Financial Accounting (12th Edition) (What's New in Accounting)
12th Edition
ISBN: 9780134725987
Author: C. William Thomas, Wendy M. Tietz, Walter T. Harrison Jr.
Publisher: PEARSON
expand_more
expand_more
format_list_bulleted
Textbook Question
Chapter 6, Problem 6.52Q
The following data come from the inventory records of Albrecht Company:
Net sales revenue ......................................................................... | $623,000 |
Beginning inventory .................................................................... | 65,000 |
Ending inventory .......................................................................... | 47,000 |
Net purchases ................................................................................ | 400,000 |
Based on these facts, the gross profit for Albrecht Company is
a. $120,000.
b. $223,000.
c. $195,000.
d. $205,000.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
Van Dyke Copier inventory data for the year ended December 31, 2008 is as follow:
Sales Revenue……………………………………………… $50,000
Cost of Goods Sold:
Beginning Inventory………………………….. $ 4,200
Net Purchases…………………………………… 27,400
Cost of Goods Available……………………… 31,600
Ending Inventory……………………………… (4,600) 27,000
Gross Profit………………………………………………… $23,000
a) Assume that ending inventory was accidentally overstated by $1,000. What are the correct
amounts for cost of goods sold and gross profit?
b) How would the inventory error affect cost of goods sold and gross profit for the year ended
December 31, 2009?
The following data were extracted from the accounting records of Meniscus Company for the year ended June 30, 2008:
Merchandise inventory, July 1, 2007 . . . . . . . . . . . . $ 183,250
Merchandise inventory, June 30, 2008 . . . . . . . . . . 200,100
Purchases . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,279,600
Purchases returns and allowances . . . . . . . . . . . . . . 41,200
Purchases discounts . . . . . . . . . . . . . . . . . . . . . . . . . . 20,500
Sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,800,000
Transportation in . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17,250
a. Prepare the cost of merchandise sold section of the income statement for the year ended June 30, 2008, using the periodic inventory system.
b. Determine the gross profit to be reported on the income statement for the year ended June 30, 2008.
M6-14. Computing Cost of Goods Sold and Ending Inventory Under FIFO, LIFO, and Average Cost
Wong Corporation reports the following beginning inventory and inventory purchases.
Inventory balance at beginning of year. ..………………..
Inventory purchased during the year
Cost of goods available for sale during the year
.………..
a. FIFO
b. LIFO
c. Average Cost
400 units @ $12 each
700 units @ $14 each
1,100 units
$ 4,800
9,800
$14,600
Wong sells 600 of its inventory units during the year. Compute the cost of goods sold for the year and
the inventory on the year-end balance sheet under the following inventory costing methods.
LO1
Homework
MBC
Chapter 6 Solutions
Financial Accounting (12th Edition) (What's New in Accounting)
Ch. 6 - Ravenna Candles recently purchased candleholders...Ch. 6 - Which inventory system maintains a running record...Ch. 6 - How is cost of goods sold classified in the...Ch. 6 - Snyders total cost of goods available for sale...Ch. 6 - Snyders cost of goods sold using the average-cost...Ch. 6 - Snyders ending inventory using the FIFO method...Ch. 6 - Snyders cost of goods sold using the LIFO method...Ch. 6 - Which U.S. GAAP principle or rule would apply if...Ch. 6 - Corrigan Corporation had beginning inventory of...Ch. 6 - Corrigans gross profit for the period is a.79,000....
Ch. 6 - What is Corrigans gross profit percentage (rounded...Ch. 6 - Prob. 12QCCh. 6 - A companys beginning inventory is 150,000, its net...Ch. 6 - An understatement of ending inventory by 2 million...Ch. 6 - Prob. 6.1ECCh. 6 - LO 1 (Learning Objective 1: Show how to account...Ch. 6 - LO 1 (Learning Objective 1: Show how to account...Ch. 6 - LO 1 (Learning Objective 1: Show how to account...Ch. 6 - (Learning Objective 2: Apply the average-cost,...Ch. 6 - (Learning Objective 2: Compare income tax effects...Ch. 6 - LO 2 (Learning Objective 2: Apply the average-cost...Ch. 6 - (Learning Objective 2: Apply the FIFO method)...Ch. 6 - (Learning Objective 2: Apply the LIFO method)...Ch. 6 - (Learning Objective 2: Compare income, tax, and...Ch. 6 - LO 3 (Learning Objective 3: Apply the...Ch. 6 - (Learning Objective 4: Compute ratio data to...Ch. 6 - (Learning Objective 5: Estimate ending inventory...Ch. 6 - (Learning Objective 6: Analyze the effect of an...Ch. 6 - Prob. 6.14SCh. 6 - LO 1,2 (Learning Objectives 1, 2: Show how to...Ch. 6 - LO 1,2 (Learning Objectives 1, 2: Show how to...Ch. 6 - LO 2 (Learning Objective 2: Compare ending...Ch. 6 - (Learning Objective 2: Compare the tax advantage...Ch. 6 - Prob. 6.19AECh. 6 - LO 2 (Learning Objective 2: Compare ending...Ch. 6 - LO 2 (Learning Objective 2: Compare gross...Ch. 6 - Prob. 6.22AECh. 6 - LO 5 (Learning Objective 5: Compute cost of goods...Ch. 6 - Prob. 6.24AECh. 6 - LO 4 (Learning Objective 4: Compute and evaluate...Ch. 6 - LO 5 (Learning Objective 5: Use the COGS model to...Ch. 6 - LO 5 (Learning Objective 5: Use the COGS model to...Ch. 6 - LO 6 (Learning Objective 6: Analyze the effect of...Ch. 6 - LO 1, 2 (Learning Objectives 1, 2: Show how to...Ch. 6 - LO 1, 2 (Learning Objectives 1, 2: Show how to...Ch. 6 - LO1, 2 (Learning Objectives 1, 2: Show how to...Ch. 6 - Prob. 6.32BECh. 6 - LO 2 (Learning Objective 2: Apply the average,...Ch. 6 - Prob. 6.34BECh. 6 - Prob. 6.35BECh. 6 - Prob. 6.36BECh. 6 - Prob. 6.37BECh. 6 - Prob. 6.38BECh. 6 - Prob. 6.39BECh. 6 - Prob. 6.40BECh. 6 - Prob. 6.41BECh. 6 - Prob. 6.42BECh. 6 - Prob. 6.43QCh. 6 - Prob. 6.44QCh. 6 - Prob. 6.45QCh. 6 - The word market as used in the lower of cost or...Ch. 6 - Prob. 6.47QCh. 6 - Prob. 6.48QCh. 6 - Prob. 6.49QCh. 6 - In a period of rising prices, a.cost of goods sold...Ch. 6 - Prob. 6.51QCh. 6 - The following data come from the inventory records...Ch. 6 - Prob. 6.53QCh. 6 - Prob. 6.54QCh. 6 - Prob. 6.55QCh. 6 - Prob. 6.56QCh. 6 - Prob. 6.57QCh. 6 - Prob. 6.58QCh. 6 - Prob. 6.59QCh. 6 - LO 1, 2 (Learning Objectives 1, 2: Show how to...Ch. 6 - Prob. 6.61APCh. 6 - LO 2 (Learning Objective 2: Compare inventory by...Ch. 6 - LO 2 (Learning Objective 2: Compare various...Ch. 6 - Prob. 6.64APCh. 6 - (Learning Objective 4: Compute and evaluate gross...Ch. 6 - LO 4, 5 (Learning Objectives 4, 5: Compute gross...Ch. 6 - Prob. 6.67APCh. 6 - Prob. 6.68APCh. 6 - Prob. 6.69BPCh. 6 - LO 2 (Learning Objective 2: Apply various...Ch. 6 - Prob. 6.71BPCh. 6 - LO 2 (Learning Objective 2: Compare various...Ch. 6 - LO 3 (Learning Objective 3: Explain GAAP and apply...Ch. 6 - Prob. 6.74BPCh. 6 - Prob. 6.75BPCh. 6 - LO 5 (Learning Objective 5: Use the COGS model to...Ch. 6 - Prob. 6.77BPCh. 6 - Prob. 6.78CEPCh. 6 - Prob. 6.79CEPCh. 6 - Prob. 6.80CEPCh. 6 - Prob. 6.81CEPCh. 6 - Prob. 6.82SCCh. 6 - Prob. 6.83DCCh. 6 - Prob. 6.85EICCh. 6 - Prob. 1FFCh. 6 - Prob. 1FA
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- A. First In, First Out Number of Units Dollar Per Unit Value Total Value Ending Inventory ... ... ... B. Last In, First Out Number of Units Dollar Per Unit Value Total Value Ending Inventory ... C. Weighted Average Number of Units Dollar Per Unit Value Total Value Ending Inventory ... ...arrow_forward1. Inventory turnover is calculated as __________ divided by __________. cost of goods sold; inventory cost of goods sold; average inventory cost of goods sold; total assets average inventory; cost of goods sold 2. The number of days’ sales in inventory is calculated as __________ divided by __________. average inventory; average daily cost of goods sold ending inventory; cost of goods sold net income; sales cost of goods sold; average inventoryarrow_forwardAt the end of the year, Nancy Company had $55,000 of inventory on hand. While the perpetual records showed $50,000 in inventory account, the adjusting entry required at year end is: Merchandise inventory ………5,000 Cash………………………………5,000 Income summary………………….5,000 Cost of goods sold…………..5,000 Merchandise inventory………………………5,000 Cost of goods sold ……………5,000 Cost of goods sold …………………5,000 Merchandise inventory…………5,000arrow_forward
- Epsilon Corp. reported the following information for the current year: Beginning inventory. Purchases. .P 5,000,000 26,000,000 2,000,000 3,500,000 1,500,000 40,000,000 3,000,000 500,000 1,000,000 Freight In. Purchase returns and allowances. Purchase discounts.. Sales.... Sales returns. Sales allowances. Sales discounts. The physical count taken at year-end resulted in an ending inventory of P 4,000,000. At year- end, unsold merchandise out on consignment with selling price of P 1,000,000 are in the hands of a consignee. The gross profit was 40% on sales. 5. What is the cost of goods available for sale? A. P 28,000,000 6. What is the cost of sales? A. P21,900,000 7. What is the estimated cost of inventory shortage? A. P1,800,000 В. Р31,000,000 С. Р 3,000,000 D. P 29,500,000 В. Р 22,200,000 C. P21,300,000 D. P 24,000,000 В. Р 2,700,000 С.Р 1,200,000 D. P2,100,000arrow_forwarda. Determine the total inventory of the branch on January 1 and December 31, at cost. b. Determine the cost of sales of the branch at cost. c. Determine the true net income of the branch. d. Determine the consolidated net income.arrow_forwardJC Penney Company uses LIFO in applying the lower-of-cost-or-market. Recent financial state-ments were used to compile the following information (dollar figures in millions): Average inventory (throughout the year) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 3,142Current assets (at year-end) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,652Current liabilities (at year-end) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,249Net sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17,556Cost of goods sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,646Gross profit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,910Average time required to collect outstanding receivables…arrow_forward
- On May 17, it was discovered that a material amount of inventory had been stolen. A physical count discloses that P55,000 of merchandise was on hand as of May 17. The following additional data is available from the accounting records: Inventory, January 1 ...................................................................... P 62,000 Purchases, January 1 - May 17 (includes P4,000 shipped FOB shipping point May 16, received May 19) ...............................114,000 Sales (goods delivered to customers), Jan 1 - May 17........90,000 Records indicate that the company's gross profit has averaged 40 percent of selling prices. Estimate the amount of loss due to theft.arrow_forwardAssume that Whispering Winds Company has cost of goods purchased of $478,300, beginning inventory of $66,700, ending inventory of $90,400, and sales of $770,100.Determine the amounts to be reported for cost of goods sold and gross profit. Cost of goods sold $ Gross profit $arrow_forwardThe following table shows some selected financial information of ABC Company. Gross sales.... OMR 97000, Sales returns and discounts.... OMR 7000. Opening Inventory....OMR 4000 Total Purchases.... OMR 56000 Purchase returns... OMR 4000 Closing Inventory... OMR 8000 According to the given information, which of the following shows the correct Inventory Turnover Ratio? Select one: O a. 5 b. 8 O C. 7 d. 6arrow_forward
- Corrigan Corporation had beginning inventory of $20,000 and ending inventory of $24,000. Itsnet sales were $164,000 and net purchases were $81,000.9. Corrigan’s cost of goods sold for the period isa. $63,000.b. $77,000.c. $85,000.d. $79,000.arrow_forwardCompute the ff: 1. Total Sales 2. Cost of Sales 3. Consignment profit 4. Value of Inventory on Consignmentarrow_forward40) The difference between Net sales and Cost of goods sold is referred as _____________. a. Gross profit b. Income statement c. Balance sheet d. Inventoryarrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- AccountingAccountingISBN:9781337272094Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.Publisher:Cengage Learning,Accounting Information SystemsAccountingISBN:9781337619202Author:Hall, James A.Publisher:Cengage Learning,
- Horngren's Cost Accounting: A Managerial Emphasis...AccountingISBN:9780134475585Author:Srikant M. Datar, Madhav V. RajanPublisher:PEARSONIntermediate AccountingAccountingISBN:9781259722660Author:J. David Spiceland, Mark W. Nelson, Wayne M ThomasPublisher:McGraw-Hill EducationFinancial and Managerial AccountingAccountingISBN:9781259726705Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting PrinciplesPublisher:McGraw-Hill Education
Accounting
Accounting
ISBN:9781337272094
Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:Cengage Learning,
Accounting Information Systems
Accounting
ISBN:9781337619202
Author:Hall, James A.
Publisher:Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis...
Accounting
ISBN:9780134475585
Author:Srikant M. Datar, Madhav V. Rajan
Publisher:PEARSON
Intermediate Accounting
Accounting
ISBN:9781259722660
Author:J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:9781259726705
Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:McGraw-Hill Education
How to Calculate your Income Tax? Step-by-Step Guide for Income Tax Calculation; Author: ETMONEY;https://www.youtube.com/watch?v=QdJKpSXCYmQ;License: Standard YouTube License, CC-BY
How to Calculate Federal Income Tax; Author: Edspira;https://www.youtube.com/watch?v=2LrvRqOEYk8;License: Standard Youtube License