Principles of Accounting
12th Edition
ISBN: 9781133626985
Author: Belverd E. Needles, Marian Powers, Susan V. Crosson
Publisher: Cengage Learning
expand_more
expand_more
format_list_bulleted
Concept explainers
Question
Chapter 2, Problem 15EA
a.
To determine
Calculate the total purchase of supplies if A flower shop recognizes the purchases while the orders are shipped.
b.
To determine
Calculate the total purchase of supplies if A flower shop recognizes the purchases while the orders are received.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
PC Mall, Inc., is a direct marketer of computer hardware, software, peripherals, and electronics.In a recent annual report, the company reported that its revenue is “recognized upon receipt of theproduct by the customer.”Required:1. Indicate whether PC Mall’s sales terms are FOB shipping point or FOB destination.2. Assume PC Mall sold inventory on account to eCOST.com on December 28 that was to bedelivered January 3. The inventory cost PC Mall $25,000 and the selling price was $30,000.What amounts, if any, related to this transaction would be reported on PC Mall’s balance sheetand income statement in December? In January?3. Assume PC Mall purchased electronics on December 29 that were shipped that day andreceived on January 2. For these goods to be included in PC Mall’s inventory on December 31,would the terms have been FOB destination or FOB shipping point?
REI sells snowboards. Assume the following information relates to REI's purchases of snowboards during September. During the same
month, 98 snowboards were sold.
Date
Sept. 1
Sept. 12
Sept. 19
Sept. 26
Date
Sept. 5
Sept. 16
Sept. 29
Explanation Units Unit Cost
$102
(a1)
Inventory
Purchases
Purchases
Purchases
Totals
Sale
Sale
Sale
Totals
September 1
September 5
September 12
Additional data regarding the company's sales of snowboards are provided below. Assume that REI uses a perpetual inventory system.
September 16
September 26
$
September 29
$
Your answer is partially correct.
$
September 19 $
$
Units
$
8
$
46
44
12
98
44
48
Calculate the weighted-average unit cost. (Round answers to 3 decimal places, e.g. 5.125.)
30
134
105
106
107
Total Cost
$1,224
4,620
102
5,088
3,210
$14,142
Pete’s Tennis Shop has the following transactions related to its top-selling Wilson tennis racket for the month of August:Required:1. Calculate ending inventory and cost of goods sold at August 31, using the specific identification method. The August 4 sale consists of rackets from beginning inventory, the August 13 sale consists of rackets from the August 11 purchase, and the August 26 sale consists of one racket from beginning inventory and 10 rackets from the August 20 purchase.2. Using FIFO, calculate ending inventory and cost of goods sold at August 31.3. Using LIFO, calculate ending inventory and cost of goods sold at August 31.4. Using weighted-average cost, calculate ending inventory and cost of goods sold at August 31.5. Calculate sales revenue and gross profit under each of the four methods.6. Comparing FIFO and LIFO, which one provides the more meaningful measure of ending inventory? Explain.7. If Pete’s chooses to report inventory using LIFO, record the LIFO adjustment.
Chapter 2 Solutions
Principles of Accounting
Ch. 2 - A company incurs a cost for a part that is needed...Ch. 2 - Prob. 2DQCh. 2 - Prob. 3DQCh. 2 - Prob. 4DQCh. 2 - How are assets and expenses related, and why are...Ch. 2 - Prob. 6DQCh. 2 - Prob. 7DQCh. 2 - Prob. 8DQCh. 2 - Tell whether each of the following accounts is an...Ch. 2 - Prob. 2SE
Ch. 2 - Prob. 3SECh. 2 - Prob. 4SECh. 2 - Prob. 5SECh. 2 - Prob. 6SECh. 2 - Prob. 7SECh. 2 - Prepare a general journal form like the one in...Ch. 2 - Prepare three ledger account forms like the one in...Ch. 2 - Prob. 10SECh. 2 - Prob. 11SECh. 2 - Prob. 12SECh. 2 - Which of the following events would be recognized...Ch. 2 - You are given the following list of accounts with...Ch. 2 - The following ledger accounts are for Afocentric...Ch. 2 - Prob. 4EACh. 2 - The accounts that follow are applicable to Harolds...Ch. 2 - Prob. 6EACh. 2 - Prob. 7EACh. 2 - Prob. 8EACh. 2 - After recording the transactions in E6A, prepare a...Ch. 2 - The list that follows presents Shah Companys...Ch. 2 - Which of the following errors would cause a trial...Ch. 2 - Prob. 12EACh. 2 - Record the transactions in E6A in the general...Ch. 2 - Prob. 14EACh. 2 - Prob. 15EACh. 2 - Prob. 16EACh. 2 - Highland Design Company creates radio and...Ch. 2 - The following accounts are applicable to Georges...Ch. 2 - Jennifer Lopez opened a school for administrative...Ch. 2 - Sid Patel bid for and won a concession to rent...Ch. 2 - Nordtown Company is a marketing firm. The companys...Ch. 2 - Prob. 6APCh. 2 - The following accounts are applicable to Raymonds...Ch. 2 - Prob. 8APCh. 2 - David Roberts began an upholstery cleaning...Ch. 2 - Prob. 10APCh. 2 - Prob. 1CCh. 2 - Prob. 2CCh. 2 - Prob. 3CCh. 2 - Prob. 4CCh. 2 - Prob. 5CCh. 2 - Prob. 6CCh. 2 - Prob. 7C
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- Guardian Services Inc. had the following transactions during the month of April: a. Record the June purchase transactions for Guardian Services Inc. in the following purchases journal format: b. What is the total amount posted to the accounts payable and office supplies accounts from the purchases journal for April? c. What is the April 30 balance of the Officemate Inc. creditor account assuming a zero balance on April 1?arrow_forwardThe following purchase transactions occurred during October for K-Town Inc.: Record these transactions in the following purchases journal format:arrow_forwardThe following is selected information from Orange Industries. Compute net purchases, and cost of goods sold for the month of June.arrow_forward
- Review the following transactions, and prepare any necessary journal entries for Renovation Goods. A. On May 12, Renovation Goods purchases 750 square feet of flooring (Flooring Inventory) at $3.00 per square foot from a supplier, on credit. Terms of the purchase are 2/10, n/30 from the invoice date of May 12. B. On May 15, Renovation Goods purchases 200 measuring tapes (Tape Inventory) at $5.75 per tape from a supplier, on credit. Terms of the purchase are 4/15, n/60 from the invoice date of May 15. C. On May 22, Renovation Goods pays cash for the amount due to the flooring supplier from the May 12 transaction. D. On June 3, Renovation Goods pays cash for the amount due to the tape supplier from the May 15 transaction.arrow_forwardThe following is selected information from Mars Corp. Compute net purchases, and cost of goods sold for the month of March.arrow_forwardThe following is selected information from Mars Corp. Compute net purchases, and cost of goods sold for the month of March. Record the journal entry or entries for each of the following sales transactions. Glow Industries sells 240 strobe lights at $40 per light to a customer on May 9. The cost to Glow is $23 per light. The terms of the sale are 5/15, n/40, invoice dated May 9. On May 13, the customer discovers 50 of the lights are the wrong color and are granted an allowance of $10 per light for the error. On May 21, the customer pays for the lights, less the allowance.arrow_forward
- The following purchase transactions occurred during October for K-Town Inc.: Oct. 6. Purchased office supplies for $190, on account from U-Save Supply Inc. 14. Purchased office equipment for $2,100, on account from Zell Computer Inc. 26. Purchased office supplies for $295, on account from U-Save Supply Inc. Record these transactions in the following purchases journal format: PURCHASES JOURNAL Accounts Office Other Accounts Post. Payable Cr. Supplies Dr. Post. Ref. Date Account Credited Ref. Dr. Amountarrow_forwardGrenhert Co is an online furniture retailer. Each week it produces a report of customer sales activity for analysis by its sales staff. Which TWO of the following should NOT appear on the weekly sales report? O Customer name and address Profitability of items sold Customer payment card details Customer log-on details Total sales made to each customer Product codes and quantities of goods soldarrow_forwardREI sells snowboards. Assume the following information relates to REI's purchases of snowboards during September. During the same month, 106 snowboards were sold. Date Sept. 1 Sept. 12 Sept. 19 Sept. 26 Date Explanation Units Unit Cost Inventory $110 Sept. 5 Sept. 16 Sept. 29 Purchases Purchases Purchases. Totals Sale Sale Sale Totals Units 8 47 51 13 106 45 55 Additional data regarding the company's sales of snowboards are provided below. Assume that REI uses a perpetual inventory system. 22 135 113 114 115 Total Cost $1,430 5,085 6,270 2,530 $15,315arrow_forward
- An entity is a wholesaler of office supplies. The activity for Model II calculators during July is shown below. If the entity uses moving average cost method, the ending inventory of Model III calculators at July 31 is reported as Date Balance/Transactions Units Cost July 1 Inventory 2,000 P36.00 7 Purchases 3,000 37.20 12 Sales Purchases Sale 3,600 5,000 21 37.88 22 3,800 29 Purchases 1,600 38.11 Your answerarrow_forwardREI sells snowboards. Assume the following information relates to REI's purchases of snowboards during September. During the same month, 112 snowboards were sold. Date Sept. 1 Sept. 12 Sept. 19 Sept. 26 (a1) Explanation Units Inventory Purchases Purchases Purchases Totals ✓ Your answer is correct. September 1 September 5 September 12 (a2) September 16 $ $ $ $ September 19 $ September 26 $ 112 September 29 $ Additional data regarding the company's sales of snowboards are provided below. Assume that REI uses a perpetual inventory system. Date Units Sept. 5 Sale 8 ⠀ Sept. 16 Sale 53 Sept. 29 Sale 51 Totals eTextbook and Media 15 49 55 Calculate the weighted-average unit cost. (Round answers to 3 decimal places, e.g. 5.125.) The ending inventory $ 22 141 Unit Cost $105 108 109 110 105 105 107.625 107.625 108.929 109.223 FIFO Total Cost 109.223 $1,575 5,292 5,995 2,420 $15,282 Compute ending inventory at September 30 using FIFO, LIFO, and moving-average. (Round answers to O decimal places,…arrow_forwardThe following summarizes Tesla's merchandising activities for the year. Cost of merchandise sold to customers. Merchandise inventory, beginning-of-year Merchandise purchases, gross amount Shrinkage on inventory as of year-end Transportation-in for merchandise purchases Cost of merchandise returned by customers (and restored to inventory) Discounts received from suppliers on merchandise purchases Returns to and allowances from suppliers on merchandise purchases Enter the summarized activities in the two T-accounts below. Complete this question by entering your answers in the tabs below. Merchandise Cost of Goods Inventory Sold Enter the summarized activities in the T-account below. Merchandise Inventory $ 283,000 41,092 290,132 780 2,901 2,100 2,321 4,100arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Essentials of Business Analytics (MindTap Course ...StatisticsISBN:9781305627734Author:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. AndersonPublisher:Cengage LearningPrinciples of Accounting Volume 1AccountingISBN:9781947172685Author:OpenStaxPublisher:OpenStax CollegeCollege Accounting (Book Only): A Career ApproachAccountingISBN:9781337280570Author:Scott, Cathy J.Publisher:South-Western College Pub
- Financial AccountingAccountingISBN:9781337272124Author:Carl Warren, James M. Reeve, Jonathan DuchacPublisher:Cengage LearningFinancial AccountingAccountingISBN:9781305088436Author:Carl Warren, Jim Reeve, Jonathan DuchacPublisher:Cengage Learning
Essentials of Business Analytics (MindTap Course ...
Statistics
ISBN:9781305627734
Author:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson
Publisher:Cengage Learning
Principles of Accounting Volume 1
Accounting
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax College
College Accounting (Book Only): A Career Approach
Accounting
ISBN:9781337280570
Author:Scott, Cathy J.
Publisher:South-Western College Pub
Financial Accounting
Accounting
ISBN:9781337272124
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Cengage Learning
Financial Accounting
Accounting
ISBN:9781305088436
Author:Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:Cengage Learning
The accounting cycle; Author: Alanis Business academy;https://www.youtube.com/watch?v=XTspj8CtzPk;License: Standard YouTube License, CC-BY