ACC 100 Study Guide - Weighted Arithmetic Mean, Inventory Turnover

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ultramarinebeaver423

1 May 2014

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Sale of inventory - recognize revenue (same as perpetual) Cogs = beginning inventory + purchases - ending inventory. Fifo cost associated with the inventory that was purchased or produced first are expensed first at purchase price (aka. oldest costs are the first ones expensed) Average cost weighted average of all purchases divided by the number of units at purchase price ex. Oct 3 - purchased 100 units @ 50. Oct 8 - sold 80 units @ 125. Oct 15 - purchased 125 units @ 55. Average cost = (100 units @ 50) x (125 units @ 55) / (100 + 125) Specific identification - amount of inventory on hand at end of period depend on which units are sold ex. if 100 units were available for sale during october @ and 92 units were sold, the. *what is important is the # of units sold during that period not the total units sold for all periods.

Related Questions

Solve for the adjusting entry:-

2018

Debit Balance Credit Balance

100000 Bank Account dr $300,318

110100 Accounts Receivable (Direct Posting Account) dr 94,670

110150 Allowance for Bad Debts cr 2,600

200600 Inventory-Operating Supplies dr 8,832

200900 Inventory-Raw Materials (Direct Post) dr 52,000

200910 Inventory-Finished Goods (Direct Post) dr 281,298

200920 Inventory-Trading Goods (Direct Post) dr 66,474

210000 Prepaid Insurance dr 3,000

212000 Prepaid Advertising dr 2,400

220110 Land (Direct Post) dr 528,000

220210 Production Machinery, Equip & Fixtures (Dir.Post) dr 915,000

220310 Accumulated Depreciation-Machinery (Direct Post) cr 408,000

300200 Accounts Payable (Direct Posting Account) cr 48,000

300700 Payables-Salaries and Wages cr 94,313

300800 Accrued Expenses cr 2,200

320000 Accrued Tax â Output cr 4,000

329000 Common Stock cr 1,010,000

329100 Additional Paid-in-Capital cr 52,870

330010 Retained Earnings (Direct Posting) cr 630,009

Payables-Salaries and Wages	94,313
Bank Account		94,313
to record payment of salaries and wages

Inventory-Trading Goods (Direct Post)	60,600
Inventory-Raw Materials (Direct Post)	40,900
Accounts Payable (Direct Posting Account)		100,000
Bank Account		1,500
to record acquisition of invemtory and payment of shipment

Accounts Receivable (Direct Posting Account)	22,500
Cost of Goods Sold	15,000
Sales Revenue		22,500
Inventory-Trading Goods (Direct Post)		15,000
to record the sale of accessories

Bank Account	24,000
Accounts Receivable (Direct Posting Account)		24,000
to record payment receipt from Northwest bikes

Accrued Expenses	2,200
Bank Account		2,200
to record payment of utilities

Advertising Expense	1,100
Prepaid Advertising		1,100
to record advertisiment expense

Inventory-Operating Supplies	380
Accounts Payable (Direct Posting Account)		380
to record receipt of Staples

Bank Account	21,825
Sales Discount	675
Accounts Receivable (Direct Posting Account)		22,500
to recors payment of windy city bikes

Accounts Payable (Direct Posting Account)	100,000
Bank Account		100,000
to record payment to Dallas Bike Basics

Deposits on Purchases	8,800
Bank Account		2,000
Accounts Payable (Direct Posting Account)		6,800
to record the purchase of barcoding

Accounts Payable (Direct Posting Account)	15,890
Bank Account		15,890
to record payment of Lightbulb Accesorry Kits

Accounts Receivable (Direct Posting Account)	128,000
Cost of Goods Sold	78,000
Sales Revenue		128,000
Inventory-Finished Goods (Direct Post)		78,000
to record sale to Rocky Mountain Bikes(Denver)

Inventory-Raw Materials (Direct Post)	75,600
Accounts Payable (Direct Posting Account)		75,600
to record purchase of raw material(Space Bike)

Allowance for Bad Debts	4,200
Accounts Receivable (Direct Posting Account)		4,200
to record Bad debt expense

Bank Account	90,000
Accounts Receivable (Direct Posting Account)		90,000
to record payment from Sillicon Valley Bikes

Accounts Payable (Direct Posting Account)	380
Bank Account		380


Accounts Receivable (Direct Posting Account)	2,977
Cost of Goods Sold	1,300
Sales Revenue		2,750
Accrued Tax- Input		227
Inventory-Trading Goods (Direct Post)		1,300
to record sale of inventory

Prepaid Advertising	9,000
Bank Account		9,000
to record payment for advertising

Bank Account	27,000
Cost of Goods Sold	17,000
Sales Revenue		27,000
Inventory-Finished Goods (Direct Post)		17,000
to record sale to Beantown Bikes

Accounts Payable (Direct Posting Account)	32,000
Bank Account		32,000
to record payment to Night Rider Aluminum

Accrued Tax â Output	3,000
Bank Account		3,000
to record payment sale tax

Prepaid Rent	4,000
Bank Account		4,000
to record prepaid rent

Accounts Payable (Direct Posting Account)	6,800
Bank Account		6,800
to record payment for barcoding system

Accounts Receivable (Direct Posting Account)	358,500
Cost of Goods Sold	250,000
Sales Revenue		358,500
Inventory-Trading Goods (Direct Post)		65,000
Inventory-Finished Goods (Direct Post)		185,000
to record sale to Big Apple Bikes

Adjustment information as of January 31, not already given in the original transaction(s):

1. Based on prior experience, GBI estimates that approximately 1.5 % of the credit sales from each month will become bad debt. GBI writes off bad debts as they occur and recognizes bad debt expense based on percentage of credit sales as an adjusting entry each month.

2. As a control measure, physical inventories are taken on a periodic basis alternating between the raw materials inventory, finished goods inventory and trading goods inventory. Physical inventory of the finished goods inventory was taken at the end of January. It was determined that the value of the finished goods merchandise on hand was $1,200.

3. GBI counted the office (operating) supplies on hand after the close of business on the last day of the month and determined the cost of the unused office supplies to be $1000.

4. Production Machinery, Equipment and Fixtures were placed in service on January 1, 2013, with no salvage value. The bar-code system has a 5-year life and no salvage value. GBI depreciates fixed assets on a straight-line basis and those assets placed in service in the first half of the months are depreciated for the entire month, while fixed assets placed in service during the last half of the month are not depreciated until the second month. Depreciation is rounded to the nearest dollar and assets are depreciated on a monthly basis (i.e. number of days in the month is not of consequence).

5. GBI used the Internet to review the monthly charges for utilities the business consumed during January. Based on the Internet report, the amount to be billed by the utilities company for January usage is the same as was billed for December.

6. Liability insurance for the six-month period ending on January 31 was paid last August on the first of the month. Liability insurance is assumed to be utilized uniformly over the six-month policy period.

7. GBI needs to recognize the wages expense for the month. Since all employees are paid salaries and no changes have been made, this amount is the same as the previous month salaries. (For purposes of this assignment, ignore manufacturing, office, and administrative payrolls and assume all wages expense is towards labor expense.

salmonyak82

Tierney County

Total Governmental Funds

Preclosing Trial Balance

December 31,2005

Cash 1,348,200 (dr)

Investments 7,355,600 (dr)

Due from general fund 3,500 (dr)

Taxes Receivable 189,000 (dr)

Allowance for uncollectable taxes 38,500 (cr)

Interest and penalities receivable 5.250 (dr)

Allowance for uncollectable interest and penalities 476 (cr)

accounts receivable 45,500 (dr)

Allowance for uncollectable accounts 1,750 (cr)

Accrued interest receivable 191,800 (dr)

Inventory of materials and supplies 16,450 (dr)

vouchers payable 1,016,400 (cr)

accrued salaries and wages payable 17,500 (cr)

contracts payable retained percentage 350,000 (cr)

interest payable (on current debt) 1,050 (cr)

unearned operating grant revenues 360,500 (cr)

unearned capital grant revenues 525,000 (cr)

Due to enterprise fund 11,550 (cr)

due to special revenue funds 3,500 (cr)

deferred tax revenues 107,800 (cr)

fund balance (preclosing) 695,049 (cr)

Revenues:

Taxes 3,395,000 (cr)

licenses and permits 311,500 (cr)

Fines and Forfeitures 133,000 (cr)

Unrestricrted grants 367,500 (cr)

Operating Grants 420,000 (cr)

Capital Grants 7,231,000 (cr)

Investment Income 600,000 (cr)

Other Revenues 7,000 (cr)

Current operation expenditures / expenses

General government 274,400 (dr)

public safety 1,417,500 (dr)

streets and roads 861,700 (dr)

health and sanitation 162,400 (dr)

Parks and recreation 65,100 (dr)

Captial outlay expenditures:

for construction 8,890,000 (dr)

for equipment 203,700 (dr)

Debt Service Expenditures:

bond principal retirement 700,000 (dr)

interest and bonds 356,745 (dr)

fiscal agent fees 52,500 (dr)

bond issue costs 35,000 (dr)

Other Financing Sources:

bonds 6,300,000 (cr)

bond premium 42,000 (cr)

Proceeds from sale fo general capital assets 175,000 (cr)

Transfers form general fund 616,000 (cr)

Transfers from Special revenue funds 70,000 (cr)

Transfers from enterprise funds 63,000 (cr)

Other Financing uses:

Transfers to capital projects funds 56,000 (dr)

trasfers to debt service funds 560,000 (dr)

transfers to general fund 70,000 (dr)

Totals 22,860,075 both

1. the beginning trial balance of the general capital assets andgeneral long term liabilities accounts at January 1, 2015 was

land 465,500 (dr)

buildings 4,375,000 (dr)

accumulated depreciation _ buildings 2,730,000 (cr)

machinery and equipment 1,400,000 (dr)

accumulated depreciation machinery and equipment 525,000(cr)

streets and roads 7,000,000 (dr)

accumulated depreciation streets and roads 4,200,000 (dcr

bonds payable 2,800,000(cr)

premium on bonds payable 70,000(cr)

liability for claims andjudgements - long term 490,000 (cr)

compensated absences liability -long term 350,000 (cr)

net position 2,075,500(cr)

totals 13,240,500

2. the balance of the long-termclaims and judgments obligation at december 31, 2015 was 450,000.all claims and judgements of the county are related to health andsanitation.

3. the balance fo the long-termliability for compensated absences at december 31, 2015 was425,000, compensated absence liabilities are generated equally bythe general government, public safety, streets and roads, andhealth and sanitation.

4. the bons issuance occurred atyear end. the equipment purchases occurred at the beginning of theyear.

5. the january 1, 2015 balance ofaccrued salaries and wages payable was 25,000

6. the january 1, 2015 balance ofdeferred tax revenue was 84,000

7. the operating grants revenueswere associated with public safety (100,000) and health andsanitaiton. the capital grants were associated with streets androads.

8. the accrued interst associatedwith bonds at december 31,2015 was 99,000 the january 1 2015balance was 87,500

9. the remaining term of thebonds payable with the premium (70,000) is 10 years. use straightline amortization.

10. the county depereciatesmachinery and equipment over 5 years, building over 20 years, andstreets and roads over 30 years. assume zero salvagevaleus.

11. depreciation expense on thebuildings and on the machinery and equipment is associated withfunctions as follows: general government 10 %, pulbic safety 50%,streets and roads 25%, health and sanitaiton 10%, and parks andrecreation 5%.

12. the cpaital asset sold wasequipment, which cost 500,000 and had accumulated depreciation atthe january 1 sale date of 400,000

13. the county's only internalservice fund provides 75% of its services to enterprise funds andsets its billings equal to its costs of providing services. Theinternal service fund billings to general governmental departmentsduring the year totaled 100,000. billings of 25,000 were associatedwith each functional category of expenditures except parks andrecreation.

Reguired: the december 31, 2015total fund balance (postclosing) was 6,721,274. Prepare a balancesheet conversion worksheet to derive government-wide, governmentalactivities data for Tierney County.

cerisealligator433

ACC 3010

Project 2

Spring Summer 2018

This project will be submitted in 3 parts. The submission dates and Required parts to be completed for each submission are:

Submission 1 - due Saturday June 16 before 5pm - You must submit your completed March Journal entries, your completed Inventory Cards for all 3 Inventory costing methods, and the Worksheet complete through the Trial Balance. Your file must be named correctly - "Your name (first and last) Project 2 part 1. Failure to name your file correctly will result in a 1 point deduction

1. Complete the Perpetual Inventory card worksheets to reflect the March purchases and sales under the 3 different Inventory costing methods. For the weighted average computations, round unit cost to the nearest penny and total cost to the nearest dollar.

2. Complete the March Journal Entries to reflect the purchases and sales transactions (company uses the perpetual method) under the LIFO costing method and post.

3. Post the March entries to the worksheet columns for the March entries and complete the Trial Balance columns of the Worksheet.

Inventory Information

Inventory on hand at the beginning of October:

Units Cost / unit Total Cost

Purchase # 1 10 50 $500

Purchase # 2 35 60 2,100

45 $2,600

March 2018 transactions related to buying and selling doodad inventory

1-Mar Sold 25 doodads at $115 each on credit

3-Mar Purchased 40 doodads at a cost of $70 per doodad on credit

15-Mar Sold 30 doodads at $125 each on credit

20-Mar Purchased 25 doodads at a cost of $80 per doodad on credit

24-Mar Sold 35 doodads at $140 each on credit

The PHYSICAL count of doodad inventory on hand at March 31, 2018 shows 18 doodads at a LIFO cost of $980.

#NAME?
PARTIALLY ADJUSTED TRIAL BALANCE
March 31 2018							Adjusting
	Part Adj T/B		March Jes		Trial	Balance	& Bank Rec	Jes	Adusted TB
	DR	CR	DR	CR	DR	CR	DR	CR	DR	CR
Cash	$253,560
Accounts Receivable	146,800
Allowance for Uncollectible Accounts		$2,569
Supplies	85,650
Inventory	2,600
Prepaid Insurance	16,800
Land	50,000
Building	125,500
Accumulated Depr â Building		5,670
Computer equipment	52,950
Accumulated Depr â Comp Equip		1,750
Office Furniture	85,960
Accumulated Depr - Office Furniture		890
Accounts Payable		48,526
Interest Payable		3,200
Utilities Payable		8,952
Wages Payable		98,505
Long term Note Payable		90,000
Mortgage Payable		60,000
Common Stock		400,000
Retained Earnings		106,468
Dividends	4,000
Service Revenue		345,650
Tablet Sales Revenue		210,250
Cost of Goods Sold	165,850
Bad Debt Expense
Depreciation Expense â Building	1,350
Depreciation Expense - Computer Equip	890
Depreciation Expense - Office Furn	650
Interest Expense	3560
Insurance Expense	38,950
Supplies expense	72,860
Bank fee (expense)
Utilities Expense	75,900
Wage Expense	198,600


TOTALS	$1,382,430	$1,382,430	$0

amaranthreindeer392

ACC 100 Study Guide - Weighted Arithmetic Mean, Inventory Turnover

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