On December 1, Novak Corp. has three DVD players left in stock. All are identical, all are priced to sell at $81. One of the three DVD players left in stock, with serial # 1012. was purchased on June 1 at a cost of $52. Another, with serial #1045, was purchased on November 1 for $49. The last player, serial #1056, was purchased on November 30 for $42. (a) Calculate the cost of goods sold using the FIFO periodic inventory method, assuming that two of the three players were sold by the end of December, Novak Corp. year-end. Cost of goods sold $ eTextbook and Media Save for Later Attempts: 0 of 3 used Submit Answer

On December 1, Novak Corp. has three DVD players left in stock. All are identical, all are priced to sell at $81. One of the three DVD players left in stock, with serial # 1012. was purchased on June 1 at a cost of $52. Another, with serial #1045, was purchased on November 1 for $49. The last player, serial #1056, was purchased on November 30 for $42. (a) Calculate the cost of goods sold using the FIFO periodic inventory method, assuming that two of the three players were sold by the end of December, Novak Corp. year-end. Cost of goods sold $ eTextbook and Media Save for Later Attempts: 0 of 3 used Submit Answer

College Accounting (Book Only): A Career Approach

13th Edition

ISBN:9781337280570

Author:Scott, Cathy J.

Publisher:Scott, Cathy J.

Chapter9: Sales And Purchases

Section: Chapter Questions

Problem 9E: Williams Corporation had the following purchases for May: May 3Bought ten lawn rakes from Owens...

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E6-6 On December 1, Discount Electronics has three DVD players left in stock. All are identical and priced to sell at $750. Of the three DVD players left in stock, one with serial #1012 was pur- chased on June 1 at a cost of $500, another with serial #1045 was purchased on November 1 for $450. The last player, serial #1056, was purchased on November 30 for $400. Instructions (a) Calculate the cost of goods sold using the FIFO periodic inventory method, assuming that two of the three players were sold by the end of December, Discount Electronics' year end. (b) If Discount Electronics used the specific identification method instead of the FIFO method, how might it alter its income by "selectively choosing" which particular players to sell to the two customers? What would Discount's cost of goods sold be if the company wished to max- imize income? What would Discount's cost of goods sold be if the company wished to mini- mize income? (c) Which inventory method do you recommend that…
On July 1st. Comfort Furnishings purchased all the remaining inventory of a competitor for $100,000 when their competitor, Lazy Days, went out of business. The products and their estimated selling price for each listed below. Estimated Selling Price Per Unit Sofas Recliners Tables Chairs Maku 200 600 100 Qty 150 $400 $220 $130 $85 1. What is the amount of Gross Profit that Comfort will realize if they sell half of the sofas (100 units) in July? 2. What should the chairs be valued at in Comfort's ending inventory as of 7/31 if 100 chairs were sold during July?
E6.4 (LO 2), AN On December 1, Kiyak Electronics Ltd. has three DVD players left in stock. All are identical, all are priced to sell at $150. One of the three DVD players left in stock, with serial #1012, was purchased on June 1 at a cost of $100. Another, with serial #1045, was purchased on November 1 for $88. The last player, serial #1056, was purchased on November 30 for $80. Instructions a. Calculate the cost of goods sold using the FIFO periodic inventory method assuming that two of the three players were sold by the end of December, Kiyak Electronics' year-end. b. If Kiyak Electronics used the specific identification method instead of the FIFO method, how might it alter its earnings by "selectively choosing" which particular players to sell to the two cus- tomers? What would Kiyak's cost of goods sold be if the company wished to minimize earnings? Maximize earnings? c. Which of the two inventory methods do you recommend that Kiyak use? Explain why. Calculate cost of goods sold…
Com plc bought 500 items of inventory at the price of $20 per item on 1 January 20X2, and another 200 items at the price of $25 per item on 1 July 20X2. On 31 December 20X2, the replacement cost was $30 per item. On that date, Com plc sold 600 items and reported a profit of $9,100 using the first-in-first-out (FIFO) method to calculate the cost of sales. What would the profit be under replacement cost accounting? a. $6,000 b. $4,200 c. $3,200 d. $11,500 e. $12,500 f. $3,600
Legend Company sold $87,000 worth of goods on account to Destiny Inc. on June 20. It cost Legend $60,900 to make these goods. Destiny has 30 days to return the goods for any reason. On July 1, Destiny returns $8,000 worth of goods that had cost Legend $5,600. Legend expects to be able to resell these goods for a profit. Prepare the following entries on the books of Legend Company: Journal entries to record the initial sales on June 20 if a perpetual inventory system is used
Great Electronics sells two types of products: laptops and monitors. They purchased the laptops at $500/unit and the monitors at $180/unit. When they examine the ending inventory at the end of the accounting period, they count 50 laptops and 30 monitors. They determine the market value of the laptops is $520/unit and the value of the monitors is $140/unit. Record the journal entry to bring the inventory to the correct amount on the balance sheet.
Sheridan, Inc. has 8 computers which have been part of the inventory for over two years. Each computer cost $620 and originally retailed for $920. At the statement date, each computer has a net realizable value of $420. What value should Sheridan, Inc., have for the computers at the end of the year? $3360. $7360. $4960. $2480.
Question No1: LLP sells copiers. At December 31, 2001. LLP's inventory amounted to $400,000. During the first week of January 2002, the company made only one purchase and one sale. These transactions were as follows: Jan. 2 Purchased 50 machines from Twin, Inc. The total cost of these machines was $30,000, terms 3/10, n/60. Jan. 6 Sold 20 different types of products on account to Space Corporation. The total sales price was $25,000, terms 5/10, n/90. The total cost of these 20 units of LLP was $13,000 (net of the purchase discount.) LLP has a full-time accountant and a computer-based accounting system. It records sales at the gross sales price and purchases at net cost and maintains subsidiary ledgers for accounts receivable, inventory, and accounts payable. Instructions a. Briefly describe the opening cycle of a merchandising company. Identify the assets and liabilities directly affected by this cycle. b. Prepare journal entries to record these transactions, assuming the LLP uses a…
Sports Haven keeps an inventory of FITBIT Wearable Technology. Assume an inventory of 35 FitBits at the beginning of the year at a cost of $44.32 each. Additional FitBits were purchased as follows: 15 at $45.50 each on March 22, 30 at $45.80 each on May 2, 10 at $46.20 each on July 14, and 40 at $43.90 each on September 9. Use FIFO to determine the cost of the ending inventory. Assume 32 FitBits in inventory at the end of the year.
In its first year of operation, Flip Co, which uses the perpetual method and records purchases at net, buys two lots of sweaters, 1/10, n/30: the first lot on March 10 for $4,000, paying the invoice on March 16; the second lot on June 25 for $2,000, paying the invoice on July 9. If no sweaters are sold from March through July, how will these purchases appear Flip Co’s income statement for the year ended July 31? No effect, because there were no sales. As a loss of $20 As a loss of $40 As a loss of $60
Sports Haven keeps an inventory of FITBIT Wearable Technology. Assume an inventory of 35 FitBits at the beginning of the year at a cost of $44.32 each. Additional FitBits were purchased as follows: 15 at $45.50 each on March 22, 30 at $45.80 each on May 2, 10 at $46.20 each on July 14, and 40 at $43.90 each on September 9. Use LIFO to determine the cost of the ending inventory. Assume 32 FitBits in inventory at the end of the year.