(A) Prepare a perpetual inventory record for All Things Auto, using the first in, first out (FIFO) method to determine the value of ending inventory at December 31, 2020, and the total amount to be assigned to cost of goods sold for the period. (B) Given that selling, distribution and administrative costs for the quarter were $23,445, $10,250 and$75,435 respectively, prepare an income statement for All Things Auto (DieHard) for the quarter ended December 31, 2020, to determine the net profit for the quarter. (C) Journalize the transactions on November 12 and November 27, assuming the business uses a: Perpetual inventory system Periodic inventory system
Q: Bonita, Inc. uses the dollar-value LIFO method of computing its inventory. Data for the past 3 years…
A: Date Inventory atEnd-of-year Prices Price Index Inventory at Base-year Prices Changefrom Prior Year…
Q: D Company began operations in 2018 and determined its ending inventory at cost and at a LCNRV at…
A: Answer 1
Q: 1. From the data above, calculate the Ending Inventory (quantity and cost), Cost of Goods Sold, and…
A: PT Water Canon sells two types of water pumps. One is for factory use and other is for housing use.…
Q: On January 2020, Roel Corp. Has th following inventory…
A: Inventory valuation method: First in First out Last in First out Weighted average method In the…
Q: The Ryan Corporation uses the periodic inventory method. The following data were available for the…
A: Note: As per the policy, we are supposed to solve the first three subparts at a time, kindly repost…
Q: Esquire Inc. uses the LIFO method to report its inventory. Inventory at January 1, 2021, was…
A: Under Last-in-First out method, inventory that is brought at later dates is sold first ( Newest…
Q: You are provided with the following information for Novak Inc. for the month ended June 30, 2020.…
A: Calculate the total purchase quantity and value as follows: The total purchase quantity is 256 and…
Q: On January 1, 2021, the National Furniture Company adopted the dollar-value LIFO method of computing…
A: Inventory is the current assets of the company that is used in the production process.
Q: On January 1, 2018, Sato Company adopted the dollar-value LIFO method of inventory costing. Sato's…
A: Last-in, first-out (LIFO) is a strategy used to represent stock that records the most as of late…
Q: Required: (A) Prepare a perpetual inventory record for All Things Auto, using the first in, first…
A: “Since you have posted a question with many sub-parts, we will solve three sub-parts for you. To get…
Q: Presented below is information related to Windsor, Inc. for the month of January 2020. Ending…
A: Closing entries are used to close the temporary accounts to the permanent account. The income…
Q: Naylor, Inc. uses a perpetual inventory system. It records its inventory at lower-of-cost-or-net…
A: Lower of Cost or Net Realizable Value (NRV) Method: This is a method of recording ending inventory…
Q: Northgate Products Corp. sells gadgets and uses the perpetual inventory system. During the month of…
A: FIFO is a method in which the inventory which is acquired first by the business organization is sold…
Q: Malone Company determined its ending inventory at cost and at LCNRV at December31, 2019, December…
A: In case of perpetual inventory system, inventory is constantly updated with changes in value. While…
Q: D Company began operations in 2018 and determined its ending inventory at cost and at a LCNRV at…
A: Decline in inventory cost on 12/31/18 = Cost - NRV = 520000 - 485000 = 35000
Q: The following is the information for ABC Corporation for the inventory transactions. The company…
A: 1. FIFO Method - Under FIFO Method, Inventory purchased first is sold first.
Q: Northgate Products Corp. sells gadgets and uses the perpetual inventory system. During the month of…
A: Answer: Journal Entries:
Q: Kumar Inc. uses a perpetual inventory system. At January 1, 2020, inventory was $214,000,000 at both…
A: No. Account Titles and Explanations Debit Credit a. Cost of goods sold $21,000,000…
Q: The following is the information for ABC Corporation for the inventory transactions The company sold…
A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…
Q: Insular Company's inventory at December 31, 2019, was P1,500,000 based on a physical count of goods…
A: Under FOB shipping point, the ownership of goods transfers from owner to buyer as soon as they are…
Q: Insular Company's inventory at December 31, 2019, was P1,500,000 based on a physical count of goods…
A: Inventory is the current asset that is reported in the balance sheet of the company.
Q: At December 31, 2020, the following information was available from HIBISCUS Company's accounting…
A: Inventory Valuation using average method: The purpose using the inventory valuation in retail method…
Q: Metlock Company began operations in 2020 and determined its ending inventory at cost and at LCNRV at…
A: Introduction: Journal: Recording of a business transactions in a chronological order. First step in…
Q: Lupin Inc. utilizes the retail inventory method in estimating its inventory for interim statement…
A: Average cost retail method: Under this method, the two things cost and retail prices are taken into…
Q: The inventories of Berry Company for the years 2019 and 2020 are as follows:…
A: The financial transactions are initially recorded in the form of journal.
Q: Northgate Products Corp. sells gadgets and uses the perpetual inventory system. During the month of…
A: Perpetual inventory system is a system that allows immediate tracking by recording the sale or…
Q: Presented below is selected information related to Metlock, Inc. for the year ended January 31,…
A: Given, Ending inventory per perpetual records = $31,180 Ending inventory actuall on hand = $30,480
Q: The December 31, 2019 trial balance for ABC Company included the following: purchases, P40,000;…
A: Introduction:- Calculation of Net purchases as follows under:- Net purchases =Purchases + Freight…
Q: As a result of its annual inventory count, Bridgeport Corp. determined its ending inventory at cost…
A: Inventory can be referred to as the assets which are held by an entity for the purpose of re sale or…
Q: ABC Company uses the retail inventory method to estimate its inventory for interim financial…
A: Ending inventory refers to the stock value which remains at the end of the fiscal year or the year…
Q: Skysong Limited is trying to determine the value of its ending inventory as of February 28, 2020,…
A: (a) On February 26, Skysong shipped goods costing $1,440 to a customer and charged the customer…
Q: On January 1, 2021, the National Furniture Company adopted the dollar-value LIFO method of computing…
A: The dollar value LIFO method of inventory valuation refers to a method which follow last in first…
Q: XYZ Company began operations in 2018 and determined its ending inventory at cost and at a LCNRV at…
A: Perpetual Inventory system: Under the system of perpetual inventory, the company's inventory records…
Q: During 2020, Harmony Co. sold $520,000 of merchandise at marked retall prices. At the end of 2020,…
A: Particulars At Cost At Retail Beginning Inventory $ 127,600 $ 256,800 Net…
Q: Hero Company reported inventory on December 31, 2019 at 6,000,000 based on physical count of goods…
A: FOB shipping point implies that ownership of goods are transferred from seller to the buyer when…
Q: Presented below is information related to Sarasota Co. for the month of January 2020. Ending…
A: Adjusting entries are made at the end of an accounting period to comply the revenue and expenses…
Q: Waterway, Inc. uses the dollar-value LIFO method of computing its inventory. Data for the past 3…
A: Year Inventory at end of year prices Price index Inventory at base year prices Change from…
Q: Prepare the journal entries required at December 31, 2020, and December 31, 2021, assuming inventory…
A: Hello, since the student has posted multiple requirements, only the first two are answerable. Thank…
Q: Vermont Resources, which uses the FIFO inventory costing method, has the following account balances…
A: Introduction: When a corporation makes sales using the FIFO technique, the oldest inventory or stock…
Q: Henderson Co.'s perpetual inventory records indicate that $382,800 of merchandise should be on hand…
A: Physical inventory on hand= $ 371000 Records indicate inventory on hand = $ 382800 Cost of goods…
Q: Prepare a perpetual inventory record for All Things Auto, using the first in, first out (FIFO)…
A: Cost Accounting: It is the process of collecting, recording, analyzing the cost, summarizing cost,…
Q: Northgate Products Corp. sells gadgets and uses the perpetual inventory system. During the month of…
A: LIFO means last in first out where as FIFO means first in first out. Inventory and cost of goods…
Q: Required: Determine the cost of goods sold for October under each of the following cost flow…
A: Inventory is defined as the current asset held by the business entity for the purpose earning…
Q: 1. Prepare a perpetual inventory record for All Things Auto, using the first in, first out (FIFO)…
A: PLEAS ELIKE THE ANSWER: Date Particulars Units Cost per unit Total cost…
Q: The records of Earthly Goods provided the following information for the year ended December 31,…
A: we know that, cost to retail ratio = Cost of goods available for sale/goods available for sale at…
Q: 1. How much should be the inventory to be reported in the year-end statement of financial position?…
A: Inventory must be recorded at a lower of cost or the net realizable value. Under LCNRV, we…
Q: Tamarisk Inc. uses a perpetual inventory system. At January 1, 2020, inventory was $211,116,400 at…
A: Allowance to reduce inventory to market = Ending inventory at cost - Ending inventory at…
Q: During January 2019, Marta Company, which maintains a perpetual inventory system, recorded the…
A: Cost of sales =Beginning inventory +Purchases -Ending inventory
Step by step
Solved in 2 steps with 4 images
- All Things Auto are retailers who purchase and sell vehicle parts & accessories, including batteries. The business uses a perpetual inventory system and began the last quarter of 2020 with merchandise inventory of 10 batteries of the “DieHard” brand at a total cost of $168,200. The following transactions, relating to the “DieHard” brand were completed during the quarter:October 5: Purchased 15 batteries at a cost of $17,020 each.October 14: Sold 18 batteries at $22,250 per batteryOctober 22: Purchased 24 batteries at a cost of $18,175 each but the supplier gave a 4% quantity discount.November 10: Sold 15 batteries to Orion Auto Ltd and 10 batteries to Brown’s Auto Detailing at a price of $23,990 each.November 12: Owing to an increased demand for this brand of batteries, 30 batteries were purchased on account at a cost of $17,612 each. In addition, All Things Auto paid $288 in cash on eachbattery to have the inventory shipped from the vendor’s warehouse to their location.November…All Things Auto is retailers who purchase and sell vehicle parts & accessories, including batteries. The business uses a perpetual inventory system and began the last quarter of 2020 with merchandise inventory of 10 batteries of the “DieHard” brand at a total cost of $168,200. The following transactions, relating to the “DieHard” brand were completed during the quarter: October 5 Purchased 15 batteries at a cost of $17,020 each. October 14 Sold 18 batteries at $22,250 per battery October 22 Purchased 24 batteries at a cost of $18,175 each but the supplier gave a 4% quantity discount. November 10 Sold 15 batteries to Orion Auto Ltd and 10 batteries to Brown’s Auto Detailing at a price of $23,990 each. November 12 Owing to an increased demand for this brand of batteries, 30 batteries were purchased on account at a cost of $17,612 each. In addition, All Things Auto paid $288 in cash on each battery to have the inventory shipped from the vendor’s warehouse…All Things Auto are retailers who purchase and sell vehicle parts & accessories, including batteries. The business uses a perpetual inventory system and began the last quarter of 2020 with merchandise inventory of 10 batteries of the “DieHard” brand at a total cost of $168,200. The following transactions, relating to the “DieHard” brand were completed during the quarter: October 5 Purchased 15 batteries at a cost of $17,020 each. October 14 Sold 18 batteries at $22,250 per battery October 22 Purchased 24 batteries at a cost of $18,175 each but the supplier gave a 4% quantity discount. November 10 Sold 15 batteries to Orion Auto Ltd and 10 batteries to Brown’s Auto Detailing at a price of $23,990 each. November 12 Owing to an increased demand for this brand of batteries, 30 batteries were purchased on account at a cost of $17,612 each. In addition, All Things Auto paid $288 in cash on each battery to have the inventory shipped from the vendor’s…
- All Things Auto are retailers who purchase and sell vehicle parts & accessories, including batteries. The business uses a perpetual inventory system and began the last quarter of 2020 with merchandise inventory of 10 batteries of the “DieHard” brand at a total cost of $168,200. The following transactions, relating to the “DieHard” brand were completed during the quarter: October 5 Purchased 15 batteries at a cost of $17,020 each. October 14 Sold 18 batteries at $22,250 per battery October 22 Purchased 24 batteries at a cost of $18,175 each but the supplier gave a 4% quantity discount. November 10 Sold 15 batteries to Orion Auto Ltd and 10 batteries to Brown’s Auto Detailing at a price of $23,990 each. November 12 Owing to an increased demand for this brand of batteries, 30 batteries were purchased on account at a cost of $17,612 each. In addition, All Things Auto paid $288 in cash on each battery to have the inventory shipped from the vendor’s warehouse to their location. November…All Things Auto are retailers who purchase and sell vehicle parts & accessories, including batteries. The business uses a perpetual inventory system and began the last quarter of 2020 with merchandise inventory of 10 batteries of the “DieHard” brand at a total cost of $168,200. The following transactions, relating to the “DieHard” brand were completed during the quarter: October 5 Purchased 15 batteries at a cost of $17,020 each. October 14 Sold 18 batteries at $22,250 per battery October 22 Purchased 24 batteries at a cost of $18,175 each but the supplier gave a 4% quantity discount. November 10 Sold 15 batteries to Orion Auto Ltd and 10 batteries to Brown’s Auto Detailing at a price of $23,990 each. November 12 Owing to an increased demand for this brand of batteries, 30 batteries were purchased on account at a cost of $17,612 each. In addition, All Things Auto paid $288 in cash on each battery to have the inventory shipped from the vendor’s…All Things Auto are retailers who purchase and sell vehicle parts & accessories, including batteries. The business uses a perpetual inventory system and began the last quarter of 2020 with merchandise inventory of 10 batteries of the “DieHard” brand at a total cost of $168,200. The following transactions, relating to the “DieHard” brand were completed during the quarter: October 5 Purchased 15 batteries at a cost of $17,020 each. October 14 Sold 18 batteries at $22,250 per battery October 22 Purchased 24 batteries at a cost of $18,175 each but the supplier gave a 4% quantity discount. November 10 Sold 15 batteries to Orion Auto Ltd and 10 batteries to Brown’s Auto Detailing at a price of $23,990 each. November 12 Owing to an increased demand for this brand of batteries, 30 batteries were purchased on account at a cost of $17,612 each. In addition, All Things Auto paid $288 in cash on each battery to have the inventory shipped from the vendor’s…
- All Things Auto are retailers who purchase and sell vehicle parts & accessories, including batteries. The business uses a perpetual inventory system and began the last quarter of 2020 with merchandise inventory of 10 batteries of the “DieHard” brand at a total cost of $168,200. The following transactions, relating to the “DieHard” brand were completed during the quarter: October 5 Purchased 15 batteries at a cost of $17,020 each. October 14 Sold 18 batteries at $22,250 per battery October 22 Purchased 24 batteries at a cost of $18,175 each but the supplier gave a 4% quantity discount. November 10 Sold 15 batteries to Orion Auto Ltd and 10 batteries to Brown’s Auto Detailing at a price of $23,990 each. November 12 Owing to an increased demand for this brand of batteries, 30 batteries were purchased on account at a cost of $17,612 each. In addition, All Things Auto paid $288 in cash on each battery to have the inventory shipped from the vendor’s…All Things Auto are retailers who purchase and sell vehicle parts & accessories, including batteries. The business uses a perpetual inventory system and began the last quarter of 2020 with merchandise inventory of 10 batteries of the “DieHard” brand at a total cost of $168,200. The following transactions, relating to the “DieHard” brand were completed during the quarter: October 5 Purchased 15 batteries at a cost of $17,020 each. October 14 Sold 18 batteries at $22,250 per battery October 22 Purchased 24 batteries at a cost of $18,175 each but the supplier gave a 4% quantity discount. November 10 Sold 15 batteries to Orion Auto Ltd and 10 batteries to Brown’s Auto Detailing at a price of $23,990 each. November 12 Owing to an increased demand for this brand of batteries, 30 batteries were purchased on account at a cost of $17,612 each. In addition, All Things Auto paid $288 in cash on each battery to have the inventory shipped from the vendor’s…All Things Auto are retailers who purchase and sell vehicle parts & accessories, including batteries. The business uses a perpetual inventory system and began the last quarter of 2020 with merchandise inventory of 10 batteries of the “DieHard” brand at a total cost of $168,200. The following transactions, relating to the “DieHard” brand were completed during the quarter: October 5 Purchased 15 batteries at a cost of $17,020 each. October 14 Sold 18 batteries at $22,250 per battery October 22 Purchased 24 batteries at a cost of $18,175 each but the supplier gave a 4% quantity discount. November 10 Sold 15 batteries to Orion Auto Ltd and 10 batteries to Brown’s Auto Detailing at a price of $23,990 each. November 12 Owing to an increased demand for this brand of batteries, 30 batteries were purchased on account at a cost of $17,612 each. In addition, All Things Auto paid $288 in cash on each battery to have the inventory shipped from the vendor’s…
- All Things Auto are retailers who purchase and sell vehicle parts & accessories, including batteries. The business uses a perpetual inventory system and began the last quarter of 2020 with merchandise inventory of 10 batteries of the “DieHard” brand at a total cost of $168,200. The following transactions, relating to the “DieHard” brand were completed during the quarter: October 5 Purchased 15 batteries at a cost of $17,020 each. October 14 Sold 18 batteries at $22,250 per battery October 22 Purchased 24 batteries at a cost of $18,175 each but the supplier gave a 4% quantity discount. November 10 Sold 15 batteries to Orion Auto Ltd and 10 batteries to Brown’s Auto Detailing at a price of $23,990 each. November 12 Owing to an increased demand for this brand of batteries, 30 batteries were purchased on account at a cost of $17,612 each. In addition, All Things Auto paid $288 in cash on each battery to have the inventory shipped from the vendor’s…All Things Auto are retailers who purchase and sell vehicle parts and accessories, including batteries. The business uses a perpetual inventory system and began the last quarter of 2020 with a merchandise inventory of 10 batteries of the "DieHard" brands at a total cost of $168,200.The following transactions, relating to the “DieHard" brand were completed during the quarter: October 5- Purchased 15 batteries at a cost of $17,020 per pair. October 14- Sold 18 batteries at $22,250 per battery October 22 -Purchased 24 batteries at a cost of $18,175 each but the the supplier gave a 4% quantity discount. November 10- Sold 15 batteries to Orion Auto Ltd and 10 batteries to Brown's Detailing at a price of $23,990 each. November 12- Owing to an increased demand for this brand, 30 batteries were purchased on account at a cost of $17,612 each. In addition, All things auto paid $288 incash on each battery to have the inventory shipped from the vendor’s warehouse to their location. November 27-…Everything Auto are retailers who purchase and sell vehicle parts and accessories, including batteries. The business uses a perpetual inventory system and began the last quarter of 2020 with a merchandise inventory of 10 batteries of the "DieHard" brands at a total cost of $168,200.The following transactions, relating to the “DieHard" brand were completed during the quarter: October 5- Purchased 15 batteries at a cost of $17,020 per pair. October 14- Sold 18 batteries at $22,250 per battery October 22 -Purchased 24 batteries at a cost of $18,175 each but the the supplier gave a 4% quantity discount. November 10- Sold 15 batteries to Orion Auto Ltd and 10 batteries to Brown's Detailing at a price of $23,990 each. November 12- Owing to an increased demand for this brand, 30 batteries were purchased on account at a cost of $17,612 each. In addition, All things auto paid $288 incash on each battery to have the inventory shipped from the vendor’s warehouse to their location. November 27-…