Answered: 2. Compute the cost of goods sold using…

2. Compute the cost of goods sold using the following information Beginning Inventory = $5,000 Purchases = $120,000 Ending Inventory =$10,000 Cost of Goods Sold = ?

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter18: Pricing And Profitability Analysis

Section: Chapter Questions

Problem 23E: Thebes Company had the following information: What is the markup based on cost of goods sold? a....

See similar textbooks

Related questions

Q: Presented below are the components in determining cost of goods sold. Cost of Beginning Inventory…

A: The question is based on the concept of Cost accounting

Q: If the estimated rate of gross profit is 30%, what is the estimated cost of the inventory on…

A: Inventory refers to materials such as raw materials, finished products, and in-process goods that…

Q: A business using the retail method of inventory costing determines that inventory at retail is…

A: The question requires the amount of inventory to be reported in financial statement as per retail…

Q: A firm had beginning inventory of OR 15000, ending inventory of OR 20000 and cost of goods sold of…

A: Statement of profit and loss account is prepared by a business to determine its financial results…

Q: Caminas has the following products in inventory at the year end. Product Quantity Cost Selling…

A: We have the following information: Product : AQuantity: 1,000Cost: $40Selling Price: $55Selling…

Q: Cost of goods sold is $7,400. Beginning inventory is $3,500 and ending inventory is $4,000. If there…

A: Cost of goods sold = Beginning inventory + Net Purchases -Ending inventory Net Purchases = Cost of…

Q: Given the following account information, calculate net income: Sales 500,000 Beginning…

Q: Brocken Co. has the following data related to an item of inventory: Inventory, May 1 3,000 units (@…

A: From the given information, Number of units sold = Opening inventory+Purchases-Closing inventory…

Q: Use the last-in, first-out (LIFO) cost allocation method, with perpetual inventory updating, to…

A: LIFO: Last-In First Out:- As per LIFO method, units purchased last are sold first. Hence, March .2…

Q: Given the following: Numberpurchased Costper unit Total January 1 inventory 40 $4 $160…

A: Finished goods inventory: These inventories are completely ready for sale after the completion of…

Q: If Carla Vista Department Store uses the gross profit method and net sales are $600,000, the gross…

Q: Using the average-cost method, calculate the cost of ending inventory and cost of goods sold for…

A: The inventory valuation is based on the flow of inventory. It can be LIFO, FIFO, or Weighted average…

Q: Based upon the following data, estimate the cost of ending inventory using the gross profit method.…

A: Ending inventory = Merchandise available for sale - Cost of Merchandise sold

Q: Brocken Co. has the following data related to an item of inventory: Inventory, May 1 3,000 units @…

A: FIFO Method - This is a FIrst In First out Method where in Cost of Goods is calculated where the…

Q: Given the following: Numberpurchased Costper unit Total January 1 inventory 40 $4 $160…

A: Given information Date units per unit cost Amount ($) 1-Jan 40 $4 $160 1-Apr 60 $7 $420…

Q: If beginning inventory is $40,000, purchases are $215,000, and ending inventory is $35,000, what is…

A: Cost of goods sold (COGS) refers to the direct costs of producing the goods sold by a company. This…

Q: Presented below are the components in determining cost of goods sold. Determine the missing amounts.…

A: Cost of goods sold means the cost incurred on the manufacturing or purchase of goods which has been…

Q: William Company uses the periodic inventory system and theaccounts reflected the following data:…

A: In this numerical has covered the concept of LIFO and FIFO method for valuing the inventory. FIFO…

Q: Explain the step by step instructions given the following data for the questions below.…

A: We’ll answer the first question since the exact one wasn’t specified. Please submit a new question…

Q: Complete the following: (Round your answers to the nearest hundredth.) Average…

Q: The GMA corporation shows the following data related to an item of Inventory Inventory, January 1…

A: UNDER FIFO (FISRT IN , FIRST OUT) METHOD THE ASSETS PURCHASED OR ACQUIRED FIRST ARE DISPOSED OF…

Q: Strand Retail Corp had the following info: Beg Inventory 2,500 units @ $40/each Purchased 4,000…

A: Since you have posted a question with multiple sub-parts, we will solve first three subparts for…

Q: Using the accounts and amounts below, calculate Cost of Goods Sold: Account Amount Beginning…

A: Cost of goods sold = Beginning inventory + cost of goods purchased - ending inventory

Q: A business using the retail method of inventory costing determines that inventory at retail is…

A: It is a method to determine the cost of ending inventory balance via the cost to rate ratio It is…

Q: Requirement 1. Using the average-cost method, compute the cost of goods sold and ending inventory…

A: Inventory valuation methods are based on the flow of inventory used by the firm. There are several…

Q: A business using the retail method of inventory costing determines that merchandise inventory at…

A: Retail method: This method of estimating cost of inventory requires cost and retail prices to be…

Q: Beginning inventory of $40,000 plus purchases of $30,000 equals which of the following? a. Cost…

A: The cost of goods available for sale is the sum of inventory in the hand and the inventory purchased…

Q: Given the following information, what is the cost-to-retail ratio? Beginning inventory at cost…

A: Particulars Cost Retail Beginning inventory $20,000 $35,000 Purchases 100,000 168,000 Goods…

Q: The cost of goods for sale of Ram Products Inc. was P7, 645,000 and the ending inventory amounts to…

A: Cost of goods sold is estimated by subtracting ending inventory from cost of goods available from…

Q: How much were inventory purchases when cost of goods sold was $250,000, beginning inventory was…

A: Cost of goods sold= opening inventory + Purchases - Closing inventory

Q: Funky Dance sold inventory for $250,000, terms 1/10, n/30. Cost of goods sold was $168,000. How much…

A: Sales revenue: Sales revenue is the amount earned by the company by selling goods or providing…

Q: beginning inventory is $1,998, ending inventory is $1,407 and cost of goods sold is $11,158, how…

A: Cost of goods sold (COGS) The cost of goods sold (COGS) is any direct cost related to the production…

Q: Cost of goods sold is $108,000 ,ending inventory is $12,000 and purchases is $100,010. What is…

A: Cost of goods sold = Beginning inventory + Purchases - Ending inventory

Q: Sales during the year were 1,220 units. Beginning inventory was 380 units at a cost of $6 per unit.…

A: FIFO method uses the inventory which is bought first for the production, but whereas the LIFO method…

Q: If beginning inventory is $200 and purchases are $800,which of the following could be true?a. Ending…

A: Goods available for sale = Beginning inventory + Purchases = $200 + $800 = $1,000.

Q: Compute cost of goods sold using the following information. $12,200 Merchandise inventory, beginning…

A: Cost of goods sold: It is the cost of acquiring the goods or manufacturing the goods which are sold…

Q: A firm had beginning inventory of OR 15000, ending inventory of OR 20000 and cost of goods sold of…

A: The cost of goods purchased can be calculated by adding up ending inventory and deducting beginning…

Q: sing the gross profit method with the following cost data, estimate the cost of ending inventory.…

A: Ending inventory is the value of inventory remaining unsold at the end of the period. The inventory…

Q: Use the first-in, first-out (FIFO) cost allocation method, with perpetual inventory updating, to…

A: Total value of beginning inventory=120×$46=$5,520

Q: Cost of Goods Sold is 60% of Sales, Purchases is P20,000, Inventory ending is P5,000 higher than…

A: The cost of goods sold includes the total cost of goods that are sold during the period. Cost of…

Q: Consider the following information: Units Cost per unit Total costs Goods in inventory at…

A: Under Weighted average cost method, value of ending inventory and cost of goods sold is calculated…

Q: Use the following to answer the questions Net Sales $750,000 Gross profit $310,000 Beginning…

A: Gross profit = Net sales - cost of goods sold Operating income = Gross profit - Operating expense…

Q: Based on the following data, estimate the cost of the ending merchandise inventory: Sales $1,450,000…

A: Ending inventory is value of inventory at the end of the period. It is calculated by adding…

Q: Explain the step by step instructions given the following data for the items 1, 2, 3, 4 and 5 below.…

A: Since we are entitled to answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the…

Question

2. Compute the cost of goods sold using the following information
Beginning Inventory = $5,000
Purchases = $120,000
Ending Inventory =$10,000
Cost of Goods Sold = ?

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Compute the cost of goods sold:

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps with 1 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Financial Reporting in Hyperinflationary Economies

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

Using the following data, how should the inventory be valued under lower of cost or market? Original cost 1,350 Estimated selling price 1,475 Selling expenses 180
Using the following data, how should the inventory be valued under lower of cost or market? Original cost 1,350 Estimated selling price 1,475 Selling expenses 180
Use the weighted-average (AVG) cost allocation method, with perpetual inventory updating, to calculate (a) sales revenue, (b) cost of goods sold, and c) gross margin for A75 Company, considering the following transactions.
LO1 If the ending inventory is overstated by 10,000, indicate what, if anything, is incorrect about the following: Cost of goods sold___________ Gross profit___________ Net income___________ Ending owners capital___________
Calculate a) cost of goods sold, b) ending inventory, and c) gross margin for A76 Company, considering the following transactions under three different cost allocation methods and using perpetual inventory updating. Provide calculations for weighted average (AVG).
Use the first-in, first-out (FIFO) cost allocation method, with perpetual inventory updating, to calculate (a) sales revenue, (b) cost of goods sold, and c) gross margin for A75 Company, considering the following transactions.
Use the last-in, first-out (LIFO) cost allocation method, with perpetual inventory updating, to calculate (a) sales revenue, (b) cost of goods sold, and c) gross margin for A75 Company, considering the following transactions.
The following information is available for Cooke Company for the current year: The gross margin is 40% of net sales. What is the cost of goods available for sale? a. 5840,000 b. 960,000 c. 1,200,000 d. 1,220,000
Use the last-in, first-out method (LIFO) cost allocation method, with perpetual inventory updating, to calculate (a) sales revenue, (b) cost of goods sold, and c) gross margin for B75 Company, considering the following transactions.
Use the first-in, first-out method (FIFO) cost allocation method, with perpetual inventory updating, to calculate (a) sales revenue, (b) cost of goods sold, and c) gross margin for B75 Company, considering the following transactions.
Thebes Company had the following information: What is the markup based on cost of goods sold? a. 50.0% b. 100.0% c. 37.5% d. 62.5%
Calculate a) cost of goods sold, b) ending inventory, and c) gross margin for A76 Company, considering the following transactions under three different cost allocation methods and using perpetual inventory updating. Provide calculations for first-in, first-out (FIFO).