Bravo Company has the following information at month-end: Sales - P100,000 Sales Returns and Allowances - P5,000 Sales Discounts - P3,000 Merchandise Inventory, Beginning - P15,000 Purchases - P70,000 Purchase Returns and Allowances - P8,000 Purchase Discounts - P6,000 Freight-in - P7,000 Merchandise Inventory,

Bravo Company has the following information at month-end: Sales - P100,000 Sales Returns and Allowances - P5,000 Sales Discounts - P3,000 Merchandise Inventory, Beginning - P15,000 Purchases - P70,000 Purchase Returns and Allowances - P8,000 Purchase Discounts - P6,000 Freight-in - P7,000 Merchandise Inventory,

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter8: Inventories: Special Valuation Issues

Section: Chapter Questions

Problem 4MC

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Langstons purchased $3,100 of merchandise during the month, and its monthly income statement shows a cost of goods sold of $3,000. What was the beginning inventory if the ending inventory was $1,250?
Record the following transactions of Pal Tos Sales for the month of May under the Perpetual Inventory System. Assume that terms for all purchases are 2/20, n/30 and terms for all sales are 1/15, n/30. Cost for each sales and returns is 80% of the sales or return price. 2020 May 5Cash sales, P210,000 6 Purchased P550,000 merchandise from Hoo Enterprise on account 8 Sold P30,000 goods to Lucky Trading 11Purchased PP150,000 merchandise from Vee Cut Sales 15Cash purchases, P221,000 17Received P3,000 returns of defective merchandise from Lucky Trading 19Returned P50,000 defective goods to Hoo Enterprises 22Lucky Trading settled its amount in full 25Paid Hoo Enterprises in full 30Settled account with Vee Cut sales in full
The beginning inventory of merchandise at Alfredson Co. and data on purchases and sales for a three-month period ending June 30 are as follows: Transaction QTY Per Unit Cost Apr.3 Inventory 25 $1,200 $30,000 8 Purchase 75 1,240 93,000 11 Sale 40 2,000 80,000 30 " 30 2,000 60,000 May 8 Purchase 60 1,260 75,600 10 Sale 50 2,000 100,000 19 " 20 2,000 40,000 28…
The records of Hamilton Apparel display the following data for the month of October: Sales $72,500 Purchase (at cost) $35,000 Sales returns $1,500 Purchase (at retail) $65.800 Markups $6,500 Purchase return (at cost) $1,500 Markup cancellations $900 Purchase return (at retail) $2,100 Markdowns $5,200 Beginning inventory (at cost) $20,500 Markdown cancellations $1,200 Beginning inventory (at retail) $30,700 Freight on purchase $2,200 Required: a. Estimate the ending inventory using the retail inventory method. Round the cost ratio to two decimal places based on % (e.g, 36.76%). [Please note it is NOT conventional retail method]. W b. Estimate the ending inventory using the conventional retail inventory method. Round the cost ratio to two decimal places based on % (e.g, 36.76%).
The records of Hamilton Apparel display the following data for the month of October: Sales $72,500 Purchase (at cost) $35,000 Sales returns $1,500 Purchase (at retail) $65,800 Markups $6,500 Purchase return (at cost) $1,500 Markup cancellations $900 Purchase return (at retail) $2,100 Markdowns $5,200 Beginning inventory (at cost) $20,500 Markdown cancellations $1,200 Beginning inventory (at retail) $30,700 Freight on purchase $2,200 Required: a. Estimate the ending inventory using the retail inventory method. Round the cost ratio to two decimal places based on % (e.g, 36.76%). [Please note it is NOT conventional retail method]. ۵ b. Estimate the ending inventory using the conventional retail inventory method. Round the cost ratio to two decimal places based on % (e.g, 36.76%).
Montero Company maintains a perpetual inventory system and sells all its inventories at a price of P12 per unit. Montero has the following information pertaining to its inventory for the month of October: Units Unit cost Total cost Balance on 10/1 15,000 P6 P90,000 Purchased on 10/5 20,000 P9 P180,000 Sold on 10/20 18,000 Purchased on 10/25 12,000 P7 P84,000 Based on the above, answer the following (Round unit cost to two decimal places): What amount should Montero report as inventory on October 31 using the moving average method? ________________ What amount should Montero report as cost of goods sold for October using the weighted average method? ________________ Under the FIFO method, what amount should Montero report as gross profit for October? ________________
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The records of a company showed the following for June: Sales 4,200 units at P200 each Purchases 4,000 units at P150 each Beginning inventory 6,000 units at P100 each Assuming the periodic inventory system is used, how much is the ending inventory using the weighted average method? is 480,000 corrrect?
Skysong Company uses the gross profit method to estimate inventory for monthly reporting purposes. Presented below is information for the month of May. Inventory, May 1 Purchases (gross) Freight-in Sales revenue Sales returns Purchase discounts (a) $145,400 658,600 27,700 990,600 76,300 11,900 Compute the estimated inventory at May 31, assuming that the gross profit is 25% of sales. The estimated inventory at May 31 $
Oriole Company completed the following transactions in October: Oriole uses a perpetual inventory system. Credit Sales Sales Returns Date Amount Terms Date Amount Date of Collection Oct. 3 $800 2/10,n/30 Oct. 11 1,500 3/10, n/30 Oct. 14 $300 Oct. 17 5,500 1/10, n/30 Oct. 20 1,250 Oct. 21 1,740 2/10, n/30 Oct. 23 440 Oct. 23 6,900 2/10, n/30 Oct. 27 500 (a) Indicate the cash received for each collection. Show your calculations. Oct. 8 Oct. 16 Oct. 29 Oct. 27 Oct. 28
Concord Company’s record of transactions concerning part X for the month of April was as follows. Purchases Sales April 1 (balance on hand) 240 @ $5.50 April 5 440 4 540 @ 5.60 12 340 11 440 @ 5.80 27 1,080 18 340 @ 5.90 28 150 26 740 @ 6.20 30 340 @ 6.40 If the perpetual inventory record is kept in dollars, and costs are computed at the time of each withdrawal, what amount would be shown as ending inventory under (1) FIFO, (2) LIFO and (3) Average-cost? (Round average cost per unit to 4 decimal places, e.g. 2.7621 and final answers to 0 decimal places, e.g. 6,548.)
The beginning inventory of merchandise at Rhodes Co. and data on purchases and sales for a three-month period ending June 30 are as follows: Date Transaction Numberof Units Per Unit Total Apr. 3 Inventory 66 $300 $19,800 8 Purchase 132 360 47,520 11 Sale 88 1,000 88,000 30 Sale 55 1,000 55,000 May 8 Purchase 110 400 44,000 10 Sale 66 1,000 66,000 19 Sale 33 1,000 33,000 28 Purchase 110 440 48,400 June 5 Sale 66 1,050 69,300 16 Sale 88 1,050 92,400 21 Purchase 198 480 95,040 28 Sale 99 1,050 103,950 Required: 1. Record the inventory, purchases, and cost of merchandise sold data in a perpetual inventory record similar to the one illustrated in Exhibit 4, using the last-in, first-out method. Under LIFO, if units are in inventory at two different costs, enter the units with the HIGHER unit cost first in the Cost of Merchandise Sold Unit Cost column and LOWER…