TB Problem 6-194 (Algo) Turquoise, Incorporated is trying to decide... Turquoise, Incorporated is trying to decide whether to purchase identical inventory from one of the following suppliers: Supplier A $290 2/10, n/30 Supplier B $300 3/10, n/30 FOB shipping point FOB destination $29 $31 Cost Invoice terms Shipping terms Shipping cost Required: Assume the company will pay within the discount period. What is the actual cost of the inventory if purchased from each supplier? (Round your final answers to 2 decimal places.) Supplier A Supplier B Actual cost

TB Problem 6-194 (Algo) Turquoise, Incorporated is trying to decide... Turquoise, Incorporated is trying to decide whether to purchase identical inventory from one of the following suppliers: Supplier A $290 2/10, n/30 Supplier B $300 3/10, n/30 FOB shipping point FOB destination $29 $31 Cost Invoice terms Shipping terms Shipping cost Required: Assume the company will pay within the discount period. What is the actual cost of the inventory if purchased from each supplier? (Round your final answers to 2 decimal places.) Supplier A Supplier B Actual cost

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter10: Inventory

Section: Chapter Questions

Problem 4MC: If goods are shipped FOB destination, which of the following is true? A. Title to the goods will...

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Garcia Company is trying to decide whether to purchase identical inventory from one of the following suppliers. Cost Invoice terms Shipping terms Shipping cost Supplier A $280 1/10, n/30 FOB shipping point $28 Supplier B $290 2/10, n/30 FOB destination $30 Required: Assume the company will pay within the discount period. What is the actual cost of the inventory if purchased from each supplier?
A retailer pays on credit for $650 worth of inventory, terms 3/10, n/40. If the merchandiser pays within the discount window, how much will the retailer remit in cash to the manufacturer? Assume the perpetual inventory system is used. A.$650 B.$19.50 C.$195 D.$630.50
v2.cengagenow.com Purchase-Related Transactions A retailer is considering the purchase of 1,000 units of a specific item from either of two suppliers. Their offers are as follows: Supplier One: $34.80 a unit, 1/10, n/30, no charge for freight. Supplier Two: $35.00 a unit, 2/10, n/30, plus freight of $200. Price of Supplier One: $ X Price of Supplier Two: X Which of the two offers, Supplier One or Supplier Two, yields the lower price? Supplier One Feedback Check My Work Calculate the total price for each offer, keeping in mind that the discount is deducted from the total price and the freight is added.
A firm utilizes a periodic inventory cost system with a Last-In, First-Out (LIFO) cost flow assumption. What does the firm report as the lower of cost or market for the following two items? Item A Item B Costs to have inventory ready for sale $4 $0 Current Cost to Replace $50 $55 Estimated Selling Price $62 $70 Estimated Normal Profit Margin $12 $12 Cost per the accounting record $60 $60 Group of answer choices Item A: $46, Item B: $55 Item A: $46, Item B: $58 Item A: $46, Item B: $60 Item A: $50, Item B: $55 Item A: $50, Item B: $58
If goods are shipped FOB destination, which of the following is true? A. Title to the goods will transfer as soon as the goods are shipped. B. FOB indicates that a price reduction has been applied to the order. C. The seller must pay the shipping. D. The seller and the buyer will each pay 50% of the cost.
A retailer pays on credit for $650 worth of inventory, terms 3/10, n/40. If the merchandiser pays within the discount window, how much will the retailer remit in cash to the manufacturer? A. $19.50 B. $630.50 C. $650 D. $195
Estimates of price-level changes for specific inventories are required for which of the following inventory methods? a. conventional retail b. weighted average cost c. FIFO d. dollar-value retail LIFO
Required information Problem 5-1A (Algo) Perpetual: Alternative cost flows LO P3 [The following information applies to the questions displayed below.] Warnerwoods Company uses a perpetual inventory system. It entered into the following purchases and sales transactions for March. Date March 1 March 5 March 9 March 18. March 25 March 29 Gross Margin Sales Less: Cost of goods sold Gross profit Beginning inventory Purchase Sales Purchase Purchase. Activities Sales Totals $ $ FIFO Problem 5-1A (Algo) Part 4 4. Compute gross profit earned by the company for each of the four costing methods. For specific identification, units sold include 120 units from beginning inventory, 250 units from the March 5 purchase, 100 units from the March 18 purchase, and 140 units from the March 25 purchase. (Round weighted average cost per unit to two decimals and final answers to nearest whole dollar.) 40,570 $ 25.220 15,350 $ Units Acquired at Cost 210 units @ $53.20 per unit 280 units $58.20 per unit LIFO…
For each of the following Mary Paz Abad Retailers purchases, assume that credit terms are 2/10n/30 and that any purchase returns was known before Mary Paz Abad Retailers made the payments.Freight Prepaid PurchasePurchases (by seller) Returnsa. P12,000 FOB Shipping Point 1,000 P3,000b. 24,000 FOB Destination 2,400 2,000c. 28,000 FOB Shipping Point 4,000Shipping TermsPage 1 of 6d. 40,000 FOB Shipping Point 3,000Required:a. Determine the cash discount available.b. Determine the cash remitted if payment is made within the discount period.
A wholesaler sold merchandise inventory with in invoice price RO 160,000 to the customer of business and credit terms are 3/10, n/60. What is the net cost of the goods sold assuming that if the retailer made the payment within the discount period? a. RO 4800 b. RO 144,000 c. RO 155,200 d. RO 160,000
Match the term with its definition. ^ Average Cost Method Dollar-Value LIFO First-In, First-Out Method FO.B. Destination Title to goods in tasit pass, [Choose ] Time Elapsed: Hide Time Attempt due: Apr 7 at 11:59pm 15 Hours, 27 Minutes, 42 Seconds Assets that a company holds for sale in the ordinary course of business or will use or consume in the production of goods to be sold. Correct Answer An inventory costing method that records the purchase of all inventory in a "Purchases" account. Requires numerous calculations to arrive at cost of goods sold. Correct Answ An inventory costing method that requires the "Inentory" account to be an active account. Provides a continuous record of the balances in both the Inventory and the Cost of Title to goods in transit pass, and are recorded on the buyers books, when the goods leave the seller's place of business. Buyer is responsible for the freight costs. Correct Ans A cost flow assumption that assumes cost of goods sold consists of the most…
Practice Problem #4: Assume a perpetual inventory system. Journalize the following sales related transactions. a) Purchased merchandise on account from B Co., list price P20,000, trade discount 25%, terms FOB shipping point, 2/10, n/30, with prepaid transportation costs of P650 added to the invoice. b) Purchased merchandise on account from C Co., P8,000, terms FOB destination, 1/10, n/30. c) Sold merchandise on account to D Co., P9,800, terms 2/10, n/30. The cost of the merchandise sold was P5,800. d) Returned P2,000 of merchandise purchased from C Co. (b) e) Paid B Co. on account for purchase in (a) less discount. f) Received merchandise returned by D Co. from sale in (c), P1,800. The cost of the merchandise returned was P1,080. g) Paid C Co. on account for purchase in (b) less return (d) and discount. h) Received cash on account from D Co. for sale in (c) less return (f) and discount. i) Perpetual inventory records indicate that P85,000 of merchandise should be on hand. The physical…