An analysis of the recorded sales activity…arrow_forwardModule 5 Periodic and Perpetucal Inventory Homework 1) Please show how to record the following transactions in the periodic method of inventory 2) Please explain each answer to the following 7 questions. 1) Purchased $5000 of goods on account 2) Goods costing $35 were damaged and returned to the seller, the seller reduced the amount owed by $35. 3) New Sales Company found that items costing $95 were not ordered and could not be used. New Sales returned the items and the supplier reduced the amount owed. 4) Paid the seller the amount owed. 5) Sold inventory that cost us $300 for $525 on account 6) Freight to get the merchandise to our customer cost us $50 7) Accepted a return of merchandise which was the wrong color for the customer. Sold the merchandise for $72, and our cost was $56.arrow_forward
- Recording an Inventory Purchase FSET Shields Company has purchased inventories incurring the following costs (a) the invoice amount of $660, financed through a $550 note with the remainder paid in cash, (b) shipping charges of $33 on account, (c) interest of $11 accrued on the $550 borrowed to finance the purchase, and (d) 59 on account for the cost of moving the inventory to the company's warehouse a. Determine the cost to be assigned to the inventory. b. Record the transactions using the financial statement effects template Note: Use negative signs with your answers, when appropriate Transaction Purchase inventory D. Shipping charges Interest on note d. Cost of moving inventory Cash Asset .... *995 OU Noncash Asset *>* Balance Sheet Liabilities **** Contributed Capital SSSS Earned Capital Revenues AAAA Income Statement Expenses ARAK Net Incomearrow_forwardMODULE 5 INVENTORY PERPETUAL Please envision the following transactions. Please 1) Show how each would be recoreded and 2) explain the reason. I appreciate your help and answers. 1) Sold inventory that had cost us $800 for $1,000 on account to Smith. Freight to get the merchandise to our customer was paid by the customer. 2) Accepted a return of merchandise from the June 7 sale to Smith that was the wrong size for the customer. We had sold the merchandise for $300; our cost was $240. 3) Shipped merchandise that had cost us $940 to Jones. New Stuff billed the customer $1,175 on the sale and paid $25 in freight to get the merchandise to the customer 4) Gnu Company uses the perpetual method of recording inventory. Its records show Inventory on hand of $15,889. A count of the inventory, however, finds only $14,278 of inventory on hand. Record the entry needed by Gnu to correct its records. 5) George, Inc. uses the perpetual method of recording inventory. Its records show Inventory on…arrow_forwardPROBLEM 8.9 Comparison of Periodic and Perpetual Inventory Systems During the current year. Playground Specialists purchased six BigGym redwood playground set at the following dates and acquisition costs: Units Purchased Unit Cost Total Cost Date Aug. 4 $2,100 $ 4,200 Sept. 23 2,300 4,600 Oct. 2. Available for sale during the year 2.560 5,120 $13,920 On September 25. the company sold three of these BigGym sets to the Department of Parks and Recreation. The other three sets remained in inventory at December 31. 222611arrow_forward
- MODLUE 5 INVENTORY PERIODIC Please record the following transactions and explain your answer. 1) On June 7 sold inventory that had cost us $800 for $1,000 on account to Smith. Freight to get the merchandise to our customer was paid by the customer 2) Accepted a return of merchandise from the June 7 sale to Smith that was the wrong size for the customer. We had sold the merchandise for $300; our cost was $240. 3) Shipped merchandise that had cost us $940 to Jones. New Stuff billed the customer $1,175 on the sale and paid $25 in freight to get the merchandise to the customer. 4) Received a check for the Smith June 7 sale.arrow_forwardQuestion 40 Zions Bank lends Teton Company $150,000 on August 1. Teton Company signs a $150,000, 6%, 8-month note. entry made by Teton Company at the maturity of the note includes: (Round final calculations to the nearest dolla O a credit to Interest Payable of $3,750. a credit to Notes,Payable of $150,000. a debit to Interest Expense of $2,250. a credit to Cash of $150,000. Question 41 Which of the following depreciation methods will result in lower taxable income in earlier years and higher taxabl later years? units-of-production method depletion method straight-line method double-declining-balance methodarrow_forwardhelp mearrow_forward
- Brief Exercise 6-3 Calculate cost of goods sold (LO6-2) At the beginning of the year, Bryers Incorporated reports inventory of $7,400. During the year, the company purchases additional inventory for $22,400. At the end of the year, the cost of inventory remaining is $9,400. Calculate cost of goods sold for the year. e to search SUSarrow_forwardQuestion 5Consider the following transactions that occurred in April 2013 for Kings:April 3 Purchased inventory on terms 1/10, n/e.o.m. $7,000April 4 Purchased inventory for cash $1,800April 6 Returned $700 of inventory from April 4 purchaseApril 8 Sold goods on term of 2/15, n/35 of $6,000 that cost $2,940April 10 Paid for goods purchased on April 3April 12 Received goods from April 8 sale of $500 that cost $220April 23 Received payment from April 8 customerApril 25 Sold goods to Harrisons for $1,200 that cost $450. Terms of n/30 were offered.As a courtesy to Harrisons, $125 of freight was added to the invoice for whichcash was paid directly to UPS by Kings. April 29 Received payment from Harrison’sRequired:6- 6 -1. Journalize April transactions for kings. No explanations are required?arrow_forwardPROBLEM 40: OOO Company uses the retail inventory method. At the end of the current year, OOO Company suffered a fire loss that destroyed most of its inventory. After the fire, onlygoods with a selling price of P125,000, a cost of P100,000 and a net realizable value of P75,000was salvaged. The following information is available prior to the fire: Cost Retail Beginning inventory P 1,100,000 P 2,200,000 Purchases 15,800,000 26,300,000 Freight in 540,000 Purchase returns 600,000 1,000,000 Purchase allowances 300,000 Departmental transfer in 400,000 800,000 Markups 300,000 Cancelation of markdown 100,000 Departmental transfer out 350,000 900,000 Markdowns 800,000 Cancelation of markup 50,000 Sales 24,700,000 Sales returns 350,000 Sales discounts 200,000 Sales allowances 100,000 Employee discounts 600,000 Normal wastage 5% of sales What is the estimated ending inventory if OOO Company applies the average cost approach?arrow_forward
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