A retail company begins operations late in 2000 by purchasing $600,000 of merchandise. There are no sales in 2000. During 2001 additional merchandise of $3,000,000 is purchased. Operating expenses (excluding management bonuses) are $400,000, and sales are $6,000,000. The management compensation agreement provides for incentive b
E3: Paul's Farm Store recorded the following purchases and sales of fertilizer during the past year: Jan. 1 Beginning Inventory 250 cases @ $23 $5,750 Feb. 25 Purchase 100 cases @ $26 2,600 June 15 Purchase 400 cases @ $28 11,200 Aug. 15 Purchase 100 cases @ $26 2,600 Oct. 15 Purchase 300 cases @ $28 8,400 Dec. 15
(See attached file for full problem description) --- E3. Paul's Farm Store recorded the following purchases and sales of fertilizer during the past year: Jan. 1 beginning inventory 250 cases @ $23 $ 5,750 Feb. 25 purchased 100 cases @ $26 2,600 June 15 purchased 400 cases @ $28 11,200 Aug. 15 purchased 1
Inventory Methods SE3: Aug. 1 Inventory 80 units @ $10 per unit $800 8 Purchase 100 units @ $11 per unit 1,100 22 Purchase 70 units @ $12 per unit 840 Good available for sale 250 units $2,740 Aug. 15 Sale 90 units 28 Sale 50 Inventory Aug. 31 110 units SE4: Using the data in SE3, calculate the cost of the end
Why do you think inventory is one of the more complex areas for and auditor to test? What kinds of inventories are performed at your organization? Have you ever taken part in them?
List the procedures an auditor should follow during the count of the client's physical inventory
SE 3) Aug 1 Inventory 80 units @ $ 10 per unit $ 800 8 Purchase 100 units @ $ 11 per unit 1,100 22 Purchase 70 units @ $ 12 per unit 840 Goods available for sale 250 units $ 2,740
From any store you have ever been to answer the following questions: 1) What is the physical flow of merchandise into the store, and what documents are used in connection with this flow? 2) What documents are prepared when merchandise is sold? 3) Does the store keep perpetual inventory records? If so, does it keep the recor
1. Sample data on sales for small retailers are as follows: Sales ($ in 0000s) # of Retailers Lower sales < Upper 100-120 5 120-140 7 140-160 9 160-180 16 180-200 10 200-220 3 The mean sales level of the retailers is: a. $148,600 b. $152,500 c. $161,200 d. $164,490 For questions 2-3 use the fol
E7 On June 15, Tunnale Company sold merchandise for $ 1,300 on terms of n/30 to Whist Company. On June 20, Whist Company returned some of the merchandise for a credit of $ 300, and on June 25, Whist paid the balance owed. Give Tunnale's entries to record the sale, return, and receipt of payment under the perpetual inventory syst
SE 5 Record in journal form each of the following transactions, assuming the perpetual inventory system is used: August 2 - Purchased merchandise on credit from Bean Company, invoice dated August 1, terms n/10, FOB shipping point $2,300. 3 - Received bill from Ace Shipping Company for transportation costs on August 2 ship
Record transactions. Prepare the journal entry for each of the following transactions that occurred during the first year of operations at Sherman Co. Cost-flow assumptions - FIFO and LIFO using periodic and perpetual systems. The inventory records of Twilight, Inc., Reflected the following information for the year ended De
Choose the best answer for each of the following questions: 1. When should the loss on an uncollectible account receivable be recorded as an expense for accrual accounting purposes? a. When it is determined that an account cannot be collected. b. In the same period in which the sale on account occurs. c. When the balance
Effects of inventory errors. Following are condensed income statements for Uncle Bill's Home Improvement Center, for the years ended December 31, 2003, and 2002. (see attached) Uncle Bill was concerned about the operating results for 2003 and asked his recently hired accountant, "If sales increased in 2003, why was net inc
Logan Manufacturing has gone out on bid for a regular component. expected demand is 700 units per month. the item can be purchased from either allen manufacturing or baker manufacturing. their price lists are bellow. ordering cost is $50, and annual holding cost per unit is $5. allen mfg.
(See attached file for full problem description) Take the beginning inventory into account.
If a firm uses the retail inventory method, what conditions must exist? How do they account for shrinkage?
FIFO, weighted average, and LIFO methods are often used instead of specific identification for inventory valuation purposes. Compare these methods with the specific identification method, discussing the theoretical propriety of each method in the determination of income and asset valuation.
E8-5 (Inventoriable Costs?Error Adjustments) Craig Company asks you to review its December 31, 2004, inventory values and prepare the necessary adjustments to the books. The following information is given to you. 1. Craig uses the periodic method of recording inventory. A physical count reveals $234,890 of inventory on hand a
XYZ Company uses the periodic inventory method and had the following inventory information available: Units Unit Cost Total Cost 1/1 Beginning Inventory 100 $4 $ 400 1/20 Purchase 400 $5 2,000 7/25 Purchase 300 $6 1,800 10/20 Purchase 200 $7 1,400 1,000 $5,600 A physical count of inventory on December 31 re
Smith Company had a beginning inventory of 200 units at a cost of $12 per unit on August 1. During the month, the following purchases and sales were made. Purchases Sales August 4 250 units at $13 Aug
Adventure Technology Balance Sheet December 31, 2005 ($thousands) 2001 2002 Assets Cash & Marketable Sec. $60 $49 Accts. Receivable 406 448 Inventory 600 640 Total Current Assets $1,066 $1,137 Fixed Assets Gross Fixed Assets 1,130 1,280 Less:Acc. Depreciation 307 384 Net Fixed A
DAZZLE BOOK WAREHOUSE DISTRIBUTES HARDBACK BOOKS TO RETAIL STORES AND EXTENDS CREDIT TERMS OF 2/10, N/30 TO ALL OF ITS CUSTOMERS. AT THE END OF MAY, DAZZLE'S INVENTORY COSISTED OF 240 BOOKS PURCHASED AT $1200. DURING THE MONTH OF JUNE THE FOLLOWING MERCHANDISING TRANSACTIONS OCCURRED. JUNE 1 PURCHASED 130 BOOKS ON ACCOUNT F
The problem is as follows: The Goodstone Tire Company produces a brand of tire called the Rainpath. The demand at its distribution center is 1,035 tires per month. The transport and handling costs are $2,600 each time a shipment of tires is ordered at the distribution center. The annual carrying cost is $3.75 per tire, wh
Jerrico Wallboard Co. had a beginning inventory of 7,000 units on January 1, 2004. The costs associated with the inventory were: Material $9.00 unit Labor 5.00 unit Overhead 4.10 unit During 2004, Jerrico produced 28,500 units with the following costs: Material $11.50 unit Labor 4.80 unit
Johansen 's Ice Cream Shoppe purchases fresh-baked waf .e cones from the Myra Cone Company. The cones cost Johansen $0.28 each and are delivered once each day. Johansen 's charges customers who want their ice cream in a waffle cone an extra $0.40. If Johansen 's runs out of waf .e cones,it estimates that it suffers a customer go
OfficeHQ carries boxes of Disco floppy diskettes. Because the diskettes come in different formats, OfficeHQ has decided to use a periodic review policy, in which it places an order with Disco once every three weeks. Weekly demand for Disco diskettes at OfficeHQ averages 45 boxes. The lead time for delivery is approximately one w
It is October 15, and Furr's Stationary must decide how many calendars it should order from the World Wildlife Federation. The calendars cost the company $4.25, and Furr 's sells them for $9.50. The calendars will arrive on November 1,and demand during the period between November 1 and Christmas is estimated to follow a normal
Bank Drugs wishes to determine how many tablets of a new arthritis medication it should order. Its policy is to order from the manufacturer every other week and maintain a safety stock of 120 tablets. Based on past weeks sales, Bank estimates that it sells 800 tablets of the medication each week. The lead time for delivery of th
Zeigler's Lumber Supply sells an average of 15,200 board feet of 2 by 4 lumber weekly. Ziegler's purchases its 2 by 4 lumber from Western Cascade Wood Products. Western Cascade offers its customers the following all units quantity discount schedule: Order Quantity (in Board Feet) Cost per Board Foot 1 -24,999