P8-15 Comprehensive The following information for 2010is availablefor the Marino company:1. The beginning inventoryis$100,000
2. Purchases of $300,000 weremadeon terms of 2/10, n/30. Eighty percent of the discountsweretaken.
3. Purchases returns of $4000weremade.
4. At December 31, purchasesof$20,000 were in transit, FOB destination, on terms of2/10,n/30.
5. The company made salesof$640,000. The gross selling price per unit is twice the net costofeach unit sold.
6. Sales allowances of $6,000weremade.
7. The company uses theLIFOperiodic method and the gross method for purchasesdiscounts.
1. Compute the cost of theendinginventory before the physical inventory is taken.
2. Compute the amount of thecostof goods sold that came from the purchases of the period andtheamount that came from the beginning inventory.
1. The beginning inventoryis$100,000
2. Purchases of $300,000 weremadeon terms of 2/10, n/30. Eighty percent of the discountsweretaken.
3. Purchases returns of $4000weremade.
4. At December 31, purchasesof$20,000 were in transit, FOB destination, on terms of2/10,n/30.
5. The company made salesof$640,000. The gross selling price per unit is twice the net costofeach unit sold.
6. Sales allowances of $6,000weremade.
7. The company uses theLIFOperiodic method and the gross method for purchasesdiscounts.
1. Compute the cost of theendinginventory before the physical inventory is taken.
2. Compute the amount of thecostof goods sold that came from the purchases of the period andtheamount that came from the beginning inventory.
Related questions
15 ACCOUNT QUESTIONS! I NEED HELP WITH ASAP! THANK YOU SOMUCH!
1. A company reported total stockholders' equity of $290,000 onits Dec 31, 2015, balance sheet. The following information isavailable for the year ended Dec 31, 2016:
Revenues | $620,000 |
Expenses | 330,000 |
Liabilities, on December 31, 2016 | 144,000 |
3. Samores Company sold merchandise on account for $3,000 toCookie Company with credit terms of 2/10, n/30. Five days later,Cookie Company returned $1,000 of merchandise that was damaged,along with a check to settle the account.
What entry does Samores Company make upon receipt of thecheck?
Select one:
A.
Cash | 1,960 | ||
Sales Returns and Allowances | 1,040 | ||
Accounts Receivable | 3,000 | ||
B.
Cash | 2,000 | ||
Accounts Receivable | 2,000 | ||
C.
Cash | 1,960 | ||
Sales Returns and Allowances | 1,000 | ||
Sales Discounts | 40 | ||
Accounts Receivable | 3,000 | ||
D.
Cash | 2,940 | ||
Sales Discounts | 60 | ||
Accounts Receivable | 3,000 | ||
What are the total assets of the company on December 31,2016?
Select one:
A. $420,000
B. $184,000
C. $724,000
D. $ 38,000
8. The following inventory was available for sale during theyear for Thomasina Tools:
Beginning inventory | 10 units at $80 |
First purchase | 15 units at $110 |
Second purchase | 30 units at $140 |
Third purchase | 20 units at $130 |
Thomasina Tools has 25 units on hand at the end of the year.
What is the dollar amount of inventory at the end of the yearaccording to the first-in, first-out method?
Select one:
A. $3,300
B. $3,150
C. $3,900
D. $5,950
9. The following amounts and costs of platters were availablefor sale by Corpus Christy Ceramics during 2016:
Beginning inventory | 10 units at $41 |
First purchase | 15 units at $55 |
Second purchase | 30 units at $70 |
Third purchase | 25 units at $65 |
Corpus Christy Ceramics has 35 platters on hand at the end ofthe year.
What is the dollar amount of inventory at the end of the yearaccording to the weighted-average cost method?
Select one:
A. $4,340
B. $9,920
C. $3,465
D. $6,200
12. Determine Sales revenue for Ozzie Company with the followingdata:
Cost of Goods Sold | $840,000 |
Operating Expenses | 210,000 |
Sales Discounts | 15,000 |
Sales Returns and Allowances | 97,500 |
Net Income | 265,000 |
Select one:
A. $1,192,500
B. $1,222,500
C. $1,417,500
D. $1,387,500
17. Determine Sales revenue for Ozzie Company with the followingdata:
Cost of Goods Sold | $840,000 |
Operating Expenses | 210,000 |
Sales Discounts | 15,000 |
Sales Returns and Allowances | 97,500 |
Net Income | 265,000 |
Select one:
A. $1,192,500
B. $1,222,500
C. $1,417,500
D. $1,387,500
18. M. Fields Company reported the following year-endamounts:
Total Sales | $33,600 |
Sales Discounts | 600 |
Sales Returns | ? |
Cost of Goods Sold | 21,000 |
Gross Profit | 4,350 |
What is the companyâs Sales Returns for the year?
Select one:
A. $ 7,650
B. $ 2,160
C. $10,860
D. $ 2,970
19. On September 1, the beginning inventory for Koppel Companywas 110 units at $200 each. Purchases and sales during Septemberwere:
Purchases During Sept 2016 | Sales During Sept 2016 | ||||
Sept 7 | 120 units @ $224 | Sept 12 | 70 units | ||
Sept 17 | 70 units @ $176 | Sept 22 | 110 units | ||
Sept 25 | 100 units @ $168 | Sept 29 | 90 units | ||
What is the cost of ending inventory for Koppel Company onSeptember 30 if the periodic LIFO costing method is used?
Select one:
A. $22,080
B. $26,480
C. $26,000
D. $28,640
24. On which financial statements would you look to find thetotal costs of merchandise that remains and the total that has beensold?
Select one:
A. Balance sheet and income statement
B. Statement of cash flows and balance sheet
C. Balance sheet and statement of cash flows
D. Statement of stockholders' equity and balance sheet
25. Which statement is true of the statement of stockholders'equity?
Select one:
A. It shows a company's stock issuances and dividends paid toshareholders.
B. It reports a company's assets, liabilities, and equities.
C. It reports a company's cash flows from operating activities,investing activities, and financing activities.
D. It reports a company's revenue and expenses for a period.
26. On September 1, the beginning inventory for Koppel Companywas 110 units at $200 each. Purchases and sales during Septemberwere:
Purchases During Sept 2016 | Sales During Sept 2016 | ||||
Sept 7 | 120 units @ $224 | Sept 12 | 70 units | ||
Sept 17 | 70 units @ $176 | Sept 22 | 110 units | ||
Sept 25 | 100 units @ $168 | Sept 29 | 90 units | ||
What is the cost of ending inventory for Koppel Company onSeptember 30 if the periodic LIFO costing method is used?
Select one:
A. $22,080
B. $26,480
C. $26,000
D. $28,640
27. The following hammers were available for sale during theyear for Waiculus Tools:
Beginning inventory | 10 units at $80 |
First purchase | 15 units at $100 |
Second purchase | 30 units at $120 |
Third purchase | 25 units at $130 |
Waiculus Tools has 30 hammers on hand at the end of theyear.
What is the dollar amount of cost of goods sold for the yearaccording to the first-in, first-out method?
Select one:
A. $3,150
B. $3,950
C. $5,300
D. $3,900
29. Nickster Company purchased $8,000 worth of merchandise, FOBshipping point. Transportation costs were an additional $700. Thecompany later returned $1,500 worth of merchandise and paid theinvoice within the 2% cash discount period.
The total amount paid for this merchandise is:
Select one:
A. $7,040
B. $8,526
C. $7,070
D. $7,056
30. The following amounts and costs of platters were availablefor sale by Utah Pottery during 2016:
Beginning inventory | 10 units at $82 |
First purchase | 15 units at $110 |
Second purchase | 30 units at $140 |
Third purchase | 25 units at $130 |
Utah Pottery has 35 platters on hand at the end of the year.
How much is cost of goods sold in dollars at the end of the yearaccording to the weighted-average cost method?
Select one:
A. $5,580
B. $3,465
C. $9,920
D. $3,720
31. Current assets are usually listed in the order of their:
Select one:
A. Lack of liquidity: least liquid to most liquid
B. Size: smallest to largest
C. Liquidity: most liquid to least liquid
D. Size: largest to smallest
34. Which of the following assets would not be classified as acurrent asset?
Select one:
A. Supplies
B. Equipment
C. Accounts receivable
D. Prepaid rent
17 accounting 1 questions! HELP
9. The following amounts and costs of platters were availablefor sale by Corpus Christy Ceramics during 2016:
Beginning inventory | 10 units at $41 |
First purchase | 15 units at $55 |
Second purchase | 30 units at $70 |
Third purchase | 25 units at $65 |
Corpus Christy Ceramics has 35 platters on hand at the end ofthe year.
What is the dollar amount of inventory at the end of the yearaccording to the weighted-average cost method?
Select one:
A. $4,340
B. $9,920
C. $3,465
D. $6,200
32. Santa Fe Corporation uses the perpetual inventory method. OnMarch 1, it purchased $60,000 of merchandise inventory, terms 2/10,n/30. On March 3, Santa Fe returned goods (not damaged) that cost$6,000. On March 9, Santa Fe paid the supplier.
On March 9, Santa Fe should credit:
Select one:
A. Purchase discounts for $1,200
B. Purchase discounts for $1,080
C. Inventory for $1,080
D. Inventory for $1,200
33. Rocky Company has beginning equity of $600,000, net incomeof $100,000, dividends of $60,000 and investments by owners inexchange for stock of $20,000. Its ending equity is:
Select one:
A. $660,000
B. $480,000
C. $536,000
D. $446,000
35. On September 1, 2016, Chopper, Inc. reported RetainedEarnings of $272,000. During the month of September, Choppergenerated revenues of $40,000, incurred expenses of $24,000,purchased equipment for $10,000 and paid dividends of $12,000.
What is the balance in Retained Earnings on September 30,2016?
Select one:
A. $272,000 debit
B. $276,000 credit
C. $ 16,000 credit
D. $274,000 credit
36. Savannah Company purchases $120,000 of inventory during theperiod and sells $36,000 of it for $60,000. Beginning of the periodinventory was $6,000.
What is the companyâs inventory balance to be reported on itsbalance sheet at year end?
Select one:
A. $36,000
B. $90,000
C. $ 4,000
D. $ 6,000
37. Assuming rising prices, which method will give the highestdollar value for cost of goods sold on the income statement?
Select one:
A. FIFO
B. Average Cost
C. LIFO
D. All of these give equal values for cost of goods sold
38. Kali Company began the period with $20,000 in inventory. Thecompany also purchased an additional $20,000 of inventory andreturned $2,000 for a full credit. A physical count of theinventory at yearâend revealed an inventory on hand of $16,000.What was Kaliâs cost of goods sold for the period?
Select one:
a. $50,000
b. $22,000
c. $48,000
d. $16,000
39. The periodic inventory system differs from the perpetualinventory system:
Select one:
because the periodic system is not compatible with moderntechnology.
because the periodic system continually updates inventory, whilethe perpetual inventory system only updates inventory at the end ofthe period.
because the perpetual system continually updates inventory,while the periodic inventory system only updates inventory at theend of the period.
because the periodic system is more complex and costly.
40. Which one of the following is included in currentassets?
Select one:
A. Common stock
B. Accounts receivable
C. Taxes payable
D. Automobiles
41. For the balance sheet to be in balance, the following mustexist:
Select one:
Total assets must be less than total liabilities
Total assets must be greater than total liabilities
Total assets must equal total liabilities plus stockholders'equity
Total liabilities must equal total stockholders' equity
43. Using a perpetual inventory system, the buyerâs journalentry to record the freight costs includes a:
Select one:
A. Debit to Purchases
B. Debit to Inventory
C. Debit to Freight In
D. Debit to Cost of Goods Sold
44. Joshua records purchases at invoice price and uses theperpetual inventory system. On July 5, Joshua returned $6,000 ofgoods purchased on account to the seller.
How would Joshua record this transaction?
Select one:
A.
Accounts Payable | 6,000 | ||
Purchases | 6,000 | ||
B.
Accounts Receivable | 6,000 | ||
Inventory | 6,000 | ||
C.
Accounts Payable | 6,000 | ||
Inventory | 6,000 | ||
D.
Cash | 6,000 | ||
Purchases | 6,000 | ||
45. Smith & Sons purchased $5,000 of merchandise from theClaremont Company with terms of 3/10, n/30. How much discount isSmith & Sons entitled to take if it pays within the alloweddiscount period of 10 days?
Select one:
$100
$50
$300
$150
46. The accounting record for Max III Company reported thefollowing selected information:
Operating Expenses | $180,000 |
Sales Returns and Allowances | 52,000 |
Sales Discounts | 24,000 |
Sales Revenue | 700,000 |
Cost of Goods Sold | 268,000 |
Determine Max III Company's gross profit.
Select one:
A. $332,000
B. $280,000
C. $308,000
D. $356,000
48. Using a a perpetual inventory system, the sellerâs journalentry to record the payment for merchandise, received from thebuyer, within the discount period includes a:
Select one:
A. Debit to Accounts Receivable
B. Debit to Cost of Goods Sold
C. Credit to Sales Discounts
D. Debit to Sales Discounts
49.Geraldoâs Groceries purchased milk cartons at an invoiceprice of $6,000 and terms of 2/10, n/30. On arrival of the goods,Geraldoâs realized that half of the milk was past the expirationdate, and returned them immediately to the supplier.
If Geraldoâs pays the remaining amount of the invoice within thediscount period, the amount paid should be:
Select one:
A. $2,880
B. $5,880
C. $2,940
D. $6,000
50. Which one of the following is not a current liability?
Select one:
A. Wages payable
B. Accounts payable
C. Wage expense
D. Taxes payable
