JC Manufacturing purchase d inventory for $ 5,300 and al so paid a $260 freight bill. JC Manufacturing returned 45% of the goods to the seller and later took a 2% purchase discount. Assume JC Manufacturing uses a perpetual inventory system. What is JC Manufacturing’s final cost of the inventory that it kept? (Round your answer to the nearest whole number.)
a. $2, 997
b. $2,337
c. $3,117
d. $2,857
Learn your wayIncludes step-by-step video
Chapter 5 Solutions
Horngren's Financial & Managerial Accounting, The Financial Chapters (6th Edition)
Additional Business Textbook Solutions
Managerial Accounting (4th Edition)
Horngren's Accounting (11th Edition)
Principles of Accounting Volume 2
Managerial Accounting (5th Edition)
Horngren's Cost Accounting: A Managerial Emphasis (16th Edition)
Cost Accounting (15th Edition)
- Discounts Nelson Company bought inventory for 50,000 on terms of 2/15, n/60. It pays for the first 37,500 of inventory purchased within the discount period and pays for the remaining 12,500 two months later. Required: 1. Prepare the journal entries to record the purchase and the payment under both the (a) gross price and (b) net price methods. Assume that Nelson uses the periodic inventory system. 2. Next Level Which of the two methods yields a conceptually preferable valuation of inventory?arrow_forwardLower of Cost or Market Garcia Company uses FIFO, and its inventory at the end of the year was recorded in the accounting records at $17,800. Due to technological changes in the market, Garcia would be able to replace its inventory for $16,500. Required: 1. Using the lower of cost or market method, what amount should Garcia report for inventory on its balance sheet at the end of the year? 2. Prepare the journal entry required to value the inventory at the lower of cost or market.arrow_forwardAnalyzing the Accounts Casey Company uses a perpetual inventory system and engaged in the following transactions: a. Made credit sales of $825,000. The cost of the merchandise sold was $560,000. b. Collected accounts receivable in the amount of $752,600. c. Purchased goods on credit in the amount of $574,300. d. Paid accounts payable in the amount of $536,200. Required: Prepare the journal entries necessary to record the transactions. Indicate whether each transaction increased cash, decreased cash, or had no effect on cash.arrow_forward
- Refer to the information for Morgan Inc. above. If Morgan uses a perpetual inventory system, what is the cost of ending inventory under FIFO at April 30? a. $32,500 b. $38,400 c. $63,600 d. $69,500arrow_forwardKulsrud Company would like to estimate the current inventory level. Using the gross profit method and the following information, estimate the current inventory level for Kulsrud Company. Goods available for sale 100,000 Net sales 150,000 Normal gross profit as a percent of sales 40%arrow_forwardBlack Corporation uses the LIFO cost flow assumption. Each unit of its inventory has a net realizable value of 300, a normal profit margin of 35, and a current replacement cost of 250. Determine the amount per unit that should be used as the market value to apply the lower of cost or market rule to determine Blacks ending inventory.arrow_forward
- Maxwell Corporation has the following inventory information at the end of the year: Inventory Item A Item B Item C Quantity 20 50 40 Multiple Choice Using the lower of cost and net realizable value method, for what amount would Maxwell report ending inventory? $2,300. $2,050. O $2,550. Unit Cost $20 30 10 O $2,800. Unit NRV $35 25 15arrow_forwardFunky Dance sold Inventory for $250,000, terms 1/10, n/30. Cost of goods sold was $168,000 How much sales revenue will Funky Dance report from the sale? (Assume the company records sales at the net amount.) OA $247,500 B. $250,000 C. $82,000 O D. $168,000arrow_forwardAssume the perpetual inventory system is used. 1) Green Company purchased merchandise inventory that cost $17,900 under terms of 2/10, n/30 and FOB shipping point 2) Green Company paid freight cost of $790 to have the merchandise delivered. 3) Payment was made to the supplier on the inventory within 10 days. 4) All of the merchandise was sold to customers for $27,300 cash and delivered under terms FOB destination with freight cost amounting to $590. What is the amount of gross margin that results from these transactions? Multiple Choice $9,168 $8,968 $8,378 $9,758arrow_forward
- ABC Co. uses a perpetual inventory system and uses the LIFO cost flow assumption. Calculate the dollar value of its cost of goods sold for the sale made on Jan. 10. Jan 1 Beginning Inventory 8 @ $12= $96 Jan 5 Purchase 12 @ $15= $180 Jan 10 Sale 11 units x $50 each Multiple choice question. $141 $198 $550 $165arrow_forward4. Inventory valuation Your firm had 450 units of product A on hand at January 1, 2021, costing $10 each. Purchases of product A during January, 2021 were as follows: Date Unit Cost Units 600 Jan. 10 $12 18 750 13 28 300 14 Your firm made one sale of 300 units at $20/unit on Jan. 15 and another sale of 700 units at $25/unit on Jan. 20. Required a. Determine the cost of goods sold and ending inventory on January 31, 2012 under the LIFO method and periodic inventory system is? b. Determine the cost of goods sold and ending inventory on January 31, 2012 under the FIFO method and perpetual inventory system is? c. Determine the cost of goods sold and ending inventory at January 31, 2012 under the weighted average method and periodic inventory system is?arrow_forwardSample Company has the following data available: Transaction Beginning Inventory March 1 Purchase April 25 Sale June 10 Purchase July 20 Sale October 30 Purchase December 15 Sale Units Purchased Unit Cost Units Sold 400 $10 200 $13 350 300 $14 250 350 $18 400 If Sample Company uses a perpetual FIFO inventory system, the cost of goods sold for the year is A. $10,000 B. $12,600 C. $12,350 D. $13,950arrow_forward
- Cornerstones of Financial AccountingAccountingISBN:9781337690881Author:Jay Rich, Jeff JonesPublisher:Cengage LearningIntermediate Accounting: Reporting And AnalysisAccountingISBN:9781337788281Author:James M. Wahlen, Jefferson P. Jones, Donald PagachPublisher:Cengage LearningFinancial Accounting: The Impact on Decision Make...AccountingISBN:9781305654174Author:Gary A. Porter, Curtis L. NortonPublisher:Cengage Learning
- Principles of Accounting Volume 1AccountingISBN:9781947172685Author:OpenStaxPublisher:OpenStax CollegeCollege Accounting, Chapters 1-27AccountingISBN:9781337794756Author:HEINTZ, James A.Publisher:Cengage Learning,