E7-2 (Algo) Inferring Missing Amounts Based on Income Statement Relationships LO7-1 Enter the missing dollar amounts...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
E7-2 (Algo) Inferring Missing Amounts Based on Income Statement Relationships LO7-1 Enter the missing dollar amounts for the income statement for each of the following independent cases. (Hint: In Case B, work from the bottom up.) Net sales revenue Beginning inventory Purchases Case A $ Case B 7,510 $ 11,130 $ 6,620 4,900 Goods available for sale Ending inventory 10,250 15,170 10,990 Cost of goods sold Case C $ 6,130 $ 3,920 9,470 13,390 4,490 Gross profit 1,480 Expenses 370 540 Pretax income (loss) $ 1,360 $ (550) $ 1,100 M7-4 (Algo) Inferring Purchases Using the Cost of Goods Sold Equation LO7-1 Federal Way, Incorporated, is a major department store chain. The dominant portion of the company's business consists of providing merchandise and services to consumers through department stores and online. In a prior annual report, Federal Way reported cost of goods sold of $11,562 million, ending inventory for the current year of $3,262 million, and ending inventory for the previous year of $3,649 million. Required: Develop a reasonable estimate of the merchandise purchases for the year. Note: Enter your answers in millions. Answer is complete but not entirely correct. Cost of goods sold $ 11,562 million Ending inventory 3,262 million Beginning inventory 3,649 million Purchases $ 387 million E7-6 (Algo) Calculating Ending Inventory and Cost of Goods Sold Under FIFO, LIFO, and Average Cost LO7-2 Hamilton Company uses a periodic inventory system. At the end of the annual accounting period, December 31 of the current year, the accounting records provided the following information for product 1: Inventory, December 31, prior year For the current year: Purchase, March 21 Purchase, August 1 Inventory, December 31, current year Required: Unit Units Cost 1,940 $6 6,100 5 4,060 3 2,840 Compute ending inventory and cost of goods sold under FIFO, LIFO, and average cost inventory costing methods. Note: Round "Average cost per unit" to 4 decimal places and final answers to nearest whole dollar amount. Ending inventory Cost of goods sold Average FIFO LIFO Cost E7-4 (Algo) Inferring Merchandise Purchases LO7-1 Harrison and Company is a leading retailer of casual apparel for men, women, and children. Assume that you are employed as a stock analyst and your boss has just completed a review of the new Harrison annual report. She provided you with her notes, but they are missing some information that you need. Her notes show that the ending inventory for Harrison in the current and previous years was $272,322,000 and $233,093,000, respectively. Net sales for the current year were $2,540,306,000. Cost of goods sold was $178,674,000. Income before taxes was $172,255,000. Required: Determine the amount of purchases for the year. (Hint: Use the cost of goods sold equation or the inventory T-account to solve for the needed value.) Amount of purchases Kirtland Corporation uses a periodic inventory system. At the end of the annual accounting period, December 31, the accounting records for the most popular item in inventory showed the following: Transactions Beginning inventory, January 1 Transactions during the year: a. Purchase, January 30 b. Purchase, May 1 c. Sale ($7 each) d. Sale ($7 each) Required: Units 500 Unit Cost $5.00 400 560 4.40 6.00 (260) (800) a. Compute the amount of goods available for sale. b. & c. Compute the amount of ending inventory and cost of goods sold at December 31, under Average cost, First-in, first-out, Last-in, first-out and Specific identification inventory costing methods. For Specific identification, assume that the first sale was selected two- fifths from the beginning inventory and three-fifths from the purchase of January 30. Assume that the second sale was selected from the remainder of the beginning inventory, with the balance from the purchase of May 1. Complete this question by entering your answers in the tabs below. Req A Req B and C Compute the amount of goods available for sale. Goods available for sale D. & C. Compute the amount of ending inventory and cost of goods sold at December 31, under Average cost, FIRST-IN, MISt-Out, Last-in, first-out and Specific identification inventory costing methods. For Specific identification, assume that the first sale was selected two- fifths from the beginning inventory and three-fifths from the purchase of January 30. Assume that the second sale was selected from the remainder of the beginning inventory, with the balance from the purchase of May 1. Complete this question by entering your answers in the tabs below. Req A Req B and C Compute the amount of ending inventory and cost of goods sold at December 31 under Average cost, First-in, first-out, Last- in, first-out, Specific identification of the inventory costing methods. For Specific identification, assume that the first sale was selected two-fifths from the beginning inventory and three-fifths from the purchase of January 30. Assume that the second sale was selected from the remainder of the beginning inventory, with the balance from the purchase of May 1. Note: Do not round intermediate calculations. Round your answers to the nearest whole dollar amount. Average Cost First-In, First- Out Last-In, First- Out Specific Identification Ending inventory Cost of goods sold < Req A Req B and C > Show less▲ E7-2 (Algo) Inferring Missing Amounts Based on Income Statement Relationships LO7-1 Enter the missing dollar amounts for the income statement for each of the following independent cases. (Hint: In Case B, work from the bottom up.) Net sales revenue Beginning inventory Purchases Case A $ Case B 7,510 $ 11,130 $ 6,620 4,900 Goods available for sale Ending inventory 10,250 15,170 10,990 Cost of goods sold Case C $ 6,130 $ 3,920 9,470 13,390 4,490 Gross profit 1,480 Expenses 370 540 Pretax income (loss) $ 1,360 $ (550) $ 1,100 M7-4 (Algo) Inferring Purchases Using the Cost of Goods Sold Equation LO7-1 Federal Way, Incorporated, is a major department store chain. The dominant portion of the company's business consists of providing merchandise and services to consumers through department stores and online. In a prior annual report, Federal Way reported cost of goods sold of $11,562 million, ending inventory for the current year of $3,262 million, and ending inventory for the previous year of $3,649 million. Required: Develop a reasonable estimate of the merchandise purchases for the year. Note: Enter your answers in millions. Answer is complete but not entirely correct. Cost of goods sold $ 11,562 million Ending inventory 3,262 million Beginning inventory 3,649 million Purchases $ 387 million E7-6 (Algo) Calculating Ending Inventory and Cost of Goods Sold Under FIFO, LIFO, and Average Cost LO7-2 Hamilton Company uses a periodic inventory system. At the end of the annual accounting period, December 31 of the current year, the accounting records provided the following information for product 1: Inventory, December 31, prior year For the current year: Purchase, March 21 Purchase, August 1 Inventory, December 31, current year Required: Unit Units Cost 1,940 $6 6,100 5 4,060 3 2,840 Compute ending inventory and cost of goods sold under FIFO, LIFO, and average cost inventory costing methods. Note: Round "Average cost per unit" to 4 decimal places and final answers to nearest whole dollar amount. Ending inventory Cost of goods sold Average FIFO LIFO Cost E7-4 (Algo) Inferring Merchandise Purchases LO7-1 Harrison and Company is a leading retailer of casual apparel for men, women, and children. Assume that you are employed as a stock analyst and your boss has just completed a review of the new Harrison annual report. She provided you with her notes, but they are missing some information that you need. Her notes show that the ending inventory for Harrison in the current and previous years was $272,322,000 and $233,093,000, respectively. Net sales for the current year were $2,540,306,000. Cost of goods sold was $178,674,000. Income before taxes was $172,255,000. Required: Determine the amount of purchases for the year. (Hint: Use the cost of goods sold equation or the inventory T-account to solve for the needed value.) Amount of purchases Kirtland Corporation uses a periodic inventory system. At the end of the annual accounting period, December 31, the accounting records for the most popular item in inventory showed the following: Transactions Beginning inventory, January 1 Transactions during the year: a. Purchase, January 30 b. Purchase, May 1 c. Sale ($7 each) d. Sale ($7 each) Required: Units 500 Unit Cost $5.00 400 560 4.40 6.00 (260) (800) a. Compute the amount of goods available for sale. b. & c. Compute the amount of ending inventory and cost of goods sold at December 31, under Average cost, First-in, first-out, Last-in, first-out and Specific identification inventory costing methods. For Specific identification, assume that the first sale was selected two- fifths from the beginning inventory and three-fifths from the purchase of January 30. Assume that the second sale was selected from the remainder of the beginning inventory, with the balance from the purchase of May 1. Complete this question by entering your answers in the tabs below. Req A Req B and C Compute the amount of goods available for sale. Goods available for sale D. & C. Compute the amount of ending inventory and cost of goods sold at December 31, under Average cost, FIRST-IN, MISt-Out, Last-in, first-out and Specific identification inventory costing methods. For Specific identification, assume that the first sale was selected two- fifths from the beginning inventory and three-fifths from the purchase of January 30. Assume that the second sale was selected from the remainder of the beginning inventory, with the balance from the purchase of May 1. Complete this question by entering your answers in the tabs below. Req A Req B and C Compute the amount of ending inventory and cost of goods sold at December 31 under Average cost, First-in, first-out, Last- in, first-out, Specific identification of the inventory costing methods. For Specific identification, assume that the first sale was selected two-fifths from the beginning inventory and three-fifths from the purchase of January 30. Assume that the second sale was selected from the remainder of the beginning inventory, with the balance from the purchase of May 1. Note: Do not round intermediate calculations. Round your answers to the nearest whole dollar amount. Average Cost First-In, First- Out Last-In, First- Out Specific Identification Ending inventory Cost of goods sold < Req A Req B and C > Show less▲
Expert Answer:
Answer rating: 100% (QA)
FIFO Method Beginning inventory 500 units at 5 per unit 2500 Purchase January 30 400 units at 440 per unit 1760 Purchase May 1 560 units at 6 per unit 3360 Total goods available 500 400 560 1460 units ... View the full answer
Related Book For
Posted Date:
Students also viewed these accounting questions
-
How much heat is absorbed by a 15.0-g sample of water in going from liquid at 10 C to steam at 105 C and a pressure of 1.00 atm? Use the data in the accompanying table. Some Thermal Properties of...
-
Inferring Missing Amounts Based on Income Statement Relationships Supply the missing dollar amounts for the income statement for each of the following independent cases. Case A Case B Case C Net...
-
Write balanced equations based on the information given. (a) Solid magnesium + oxygen gas solid magnesium oxide (b) Nitrogen monoxide gas + oxygen gas nitrogen dioxide gas (c) Gaseous ethane(C2H6)...
-
Mark Wellaby MD practices medicine. During the year he received the following items in payment for his services: cash of $48,000, farm produce worth $1000, common stock with a total par value of...
-
Serven Corporation has estimated its accrual-basis revenue and expenses for June 20X1 and would like your help in estimating cash disbursements. Selected data from these estimated amounts are as...
-
Describe the role of an organizations personnel in compliance and antifraud efforts.
-
Recording Seven Typical Adjusting Entries Dittmans Variety Store is completing the accounting process for the year just ended, December 31, 2011. The transactions during 2011 have been journalized...
-
You need your client to send you a copy of a paper receipt so that you can match it to a gas expense in their QuickBooks Online. You create a client request and add a screenshot of the expense entry...
-
(a) Using the Consolidated Balance Sheets for Walgreen Co. for August 31, 2013 and 2012, prepare a common-size balance sheet. (b) Which current asset is the most significant? Which noncurrent asset...
-
Analyze Harley-Davidsons existing use of alliances, mergers, and acquisitions. Also, discuss whether Harley should increase or decrease its use of these strategies in the future.
-
Approximate the integral using Simpson's rule. Choose zz so that your error is certain to be less than 10. Compute the exact value of the integral and compare to your approximation. Simpson's Rule...
-
Show the following results on the subdifferential. (a) Let fe r (R") and g(x) = f(x) with > 0. Show that Og(x) = 00 f(x) for any a R". (b) Let f, g I (R") and h = f + g. Show that Of(x) + g(x) ...
-
Sarah, a U.S. taxpayer, purchased 1 Bitcoin (BTC) on January 1, 2022, for $50,000. She then sold 0.5 BTC on March 15, 2023, for $30,000 and the remaining 0.5 BTC on December 10, 2023, for $40,000....
-
Define a relation R on Z as follows: for all integers m and n, m Rn4](m-n) a. Is 1 R 4? b. Is 1 R 1? c. Is 2 R-8? d. Is-8 R2 e. Is this relation reflexive? f. Is this relation symmetric? g. Is this...
-
A long telephone pole (wood density 0.80 kg/m3) is vertically lowered into a slightly larger vertical pipe which is filled with salt water of density 1.04 kg/m3. The pole ends up floating with what...
-
Galway Sdn Bhd manufactures electrical products for domestic and industrial usage since 2018. The company is a Malaysian resident company located in Segamat, Johor. The company closes its accounts on...
-
$10,000 was borrowed at 3.5% on July 17. The borrower repaid $5000 on August 12, and $2000 on September 18. What final payment is required on November 12 to fully repay the loan?
-
Computing and Interpreting the Receivables Turnover Ratio A recent annual report for Dell, Inc., contained the following data: Required: 1. Determine the receivables turnover ratio and average days...
-
Houston Company issued a $10,000, three-year, 5 percent bond on January 1, 2011. The bond interest is paid each December 31. The bond was sold to yield 4 percent. Required: 1. Complete a bond...
-
Refer to the financial statements of Urban Outfitters given in Appendix C at the end of this book. Required: 1. Does Urban Outfitters use the direct or indirect method to report cash flows from...
-
Long Weekend Ltd suffered a severe drop in sales and profit performance for the year ended 30 June 2019. The income statement revealed that net sales were $1 500 000 with a profit of $310 000. Unit...
-
TMP Human Resource Consulting had the following contribution margin income statement for the year ended 2019. Required Answer each of the following independent situations. (a) Explain how an...
-
Selcombe, Selcombe and Selcombe Media are three generations of the one family involved for nearly 50 years in providing public relations services. The firm is preparing its fees budget for the year...
Study smarter with the SolutionInn App