Synzer Co. has incurred the following costs in connection with its purchase of inventory: Purchase price based on vendors' invoices Trade discounts on purchases already deducted from P1,250,000 vendors' invoices 125,000 Salaries of accounting department Brokerage commission paid to agents for arranging imports Sales commission paid to sales agents After – sales warranty costs 150,000 50,000 75,000 62,500 Import duties Freight and insurance on purchases Other handling costs relating to imports 100,000 250,000 25,000 What is the total cost of the purchases?

Synzer Co. has incurred the following costs in connection with its purchase of inventory: Purchase price based on vendors' invoices Trade discounts on purchases already deducted from P1,250,000 vendors' invoices 125,000 Salaries of accounting department Brokerage commission paid to agents for arranging imports Sales commission paid to sales agents After – sales warranty costs 150,000 50,000 75,000 62,500 Import duties Freight and insurance on purchases Other handling costs relating to imports 100,000 250,000 25,000 What is the total cost of the purchases?

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter11: The Statement Of Cash Flows

Section: Chapter Questions

Problem 37E: Analyzing the Accounts Casey Company uses a perpetual inventory system and engaged in the following...

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Hayao Co. purchases inventory from overseas and incurs the following costs: the cost of the merchandise is $50,000 with the credit terms of 2/10, n/30; FOB shipping point freight charges are $1,500; insurance during transit is $500; and import duties are $1,000. Hayao paid within the discount period and incurred additional costs of $1,200 for advertising, $5,000 for sales commissions and $500 for delivery of goods to the customers. Compute the cost that should be assigned to the inventory.
Beta Company has incurred the following costs during the current year: Cost of purchases based on vendor's invoices.. Trade discounts on purchases already deducted from the vendor's invoices. • Importation duties and taxes.. • Freight and insurance on purchases. • Other handling costs relating to imports. Salaries of accounting department. • Fees paid to customs broker who processed the importation documents.. • Sales commission paid to sales agents. P 5,000,000 500,000 400,000 1,000,000 100,000 600,000 200,000 300,000 After-sales warranty costs. What is the total cost of purchases? 250,000 A. P5,700,000 В. Р6,100,000 С. Р6,700,000 D. P6,500,000
9. The following data is for the J.M Paculan Corporation: P600,000 42,000 77,000 19,000 Sales revenue Freight in Beginning inventory Purchase discounts Sales returns and allowances 33,000 Operating expenses Ending inventory 77,000 81,000 415,000 35,000 71,000 Purchases Sales discounts J.M. Paculan, withdrawals Purchase returns and allowances 39,000 The total cost of goods available for sale for the J.M. Paculan Corporation is: a. P489,000 b. P408,000 C. P476,000 d. P441,000 10. The cost of goods sold for J.M. Paculan Corporation is: a. P524,000 b. P489,000 C. P557,000 d. P395,000 11. The closing process includes crediting the following accounts to bring their balances to zero: a. allowance for doubtful accounts b. purchases and freight in c. purchase discounts and sales discounts d. purchase returns and allowances and purchase discounts
Natasha Corp. has incurred the following cost during the current year: Cost of purchases based on suppliers' invoices... Trade discounts on purchases already deducted from the suppliers' invoices.. Importation duties.. Freight and insurance on purchases.. Other handling costs related to the importation.. Salaries of accounting department personnel.. Brokerage commission paid to agents for processing importation 200,000 Sales commissions paid to sales agents.. After-sales warranty.. What is the total cost of net purchases? А. Р5,700,000 .P 5,000,000 500,000 400,000 1,000,000 100,000 600,000 300,000 250,000 В. Р 6,100,000 С. Р6,700,000 D. P 6,500,000
Bell Corporation sold merchandise on account with a list price of $18,000 and a cost of $10,000. Payment terms were 1/10, n/30. Bell shipped the goods FOB destination and paid $600 in freight costs. Prior to payment of the invoice, the customer returned merchandise with a list price of $1,800 and a $1,000 cost. The customer paid the amount due within the discount period. What is Bell Corporation's net sales amount as a result of these transactions?
The accountant of Cake Company is provided with the following information and was asked to determine the cost of inventory purchased. Purchase price of materials, P330,000 Storage costs of finished goods, P20,000 Import duties and non-recoverable purchase taxes, P15,000 Freight-in, P5,500 Freight-out, P4,000 Trade discount amounting to P30,000 was already deducted from the purchase price above. Defective products worth P7,000 were returned upon physical inspection of the units but the amount is still included in the purchase price above. How much is the cost of inventory? *
The company "Z" displays in its accounting records the following costs for the goods purchased to reach safely its warehouses: Invoice value of goods 150.000€, discounts given on the invoice value of the purchase of 11.000 €, transport paid for the transport of goods from the warehouse of the supplier to the premises of the buyer 2.500 €, insurance premiums of goods 3.150 € were paid, packing costs for the transport 8.450 €, fees and customs clearance costs 7.780 €, commissions purchases 4.140 €, administrative expenses 5.550 €, salaries and wages 6.750 €, light-water-phone 3.150€, advertising-promotion costs 3.550€ and financial interest (debit) 1.485€. Requested: To determine the cost of purchase of the quantities purchased.
Based on the given information below of FDNACCT Co., how much is the cost of goods available for sale? Sales = P85,000 Merchandise Inventory, 1/1 = P20,000 Merchandise Inventory, 12/31 = P26,000 Purchases = P55,000 Purchase Discounts = P1,000 Purchase Returns & Allowances = P2,000 Freight in = P3,000 Selling Expenses = P4,500 Administrative Expenses = P3,800
Analyzing the Accounts Casey Company uses a perpetual inventory system and engaged in the following transactions: a. Made credit sales of $825,000. The cost of the merchandise sold was $560,000. b. Collected accounts receivable in the amount of $752,600. c. Purchased goods on credit in the amount of $574,300. d. Paid accounts payable in the amount of $536,200. Required: Prepare the journal entries necessary to record the transactions. Indicate whether each transaction increased cash, decreased cash, or had no effect on cash.
Ara Company used the average cost retail inventory method. The entity provided the following information for the current year: Cost Retail Beginning inventory Net purchases Departmental transfer – credit Net mark-up 1,650,000 2,200,000 3,725,000 200,000 4,950,000 300,000 150,000 100,000 200,000 Inventory shortage – sales price Employee discounts Sales, including sales of P400,000 of items which were marked down from P500,000 21. What is the estimated cost of ending inventory? 4,000,000
Royal Crown Corp. has the following information to an inventory: Materials -P800,000; Storage cost of finished goods- P 150,000; Delivery to customers-P30,000, Irrecoverable purchase taxes - P83,000. At what amount should the inventory be measured?
Serendipity Company uses the first-in, first-out retail method of inventory valuation. The following information is available: • Beginning inventory: P115,000 at cost; P300,000 at retail • Purchases: P600,000 at cost; P1,100,000 at retail • Net additional markups – P100,000; net markdowns – P200,000 • Sales revenue – P900,000 What is the estimated cost of the ending inventory using the FIFO retail method? A. P240,000 B. 200,000 C. 400,000 D. 220,000