Financial Accounting (12th Edition) (What's New in Accounting)
12th Edition
ISBN: 9780134725987
Author: C. William Thomas, Wendy M. Tietz, Walter T. Harrison Jr.
Publisher: PEARSON
expand_more
expand_more
format_list_bulleted
Videos
Textbook Question
Chapter 6, Problem 6.29BE
LO 1, 2
(Learning Objectives 1, 2: Show how to account for inventory transactions; apply the FIFO cost method) Accounting records for Allegheny Corporation yield the following data for the year ended June 30, 2018:
| Inventory, June 30, 2017 ........................................... | $ 13,100 |
| Purchases of inventory (on account) ......................... | 53,000 |
| Sales of inventory—82% on account; 18%. for cash (cost $46,000} ...... | 73,000 |
| Inventory at FIFO, June 30, 2018 ........................................................ | 20,000 |
Requirements
1. Journalize Allegheny’s inventory transactions for the year under the perpetual system.
2. Report ending inventory, sales, cost of goods sold, and gross profit on the appropriate financial statement.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
(Learning Objectives 1, 2: Show how to account for inventory transactions; applythe FIFO cost method) Spear Corporation’s inventory records for its retail division show thefollowing at May 31:May 1 Beginning inventory ............... 10 units @ $160 = $1,60015 Purchase................................. 5 units @ 161 = 80526 Purchase................................. 14 units @ 170 = 2,380At May 31, 11 of these units are on hand. Journalize the following for Spear Corporation underthe perpetual system:1. Total May purchases in one summary entry. All purchases were on credit.2. Total May sales and cost of goods sold in two summary entries. The selling price was $560per unit, and all sales were on credit. Assume that Spear uses the FIFO inventory method.3. Under FIFO, how much gross profit would Spear earn for the month ending May 31? Whatis the FIFO cost of Spear Corporation’s ending inventory?
(Learning Objectives 1, 2: Show how to account for inventory transactions; applythe FIFO cost method) Accounting records for Jubilee Corporation yield the following datafor the year ended June 30, 2018 (assume sales returns are non-existent):Inventory, June 30, 2017.......................................................................... $ 7,000Purchases of inventory (on account)......................................................... 61,000Sales of inventory—77% on account; 23% for cash (cost $49,000).........Inventory at FIFO, June 30, 2018 ............................................................100,00019,000Requirements1. Journalize Jubilee’s inventory transactions for the year under the perpetual system.2. Report ending inventory, sales, cost of goods sold, and gross profit on the appropriatefinancial statement.
(Learning Objectives 1, 2: Show how to account for inventory transactions; applythe FIFO cost method) Accounting records for Allegheny Corporation yield the followingdata for the year ended June 30, 2018:Inventory, June 30, 2017.......................................................................... $ 13,000Purchases of inventory (on account)......................................................... 53,000Sales of inventory—82% on account; 18% for cash (cost $46,000).........Inventory at FIFO, June 30, 2018 ............................................................73,00020,000Requirements1. Journalize Allegheny’s inventory transactions for the year under the perpetual system.2. Report ending inventory, sales, cost of goods sold, and gross profit on the appropriatefinancial statement
Chapter 6 Solutions
Financial Accounting (12th Edition) (What's New in Accounting)
Ch. 6 - Ravenna Candles recently purchased candleholders...Ch. 6 - Which inventory system maintains a running record...Ch. 6 - How is cost of goods sold classified in the...Ch. 6 - Snyders total cost of goods available for sale...Ch. 6 - Snyders cost of goods sold using the average-cost...Ch. 6 - Snyders ending inventory using the FIFO method...Ch. 6 - Snyders cost of goods sold using the LIFO method...Ch. 6 - Which U.S. GAAP principle or rule would apply if...Ch. 6 - Corrigan Corporation had beginning inventory of...Ch. 6 - Corrigans gross profit for the period is a.79,000....
Ch. 6 - What is Corrigans gross profit percentage (rounded...Ch. 6 - Prob. 12QCCh. 6 - A companys beginning inventory is 150,000, its net...Ch. 6 - An understatement of ending inventory by 2 million...Ch. 6 - Prob. 6.1ECCh. 6 - LO 1 (Learning Objective 1: Show how to account...Ch. 6 - LO 1 (Learning Objective 1: Show how to account...Ch. 6 - LO 1 (Learning Objective 1: Show how to account...Ch. 6 - (Learning Objective 2: Apply the average-cost,...Ch. 6 - (Learning Objective 2: Compare income tax effects...Ch. 6 - LO 2 (Learning Objective 2: Apply the average-cost...Ch. 6 - (Learning Objective 2: Apply the FIFO method)...Ch. 6 - (Learning Objective 2: Apply the LIFO method)...Ch. 6 - (Learning Objective 2: Compare income, tax, and...Ch. 6 - LO 3 (Learning Objective 3: Apply the...Ch. 6 - (Learning Objective 4: Compute ratio data to...Ch. 6 - (Learning Objective 5: Estimate ending inventory...Ch. 6 - (Learning Objective 6: Analyze the effect of an...Ch. 6 - Prob. 6.14SCh. 6 - LO 1,2 (Learning Objectives 1, 2: Show how to...Ch. 6 - LO 1,2 (Learning Objectives 1, 2: Show how to...Ch. 6 - LO 2 (Learning Objective 2: Compare ending...Ch. 6 - (Learning Objective 2: Compare the tax advantage...Ch. 6 - Prob. 6.19AECh. 6 - LO 2 (Learning Objective 2: Compare ending...Ch. 6 - LO 2 (Learning Objective 2: Compare gross...Ch. 6 - Prob. 6.22AECh. 6 - LO 5 (Learning Objective 5: Compute cost of goods...Ch. 6 - Prob. 6.24AECh. 6 - LO 4 (Learning Objective 4: Compute and evaluate...Ch. 6 - LO 5 (Learning Objective 5: Use the COGS model to...Ch. 6 - LO 5 (Learning Objective 5: Use the COGS model to...Ch. 6 - LO 6 (Learning Objective 6: Analyze the effect of...Ch. 6 - LO 1, 2 (Learning Objectives 1, 2: Show how to...Ch. 6 - LO 1, 2 (Learning Objectives 1, 2: Show how to...Ch. 6 - LO1, 2 (Learning Objectives 1, 2: Show how to...Ch. 6 - Prob. 6.32BECh. 6 - LO 2 (Learning Objective 2: Apply the average,...Ch. 6 - Prob. 6.34BECh. 6 - Prob. 6.35BECh. 6 - Prob. 6.36BECh. 6 - Prob. 6.37BECh. 6 - Prob. 6.38BECh. 6 - Prob. 6.39BECh. 6 - Prob. 6.40BECh. 6 - Prob. 6.41BECh. 6 - Prob. 6.42BECh. 6 - Prob. 6.43QCh. 6 - Prob. 6.44QCh. 6 - Prob. 6.45QCh. 6 - The word market as used in the lower of cost or...Ch. 6 - Prob. 6.47QCh. 6 - Prob. 6.48QCh. 6 - Prob. 6.49QCh. 6 - In a period of rising prices, a.cost of goods sold...Ch. 6 - Prob. 6.51QCh. 6 - The following data come from the inventory records...Ch. 6 - Prob. 6.53QCh. 6 - Prob. 6.54QCh. 6 - Prob. 6.55QCh. 6 - Prob. 6.56QCh. 6 - Prob. 6.57QCh. 6 - Prob. 6.58QCh. 6 - Prob. 6.59QCh. 6 - LO 1, 2 (Learning Objectives 1, 2: Show how to...Ch. 6 - Prob. 6.61APCh. 6 - LO 2 (Learning Objective 2: Compare inventory by...Ch. 6 - LO 2 (Learning Objective 2: Compare various...Ch. 6 - Prob. 6.64APCh. 6 - (Learning Objective 4: Compute and evaluate gross...Ch. 6 - LO 4, 5 (Learning Objectives 4, 5: Compute gross...Ch. 6 - Prob. 6.67APCh. 6 - Prob. 6.68APCh. 6 - Prob. 6.69BPCh. 6 - LO 2 (Learning Objective 2: Apply various...Ch. 6 - Prob. 6.71BPCh. 6 - LO 2 (Learning Objective 2: Compare various...Ch. 6 - LO 3 (Learning Objective 3: Explain GAAP and apply...Ch. 6 - Prob. 6.74BPCh. 6 - Prob. 6.75BPCh. 6 - LO 5 (Learning Objective 5: Use the COGS model to...Ch. 6 - Prob. 6.77BPCh. 6 - Prob. 6.78CEPCh. 6 - Prob. 6.79CEPCh. 6 - Prob. 6.80CEPCh. 6 - Prob. 6.81CEPCh. 6 - Prob. 6.82SCCh. 6 - Prob. 6.83DCCh. 6 - Prob. 6.85EICCh. 6 - Prob. 1FFCh. 6 - Prob. 1FA
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
- (Learning Objective 4: Compute and evaluate gross profit percentage and inventory turnover) The Red Wagon Shop had the following inventory data:2017Ending inventory at:FIFO Cost ...............LIFO Cost...............2018$27,92012,510$ 30,50020,150Cost of goods sold at:FIFO Cost ...............LIFO Cost...............Sales revenue ...............$ 87,63097,980138,000Company managers need to know the company’s gross profit percentage and rate of inventoryturnover for 2018 under1. FIFO.2. LIFO.Which method produces a higher gross profit percentage? A higher inventory turnover?arrow_forwardQuestions # 16-20 are based on the information below: Nadal Athletic has the following transactions related to its inventory for the month of August 2021: Date August 1 August 4 August 11 August 13 August 20 August 26 August 29 Transactions Beginning inventory Sale ($150 each) Purchase Sale ($160 each) Purchase Sale ($170 each) Purchase A. $2,210 B. $2,300 C. $2,650 D. $2,630 16. What is the cost of goods sold using FIFO for August? Units 7 5 A. $1,880 B. $2,210 C. $2,300 D. $2,630 9 7 12 10 12 A. $2,150.50 B. $2,347.50 C. $2,029.50 D. $2,480.50 Cost per Unit $130 120 110 17. What is the ending inventory using LIFO at August 31, 2021? 100 Total Cost $910 1,080 1,320 1,200 $4,510 18. What is the ending inventory using weighted-average cost at August 31, 2021?arrow_forwardThe following data were extracted from the accounting records of Meniscus Company for the year ended June 30, 2008: Merchandise inventory, July 1, 2007 . . . . . . . . . . . . $ 183,250 Merchandise inventory, June 30, 2008 . . . . . . . . . . 200,100 Purchases . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,279,600 Purchases returns and allowances . . . . . . . . . . . . . . 41,200 Purchases discounts . . . . . . . . . . . . . . . . . . . . . . . . . . 20,500 Sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,800,000 Transportation in . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17,250 a. Prepare the cost of merchandise sold section of the income statement for the year ended June 30, 2008, using the periodic inventory system. b. Determine the gross profit to be reported on the income statement for the year ended June 30, 2008.arrow_forward
- 5) The following data pertain to Stainless Steel Enterprises for the year ended December 31, 2020: Beginning inventory $188,200 Purchases on credit during the year 400,500 Cost of goods sold during the year 500,600 Sales (70% on credit) during the year 755,400 a. Prepare entries to record the purchase of inventory, cost of goods sold, and sales during 2020 using the perpetual inventory system. b. Compute the balance in the inventory account on December 31, 2020.arrow_forwardScott Equine Supplies had the following beginning inventory, net purchases, net sales,and gross profit percentage for the first quarter of 2018:Net purchases, $73,000Gross profit rate, 20%Beginning inventory, $51,000Net sales revenue, $94,000By the gross profit method, the ending inventory should bea. $75,200.b. $48,800.c. $105,200.d. $124,000.arrow_forwardLIFO, FIFO, & Moving Average Cost: Perpetual Inventory Methods: Rock Shop shows the following data related to an item of inventory: Inventory, January 1st.............. 100 units @ $5.00 Purchase, January 9th............ 300 units @ $5.40 Sold, January 11th.. Purchase, January 19th............ Purchase, January 21st.... Sold, January 28th.... 325 units 70 @ $6.00 250 @$6.10 150 units Please answer the following questions under the Perpetual Inventory Method: 1) What is the value of Ending Inventory & COGS under the FIFO Method? 2) What is the value of Ending Inventory & COGS under the LIFO Method? 3) What is the value of Ending Inventory & COGS under the Moving Avg. Cost Method?arrow_forward
- At the end of the year, Nancy Company had $55,000 of inventory on hand. While the perpetual records showed $50,000 in inventory account, the adjusting entry required at year end is: Merchandise inventory ………5,000 Cash………………………………5,000 Income summary………………….5,000 Cost of goods sold…………..5,000 Merchandise inventory………………………5,000 Cost of goods sold ……………5,000 Cost of goods sold …………………5,000 Merchandise inventory…………5,000arrow_forwardAccounting Abacus Ltd undertook the following transactions during May 2022. May. 1 Purchased $18,480 inventory; terms 1/10, n/30. 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.arrow_forwardThe following data were taken from the financial records of Bramble Company. Net Sales Beginning inventory Purchases Ending inventory (a1) Inventory turnover Compute for each year the inventory turnover. (Round answers to 1 decimal place, e.g. 1.6.) eTextbook and Media Save for Later (a2) 2022 $6,440,000 910,000 4,280,000 1,090,000 Days in inventory eTextbook and Media Save for Later 2021 $6,180,000 840,000 4,620,000 910,000 2022 2022 times Compute for each year the days in inventory. (Use 365 days for calculation. Round answers to 1 decimal place, e.g. 1.6.) 2021 days times 2021 Attempts: unlimited Submit Answer days Attempts: unlimited Submit Answerarrow_forward
- The following data were taken from the income statements of Cullumber Company. 2022 2021 Sales revenue $6,420,000 $6,271,000 Beginning inventory 942,400 840,500 Purchases 4,836,000 4,691,000 Ending inventory 1,174,000 942,400 Compute the inventory turnover for each year. (Round answers to 1 decimal place, e.g. 12.5.) 2022 2021 Inventory turnover Enter inventory turnover in times rounded to 1 decimal place times Enter inventory turnover in times rounded to 1 decimal place times Compute days in inventory for each year. (Round answers to 0 decimal places, e.g. 124. Use 365 days for calculation.) 2022 2021 Days in inventory Enter days in inventory rounded to 0 decimal places days Enter days in inventory rounded to 0 decimal placesarrow_forwardCurrent Attempt in Progress The following financial statement items are shown for Cullumber Manufacturing. Inventory Total assets Salaries payable Total liabilities $27060 455% 22.0% 15.2% O 10.0% 123000 15000 55000 Calculate the common-size percentage for inventory.arrow_forwardS11-4 Accounting for a note payable On December 31, 2017, Franklin purchased $13,000 of merchandise inventory on a one-year, 9% note payable. Franklin uses a perpetual inventory system. Learning Objective 1 Requirements 1. Journalize the company's purchase of merchandise inventory on December 31, 2017. 2. Journalize the company's accrual of interest expense on June 30, 2018, its fiscal year-end. suit? 3. Journalize the company's payment of the note plus interest on December 31, 2018. ****.arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Financial And Managerial AccountingAccountingISBN:9781337902663Author:WARREN, Carl S.Publisher:Cengage Learning,
Financial AccountingAccountingISBN:9781337272124Author:Carl Warren, James M. Reeve, Jonathan DuchacPublisher:Cengage Learning
Financial AccountingAccountingISBN:9781305088436Author:Carl Warren, Jim Reeve, Jonathan DuchacPublisher:Cengage Learning
Financial And Managerial Accounting
Accounting
ISBN:9781337902663
Author:WARREN, Carl S.
Publisher:Cengage Learning,
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
IAS 29 Financial Reporting in Hyperinflationary Economies: Summary 2021; Author: Silvia of CPDbox;https://www.youtube.com/watch?v=55luVuTYLY8;License: Standard Youtube License