P24,000 7. During 20x4, a parent sold inventory priced at P1,000,000 to its subsidiary, and the parent's profits on these sales amounted to P50,000. All inventory sold by the parent to the subsidiary was sold by the subsidiary to outside customers during 20x4. Here is what the parent and subsidiary report for total sales, cost of goods sold, and ending inventory at December 31, 20x4 (for total sales between the parent and subsidiary and to outside customers): Inventory Sales revenue Cost of goods sold Parent's books P 300,000 5,000,000 4,000,000 so the At what amounts should the 20x4 consolidated financial statements report these three balances? Inventory Sales revenue Cost of goods sold a. P450,000 P8,500,000 P5,700,000 b. P400,000 P7,500,000 P5,700,000 c. P450,000 P7,500,000 P5,700,000 d. P400,000 P8,500,000 P6,700,000 Subsidiary's books P 150,000 3,500,000 2,700,000

P24,000 7. During 20x4, a parent sold inventory priced at P1,000,000 to its subsidiary, and the parent's profits on these sales amounted to P50,000. All inventory sold by the parent to the subsidiary was sold by the subsidiary to outside customers during 20x4. Here is what the parent and subsidiary report for total sales, cost of goods sold, and ending inventory at December 31, 20x4 (for total sales between the parent and subsidiary and to outside customers): Inventory Sales revenue Cost of goods sold Parent's books P 300,000 5,000,000 4,000,000 so the At what amounts should the 20x4 consolidated financial statements report these three balances? Inventory Sales revenue Cost of goods sold a. P450,000 P8,500,000 P5,700,000 b. P400,000 P7,500,000 P5,700,000 c. P450,000 P7,500,000 P5,700,000 d. P400,000 P8,500,000 P6,700,000 Subsidiary's books P 150,000 3,500,000 2,700,000

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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For numbers 17-18: Karina Company provided the following data for the current year: Cost Retail Beginning inventory 1,500,000 3,000,000 Net purchases 3,200,000 ? Net markup 500,000 Net markdown 200,000 Net sales ? The entity used the average retail inventory method to estimate ending inventory. It was determined that the average cost of the ending inventory was P1,950,000. If the entity used the FIFO retail method, the cost ratio would have been 50%. 17. What is the amount of net purchases at original retail before markup and markdown? a. 5,900,000 c. 6,600,000 b. 6,100,000 d. 6,400,000 18. What amount was reported as net sales? a. 5,500,000 c. 3,671,875 b. 3,000,000 d. 7,000,000
During the current year, a parent sold inventory priced $800,000 to its subsidiary, and the parent's profits on these sales amounted to $60,000. All inventory sold by the parent to the subsidiary was sold by the subsidiary to outside customers during the year. Here is what the parent and subsidiary report for total sales, cost of goods sold, and ending inventory at year-end (for total sales between the parent and subsidiary and to outside customers): Parent's Books Subsidiary's Books $ 300,000 $ 150,000 5,000,000 3,500,000 2,700,000 Inventory Sales revenue Cost of goods sold 4,000,000 At what amounts should the year's consolidated financial statements report these three balances? Select one: a. Inventory: $450,000; Sales Revenue: $8,500,000; Cost of Goods Sold: $6,700,000 b. Inventory: $450,000; Sales Revenue: $7,700,000; Cost of Goods Sold: $5,900,000 c. Inventory: $390,000; Sales Revenue: $7,700,000; Cost of Goods Sold: $5,900,000 d. Inventory: $150,000; Sales Revenue: $3,500,000;…
LM ltd has the following products in inventory at the year end. Product Quantity Cost Selling price Selling cost X 1,000 GHS40 GHS55 GHS8 Y 2,500 GHS15 GHS25 GHS4 Z 800 GHS23 GHS27 GHS5 At what amount should total inventory be stated in the statement of financial position?
An entity provided the following records connected to its inventory transactions: Date and transaction Units Unit cost January 1 balance 40,000 P 20 February 10 sale 30,000 April 12 purchase 60,000 P 25 September 20 sale 59,000 November 28 purchase 40,000 P 30 The entity used the moving average method. At December 31, the entity determined that the NRV per unit is P 23 (Round to two decimal places) 30. What is the cost of the inventory at December 31? a. 1,173,000 b. 1,275,000 c. 1,475,000 d. 1,466,890 31. What amount of cost of goods sold should be reported at December 31? a. 2,225,000 b. 2,327,000 c. 2,033,110 d. 2,025,000
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Lewis Incorporated and Clark Enterprises report the following amounts for the year. Inventory (beginning) Inventory (ending) Purchases Purchase returns Lewis $27,000 21,000 307,200 18,000 Required: 1. Calculate cost of goods sold for each company. 2. Calculate the inventory turnover ratio for each company. Clark $53,000 63,000 189,000 63,000 3. Calculate the average days in inventory for each company. 4. Which company appears to be managing its inventory more efficiently? Required 1 Required 2 Complete this question by entering your answers in the tabs below. Required 3 Required 4 Which company appears to be managing its inventory more efficiently? Which company appears to be managing its inventory more efficiently?
1. The inventory on hand on December 31, 2020 for Univ Company is valued at P1,500,000. The entity's policy on its selling is 150% of cost. The following were not included in the inventory: 1. Purchases of goods still in transit, shipped FOB Destination, with price of P150,000, which includes freight charge of P25,000 2. Goods held on consignment by Univ at a sales price of P100,000, excluding 20% commission based on sales price. Freight paid by Univ is P10,000. 3. Goods sold in transit FOB Destination with invoice price of P245,000 which includes a freight charge of P20,000 to deliver the goods. 4. Purchases of goods still in transit FOB Shipping point with invoice of P300,000. Freight cost, P50,000 5. Goods out on consignment with sales price of P300.000. Shipping cost to consignee is P20,000. What is the correct amount of inventory at December 31 2020?
Siete Company provided the following data for the current year: Inventory, January 1: At cost P 3,000,000 2,800,000 At net realizable value Net Purchases 8,000,000 Inventory, December 31: At cost 4,000,000 At net realizable value 3,700,000 What amount should be reported as Cost of Goods Sold? В. Р 7,100,000 С. Р7,300,000 A. P7,000,000 D. P7,200,000
The unadjusted inventory balance of Conway Corp. is $800,000 on December 31, based on a physical inventory count. Several items must be considered before the inventory valuation 1. On December 31, the physical inventory excluded $ 10,000 of merchandise inventory shipped f.o.b. destination to Conway Corp. from a vendor. The inventory arrived on January 50 2. On December 31, the physical inventory included $1,500 of merchandise held on consignment. The consignor is Packaging Plus Inc. 3. $75,000 of in-transit merchandise was shipped f.o b. shipping point to a customer and was excluded from the physical inventory count. The merchandise was shipped on December 4. On December 31, the physical inventory excluded $25,000 of merchandise inventory held on consignment by a customer. Conway Corp. is the consignor. 5. Goods are in transit from a vendor to Conway Corp. on December 31. The invoice cost was $40,000 and the goods were shipped f.o.b. shipping point on December 26. The merchan…
At the beginning of current year, Cavalier Company reported Problem 14-4 (PHILCPA Adapted) During the current year, the entity registered the following At the beginning of current year, Cavalier Company reported inventory of P1,000,000 at retail and P560,000 at cost. During the current year, the entity registered the followine purchases: Cost Retail price Original markup 4,000,000 6,200,000 2,200,000 The net sales totaled P5,400,000. The following reductions were made in the retail price: To meet price competition To dispose of overstock Miscellaneous reductions 50,000 30,000 120,000 During the current year, the selling price of a certain inveritory increased from P200 to P300. This additional markup applied to 5,000 items but was later canceled on the remaining 1,000 items. What is the ending inventory using the average cost approach in applying the retail method? a. 2,000,000 b. 2,400,000 c. 1,240,000 d. 1,200,000