Horngren's Accounting (12th Edition)
12th Edition
ISBN: 9780134486444
Author: Tracie L. Miller-Nobles, Brenda L. Mattison, Ella Mae Matsumura
Publisher: PEARSON
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Textbook Question
Chapter 18, Problem S18.6SE
Computing cost of goods sold, merchandising company
Learning Objective 3
Use the following information for The Windshield Helper, a retail merchandiser of auto windshields, to compute the cost of goods sold:
| Web Site Maintenance | $ 7,900 |
| Delivery Expense | 400 |
| Freight In | 2,400 |
| Purchases | 47,000 |
| Ending Merchandise Inventory | 5,500 |
| Revenues | 63,000 |
| Marketing Expenses | 10,700 |
| Beginning Merchandise Inventory | 8,600 |
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2-36. COST OF GOODS PURCHASED, COST OF GOODS SOLD,
AND INCOME STATEMENT. The following data are for Mama Retail
Outlet Stores. The account balances (in thousands) are for 2020.
Marketing and advertising costs
Merchandise inventory, January 1, 2020
Shipping of merchandise to customers
Depreciation on store fixtures
Purchases
General and administrative costs
Merchandise inventory, December 31, 2020
Merchandise freight-in
Purchase returns and allowances
Purchase discounts
Revenues
Show transcribed data
$ 54,000
94,000
10,000
8,800
|||
70
521,000
63,000
101,000
21,000
25,000
22,000
690,000
Required
1. Compute (a) the cost of goods purchased and (b) the cost of
goods sold.
2. Prepare the income statement for 2020.
Problem 4-26
Marigold Company produces high-quality microscopes for education and
health care uses. The company uses a job order costing system. Because
the microscopes' optics require significant manual labor to ensure
adherence to strict manufacturing specifications, the company applies
overhead on the basis of direct labor hours. At the beginning of 2017, the
company estimated its manufacturing overhead would be $1,950,000 and
that employees would work a total of 48,750 direct labor hours. During
March, the company worked on the following five jobs:
Direct Materials Direct Labor Direct Labor Hours
Beginning added during
added during
added during
Job
Balance
March
March
March
134
$118,600
$3,000
$8,400
160
158
121,400
2,400
12,150
340
212
21,900
86,400
36,600
3,450
287
34,550
71,600
31,810
2,770
301
18,990
21,890
1,320
Total
$296,450
$182,390
$110,850
8,040
Jobs 134 and 158 were started in January, Jobs 212 and 287 were started
in February, and Job 301 was started in March. During…
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Inventory Analysis
A company reports the following:
Cost of merchandise sold $558,000
Average inventory
45,000
Determine (a) the inventory turnover and (b) the number of days' sales in inventory. Round interim calculations to the nearest dollar and final
answers to one decimal place. Assume 365 days a year.
a. Inventory turnover
b. Number of days' sales in inventory
days
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Chapter 18 Solutions
Horngren's Accounting (12th Edition)
Ch. 18 - Prob. 1QCCh. 18 - Prob. 2QCCh. 18 - Dunaway Company reports the following costs for...Ch. 18 - Which of the following is a direct cost of...Ch. 18 - Which of the following is not part of...Ch. 18 - Which of the following accounts does a...Ch. 18 - Questions 7 and 8 use the data that follow....Ch. 18 - Questions 7 and 8 use the data that follow....Ch. 18 - World-class businesses use which of these systems...Ch. 18 - Prob. 10QC
Ch. 18 - What is the primary purpose of managerial...Ch. 18 - List six differences between financial accounting...Ch. 18 - Explain the difference between line positions and...Ch. 18 - Explain the differences between planning,...Ch. 18 - Prob. 5RQCh. 18 - Describe a service company, and give an example.Ch. 18 - Describe a merchandising company, and give an...Ch. 18 - How do manufacturing companies differ from...Ch. 18 - List the three inventory accounts used by...Ch. 18 - Explain the difference between a direct cost and...Ch. 18 - What are the three manufacturing costs for a...Ch. 18 - Give five examples of manufacturing overhead.Ch. 18 - What are prime costs? Conversion costs?Ch. 18 - What are product costs?Ch. 18 - How do period costs differ from product costs?Ch. 18 - How is cost of goods manufactured calculated?Ch. 18 - How does a manufacturing company calculate cost of...Ch. 18 - How does a manufacturing company calculate unit...Ch. 18 - How does a service company calculate unit cost per...Ch. 18 - How does a merchandising company calculate unit...Ch. 18 - Prob. S18.1SECh. 18 - Prob. S18.2SECh. 18 - Distinguishing between direct and indirect costs...Ch. 18 - Computing manufacturing overhead Learning...Ch. 18 - Identifying product costs and period costs...Ch. 18 - Computing cost of goods sold, merchandising...Ch. 18 - Computing cost of goods sold and operating income,...Ch. 18 - Prob. S18.8SECh. 18 - Prob. S18.9SECh. 18 - Prob. S18.10SECh. 18 - S18-11 Matching business trends...Ch. 18 - Prob. S18.12SECh. 18 - Prob. E18.13ECh. 18 - Prob. E18.14ECh. 18 - Prob. E18.15ECh. 18 - Prob. E18.16ECh. 18 - Identifying differences between service,...Ch. 18 - Prob. E18.18ECh. 18 - Computing cost of goods manufactured Learning...Ch. 18 - Prob. E18.20ECh. 18 - Prob. E18.21ECh. 18 - Prob. E18.22ECh. 18 - Prob. E18.23ECh. 18 - Prob. E18.24ECh. 18 - Prob. P18.25APGACh. 18 - Classifying period costs and product costs...Ch. 18 - Calculating cost of goods sold for merchandising...Ch. 18 - Prob. P18.28APGACh. 18 - Preparing a schedule of cost of goods manufactured...Ch. 18 - Prob. P18.30APGACh. 18 - Prob. P18.31APGACh. 18 - Prob. P18.32APGACh. 18 - Prob. P18.33BPGBCh. 18 - Prob. P18.34BPGBCh. 18 - Prob. P18.35BPGBCh. 18 - Prob. P18.36BPGBCh. 18 - Prob. P18.37BPGBCh. 18 - Prob. P18.38BPGBCh. 18 - Prob. P18.39BPGBCh. 18 - Prob. P18.40BPGBCh. 18 - Prob. P18.41CTCh. 18 - Prob. P18.42CPCh. 18 - Prob. 18.1TIATCCh. 18 - Prob. 18.1DCCh. 18 - Prob. 18.1EI
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