Question

question 10 ABC Co. uses a periodic approach to accounting for inventory. On December 31, 20X7,...

question 10

ABC Co. uses a periodic approach to accounting for inventory. On December 31, 20X7, an inventory count was performed resulting in a determination that the year-end inventory balance was $700,000. December 31, 20X7 year-end account balances before considering the inventory count were as follows:

Sales…………………………………………….$5,800,000

Inventory………………………………………….$620,000

Purchases…………………………………..……$3,400,000

What is the gross profit for the year ended December 31, 20X7?

a.

$3,320,000

b.

$2,480,000

c.

$2,420,000

d.

$2,320,000

question 11

ABC Co. uses a periodic approach to accounting for inventory. On December 31, 20X7, an inventory count was performed resulting in a determination that the year-end inventory balance was $700,000. December 31, 20X7 year-end account balances before considering the inventory count were as follows:

What is the gross profit ratio for the year ended December 31, 20X7?

Sales…………………………………………….$5,800,000

Inventory………………………………………….$620,000

.……$3,400,000….Purchases………………………………

a.

42.8%

b.

41.7%

c.

40.0%

d.

57.2%

Question 28

  1. The following information is available for a company that uses the conventional retail method for interim reporting to estimate cost of goods sold and ending inventory:

           @ Cost         @ Retail

    Jan. 1 20X8 inventory balance………………………………….$290,000                          $320,000

    Purchases……………………………………………………….... 510,000                      680,000

    Available for sale……………………………………………..…..$800,000                     $1,000,000

    Less: Sales…………………………………………………….....….                        (900,000)

    Ending March 31 Inventory @ Retail…………………….……...                    $100,000

    What is the estimated cost of goods sold through March 31?

    a.

    $80,000

    b.

    $720,000

    c.

    $180,000

    d.

    $700,000

Homework Answers

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Question 8 Questions 8, 9, 10, and 11 are based on the following information. ABC Co....
Question 8 Questions 8, 9, 10, and 11 are based on the following information. ABC Co. uses a periodic approach to accounting for inventory. On December 31, 20X7, an inventory count was performed resulting in a determination that the year-end inventory balance was $700,000. December 31, 20X7 year-end account balances before considering the inventory count were as follows: Sales…………………………………………….$5,800,000 Inventory………………………………………….$620,000 Purchases…………………………………..……$3,400,000 What adjusting entries are needed on December 31, 20X7 to account for inventory? a. Cost of goods sold……………………………….……..4,100,000                         ...
Need a journal entry with a description ABC uses a periodic inventory system, and the ending...
Need a journal entry with a description ABC uses a periodic inventory system, and the ending inventory for each year is determined by taking a complete physical inventory at year-end. A physical count was taken on December 31, 2016, and the inventory on-hand at that time totaled $100,000, which reflects historical cost. Record the adjusting entry for properly recognizing 2016 Cost of Goods Sold. Hint: This was the first year of operations, so beginning inventory balance is zero. Additionally, ABC...
Nine Company uses a periodic inventory system and the retail inventory method to estimate ending inventory...
Nine Company uses a periodic inventory system and the retail inventory method to estimate ending inventory and cost of goods sold. The following information is available as of and for the year ended December 31, 2018. Cost Retail Inventory, January 1, 2018 $35,000 $100,000 Net purchases 55,000 110,000 Net markups 15,000 Net markdowns 25,000 Net sales 75,000 Estimate the average cost of inventory as of December 31, 2018.
Assume Skysong, Inc. uses the periodic inventory system and has a beginning inventory balance of $5700,...
Assume Skysong, Inc. uses the periodic inventory system and has a beginning inventory balance of $5700, purchases of $76000, and sales of $120000. Skysong closes its records once a year on December 31. In the accounting records, the inventory account would be expected to have a balance on December 31 prior to adjusting and closing entries that was equal to $5700. more than $5700. less than $5700. indeterminate.
Emily Company uses a periodic inventory system. At the end of the annual accounting period, December...
Emily Company uses a periodic inventory system. At the end of the annual accounting period, December 31 of the current year, the accounting records provided the following information for product 2: Units Unit Cost Inventory, December 31, prior year 2,890 $ 12 For the current year: Purchase, April 11 8,860 13 Purchase, June 1 7,930 18 Sales ($55 each) 10,860 Operating expenses (excluding income tax expense) $ 191,500 Required: 1. Prepare a separate income statement through pretax income that details...
Broadhead Company uses a periodic inventory system. At the end of the annual accounting period, December...
Broadhead Company uses a periodic inventory system. At the end of the annual accounting period, December 31 of the current year, the accounting records provided the following information for product 2: Units Unit Cost Inventory, December 31, prior year 2,830 $ 12 For the current year: Purchase, April 11 8,860 10 Purchase, June 1 7,850 15 Sales ($52 each) 10,810 Operating expenses (excluding income tax expense) $ 189,000 1. Prepare a separate income statement through pretax income that details cost...
Penn Company uses a periodic inventory system. At the end of the annual accounting period, December...
Penn Company uses a periodic inventory system. At the end of the annual accounting period, December 31 of the current year, the accounting records provided the following information for product 1: Units Unit Cost   Inventory, December 31, prior year 1,970     $ 4   For the current year:       Purchase, March 21 5,180     6       Purchase, August 1 2,850     7   Inventory, December 31, current year 4,060     Required: Compute ending inventory and cost of goods sold for the current year under...
Nittany Company uses a periodic inventory system. At the end of the annual accounting period, December...
Nittany Company uses a periodic inventory system. At the end of the annual accounting period, December 31 of the current year, the accounting records provided the following information for product 1: Units Unit Cost Inventory, December 31, prior year 1,870 $ 3 For the current year: Purchase, March 21 5,160 5 Purchase, August 1 2,890 6   Inventory, December 31, current year 4,030 Required: Compute ending inventory and cost of goods sold for the current year under FIFO, LIFO, and average...
Penn Company uses a periodic inventory system. At the end of the annual accounting period, December...
Penn Company uses a periodic inventory system. At the end of the annual accounting period, December 31 of the current year, the accounting records provided the following information for product 1: Units Unit Cost Inventory, December 31, prior year 1,910 $ 6 For the current year: Purchase, March 21 5,100 8 Purchase, August 1 2,980 9 Inventory, December 31, current year 4,180 Required: Compute ending inventory and cost of goods sold for the current year under FIFO, LIFO, and average...
ABC Company uses a periodic inventory system. As of January 1, 2019, ABC Company has 1,100...
ABC Company uses a periodic inventory system. As of January 1, 2019, ABC Company has 1,100 units of a particular product at a cost of $7.35 per unit. At December 31, 2019, 1,500 units of the product remain on hand. The purchases of the product during the year are shown below: 1st purchase 1,450 units at $7.50 per unit 2nd purchase 1,600 units at $8.20 per unit 3rd purchase 1,000 units at $8.50 per unit What is cost of goods...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT