Over the past several years, Landmark Supplies has averaged a gross profit of 34%. At the end of 20--, the Income statement of the company Induded the Information shown below:Sales$1,100,000Cost of goods sold:Merchandise Inventory, January 1, 20-$67,000Purchases840,000Goods avallable for sale$907,000Less merchandise Inventory, December 31, 20--130,000Cost of goods sold777,000Gross profit on sales$323,000Investigation revealed that employees of the company had not taken an actual physical count of the inventory on December 31, 20--, Instead, they had merely estimated the Inventory.Required:Under the gross profit method of Inventory estimation, determine the following Items to check the accuracy of the employees' estimates.Gross profit on salesCost of goods soldEnding Inventory

Ending inventory is determined after deducting COGS from goods available for sale and the gross…

Over the past several years, Landmark Supplies has averaged a gross profit of 34%. At the end of 20--, the Income statement of the company Induded the Information shown below: Sales $1,100,000 Cost of goods sold: Merchandise Inventory, January 1, 20- $67,000 Purchases 840,000 Goods avalable for sale $907,000 Less merchandise Inventory, December 31, 20-- 130,000 Cost of goods sold 000,ררר Gross profit on sales $323,000 Investigation revealed that employees of the company had not taken an actual physical count of the inventory on December 31, 20-. Instead, they had merely estimated the Inventory. Required: Under the gross profit method of Inventory estimation, determine the following Items to check the accuracy of the employees' estimates. Gross profit on sales Cost of goods sold Ending Inventory

Over the past several years, Landmark Supplies has averaged a gross profit of 34%. At the end of 20--, the Income statement of the company Induded the Information shown below: Sales $1,100,000 Cost of goods sold: Merchandise Inventory, January 1, 20- $67,000 Purchases 840,000 Goods avalable for sale $907,000 Less merchandise Inventory, December 31, 20-- 130,000 Cost of goods sold 000,ררר Gross profit on sales $323,000 Investigation revealed that employees of the company had not taken an actual physical count of the inventory on December 31, 20-. Instead, they had merely estimated the Inventory. Required: Under the gross profit method of Inventory estimation, determine the following Items to check the accuracy of the employees' estimates. Gross profit on sales Cost of goods sold Ending Inventory

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Over the past several years, Landmark Supplies has averaged a gross profit of 34%. At the end of 20--, the income statement of the company included the information shown below: Sales $1,100,000 Cost of goods sold: Merchandise inventory, January 1, 20-- $67,000 Purchases 840,000 Goods available for sale $907,000 Less merchandise inventory, December 31, 20-- 130,000 Cost of goods sold 777,000 Gross profit on sales $323,000 Investigation revealed that employees of the company had not taken an actual physical count of the inventory on December 31, 20--. Instead, they had merely estimated the inventory. Required: Under the gross profit method of inventory estimation, determine the following items to check the accuracy of the employees' estimates. Gross profit on sales ? Cost of goods sold ? Ending inventory ?
Caro Corporation has provided the following information for its most recent month of operations: Sales $16,000 Ending inventory $4,000 Purchases Gross profit $8,000 $10,000 How much was Carp's beginning inventory? a. $2,000 b. $18,000 c. $6,000 d. $12,000
During the month of January, Sundown Corporation had sales of $480,000 and a cost of goods available for sale of $960,000. The company consistently earns a gross profit rate of 44%. Using the gross profit method, the estimated inventory at January 31 amounts to: Multiple Choice $268,800, $748,800. $211,200, $691,200.
The following information is available for the past year for a retail store: Sales $121,000 Sales Returns $1,000 Markups $11,000 Markup cancellations $1,000 Markdowns $9,000 Purchases (at cost) $40,000 Purchases (at retail) $90,000 Beginning inventory (at cost) $30,000 Beginning inventory (at retail) $40,000 What is the cost-to-retail ratio to estimate the cost of ending inventory using the conventional retail method? (Round cost-to-retail ratios to four decimal places.) Group of answer choices 53.85% 75% 58.33% 50%
Bijoux Company has sales of $40,000, beginning inventory of $5,000, purchases of $25,000, and ending inventory of $7,000. The cost of goods sold is: A) $23,000 B) $30,000 C) $40,000 D) $17,000
The following is the year ended data for Tiger Company: Sales Revenue $58,000 Cost of Goods Manufactured 21,000 Beginning Finished Goods Inventory 1,100 Ending Finished Goods Inventory 2,200 Selling Expenses 15,000 Administrative Expenses 3,900 What is the gross profit? A. $22,100 B. $38,100 C. $19,200 D.
Landis Company is preparing its financial statements. Gross margin is normally 40% of sales. Information taken from the company's records revealed sales of $95,000; beginning inventory of $9,500 and purchases of $66,500. What is the estimated amount of ending inventory at the end of the period? Multiple Choice ο ο ο ο $30,400 $57,000 $38,000 $19,000
Landis Company is preparing its financial statements. Gross margin is normally 40% of sales. Information taken from the company's records revealed sales of $60,000; beginning inventory of $6,000 and purchases of $42,000. What is the estimated amount of ending inventory at the end of the period? Multiple Choice O O O $19,200 $36,000 $12,000 $24,000
Marigold Inc. had beginning inventory of $9,600 at cost and $16,000 at retail. Net purchases were $96,000 at cost and $136,000 at retail. Net markups were $8,000, net markdowns were $5,600, and sales revenue was $117,600. Assume the price level increased from 100 at the beginning of the year to 115 at year-end. Compute ending inventory at cost using the dollar-value LIFO retail method. (Round ratios for computational purposes to 1 decimal place, e.g. 78.7% and final answer to 0 decimal places, e.g. 28,987.) Ending inventory using the dollar-value LIFO retail method
Keep Calm Company provided the following information for the current year: Accounts receivable, January 1 2,100,000 Accounts receivable, December 31 2,700,000 Collections of accounts during the year 9,000,000 Inventory, January 1 4,500,000 Purchases during the year 5,800,000 All sales are made on account. The mark up on cost is 20% What is the estimated inventory at December 317
Paty Inc. uses periodic method and reported the following amounts for the year: Ending Inventory=$40,000 Opening Inventory=$41,500 Sales revenue=$114,000 Purchases=$77,000 Purchase discount=$7,000 Purchase returns and allowances=$5,800 Compute Cost of sales for the year.
Lady Gaga Company provided the following data for the current year: Inventory, January 1 - P2,000,000 Purchases P7,500,000 Purchase returns and allowances - P500,000 Sales returns and allowances - P750,000 Inventory, December 31 - P2,800,000 Gross profit rate based on sales - 20% What is the cost of goods sold? A P7,200,000 B P6,200,000 P9,000,000 P6,700,000