For the 2019 year, the following data were taken from the accounting records. $ Sales 900,000 Sales Returns and Allowances 30,000 Purchases 500,000 Purchase Returns and Allowances 8000 Discount Received 4,000 Freight-in 2,000 Inventory (1/7/18) 90,000 Inventory (30/6/19) 130,000 Net Purchases are: Question 19 Select one: a. $870,000 b. $500,000 c. $492,000 d. $488,000 e. None of the above

For the 2019 year, the following data were taken from the accounting records. $ Sales 900,000 Sales Returns and Allowances 30,000 Purchases 500,000 Purchase Returns and Allowances 8000 Discount Received 4,000 Freight-in 2,000 Inventory (1/7/18) 90,000 Inventory (30/6/19) 130,000 Net Purchases are: Question 19 Select one: a. $870,000 b. $500,000 c. $492,000 d. $488,000 e. None of the above

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

Chapter8: Inventories: Special Valuation Issues

Section: Chapter Questions

Problem 8MC: At December 31, 2019, the following information was available from Crisford Companys books: Sales...

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The following items were included in Venicio Corporations inventory account on December 31, 2019: What amount should Venicio report as inventory at December 31, 2019? a. 21,000 b. 20,400 c. 26,000 d. 35,000
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Refer to RE22-2. Assume Heller Company had sales revenue of 510,000 in 2019 and 650,000 in 2020. Prepare Hellers partial income statements (through gross profit) for 2019 and 2020. RE22-2 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.
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( Appendices 6A and 6B) Inventory Costing Methods Edwards Company began operations in February 2019. Edwards accounting records provide the following data for the remainder of 2019 for one of the items the company sells: Â Edwards uses a periodic inventory system. All purchases and sales were for cash. Required: 1. Compute cost of goods sold and the cost of ending inventory using FIFO. 2. Compute cost of goods sold and the cost of ending inventory using LIFO. 3. Compute cost of goods sold and the cost of ending inventory using the average cost method. ( Note: Use four decimal places for per-unit calculations and round all other numbers to the nearest dollar.) 4. Prepare the journal entries to record these transactions assuming Edwards chooses to use the FIFO method. 5. CONCEPTUAL CONNECTION Which method would result in the lowest amount paid for taxes? 6. CONCEPTUAL CONNECTION Refer to Problem 6-67B and compare your results. What are the differences? Be sure to explain why the differences occurred.