Nate's Grocery as January 1, 2012. The following events occurred in 2012. Assume that Nate's uses the periodic inventory method. Comprehensive cycle problem: period system (Appendix) The following trial balance pertains to Nate's Grocery as January 1, 2012. Account Title
Calculate the average investment in inventory for each of the following situations. Assume a 365-day year. a. The firm's annual sales were $18 million, its gross profit margin was 32%, and its average age of inventory is 45 days. b. The firm's annual sales were $325 million, its cost of goods sold are 80% of sales, and it turn
W5-1 Journalize perpetual inventory entries (Chapter 5) Assume that on May 1, Jones Company had inventory that included a product called ADX-1023. The company uses a perpetual inventory system. During May, these transactions occurred. 8 Purchased ADX-1023 from ZXY Com
See the attached file. Ending Balance Beginning Balance Cash 18,000 17,000 Acts Receivable 59,000 44,000 Inventory 72,000 64,000 Property and Equip 64,000 50,000 Acts Payable 28,000 16,000 Bonds Payable 28,000 24,000 Common Stock 38,000 34,000 Additional Capital 54,000 50,000 Retained Earnings
LIFO versus FIFO - impact on ROI Natco, Inc uses the FIFO inventory cost flow assumption. In a year of rising costs and prices, the reported net income of $480,000 and average assets were $3,000,000. If Natco had used the LIFO cost-flow assumption in the same year, its cost of goods sold would have been $80,000 more than under
Question 3 Presented is information related to Rogers Co. for the month of January 2008. Ending inventory per perpetual records $21,600 Ending inventory actually on hand 21,000 Cost of goods sold 218,000 Freight-out 7,000 Insurance expense 12,000 Rent expense 20,000 Salary Expense 61,000 Sales Discounts 10,
The following misstatements were detected by the auditor in performing substantive tests of inventories during the audit of Wixon Company. 1. Slow-moving, defective, and obsolete items are included in the inventory but not properly identified. Sampling for attributes is often used to allow an auditor to reach a conclusion concerning a rate of occurrence in a population. When an auditor samples for attributes, identify the factors that should influence the auditor's judgment concerning the determination of 1. acceptable level of risk of assessing control risk too low...
The following misstatements were detected by the auditor in performing substantive tests of inventories during the audit of Wixon Company. 1. Slow-moving, defective, and obsolete items are included in the inventory but not properly identified. Sampling for attributes is often used to allow an auditor to reach a conclusion concer
Zingle's buys and then resells a single product as its primary business activity. Following is information concerning the Zingle's inventory activity for the product during August 2004: August 1: 210 units on hand @5.10 per unit August 5: Sold 80 units August 7: Purchased 160 units @5.25 per unit August 11: Purchased 110 uni
1. Jackson Specialties has been in business for more than 50 years. The company maintains a perpetual inventory system, uses a LIFO flow assumption, and ends its fiscal year at December 31. At year-end, the cost of goods sold and inventory are adjusted to reflect periodic LIFO costing procedures. A railroad strike has delayed th
If a company's beginning inventory, explain difference ending inventory values under the FIFO LIFO cost basis price of inventory items purchased during the period have increasing, decreasing, remaining constant.
Listed below are several misstatements of inventory, accounts payable, and accrued liabilities accounts. Design a substantive audit procedure that provides reasonable assurance of detecting each misstatement. 1. A bonus earned by the president of the company has not been recorded. 2. Several accounts payable to vendors that the company has never purchased from before are omitted from the accounts payable listing. 3. When client employees counted the physical inventory, they included a number of items that were consigned to, but do not belong to, the company. 4. There is no disclosure in the financial statements that a large accounts payable is due to a related party. 5. Accrued payroll is understated. 6. One-third of the inventory of diamond jewelry is actually cubic zircona or white sapphires. 7. The client paid the same vendor invoice twice, although it is still shown as an account payable. 8. Client personnel informed the auditors that underground petroleum tanks contained an inventory of high-octane gasoline when they actually contained water. 9. The client failed to record warranty expenses incurred after year-end applicable to sales made before year-end. 10. Inventory in one corner of the warehouse is overlooked and not counted during the client's physical inventory count.
Listed below are several misstatements of inventory, accounts payable, and accrued liabilities accounts. Design a substantive audit procedure that provides reasonable assurance of detecting each misstatement. 1. A bonus earned by the president of the company has not been recorded. 2. Several accounts payable to vendors that
Controls for Inflows essay Proposal TOPIC: Design a proposal for appropriate controls to cover inventory, and production. With at least 2 references.
Accounting Questions on: 1) Inventory Valuation 2) FIFO, LIFO, Weighted-Average Question #1: Inventory Valuation Johnson's end inventory is 50 dual cassette decks that were purchased for $75 each. Johnson has been selling these units for $150 each. A new electronics store sells the same cassette decks for $130 each. J
Why wouldn't a small company derive much benefit from multi-echelon inventory optimization as a large company?
Why wouldn't a small company derive much benefit from multi-echelon inventory optimization as a large company? Explain your answer.
Identify the items that are included in merchandise inventory. (In your answer address the special situations of goods in transit, consigned goods, and damaged goods.)
The grocery industry has an annual inventory turnover of about 13 times. Organic Grocers, Inc., had cost of goods sold last year of $11,110,000; its average inventory was $985,800. What was Organic Grocers' inventory turnover, and how does that performance compare with that of the industry? a) What was the Organic Grocers' in
Budget Preparation Given the following information, prepare a sales budget, a raw materials inventory purchase budget and a production budget. Sales forecast 10,000 units of ASD-34 at $159 each Beginning raw materials inventory 1,000 units of UIO-8
14-3A - Assume that you must make a presentation to the marketing explaining the difference between product and period cost. Your supervisor tells you the marketing staff would also like clarification regarding prime and conversion costs and an explanation of how these terms fit with the product and period cost. You are told tha
At the beginning of the current season, the ledger of Village Tennis Shop showed Cash $2,500; Merchandise Inventory $1,700; and Common Stock $4,200. The following transactions were completed during April. Apr. 4 Purchased racquets and balls from Denton Co. $740, terms 3/10, n/30. 6 Paid freight on Denton Co. purchase $60. 8 Sold merchandise to members $900, terms n/30. 10 Received credit of $40 from Denton Co. for a damaged racquet that was returned. 11 Purchased tennis shoes from Newbee Sports for cash $300. 13 Paid Denton Co. in full. 14 Purchased tennis shirts and shorts from Venus's Sportswear $600, terms 2/10, n/60. 15 Received cash refund of $50 from Newbee Sports for damaged merchandise that was returned. 17 Paid freight on Venus's Sportswear purchase $30. 18 Sold merchandise to members $1,000, terms n/30. 20 Received $500 in cash from members in settlement of their accounts. 21 Paid Venus's Sportswear in full. 27 Granted an allowance of $30 to members for tennis clothing that did not fit properly. 30 Received cash payments on account from members $500. The chart of accounts for the tennis shop includes Cash; Accounts Receivable; Merchandise Inventory; Accounts Payable; Common Stock; Sales; Sales Returns and Allowances; Purchases; Purchase Returns and Allowances; Purchase Discounts; and Freight-in. Instructions (a) Journalize the April transactions using a periodic inventory system. (b) Using T accounts, enter the beginning balances in the ledger accounts and post the April transactions. (c) Prepare a trial balance on April 30, 2008. (d) Prepare an income statement through gross profit, assuming merchandise inventory on hand at April 30 is $2,296.
At the beginning of the current season, the ledger of Village Tennis Shop showed Cash $2,500; Merchandise Inventory $1,700; and Common Stock $4,200. The following transactions were completed during April. Apr. 4 Purchased racquets and balls from Denton Co. $740, terms 3/10, n/30. 6 Paid freight on Denton Co. purchase $60.
Laird Company sells coffee makers used in business offices. Its beginning inventory of coffee makers was 200 units at $45.00 per unit. During the year, laird made two batch purchases of coffee makers. The first was a 300 unit purchase at $50.00 per unit; the second was a 350 unit purchase at $52.00 per unit. Laird sold 800 coff
- How is inventory turnover calculated? - Explain how inventory turnover affects the amount of cash that must be invested in inventory. - How is accounts receivable turnover calculated? - Explain how accounts receivable turnover affects the amount of cash that must be invested in accounts receivable. - Assuming that
Gross profit and ending inventory A corporation produces a product with following costs as of July 1, 2011. Material $2 per unit Labor $4 per unit Overhead $2 per unit Beginning inventory at these costs on July 1st was 3,000 units. From July 1 to December 1, 2011 the corporation produced 12,000 units. These units had a ma
Garcia, Inc. uses a job-order costing system for its products, which pass from the Machining Department, to the Assembly Department, to finished-goods inventory. The Machining Department is heavily automated; in contrast, the Assembly Department performs a number of manual-assembly activities. The company applies manufacturing o
Goodson Corporation assembles various components used in the telecommunications industry. The company's major product, a relay switch, is the result of assembling three parts: XY634, AA788, and GU321. The following information relates to activities of April: Beginning work-in-process inventory: 4,000 units, 75 percent compl
See attached file for proper format of the table. P. 2 periodic inventory system and inventory costing methods The inventory of Product PIT and data on purchases and sales for a two-month period follow. The company closes its books at the end of each month. It uses the periodic inventory system. Apr. 1 Beginning inve
See attached file for proper format of tables. 1. For each of the following, indicate whether the transaction affects a revenue account, an expense account, the Retained Earnings account or the Common Stock account. 1. Made an investment to start the business. 2. Billed customers for services performed. 3. Paid monthly re
Donnelly Manufacturing sells cedar birdhouses. The company has prepared the following forecast for the third quarter of 2009: July 5,000 units August 6,000 units September 10,000 units Inventory at June 30, 2009 was budgeted at 1,000 units. Management would like the desired quantity of fi
P10-8 (Nonmonetary Exchanges) Susquehanna Corporation wishes to exchange a machine used in its operations. Susquehanna has received the following offers from other companies in the industry. 1. Choctaw Company offered to exchange a similar machine plus $23,000. (The exchange has commercial substance fo
In a period when inventory costs are rising, the inventory method that most likely results in the highest ending inventory is: 1. Lower-of-cost-or-market method. 2. Average cost. 3. FIFO. 4. LIFO.
The following information pertains to Julia & Co.: March 1. Beginning inventory = 30 units @ $5 March 3. Purchased 15 units @ $4 March 9. Sold 25 units @ $8 What is the ending balance of inventory for Julia & Co assuming that it uses FIFO? 1. $125 2. $100 3. $110 4. $85