Manji Exercise 6-12 Estimating ending inventory-gross profit method LO6On January 1, The Parts Store had a $430,000 inventory at cost. During the first quarter of the year, it purchased $1,570,000 ofmerchandise, returned $22,100, and paid freight charges on purchased merchandise totalling $36,600. During the past several years,the store's gross profit on sales has averaged 30%. Under the assumption the store had $1,980,000 of sales during the first quarter ofthe year, use the gross profit method to estimate its inventory at the end of the first quarter.Ending inventory

Step 1: Cost of goods available for salePurchases$1,570,000Deduct: Purchase returns and allowances…

Answered: Exercise 6-12 Estimating ending…

Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter5: Inventories And Cost Of Goods Sold

Section: Chapter Questions

Problem 5.16E

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Communication Golden Eagle Company began operations on April 1 by selling a single product. Data on purchases and sales for the year are as follows: Sales April 16,000 units May 16,000 June 20,000 July 24,000 August 28,000 September 28,000 October 18,000 November 10,000 December 8,000 Total units 168,000 Total sales 10,000,000 The president of the company, Connie Kilmer, has asked for your advice on which inventory cost flow method should be used for the 32,000-unit physical inventory that was taken on December 31. The company plans to expand its product line in the future and uses the periodic inventory system. Write a brief memo to Ms. Kilmer comparing and contrasting the LIFO and FIFO inventory cost flow methods and their potential impacts on the companys financial statements.
Question 5 of 8 Current Attempt in Progress The records of Vaughn's Boutique report the following data for the month of April. Sales revenue Sales returns Additional markups Markup cancellations Markdowns Markdown cancellations Freight on purchases $197,000 Purchases (at cost) 4,000 Purchases (at sales price) 20,900 Purchase returns (at cost) 2,800 Purchase returns (at sales price) 19,900 Beginning inventory (at cost) 5,600 Beginning inventory (at sales price) 1,800 Compute the ending inventory by the conventional retail inventory method. Ending inventory using conventional retail inventory method $ $101,000 176,000 4,000 6,100 66.990 93,000 !!!!
Exercise 9-19 Presented below is information related to Flint Corporation for the current year. Beginning inventory $ 600,900 Purchases 1,523,000 Total goods available for sale $2,123,900 Sales revenue 2,435,000 Compute the ending inventory, assuming that (a) gross profit is 45% of sales, (b) gross profit is 60% of cost, (c) gross profit is 36% of sales, and (d) gross profit is 25% of cost. (Round ratios for computational purposes to 1 decimal place, e.g. 78.7% and final answers to 0 decimal places, e.g. 28,987.) Ending Inventory (a) Gross profit is 45% of sales (b) Gross profit is 60% of cost (c) Gross profit is 36% of sales (d) Gross profit is 25% of cost
QUESTION 6 A company had the following purchases during its first year of operations: Purchases Sales January April May 20 units at $7 30 units at $8 15 units at $14 The company uses the weighted-average method to determine the cost of its inventory. a. What is the weighted average cost per unit in May (round to one decimal place if necessary)? b. What is the cost of goods sold in May? c. What is the cost of ending inventory in May?
Exercise 9-14 Pearl Company uses the gross profit method to estimate inventory for monthly reporting purposes. Presented below is information for the month of May. $ 161,900 Inventory, May 1 Purchases (gross) 697,000 Freight-in 31,400 Sales revenue 924,000 Sales returns 73.200 Purchase discounts 12,100 Compute the estimated inventory at May 31, assuming that the gross profit is 25% of net sales. The estimated inventory at May 31 LINK ΤO ΤEXT LINK TO VIDEO Compute the estimated inventory at May 31, assuming that the gross profit is 25% of cost. (Round percentage of sales to 2 decimal places, e.g. 78.74% and final answer to o decimal places, e.g. 6,225.) The estimated inventory at May 31
QUESTION 28 A company using perpetual FIFO has the following data for August: Beginning inventory: 150 units purchased on July 15 for $11 each, and 200 units purchased on July 25 for $12 each. August 2: Sale of 80 units for $25 each August 5: Purchase of 100 units for $13 each What is the company's gross profit for the sale on August 2?
QUESTION 8 A company had the following purchases during its first year of operations: Purchases 10 units at $40 25 units at $20 Sales January March May 12 units at $60 The company uses FIFO method to determine its cost of inventory. a. What is the cost of goods sold in May? b. What is the total cost of goods purchased during the year?
Exercise 8.2 The Alpenrose Milk Company reported the following transactions which affected its merchandise inventory during the month of March: March 1 March 8 Inventory on hand- 3,000 units; cost $8.00 each. Purchased 5,000 units for $8.40 each. Sold 4,000 units for $14.00 each. Purchased 8,000 units for $8.60 each. Sold 7,000 units for $14.00 each. March 14 March 18 March 25 Required: Determine the inventory balance Alpenrose would report on its March 31 balance sheet and the cost of goods sold it would report on its March income statement using each of the following cost flow methods: 1. First-in, first-out (FIFO) - periodic and perpetual 2. Last-in, first-out (LIFO) - periodic 3. Average cost - periodic (weighted) and perpetual (moving)
Exercise 14-9A (Algo) Determining the amount of expected inventory purchases and cash payments LO 14-3 Rooney Company, which sells electric razors, had $350,000 of cost of goods sold during the month of June. The company projects a 8 percent increase in cost of goods sold during July. The inventory balance as of June 30 is $25,000, and the desired ending inventory balance for July is $26,000 Rooney pays cash to settle 75 percent of its purchases on account during the month of purchase and pays the remaining 25 percent in the month following the purchase. The accounts payable balance as of June 30 was $43,000. Required a. Determine the amount of purchases budgeted for July b. Determine the amount of cash payments budgeted for inventory purchases in July a Budgeted purchases b Cash payments
Question 6 Logo Gear purchased $1,301 worth of merchandise during the month, and its monthly income statement shows cost of goods sold of $4,635. What was the beginning inventory if the ending inventory was $3,711?
Problem 13 Four Company, which maintains it inventory using the perpetual system, had the followingbalances at the end of the year: Cost of Goods Sold 4,500,000Net Sales 6,000,000Inventory 1,200,000Accounts Payable 3,000,000Accounts Receivable 4,000,000 Compute the adjusted balances of the above items after considering the following information:-Four consigned to Ellie, at the beginning of December 2020, goods costing P100,000 andpaid freight of P5,000. The relevant commission is 5% of the selling price of P200,000. Bythe end of the year, Ellie has not remitted yet any of the sales but reported on January 5,2021 that by December 31, 2020, all of the goods were sold. The said inventory wasincluded in the physical count of the company.- The company sold on FOB shipping point goods costing P200,000 at selling price which is150% of cost on December 29, 2020, sale was recognized on the said date, and goodswere excluded from the inventory count. It was later found out that said goods were…
Question 3 Seasons Limited would like to estimate the month end inventory by using the sales revenue earned during the month. It has the following sales and purchases information for the month of September to consider. Inventory, 1 September $500,000 Purchase 1,300,000 Freight-in 50,000 2,100,000 40,000 Sales Sales returns Purchase discounts 90,000 3 Required: (a) Compute the estimated inventory at 30 September, assuming the gross profit on selling price is 30%. (b) Compute the estimated inventory at 30 September, assuming the percentage mark up on cost is 33.33%.

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