Woody Ltd sold inventory items to its subsidiary Buzz Lightyear Ltd and had the following intercompany transactions: Cost of inventory $600 000 sold for $750 000 for the year ended 30 June 2022. One third of the inventory items were sold by Buzz Lightyear Ltd to external parties before the financial year end 30 June 2022. Cost of inventory $200 000 sold for $150 000 for the year ended 30 June 2023. Half of the inventory items were sold by Buzz Lightyear Ltd to external parties before the financial year end 30 June 2023. Ignoring taxes, which of the following statements is correct with respect to this transaction only for the year ended 30 June 2023
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- The following items were included in Venicio Corporations inventory account on December 31, 2019: What amount should Venicio report as inventory at December 31, 2019? a. 21,000 b. 20,400 c. 26,000 d. 35,000Woody Ltd sold inventory items to its subsidiary Buzz Lightyear Ltd and had the following intercompany transactions: Cost of inventory $600 000 sold for $750 000 for the year ended 30 June 2022. One third of the inventory items were sold by Buzz Lightyear Ltd to external parties before the financial year end 30 June 2022. Cost of inventory $200 000 sold for $150 000 for the year ended 30 June 2023. Half of the inventory items were sold by Buzz Lightyear Ltd to external parties before the financial year end 30 June 2023. Ignoring taxes, which of the following statements is correct with respect to this transaction only for the year ended 30 June 2023 A. Consolidated sales will decrease by $200 000 Consolidated sales will increase by $550 000 Consolidated profit will increase by $125 000. C. Consolidated profit will increase by $24 000 D. B.The following information pertain to the only sale of inventory transaction of Orion Company in 2023: Date of sale - December 23, 2023; No. of units sold - 10,000; Selling price -P150 per unit; Right to return period - within 15 days: Estimated return for cash refund within 15 days - 5% of units sold; Estimated return for exchange of equal or greater value of merchandise - 10%; Cost per unit - P100 Question:- Compute the amount of sales to be recognized in 2023. A. P1,500,000 B. P1,475,000 C. P1,425,000 D. P1,000,000 - What amount of cost goods sold will appear in the 2023 statement of income? A. P925,000 B. P950,000 C. P975,000 D. P1,000,000
- 1. The inventory on hand on December 31, 2020 for Univ Company is valued at P1,500,000. The entity's policy on its selling is 150% of cost. The following were not included in the inventory: 1. Purchases of goods still in transit, shipped FOB Destination, with price of P150,000, which includes freight charge of P25,000 2. Goods held on consignment by Univ at a sales price of P100,000, excluding 20% commission based on sales price. Freight paid by Univ is P10,000. 3. Goods sold in transit FOB Destination with invoice price of P245,000 which includes a freight charge of P20,000 to deliver the goods. 4. Purchases of goods still in transit FOB Shipping point with invoice of P300,000. Freight cost, P50,000 5. Goods out on consignment with sales price of P300.000. Shipping cost to consignee is P20,000. What is the correct amount of inventory at December 31 2020?On December 31, 2024, Punch Company reported inventory per physical count at P1,500,000. The entity revealed the following information: • Goods in transit by Dec. 31, 2024 purchased FOB shipping point, total price P100,000 including freight of P20,000. • Goods held on consignment included in the count, costing P30,000. • Goods in transit by December 31, 2024 sold FOB destination, costing P45,000 including freight of P5,0000. • Goods purchased in transit by December 31, 2024, "Ex-ship", costing P50,000. • Goods purchased in transit by December 31, 2024, "Cost, Insurance, Freight", costing P75,000. What is the correct amount of inventory on December 31, 2024?Dignity Company had the following consignment transactions during the current year:Inventory shipped on consignment to a consignee 600,000Freight paid by Dignity Company 50,000Inventory received on consignment from a consignor 800,000Freight paid by consignor 50,000 No sales of consigned goods were made during the current year. What amount should be reported as consigned inventory at year-end?
- Crane Corporation sells item A as part of its product line. Information as to balances on hand, purchases, and sales of item A are given in the following table for the first six months of 2025. Date January 11 January 24 February 8 March 16 June 11 (a) Purchased 1,320 Ending inventory Quantities 700 Sold 340 560 Balance 440 1.760 1,420 860 1,560 Unit Price of Purchase $4.70 $4.80 $5.20 Compute the ending inventory at June 30 under the perpetual LIFO inventory pricing method.Swifty Corporation began operations on December 1, 2024. The only inventory transaction in 2024 was the purchase of inventory on December 10, 2024, at a cost of $21 per unit. None of this inventory was sold in 2024. Relevant information is as follows. Ending inventory units December 31, 2024 December 31, 2025, by purchase date December 2, 2025 July 20, 2025 120 120 50 170 During the year, the following purchases and sales were made Purchases Sales March 15 320 units at $26 April 10 220 July 20 September 4 December 2 320 units at 220 units 120 units at 27 August 20 320 at 30 November 18 170 32 December 12 220 The company uses the periodic inventory methodThe following information is available for Bridgeport Corporation for 2022: Beginning inventory $1,104,000 Ending inventory 1,204,000 Cost of goods sold Sales Inventory turnover 7,731,800 Calculate the inventory turnover and days in inventory for Bridgeport Corporation. (Round inventory turnover to 2 decimal places, e.g. 52.75 and days in inventory to O decimal places, e.g. 5,275.) Days in inventory 7,030,000 times days
- On December 31, 2024, Delta Company made a complete physical inventory count totaling P630,000. However, the said count did not consider the following data: • Towards the end of the year, Delta sent goods costing P122,500 on consignment to Beta Company to sell for P159,250 with a 30% markup on cost. On December 31, 2024, Beta Company reported P93,600 sales of the consigned goods; the remainder are still on hand at year-end. • In addition, Delta Company purchased P45,500 worth of goods shipped on December 27, FOB destination. Delta received the goods on January 3, 2025. REQUIRED:What is the correct amount of inventory to be reported by Delta Company on December 31, 2024?Nash Company uses the LCM method, on an individual-item basis, in pricing its inventory items because it uses LIFO to value its inventory. The inventory at December 31, 2025, consists of products D, E, F, G, H, and I. Relevant per-unit data for these products appear below. Item D Item E Item F Item G Item H Item I Estimated selling price $247 $227 $196 $185 $227 $185 Cost 155 165 165 165 103 74 Replacement cost 247 148 144 62 144 62 Estimated selling expense 62 62 62 52 62 62 Normal profit 41 41 41 42 41 41 41 Using the LCM rule, determine the proper unit value for balance sheet reporting purposes at December 31, 2025, for each of the inventory items above. Item D $ Item E $ Item F $ Item G $ Item H $ ItemI $ +AAbacus Ltd undertook the following transactions during May 2022. Purchased $18,480 inventory; terms 1/10, n/30. May. 1 8 Returned $1,980 of the inventory purchased on May 1. 16 Sold inventory on credit for $8,745. Cost of the inventory sold was $5,700. Required: a) Prepare the journal entries to record the transactions using periodic inventory system. GST apply, and assuming that all the prices are GST inclusive. b) Prepare the journal entries to record the 8th and 16th transactions using perpetual inventory system. Ignore GST.