Problem 1. On May 1, the inventory account had a balance of P40,000. During the first...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Problem 1. On May 1, the inventory account had a balance of P40,000. During the first few days of May, the following transactions occurred. May 2- Purchased merchandise on credit from Gay Company, P60,000. 31- Sold merchandise on account, P100,000. The cost of the merchandise was P60,000. Required: a. Prepare entries in general journal form to record the above transactions under perpetual and periodic systems of accounting for inventories. b. Compute the cost of sales and ending inventory as of May under both methods Problem II. At the close of its fiscal year on March 31, 2018. Gren Industries, Inc. was in the process of relocating its plant. This resulted in some confusion relating to the inventory cutoff, as indicated by the following: (1) Merchandise on hand costing P1,794 was included in the inventory although the purchase invoice was not recorded until April 12, 2018. (2) Merchandise shipped on April 1, 2018, was included in inventory--the cost of this merchandise was P2,219, and the sale was recorded as P3,138 on March 31, 2018. (3) Merchandise costing P12,150 was included in the inventory although it was shipped to a customer on March 31, 2018, FOB shipping point; the company recorded the sale of P19,246 on that date. Merchandise costing P1,820 was not counted. (5) Merchandise in transit (shipped to the company FOB destination) was recorded as a purchase as of April 2, 2018, and its cost of P17,287 was not included in the March 31, 2018, inventory. Assuming that the company uses the periodic system and that the books for the fiscal year are still open, provide the necessary correcting entries Problem III You were furnished the following data relative to Product X of Diana Sales Center: Balance : March 1 500 units @P2 10 500 units @ P4 12 28 Units on hand 600 units Required: Compute the cost of ending inventory and cost of sales using the following methods; a FIFO b. Specific Identification (200 units come from March 1 and 400 units come from March 10) c. Weighted Average 350 units @ P6 150 units @ P8 Problem IV. The following data pertains to product B of MNO Corporation as of January 1, 2018; January Balance 500 units @ P2 Purchases 600 units @ P3 800 units Sales Purchases 400 units @ P4 Purchases 400 units @ P5 Sales 600 units Purchases 300 units @ P6 Sales 400 units 1 5 10 13 20 24 30 31 Problem 1. On May 1, the inventory account had a balance of P40,000. During the first few days of May, the following transactions occurred. May 2- Purchased merchandise on credit from Gay Company, P60,000. 31- Sold merchandise on account, P100,000. The cost of the merchandise was P60,000. Required: a. Prepare entries in general journal form to record the above transactions under perpetual and periodic systems of accounting for inventories. b. Compute the cost of sales and ending inventory as of May under both methods Problem II. At the close of its fiscal year on March 31, 2018. Gren Industries, Inc. was in the process of relocating its plant. This resulted in some confusion relating to the inventory cutoff, as indicated by the following: (1) Merchandise on hand costing P1,794 was included in the inventory although the purchase invoice was not recorded until April 12, 2018. (2) Merchandise shipped on April 1, 2018, was included in inventory--the cost of this merchandise was P2,219, and the sale was recorded as P3,138 on March 31, 2018. (3) Merchandise costing P12,150 was included in the inventory although it was shipped to a customer on March 31, 2018, FOB shipping point; the company recorded the sale of P19,246 on that date. Merchandise costing P1,820 was not counted. (5) Merchandise in transit (shipped to the company FOB destination) was recorded as a purchase as of April 2, 2018, and its cost of P17,287 was not included in the March 31, 2018, inventory. Assuming that the company uses the periodic system and that the books for the fiscal year are still open, provide the necessary correcting entries Problem III You were furnished the following data relative to Product X of Diana Sales Center: Balance : March 1 500 units @P2 10 500 units @ P4 12 28 Units on hand 600 units Required: Compute the cost of ending inventory and cost of sales using the following methods; a FIFO b. Specific Identification (200 units come from March 1 and 400 units come from March 10) c. Weighted Average 350 units @ P6 150 units @ P8 Problem IV. The following data pertains to product B of MNO Corporation as of January 1, 2018; January Balance 500 units @ P2 Purchases 600 units @ P3 800 units Sales Purchases 400 units @ P4 Purchases 400 units @ P5 Sales 600 units Purchases 300 units @ P6 Sales 400 units 1 5 10 13 20 24 30 31
Expert Answer:
Answer rating: 100% (QA)
The image contains a series of accounting problems based on inventory transactions valuations and adjustments along with a set of data related to specific transactions of a company The question seems ... View the full answer
Related Book For
College Accounting A Contemporary Approach
ISBN: 978-0077639730
3rd edition
Authors: David Haddock, John Price, Michael Farina
Posted Date:
Students also viewed these accounting questions
-
Prepare entries in general journal form to record the following: May 5 Received a 2-month, 6 percent note from Paul Dantz for a $ 575 personal loan. July 5 Received the total amount due from Dantz.
-
Prepare entries in general journal form to record the following: June 4 Received payment from Parker Company of interest on a 45-day, 5.5 percent note for $ 8,700, dated April 20, and renewal of the...
-
Prepare entries in general journal form to record the following: June 12 Sold merchandise on account to K. Perrot; terms 3/10, n/30; $ 1,740. July 12 Received $ 740 in cash from K. Perrot and a...
-
The MLC Corporation produces electronic microwave ovens and uses a perpetual inventory system. Its job costing records yield the following information. Job No. 1 m 2 3 4 *5 6 7 Date Finished Sold...
-
How does the weighted scoring approach avoid the drawbacks of the NPV approach? Can the two approaches be combined? How? What weights would be appropriate if they were combined?
-
Culture" impact the course of hominid evolution. how did the changing cultural behavior of early Homo influence biological evolution, resulting in modern Homo sapiens? Make sure that you include two...
-
A model of a submarine, \(1: 15\) scale, is to be tested at \(180 \mathrm{ft} / \mathrm{s}\) in a wind tunnel with standard sea-level air, while the prototype will be operated in seawater. Determine...
-
Kelpax Company issued seven-year, $100,000 bonds with a stated rate of interest of 8%, compounded semiannually. The effective interest rate demanded by investors for bonds of this level of risk is...
-
A projectile if fired from 19.6m above the ground with an initial speed of 55.6m/s at an angle of 41.2 degrees above the horizontal. a) Determine the time necessary for the projectile to reach its...
-
Selected accounts from Murray's Furniture Store's adjusted trial balance as of June 30, 2014, the end of the fiscal year, follow. Required 1. Prepare a multistep income statement for Murray's....
-
Cactus Company purchased a new machine on August 1, 2017. At that time, the original cost of the machine was recorded at $180,000 with an estimated salvage value of $40,000. Total service hours...
-
What colour change do you observe in the biotransformation of L-tryrosine to L-DOPA over time? What causes the colour change?
-
Explain how you would use industry information and corporate disclosures to forecast a company's future financial results.
-
Johnstown Company granted 1 0 officers rights to buy 1 0 , 0 0 0 shares each of common stock $ 1 par, at $ 1 5 per share on May 1 , 2 0 2 4 , the grant date. The stock was selling for $ 1 0 per share...
-
ESSAY-4-5 pages Upward economic mobility is difficult to attain in this country. You implicitly know this; that's why you've come to college. But just being in college isn't enough. How can you...
-
Article Analysis essay about Two Articles: "The Forms of Capital" - by P. Bourdieu and "Whose Culture has Capital?" - by T. Yosso essay Discussing each author's perspectives on "capital?" Next...
-
ABC Company is preparing its financial statement for the year ended December 31, 2020. Accounts Payable amounted to P 1,200,000 before any necessary year-end adjustments related to the following: At...
-
Q1) What is the a3 Value Q2) What is the a7 Value Q3) What is the a4 Value Q4) What is the b3 Value Q5) What is the b2 Value Q6) What is the sign of 2nd constraint? A pastry chef at a bakery wants to...
-
1. How does the Sales Returns and Allowances account provide management with a measure of operating efficiency? What problems might be indicated by a high level of returns and allowances? 2. Suppose...
-
The following transactions took place at Swensons Wildlife Resort during May. Swensons Wildlife Resort must charge 8 percent sales tax on all sales: DATE TRANSACTIONS 2016 May 1 Sold merchandise on...
-
Obtain all data necessary from the worksheet prepared for Artisan Wines in Problem 12.6A at the end of Chapter 12. Then follow the instructions to complete this problem. In Problem 12.6A...
-
Fluid is a substance that: (a) Cannot be subjected to shear force (b) Always expands until it fills any container (c) Has the same shear stress at a point regardless of its motion (d) Cannot remain...
-
Sketch and explain split air conditioner?
-
Define air conditioning. State the basic component of air conditioning systems.
Study smarter with the SolutionInn App