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The following information for 2019 is available for Marino Company: 1. The beginning inventory is $118,000. 2. Purchases returns of $3,000 were made. 3. Purchases of $292,000 were made on terms of 3/10, n/30. Eighty percent of the discounts were taken. 4. At December 31, purchases of $22,000 were in transit, FOB destination, on terms of 3/10, n/30. 5. The company made sales of $645,000. The gross selling price per unit is twice the net cost of each unit sold. 6. Sales allowances of $4,000 were made. 7. The company uses the LIFO periodic method and the gross method for purchase discounts. Required: 1. Compute the cost of the ending inventory before the physical inventory is taken. Ignore Sales allowances in your computations. 2. Compute the amount of the cost of goods sold that came from the purchases of the period and the amount that came from the beginning inventory. Cost of sales from purchases Cost of sales from beginning inventory Total cost of goods sold

The following information for 2019 is available for Marino Company: 1. The beginning inventory is $118,000. 2. Purchases returns of $3,000 were made. 3. Purchases of $292,000 were made on terms of 3/10, n/30. Eighty percent of the discounts were taken. 4. At December 31, purchases of $22,000 were in transit, FOB destination, on terms of 3/10, n/30. 5. The company made sales of $645,000. The gross selling price per unit is twice the net cost of each unit sold. 6. Sales allowances of $4,000 were made. 7. The company uses the LIFO periodic method and the gross method for purchase discounts. Required: 1. Compute the cost of the ending inventory before the physical inventory is taken. Ignore Sales allowances in your computations. 2. Compute the amount of the cost of goods sold that came from the purchases of the period and the amount that came from the beginning inventory. Cost of sales from purchases Cost of sales from beginning inventory Total cost of goods sold

Intermediate Accounting: Reporting And Analysis
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
Chapter7: Inventories: Cost Measurement And Flow Assumptions
Section: Chapter Questions
Problem 8P: Comprehensive The following information for 2019 is available for Marino Company: 1. The beginning...
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Comprehensive The following information for 2019 is available for Marino Company: 1. The beginning inventory is $118,000. 2. Purchases returns of $3,000 were made. 3. Purchases of $292,000 were made on terms of 3/10, n/30. Eighty percent of the discounts were taken. 4. At December 31, purchases of $22,000 were in transit, FOB destination, on terms of 3/10, n/30. 5. The company made sales of $645,000. The gross selling price per unit is twice the net cost of each unit sold. 6. Sales allowances of $4,000 were made. 7. The company uses the LIFO periodic method and the gross method for purchase discounts. Required: 1. Compute the cost of the ending inventory before the physical inventory is taken. Ignore Sales allowances in your computations. $ 2. Compute the amount of the cost of goods sold that came from the purchases of the period and the amount that came from the beginning inventory. Cost of sales from purchases Cost of sales from beginning inventory Total cost of goods sold
Transcribed Image Text:Comprehensive The following information for 2019 is available for Marino Company: 1. The beginning inventory is $118,000. 2. Purchases returns of $3,000 were made. 3. Purchases of $292,000 were made on terms of 3/10, n/30. Eighty percent of the discounts were taken. 4. At December 31, purchases of $22,000 were in transit, FOB destination, on terms of 3/10, n/30. 5. The company made sales of $645,000. The gross selling price per unit is twice the net cost of each unit sold. 6. Sales allowances of $4,000 were made. 7. The company uses the LIFO periodic method and the gross method for purchase discounts. Required: 1. Compute the cost of the ending inventory before the physical inventory is taken. Ignore Sales allowances in your computations. $ 2. Compute the amount of the cost of goods sold that came from the purchases of the period and the amount that came from the beginning inventory. Cost of sales from purchases Cost of sales from beginning inventory Total cost of goods sold
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