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    Purchases, Inventory and Cost of Goods Sold (COGS)

    Computer-Assisted Substantive Tests for Inventory

    An auditor is conducting an audit of the financial statements of a wholesale cosmetics distributor with an inventory consisting of thousands of individual items. The distributor keeps its inventory in its own distribution center and two public warehouses. An inventory computer file is maintained on a computer disk and at the end

    Cost of debt using the approximation formula

    For each of the $1000 par-value bonds in the attached file, assuming annual interest payment and a 40% taxe rate, calculate the after-tax cost to maturity using the approximation formula.

    Inventory problem: Basic EOQ model

    Tele-Reco is a new specialty store that sells television sets, videotape recorders, video games, and other television-related products. A new Japanese-manufactured videotape recorder costs Tele-Reco $600 per unit. Tele-Reco's annual holding cost rate is 22%. Ordering costs are estimated to be $70 per order. a. If demand for t

    Inventory Policy

    Suppose that R&B Beverage Company has a soft drink product that shows a constant annual demand rate of 3600 cases. A case of the soft drink costs R&B $3. Ordering costs are $20 per order and holding costs are 25% of the value of the inventory. R&B has 250 working days per year, and the lead time is 5 days. Identify the following

    Les Fleurs: Compute net sales revenue, cost of goods sold, gross profit

    ACG230-0803B-09 Introduction to Accounting Assignment Name: Unit 4 Individual Project Details: Les Fleurs, a boutique in Paris, France, had the following accounts in its accounting records at December 31, 20X2 (amounts in Euros, denoted as "E") Purchases..................... E250,000 Freight In.................. E

    Freeing Up Cash by Increasing Inventory Turnover Ratio

    Williams & Sons last year reported sales of $10 million and an inventory turnover ratio of 2. The company is now adopting a new inventory system. If the new system is able to reduce the firm's inventory level and increase the firm's inventory turnover ratio to 5, while maintaining the same level of sales how much cash will be

    Inventory models: Quantity discount model

    1 < Q < 1000 unit => $5.00 1000 <= Q < 2000 units => $4.90 2000 <= Q units => $4.75 The discounts apply to all units. For each of the following items treated separately, what is the appropriate order quantity to use, assuming a common value of r = 0.3 (Holding cost is 30 percent of the unit cost)? Item

    Ming Company's chart of accounts includes the following selected accounts.

    This file contains a formatted MS Excel file containing various transactions to the chart of accounts for the Ming Company. Ming Company's chart of accounts includes the following selected accounts. 101 Cash 201 Accounts Payable 120 Merchandise Inventory 306 T. Ming, Drawing 130 Prepaid Insurance 505 Cos

    Economic Order Quantity, Reorder Point and Average Inventory

    A bakery uses 700 bags of flour per week and works 45 weeks per year. The flour costs $25 per bag. Each time that order is issued it will cose the bakery $100. Carrying costs of the inventory are 15% of unit costs. Determine the economic order quantity, reorder point, and the average inventory for this bakery.

    Least Squares Equation: Example Problem

    Listed below is the net sales in $ million for Home Depot, Inc. and its subsidiaries from 1993 to 2002. 1993 $9239 1994 $12,477 1995 $15,470 1996 $19,535 1997 $24,156 1998 $30,219 1999 $38,434 2000 $45,738 2001 $53,553 2002 $58,247 Determine the least squares equation. On the basis of this information, wh

    The equation transfer price = variable cost + opportunity cost is

    Here is the final half: ............................ 16 The equation transfer price = variable cost + opportunity cost is: a. A formula for market based transfer prices b. A formula for all types of transfer prices c. A formula that is used in all manufacturing firms in the U.S. d. None of the above

    Cost classification and cost formula

    Chillicothe Meat Company produces one of the best sausage products in southern Ohio. The company's controller used the account-classification method to compile the following information. a. Depreciation schedules revealed that monthly depreciation on buildings and equipment is $19,000. b. Inspection of several invoices from

    Accounting - Perpetual Inventory

    The following is a list of selected events for D Sales for 2008. D Sales uses a perpetual inventory system and had a zero inventory balance prior to these transactions. 1.) Purchased merchandise on account for 67,000 2.) Sold Inventory costing 48,000 for 88,000 on account 3.) Paid transportation-out cost of 3,500 on goods so

    Accounting - Perpetual Inventory

    The following events pertain to XYC for Jan 2007. The company uses the perpetual inventory method. Record the following events in the general journal. 1.) Jan 3rd purchased 40,000 of merchandise inventory from supplier, Kelly Distributors Inc. The terms of the purchase: 2/10, n/30 and FOB shipping point. 2.) Jan 5th paid 90

    Advanced Accounting

    1. On 1/1/02, Platte acquired 80% of River Co. The purchase resulted in a differential of $120,000, half of which was assigned to a patent and the other half assigned to inventory. The patent is being amortized over a 5 year period. The inventory was sold during 2002 to an unrelated party. During 2002, River sold to Platte in

    Cost Equation/Account Classification Method

    A. Develop the cost equation for Mr. Smith's store, using the account classification method, assuming that the cost object is the individual compact disc. b. Mr. Smith plans to increase sales by 25% next month, July, by reducing the price of his compact discs. Assuming a 25% increase in sales, what is the lowest price Mr.

    Understanding the elements of the cost equation

    In describing the cost equation, Y = a + bX, "a" is the dependent variable, cost. the independent variable, the level of activity. the total fixed costs. the variable cost per unit of activity.

    Financial Accounting Multiple Choice Questions

    13. A recommended internal control procedure for taking physical inventories is that the accounting should be done by employees who do not have custodial responsibility for the inventory. This is an example of what type of internal control procedure? a. Establishment of responsibility b. Documentation procedure c. Indep

    Calculations Using the High-Low Method

    1. High-Low Method; Scattergraph Analysis (LO2, LO3) Zerbel Company, a wholesaler of large, custom-built air conditioning units for Commercial buildings, has noticed considerable fluctuation in its shipping expense from month to month, as shown below: Month Units

    EOQ, ROP, Average Inventory, Annual Ordering Cost

    Problem 6-20 Note: Please review the PowerPoint Slides using the link below: http://wps.prenhall.com/bp_render_qam_9/0,11119,2557279-,00.html Barbara Bright is the purchasing agent for West Valve Company. West Valve sells industrial valves and fluid control devices. One of the most popular valves is the Western, which ha

    Inventory models: Newsboy problem

    Supermarket A dairy product is ordered daily at a particular supermarket. The product, which costs $1.19 per unit, sells for $1.65 per unit. If units are unsold at the end of the day, the supplier takes them back at a rebate of $1 per unit. Assume that daily demand is approximately normally distributed with a mean of 150 a

    Accounting Questions (Inventory, AP, Journals)

    1) In a Periodic inventory system, would purchase returns and allowances and purchase discounts be considered contra liability accounts. 2) The accounts payable subsidiary ledger controls the accounts payable account in the general ledger. (True or False) 3) If using a perpetual inventory system, what entry to record the p

    Lone Star Leather Company - COGS, Costs

    Selected data concerning the past year's operations of the Lone Star Leather Company are as follows: Inventories Beginning Ending Raw Material 142,000 162,000 Work in Process 160,000 60,000 Finished Goods 180,000 220,000 Other Data: Direct Materi

    Managerial Accounting

    E1 The decisions that follow were made by the management of Shanahan Shoe Company. Indicate whether each decision pertains primarily to (a) cash flow management, (b) profitability management, (c) choice of inventory system, or (d) control of merchandise operations. 1. Decided to mark each item of inventory with a magnet tag tha

    Retail inventory system

    A retail inventory system: a. provides the internal control of a periodic inventory system. b. cannot be used if inventory purchases are made at different costs during the period. c. records inventory purchases by debiting Inventory for the cost of the merchandise and crediting Accounts Payable for the selling

    High-low method, level of costs.

    The owner/operator of Toledo Taxi Company is interested in determining the cost equation for his one-vehicle taxi service, based on the number of miles driven. To that end he has collected the following volume and cost data. Total Number of Month Operating Costs Miles Driven July $16,000 13,000 August 17,800

    Periodic Inventory System

    The following items relating to the Mets Co's periodic inventory system, if incorrect, have not been corrected as of 12/31/05: a Goods purchased FOB DESTINATION, with cost of $250,000, are in transit at 12/31/05. A purchase was recorded. These goods were not included in the 12/31/05 inventory count. b Goods sold FOB SHI

    Cost accounting

    Use the information below to answer questions 22 - 23. Troy Company processes 15,000 litres of direct materials to produce two products, Product X and Product Y. Product X sells for $4 per litre, and Product Y, the main product, sells for $50 per litre. The following information is for August: Beginning