Question: 22. eBook Exercise 7-20 Inventory Errors Goodwin Grocery reported the following financial facts for 2011 and 2012: Goodwin made two accounting errors during the years:
| 22. eBook Exercise 7-20 Inventory Errors Goodwin Grocery reported the following financial facts for 2011 and 2012:Goodwin made two accounting errors during the years:
Required: Compute Goodwin's correct cost of goods sold for each year.
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22.
| eBook Exercise 7-24 Estimating Inventory and Cost of Goods Sold Marshall Inc. experiences a fire in its warehouse at the end of the year, which destroys its entire inventory. Marshall's records show that it started the year with $35,000 of inventory and purchased $150,000 during the year. It also shows sales of $310,000 for the year. Normally, Marshall's experiences a 55% gross profit percentage on sales. Required: Use the gross profit method to estimate Marshall's cost of goods sold and ending inventory.
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23.
| eBook Exercise 7-25 Applying Lower-of-Cost-or-Market Kay Mart Company is preparing financial statements and provides the following information about several of its major inventory items at year end:Required: 1. If Kay Mart uses the lower-of-cost-or-market rule (LCM), what should it report as the balance of inventory if one market value is computed for all inventories. $ _________________ 2. If Kay Mart uses the lower-of-cost-or-market rule (LCM), what should it report as the balance of inventory if a market value is computed for each inventory type?
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24.
| eBook Exercise 7-27 Accounting Terms The following is a list of terms and definitions associated with inventory: Required: Match each term with the appropriate definition by clicking on the term first and then clicking on the definition that describes it. |
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25.
eBook
Problem 7-38 Recording Inventory Activity
Campbell Candy Company starts the month of January with 40 boxes of Tiger Bars costing $20 each. The following transactions occurred during the month:
Required:
| a. Prepare all necessary journal entries related to Campbell's inventory activity. Campbell uses a perpetual inventory system and the FIFO inventory costing method.
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| b. Suppose that the inventory has a replacement value of $375 at the end of the month. What entry, if any, is required?
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22. eBook Exercise 7-20 Inventory Errors Goodwin Grocery reported the following financial facts for 2011 and 2012: Goodwin made two accounting errors during the years: 1. 2011 ending inventory was understated by $3,000. 2. 2012 ending inventory was overstated by $4,000. Required: Compute Goodwin's correct cost of goods sold for each year. Cost of Goods Sold 2011 $ _________________ 2012 $ _________________ 22. eBook Exercise 7-24 Estimating Inventory and Cost of Goods Sold Marshall Inc. experiences a fire in its warehouse at the end of the year, which destroys its entire inventory. Marshall's records show that it started the year with $35,000 of inventory and purchased $150,000 during the year. It also shows sales of $310,000 for the year. Normally, Marshall's experiences a 55% gross profit percentage on sales. Required: Use the gross profit method to estimate Marshall's cost of goods sold and ending inventory. Cost of goods sold $ _________________ Ending inventory $ _________________ 23. eBook Exercise 7-25 Applying Lower-of-Cost-or-Market Kay Mart Company is preparing financial statements and provides the following information about several of its major inventory items at year end: Required: 1. If Kay Mart uses the lower-of-cost-or-market rule (LCM), what should it report as the balance of inventory if one market value is computed for all inventories. $ _________________ 2. If Kay Mart uses the lower-of-cost-or-market rule (LCM), what should it report as the balance of inventory if a market value is computed for each inventory type? Ite m Inventory Balance R $ _________________ S _________________ T _________________ U _________________ V _________________ $ Tota _________________ l 24. eBook Exercise 7-27 Accounting Terms The following is a list of terms and definitions associated with inventory: Required: Match each term with the appropriate definition by clicking on the term first and then clicking on the definition that describes it. 25. eBook Problem 7-38 Recording Inventory Activity Campbell Candy Company starts the month of January with 40 boxes of Tiger Bars costing $20 each. The following transactions occurred during the month: Required: a. Prepare all necessary journal entries related to Campbell's inventory activity. Campbell uses a perpetual inventory system and the FIFO inventory costing method. Jan 2. Jan .4 Jan . 10 Sal e Jan . 10 Cos t Jan . 27 b. Suppose that the inventory has a replacement value of $375 at the end of the month. What entry, if any, is required? Jan . 31
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