At the beginning of the year, Sheffield had an inventory of $350000. During the year, the company purchased goods costing $1070000. If Sheffield reported ending inventory of $340000 and sales of $1420000, their cost of goods sold and gross profit rate would be O $1080000 and 23.94%. $730000 and 76.06% O $1080000 and 76%. $690000 and 24%.

At the beginning of the year, Sheffield had an inventory of $350000. During the year, the company purchased goods costing $1070000. If Sheffield reported ending inventory of $340000 and sales of $1420000, their cost of goods sold and gross profit rate would be O $1080000 and 23.94%. $730000 and 76.06% O $1080000 and 76%. $690000 and 24%.

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter6: Cost Of Goods Sold And Inventory

Section: Chapter Questions

Problem 33BE

See similar textbooks

Similar questions

Refer to RE22-2. Assume Heller Company had sales revenue of 510,000 in 2019 and 650,000 in 2020. Prepare Hellers partial income statements (through gross profit) for 2019 and 2020. RE22-2 Heller Company began operations in 2019 and used the LIFO method to compute its 300,000 cost of goods sold for that year. At the beginning of 2020, Heller changed to the FIFO method. Heller determined that its cost of goods sold under FIFO would have been 250,000 in 2019. For 2020, Hellers cost of goods sold under FIFO was 360,000, while it would have been 410,000 under LIFO. Heller is subject to a 21% income tax rate. Compute the cumulative effect of the retrospective adjustment on prior years income (net of taxes) that Heller would report on its retained earnings statement for 2020.
The following information is available for Cooke Company for the current year: The gross margin is 40% of net sales. What is the cost of goods available for sale? a. 5840,000 b. 960,000 c. 1,200,000 d. 1,220,000
Comprehensive The following information for 2019 is available for Marino Company: 1. The beginning inventory is 100,000. 2. Purchases returns of 4,000 were made. 3. Purchases of 300,000 were made on terms of 2/10, n/30. Eighty percent of the discounts were taken. 4. At December 31, purchases of 20,000 were in transit, FOB destination, on terms of 2/10, n/30. 5. The company made sales of 640,000. The gross selling price per unit is twice the net cost of each unit sold. 6. Sales allowances of 6,000 were made. 7. The company uses the LIFO periodic method and the gross method for purchase discounts. Required: 1. Compute the cost of the ending inventory before the physical inventory is taken. 2. Compute the amount of the cost of goods sold that came from the purchases of the period and the amount that came from the beginning inventory.
Assume your company uses the periodic inventory costing method, and the inventory count left out an entire warehouse of goods that were in stock at the end of the year, with a cost value of $222,000. How will this affect your net income in the current year? How will it affect next years net income?
Multiple Choice Question 179 At the beginning of the year, Sheffield had an inventory of $350000. During the year, the company purchased goods costing $1070000. If Sheffield reported ending inventory of $340000 and sales of $1420000, their cost of goods sold and gross profit rate would be $1080000 and 23.94%. $730000 and 76.06% $1080000 and 76%. $690000 and 24%.
Determine the Sales for the year, Gross Profit P240,000.00, Ending Inventory P120,000.00, Goods available for sale P 200,000.00 P 460,000.00 P 320,000.00 P 400,000.00 P 300,000.00
10 Vargas Company uses the perpetual inventory method. Vargas purchased 2,200 units of inventory that cost $23.00 each. At a later date the company purchased an additional 2,600 units of inventory that cost $24.00 each. Vargas sold 2,300 units of inventory for $27.00. If Vargas uses a FIFO cost flow method, the amount of cost of goods sold appearing on the income statement will be: 1 nts 01:10:09 Multiple Choice $50,600. $53,000 $9,100 $6,900.
Ivanhoe Corporation's computation of cost of goods sold is: Beginning inventory $64200 Add: Cost of goods purchased 540000 604200 Cost of goods available for sale 93000 Less: Ending inventory $511200 Cost of goods sold The average days to sell inventory for Ivanhoe are (Hint: Round intermediate calculation and final answer to 1 decimal place, eg O.6.) O 45.8 days. O 47.5 days. O 66.4 days. O 562 days.
Question 1 Assume Hadley Co has the following purchases of inventory during the first month of operations Number of Units Cost per unit 21 First Purchase Second Purchase 278 199 3.7 Assuming Hadley sells 347 units at $13 each, what is cost of goods if they use weighted average?
d t nces SLR Corporation has 500 units of each of its two products in its year-end inventory. Per unit data for each of the products are as follows: Cost Replacement cost Selling price Selling costs Normal profit Product 1 $ 53 51 73 Required 1 Determine the carrying value of SLR's inventory assuming that the lower of cost or market (LCM) rule is applied to individual products. What is the before-tax income effect of the LCM adjustment? Complete this question by entering your answers in the tabs below. Product Cost 9 13 Required 2 Product 2 $ 37 29 39 7 11 Determine the carrying value of SLR's inventory assuming that the lower of cost or market (LCM) rule is applied to individual products. Market Per Unit Inventory Value Unit Cost Lower of Cost or Market
View Policies Current Attempt in Progress Vaughn Manufacturing uses the perpetual inventory and the gross method. On March 1, it purchased $74000 of inventory, terms 2/10, n/30.bn March 3, Vaughn returned goods that cost $9000. On March 9, Vaughn paid the supplier. On March 9, Vaughn should credit O purchase discounts for $1300. O purchase discounts for $1480. O inventory for $1300. O inventory for $1480. Save for Later Attempts: 0 of 2 used Submit Answer
01 Ross Company provided the following data for the current. year: Problem 14-11 (IAA) Retail Cost 1,650,000 4,200,000 2,000,000 6N Beginning inventory Net purchases Net markup Net markdown 800,000 200,000 - Net sales The entity used the average retail inventory method to estimate ending inventory. It was determined that the average cost of the ending inventory was P1,950,000. If the entity used the FIF0 retail method, the cost ratio would have been 60%. 1. What is the amount of net purchases at original retail before markup and markdown? a. 7,600,000 b. 7,000,000 с. 4,200,000 d. 6,400,000 2. What amount was reported as net sales? a. 9,000,000 b. 3,000,000 c. 6,000,000 d. 7,000,000 3. What amount was reported as cost of goods sold? a. 3,900,000 b. 3,000,000 c. 3,600,000 d. 1,800,000 398 E HA C