Sheridan Cosmetics Inc. had a number of transactions during the year relating to the purchase of various inventory items as noted below. For each of the below independent transactions determine what amount should be included in inventory. (a) Your answer is correct. Lipstick products counted in the physical inventory amount to $21,500 which include $1,100 of duty charges for importing the goods and $2,600 of recoverable taxes (i.e. HST). (If an answer is zero, please enter O. Do not leave any fields blank.) (b) Inventory $ eTextbook and Media Inventory 18900 Makeup kits held on consignment by a retailer with a cost of $14,700 (inclusive of $1,200 of commissions to the retailer). (If an answer is zero, please enter O. Do not leave any fields blank.) $ Attempts: 1 of 3 used

Sheridan Cosmetics Inc. had a number of transactions during the year relating to the purchase of various inventory items as noted below. For each of the below independent transactions determine what amount should be included in inventory. (a) Your answer is correct. Lipstick products counted in the physical inventory amount to $21,500 which include $1,100 of duty charges for importing the goods and $2,600 of recoverable taxes (i.e. HST). (If an answer is zero, please enter O. Do not leave any fields blank.) (b) Inventory $ eTextbook and Media Inventory 18900 Makeup kits held on consignment by a retailer with a cost of $14,700 (inclusive of $1,200 of commissions to the retailer). (If an answer is zero, please enter O. Do not leave any fields blank.) $ Attempts: 1 of 3 used

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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You are the senior accountant for a shoe wholesaler that uses the periodic inventory method. You have determined the following information from your company’s records, which you assume is correct: Inventory of $246,720 was on hand at the start of the year. Purchases for the year totalled $1,690,000. Of this, $1,412,000 was purchased on account; that is, accounts payable was credited for this amount at the time of the purchase. A year-end inventory count revealed inventory of $324,800 Required: Assume that the company uses periodic inventory system, calculate cost of sales. Assume now that your company uses the perpetual method of inventory control, and that your records show that $1,548,325 of inventory (at cost) was sold during the year. What is the adjustment needed to correct the records, given the inventory count in item 3 above? What might the need for this adjustment indicate about company operations? Assume that during the year, total inventory was sold for $2,800,000 on…
You are the senior accountant for a shoe wholesaler that uses the periodic inventory method. You have determined the following information from your company’s records, which you assume is correct: Inventory of $246,720 was on hand at the start of the year. Purchases for the year totalled $1,690,000. Of this, $1,412,000 was purchased on account; that is, accounts payable was credited for this amount at the time of the purchase. A year-end inventory count revealed inventory of $324,800 Required: Assume that during the year, total inventory was sold for $2,800,000 on credit. What would be the entries to record the sales transaction under periodic inventory control system? What would be the entries to record the sales transaction under perpetual inventory control system?
Cheyenne Company had the following account balances at year-end: Cost of Goods Sold $62,020, Inventory $17,320, Utilities Expense $29,150, Sales Revenue $121,470, Sales Discounts $1,380, and Sales Returns and Allowances $1,890. A physical count of inventory determines that merchandise inventory on hand is $12,230. They use the perpetual inventory system. (a) Prepare the adjusting entry necessary as a result of the physical count. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Account Titles and Explanation $ Debit Credit
HAKDOG Company suspects that there is missing inventory in its warehouse at December 31, 2021. All sales and purchases were made on account. Also, the gross profit rate based on net sales is consistent every year. To aid in your investigation, you obtained the following: How much is the net purchases during the year?
HACHING Company suspects that there is missing inventory in its warehouse at December 31, 2021. All sales and purchases were made on account. Also, the gross profit ratebased on net sales is consistent every year. To aid in your investigation, you obtained the following: How much is the net sales revenue for the year?
You are the senior accountant for a shoe wholesaler that uses the periodic inventory method. You have determined the following information from your company’s records, which you assume is correct: Inventory of $296,064 was on hand at the start of the year. Purchases for the year totalled $2,028,000. Of this, $1,694,400 was purchased on account; that is, accounts payable was credited for this amount at the time of the purchase. A year-end inventory count revealed inventory of $389,760 Required: c) What might the need for this adjustment indicate about company operations?
You are the senior accountant for a shoe wholesaler that uses the periodic inventory method. You have determined the following information from your company’s records, which you assume is correct: Inventory of $296,064 was on hand at the start of the year. Purchases for the year totalled $2,028,000. Of this, $1,694,400 was purchased on account; that is, accounts payable was credited for this amount at the time of the purchase. A year-end inventory count revealed inventory of $389,760 Required: b) Assume now that your company uses the perpetualmethod of inventory control, and that your records show that $1,857,990 of inventory (at cost) was sold during the year. What is the adjustment needed to correct the records, given the inventory count in item 3 above?
You are the senior accountant for a shoe wholesaler that uses the periodic inventory method. You have determined the following information from your company’s records, which you assume is correct: Inventory of $296,064 was on hand at the start of the year. Purchases for the year totalled $2,028,000. Of this, $1,694,400 was purchased on account; that is, accounts payable was credited for this amount at the time of the purchase. A year-end inventory count revealed inventory of $389,760 Required: a) Assume that the company uses periodic inventory system, calculate cost of sales.
Craig Ferguson Company had the following account balances at year-end: cost of goods sold $70,000; inventory $17,300: operating expenses $33,000; sales revenue $121,000; sales discounts $1,400; and sales returns and allowances $1,950. A physical count of inventory determines that merchandise inventory on hand is $16,250. (a) Prepare the adjusting entry necessary as a result of the physical count. (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.) Account Titles and Explanation Debit Credit
Kuyu Company uses the periodic inventory system. Kuyu started the period with $12,000 in inventory. The Company purchased an additional $25,000 of merchandise, and returned $1,500 for a full credit. A physical count of inventory at the end of the period revealed that there was an ending inventory balance of $6,000. What was Kuyu's cost of goods sold during the period?
Craig Ferguson Company had the following account balances at year-end: cost of goods sold $70,000; inventory $17,300: operating expenses $33,000: sales revenue $121,000: sales discounts $1,400; and sales returns and allowances $1,950. A physical count of inventory determines that merchandise inventory on hand is $16.250. (a) Your answer is incorrect Prepare the adjusting entry necessary as a result of the physical count. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.)
The Westmoreland Corporation uses a periodic system for its inventory. The company starts the current year with inventory costing $177,000. During the year, an additional $387,000 is paid for inventory purchases and $17,000 for transportation costs to get those items. A physical count at the end of the year finds $145,000 of ending inventory. How was each of these numbers derived? What is the company's cost of goods sold?