Wayward Company wants to prepare interim financial statements for the first quarter. The company wishes to avoid making a physical count of inventory. Wayward's gross profit rate averages 30%. The following information for the first quarter is available from its records.
"January 1 beggining inventory - $490,260
cost of goods purchased - $1,129,050
Net sales - $1,369,800 "
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my answers so far ::
Beggining inventory = $490,260
Cost of goods purchaes = $1,129,050
Cost of goods available for sale = $1,619,310
Estimated cost of goods sold = ????
esitmated March 31 inventory = ????
Wayward Company wants to prepare interim financial statements for the first quarter. The company wishes to avoid making a physical count of inventory. Wayward's gross profit rate averages 30%. The following information for the first quarter is available from its records.
"January 1 beggining inventory - $490,260
cost of goods purchased - $1,129,050
Net sales - $1,369,800 "
-----------------------------------
my answers so far ::
Beggining inventory = $490,260
Cost of goods purchaes = $1,129,050
Cost of goods available for sale = $1,619,310
Estimated cost of goods sold = ????
esitmated March 31 inventory = ????
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Related questions
PA7-1 Analyzing the Effects of Four Alternative Inventory Methods in a Periodic Inventory System [LO 7-3]
| Gladstone Company tracks the number of units purchased and sold throughout each accounting period but applies its inventory costing method at the end of each period, as if it uses a periodic inventory system. Assume its accounting records provided the following information at the end of the annual accounting period, December 31. |
| Transactions | Units | Unit Cost | |||||||
| Beginning inventory, January 1 | 1,600 | $ | 45 | ||||||
| Transactions during the year: | |||||||||
| a. | Purchase, January 30 | 2,300 | 49 | ||||||
| b. | Sale, March 14 ($100 each) | (1,250 | ) | ||||||
| c. | Purchase, May 1 | 1,000 | 75 | ||||||
| d. | Sale, August 31 ($100 each) | (1,500 | ) | ||||||
| Assuming that for Specific identification method (item 1d) the March 14 sale was selected two-fifths from the beginning inventory and three-fifths from the purchase of January 30. Assume that the sale of August 31 was selected from the remainder of the beginning inventory, with the balance from the purchase of May 1. |
| Required: | |
| 1. | Compute the amount of goods available for sale, ending inventory, and cost of goods sold at December 31 under each of the following inventory costing methods: (Round intermediate calculations to 2 decimal places and final answers to the nearest whole dollar amount.) |
| 2-a. | Of the four methods, which will result in the highest gross profit? | ||||||||
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| 2-b. | Of the four methods, which will result in the lowest income taxes? | ||||||||
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Question 31
Corresponds to CLO 7(c) Rupert Hobby's accounting records showthe following for the year ending December 31, 2014: PurchaseDiscountsâ¦$13,400; Freight-inâ¦$12,000; Purchasesâ¦$450,500;Beginning Inventoryâ¦$35,600; Ending Inventoryâ¦$24,200; PurchaseReturnsâ¦$15,000. Using the periodic inventory system, what is thecost of goods sold?
$445,500 | ||
$469,700 | ||
$433,500 | ||
$461,900 |
3 points
Question 32
Corresponds to CLO 7(d) Bay Company sold $100,000 of merchandisein the month of April, 2013. Returns that month totaled $5,000. BayCompany uses the periodic method to determine ending inventory eachDecember 31. For interim financial statements, cost of goods soldis estimated based on the previous year's gross profit rate. If BayCompany's gross profit rate for 2012 was 60%, what is the cost ofgoods sold for the month of April?
$57,000 | ||
$60,000 | ||
$38,000 | ||
$40,000 |
3 points
Question 33
Corresponds to CLO 8(a) We Love Pets, Inc. has the followinginventory data: January 1, beginning inventory of 50 units at $25;January 10, purchases of 70 units at $27; January 25, purchases of40 units at $28. A physical count of inventory on January 31reveals that there are 45 units on hand. Using the FIFO inventorymethod, cost of goods sold for January is
$3,135 | ||
$3,005 | ||
$2,875 | ||
$1,255 |
3 points
Question 34
Corresponds to CLO 8(b) Party Retailers has the followinginventory data: May 1, beginning inventory of 200 units at $10; May14, purchases of 300 units at $12; May 23, purchases of 250 unitsat $15. A physical count of inventory on May 31 reveals that thereare 300 units on hand. Using the LIFO inventory method, endinginventory for May is
$3,000 | ||
$6,150 | ||
$4,350 | ||
$3,200 |
3 points
Question 35
Corresponds to CLO 8(c) Halting Corporation has the followinginventory data: September 1, beginning inventory of 430 units at$11; September 8, purchases of 350 units at $12; September 21,purchases of 460 units at $14. A physical count of inventory onSeptember 30 reveals that there are 400 units on hand. Using theweighted average inventory method, rounding the unit cost to thenearest penny, what is cost of goods sold for September?
$10,357 | ||
$4,960 | ||
$10,416 | ||
$4,932 |
3 points
Question 36
Corresponds to CLO 8(d) Unleash Corporation is a retaileroperating in an industry currently experiencing high inflation.Unleash wants to show the lowest cost of goods sold on its incomestatement in order to show higher profits. Which inventory costingmethod should Unleash use?
FIFO because cost of goods sold represents the earliestcosts. | ||
Average because cost of goods sold will represent an averageamount. | ||
Specific identification because it involves the actualcosts. | ||
LIFO because cost of goods sold represents the latest costs. |
3 points
Question 37
Corresponds to CLO 9(a) The following balance sheet and incomestatement data is available for Gold River Corporation: Currentassetsâ¦$125,000; Total assetsâ¦$520,000; Net incomeâ¦$345,000;Current liabilitiesâ¦$80,000; Total liabilitiesâ¦$150,000;Stockholders' equityâ¦$370,000; Average common shares outstandingâ¦10,000. What is Gold River's current ratio?
3.47 | ||
1.64 | ||
1.56 | ||
0.83 |
3 points
Question 38
Corresponds to CLO 9(b) The following balance sheet data isavailable for Pinpoint Products: Current assetsâ¦$50,000; Property,plant, and equipment,â¦$70,000â¦Other assetsâ¦$10,000; Currentliabilitiesâ¦$30,000; Long-term liabilitiesâ¦$22,000; Stockholders'equityâ¦$78,000; Average common shares outstanding⦠10,000. What isPinpoint's debt to total assets, shown as a percentage?
60% | ||
45% | ||
67% | ||
40% |
3 points
Question 39
Corresponds to CLO 9(c) The following balance sheet and incomestatement data is available for Frame Manufacturing: Totalassetsâ¦$520,000; Total liabilitiesâ¦$250,000; Stockholders'equityâ¦$270,000; Gross profitâ¦$55,000; Net incomeâ¦$40,000; Averagecommon shares outstanding⦠25,000. What is Frame Manufacturing'searnings per share?
$10.80 | ||
$3.50 | ||
$1.60 | ||
$2.20 |
3 points
Question 40
Corresponds to CLO 9(d) The following financial information isavailable for Maroon Corporation: Sales revenueâ¦$200,000; Cost ofgoods soldâ¦$120,000; Operating expensesâ¦$40,000. What is Maroon'sgross profit rate, shown as a percentage?
20% | ||
80% | ||
60% | ||
40% |
