Baelfire Corporation owns an 80% interest in Sheriff Corporation acquired several years ago. Sheriff regularly sells merchandise to its parent at 125% of Sheriff's cost. Gross profit data of Baelfire and Sheriff for the year 2020 are as follows: Baelfire P650,000 520,000 P 130,000 Sheriff P520,000 416,000 P104,000 Sales . Cost of goods sold. Gross profit . During 2020, Baelfire purchases inventory items from Sheriff at a transfer price of P260,000. Baelfire's December 31, 2019 and 2020 inventories included goods acquired from Sheriff of P65,000 and P81,250, respectively. The Unrealized profits in the year-end 2019 and 2020 inventories were: 65,000 and 81,250 respectively 30,400 and 13,000 respectively 13,000 and 16,250 respectively 520,000 and 65,000 respectively

Baelfire Corporation owns an 80% interest in Sheriff Corporation acquired several years ago. Sheriff regularly sells merchandise to its parent at 125% of Sheriff's cost. Gross profit data of Baelfire and Sheriff for the year 2020 are as follows: Baelfire P650,000 520,000 P 130,000 Sheriff P520,000 416,000 P104,000 Sales . Cost of goods sold. Gross profit . During 2020, Baelfire purchases inventory items from Sheriff at a transfer price of P260,000. Baelfire's December 31, 2019 and 2020 inventories included goods acquired from Sheriff of P65,000 and P81,250, respectively. The Unrealized profits in the year-end 2019 and 2020 inventories were: 65,000 and 81,250 respectively 30,400 and 13,000 respectively 13,000 and 16,250 respectively 520,000 and 65,000 respectively

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter5: The Income Statement And The Statement Of Cash Flows

Section: Chapter Questions

Problem 3RE: Shaquille Corporation began the current year with inventory of 50,000. During the year, its...

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Heller Company began operations in 2019 and used the LIFO method to compute its 300,000 cost of goods sold for that year. At the beginning of 2020, Heller changed to the FIFO method. Heller determined that its cost of goods sold under FIFO would have been 250,000 in 2019. For 2020, Hellers cost of goods sold under FIFO was 360,000, while it would have been 410,000 under LIFO. Heller is subject to a 21% income tax rate. Compute the cumulative effect of the retrospective adjustment on prior years income (net of taxes) that Heller would report on its retained earnings statement for 2020.
Shaquille Corporation began the current year with inventory of 50,000. During the year, its purchases totaled 110,000. Shaquille paid freight charges of 8,500 for those purchases. At the end of the year, Shaquille had inventory of 47,800. Prepare a schedule to determine Shaquille's cost of goods sold for the current year.
Vangie Company, a merchandising concern entity, has the following transactions during 2020:a. Purchased merchandise amounting to P100,000. Terms: 2/10, n/30.b. Sold merchandise to various customers, P125,000. Cost of merchandise sold, P65,000.c. Approved and accepted the return of merchandise from customer due to wrong delivery,P12,000. The cost of the inventory is P8,000.d. Paid freight for merchandise sold, P12,000.e. Returned merchandise to suppliers due to damages, P15,000.f. Acquired merchandise from various suppliers, P180,000. Terms: less 10%, 2/10, n/30.g. Paid accounts payable to various suppliers amounting to P90,000 less 2% discount taken.h. Sold merchandise to various customers, P90,000. Cost of merchandise sold, P55,000.i. Received proceeds from accounts receivable collection amounted to P100,000, net of 2%discounts.j. Paid freight for merchandise purchased, P18,000.Requirements:1. Record the above transactions usinga. Perpetual Inventory System
Vangie Company, a merchandising concern entity, has the following transactions during 2020: Purchased merchandise amounting to P100,000. Terms: 2/10, n/30. Sold merchandise to various customers, P125,000. Cost of merchandise sold, P65,000. Approved and accepted the return of merchandise from customer due to wrong delivery, P12,000. The cost of the inventory is P8,000. Paid freight for merchandise sold, P12,000. Returned merchandise to suppliers due to damages, P15,000. Acquired merchandise from various suppliers, P180,000. Terms: less 10%, 2/10, n/30. Paid accounts payable to various suppliers amounting to P90,000 less 2% discount Sold merchandise to various customers, P90,000. Cost of merchandise sold, P55,000. Received proceeds from accounts receivable collection amounted to P100,000, net of 2% discounts. Paid freight for merchandise purchased, P18,000. Requirements: Record the above transactions using Periodic Inventory System Perpetual Inventory System
On January 1, 2020, the merchandise inventory of Crane, Inc. was $2150000. During 2020 Crane purchased $4289000 of merchandise and recorded sales of $5100000. The gross profit rate on these sales was 25%. What is the merchandise inventory of Crane at December 31, 2020?
Pierce Corporation has the following gross profits for 2018 and 2019: Sales = 2019 - P810,000; 2018 - P792,000. Cost of sales = 2019-480,000; 2018 - 464,000. Gross profit = 2019 - P330,000; 2018 - P328,000. Sales price was 10% lower during 2019. The change in gross profit due tó change in %3D quantity sold must be:
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The data shown below were obtained from the financial records of the BST Corporation for the year ended December 31, 2020. Sound Break Corporation Income and Retained Earnings Statement For the year Ended December 31, 2020 Net Sales P1,000,000 Cost of Goods Sold: Inventory, Dec. 31, 2019 P250,000 Purchases 720,000 Total Goods Available P970,000 Inventory 220,000 750,000 Gross Margin on Sales P 250,000 Selling and Administrative (including Depreciation of P20,000)…
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