Concept explainers
Problem 18-5A Inventory computation and reporting C4 P1 Shown here are annual financial data taken from two different companies.
Musk World Wave-Board
Retail Manufacturing
Beginning inventory
Merchandise...................... $200,000
Finished goods..................... 1500,000
Cost of purchases..................... 300,000
Cost of goods manufactured............ 375,000
Ending inventory
Merchandise...................... 175,000
Finished goods..................... 225,000
Required
1. Compute the cost of goods sold section of the income statement for the year for each company.
Check (1) Wave-Board's cost of goods sold, $1,150,000
2. Identify the inventory accounts and describe where each is reported on the income statement and balance sheet for both companies.
Want to see the full answer?
Check out a sample textbook solutionChapter 18 Solutions
FUND.ACCT.PRIN.
- Date 8-1 8-3 8-14 8-31 Transaction Beginning Inventory Purchase Purchase Purchase Goods Available for Sale $500 $602 $15 Units 5 14436 Unit Cost $100 125 130 135 Total Cost $500 500 520 405 $1,925 At the end of August, a physical count is taken and there are 5 units of inventory left on August 31. Using the information found in the table above. If the firm uses a periodic system and the weighted average cost flow assumption, the value of the ending inventory (roundedarrow_forwardQ 10 -Eshaq Company's record of transactions concerning part X for the month of February was as follows. Date Transaction February 1 Beginning inventory 3.500 7 Purchase Units Amount $42,000 4,500 54,450 10 Sale 4,000 18 Sale 3,000 25 Purchase 4,000 $49,000 28 Sale 3,500 Instructions Compute the inventory at February 28 on each of the following bases. Assume that the company uses a periodic inventory system. (Carry unit costs to the nearest cent.) (a). Specific identification; ending inventory is comprised of 100 units from beginning inventory and 250 units from the April 26 purchase. (b). First-in, first-out (FIFO). (c). Moving-Average-cost.arrow_forwardQUESTION 10 Hazards company had the following data: $380 Beginning inventory (on May 1) Purchases during May Cost of goods sold during May $5,400 $5,740 Based on the above data, calculate ending inventory as of May 30. O $5,740 $40 $340 O $380arrow_forward
- Accounting (Text Only)AccountingISBN:9781285743615Author:Carl Warren, James M. Reeve, Jonathan DuchacPublisher:Cengage LearningCorporate Financial AccountingAccountingISBN:9781305653535Author:Carl Warren, James M. Reeve, Jonathan DuchacPublisher:Cengage Learning