1
Subject:SociologyPrice: Bought3
1.Kingbird, Inc. took a physical inventory on December 31 and determined that goods costing $230,000 were on hand. Not included in the physical count were $31,000 of goods purchased from Blue Spruce Corp., FOB, shipping point, and $20,500 of goods sold to Blossom Company for $30,000, FOB destination. Both the Blue Spruce purchase and the Blossom sale were in transit at year-end. What amount should Kingbird report as its December 31 inventory?
|
Ending Inventory |
||||||||||
|
2. In its first month of operations, Sheridan Company made three purchases of merchandise in the following sequence: (1) 240 units at $3, (2) 340 units at $5, and (3) 440 units at $6. Assuming there are 140 units on hand at the end of the period, compute the cost of the ending inventory under (a) the FIFO method and (b) the LIFO method. Sheridan Company uses a periodic inventory system.
|
3. The Blue Spruce Company has just completed a physical inventory count at year end, December 31, 2022. Only the items on the shelves, in storage, and in the receiving area were counted and costed on the FIFO basis. The inventory amounted to $ 77,300. During the audit, the independent CPA discovered the following additional information:
|
(a) |
|
There were goods in transit on December 31, 2022, from a supplier with terms FOB destination, costing $ 9,900. Because the goods had not arrived, they were excluded from the physical inventory count. |
|
|
(b) |
|
On December 27, 2022, a regular customer purchased goods for cash amounting to $ 1,150 and had them shipped to a bonded warehouse for temporary storage on December 28, 2022. The goods were shipped via common carrier with terms FOB shipping point. The customer picked the goods up from the warehouse on January 4, 2023. Blue Spruce Company had paid $ 575 for the goods and, because they were in storage, Blue Spruce included them in the physical inventory count. |
|
|
(c) |
|
Blue Spruce Company, on the date of the inventory, received notice from a supplier that goods ordered earlier, at a cost of $ 3,300, had been delivered to the transportation company on December 28, 2022; the terms were FOB shipping point. Because the shipment had not arrived on December 31, 2022, it was excluded from the physical inventory. |
|
|
(d) |
|
On December 31, 2022, there were goods in transit to customers, with terms FOB shipping point, amounting to $ 850 (expected delivery on January 8, 2023). Because the goods had been shipped, they were excluded from the physical inventory count. |
|
|
(e) |
|
On December 31, 2022, Blue Spruce Company shipped $ 2,900 worth of goods to a customer, FOB destination. The goods arrived on January 5, 2023. Because the goods were not on hand, they were not included in the physical inventory count. |
|
|
(f) |
|
Blue Spruce Company, as the consignee, had goods on consignment that cost $ 2,900. Because these goods were on hand as of December 31, 2022, they were included in the physical inventory count. |
|
Analyze the above information and calculate a corrected amount for the ending inventory.
|
Corrected inventory |
|
$ enter corrected inventory in dollars |
4. Novak has the following inventory data:
|
Nov. 1 |
|
Inventory |
|
37 units @ $ 7.30 each |
|
8 |
|
Purchase |
|
146 units @ $ 7.85 each |
|
17 |
|
Purchase |
|
73 units @ $ 7.70 each |
|
25 |
|
Purchase |
|
110 units @ $ 8.10 each |
A physical count of merchandise inventory on November 30 reveals that there are 122 units on hand. Ending inventory under FIFO is
$ 1932.
$ 1886.
$ 983.
$ 937.
5. Concords has the following inventory data:
|
Nov. 1 |
|
Inventory |
|
24 units @ $ 4.80 each |
|
8 |
|
Purchase |
|
96 units @ $ 5.15 each |
|
17 |
|
Purchase |
|
48 units @ $ 5.05 each |
|
25 |
|
Purchase |
|
72 units @ $ 5.30 each |
A physical count of merchandise inventory on November 30 reveals that there are 80 units on hand. Cost of goods sold under LIFO is
$ 830.
$ 812.
$ 422.
$ 404.
6. Kingbird has the following inventory data:
|
Nov. 1 |
|
Inventory |
|
34 units @ $ 6.80 each |
|
8 |
|
Purchase |
|
137 units @ $ 7.35 each |
|
17 |
|
Purchase |
|
68 units @ $ 7.20 each |
|
25 |
|
Purchase |
|
103 units @ $ 7.50 each |
A physical count of merchandise inventory on November 30 reveals that there are 114 units on hand. Assuming that the specific identification method is used and that ending inventory consists of 34 units from each of the three purchases and 12 units from the November 1 inventory, cost of goods sold is
$ 1669.
$ 1637.
$ 1664.
$ 1023.
7. Novak Corp. had the following inventory transactions occur during 2022:
|
|
|
|
|
Units |
|
Cost/unit |
|
Feb. 1, 2022 |
|
Purchase |
|
132 |
|
$ 55 |
|
Mar. 14, 2022 |
|
Purchase |
|
227 |
|
$ 57 |
|
May 1, 2022 |
|
Purchase |
|
161 |
|
$ 60 |
The company sold 373 units at $ 77 each and has a tax rate of 30%. Assuming that a periodic inventory system is used, what is the company’s gross profit using LIFO?
$ 21744
$ 21039
$ 6977
$ 7682
8. Blue Spruce Corp. had the following inventory transactions occur during 2022:
|
|
|
|
|
Units |
|
Cost/unit |
|
Feb. 1, 2022 |
|
Purchase |
|
104 |
|
$ 104 |
|
Mar. 14, 2022 |
|
Purchase |
|
180 |
|
$ 109 |
|
May 1, 2022 |
|
Purchase |
|
128 |
|
$ 114 |
The company sold 296 units at $ 146 each and has a tax rate of 30%. Assuming that a periodic inventory system is used, what is the company’s gross profit using FIFO?
$ 31804
$ 10312
$ 32904
$ 11412
9. Blue Spruce Corp. had beginning inventory of $ 17400 at March 1, 2022. During the month, the company made purchases of $ 75400. The inventory at the end of the month is $ 20070. What is cost of goods sold for the month of March?
$ 92800
$ 72730
$ 75400
$ 95470
10. Swifty Corporation has the following inventory data:
|
July 1 |
|
Beginning inventory |
|
12 units at $ 19 |
|
$ 228 |
|
7 |
|
Purchases |
|
42 units at $ 20 |
|
840 |
|
22 |
|
Purchases |
|
6 units at $ 22 |
|
132 |
|
|
|
|
|
|
|
$ 1200 |
A physical count of merchandise inventory on July 30 reveals that there are 20 units on hand. Using the average cost method, the value of ending inventory is
$ 412.
$ 388.
$ 407.
$ 400.
11. Windsor, Inc. has the following inventory data:
|
July 1 |
|
Beginning inventory |
|
26 units at $ 16 |
|
$ 416 |
|
7 |
|
Purchases |
|
90 units at $ 17 |
|
1530 |
|
22 |
|
Purchases |
|
13 units at $ 19 |
|
247 |
|
|
|
|
|
|
|
$ 2193 |
A physical count of merchandise inventory on July 30 reveals that there are 41 units on hand. Using the LIFO inventory method, the amount allocated to ending inventory for July is
$ 779.
$ 697.
$ 671.
$ 656.
12. Pharoah Company has the following inventory data:
|
July 1 |
|
Beginning inventory |
|
30 units at $ 23 |
|
$ 690 |
|
7 |
|
Purchases |
|
169 units at $ 24 |
|
4056 |
|
22 |
|
Purchases |
|
31 units at $ 22 |
|
682 |
|
|
|
|
|
|
|
$ 5428 |
A physical count of merchandise inventory on July 30 reveals that there are 71 units on hand. Using the average cost method, the value of ending inventory is
$ 1676.
$ 1704.
$ 1642.
$ 1562.
13. Skysong, Inc. has the following inventory data:
|
July 1 |
|
Beginning Inventory |
|
33 units at $ 16 |
|
$ 528 |
|
7 |
|
Purchases |
|
115 units at $ 17 |
|
1955 |
|
22 |
|
Purchases |
|
16 units at $ 18 |
|
288 |
|
|
|
|
|
|
|
$ 2771 |
A physical count of merchandise inventory on July 30 reveals that there are 41 units on hand. Using the FIFO inventory method, the amount allocated to cost of goods sold for July is
$ 2033.
$ 1976.
$ 2107.
$ 2058.
14. Nash's Trading Post, LLC uses a periodic inventory system. Details for the inventory account for the month of January 2022 are as follows:
|
|
|
Units |
|
Per unit price |
|
Total |
|
Balance, 1/1/2022 |
|
220 |
|
$ 4.00 |
|
$ 880 |
|
Purchase, 1/15/2022 |
|
110 |
|
.. 3.90 |
|
429 |
|
Purchase, 1/28/2022 |
|
110 |
|
.. 4.10 |
|
451 |
An end of the month (1/31/2022) inventory showed that 180 units were on hand. If the company uses FIFO and sells the units for $ 7 each, what is the gross profit for the month?
$ 1260
$ 1820
$ 1036
$ 784
15. Windsor, Inc. uses a periodic inventory system. Details for the inventory account for the month of January 2022 are as follows:
|
|
|
Units |
|
Per unit price |
|
Total |
|
Balance, 1/1/2022 |
|
260 |
|
$ 4.00 |
|
$ 1040 |
|
Purchase, 1/15/2022 |
|
130 |
|
.. 4.60 |
|
598 |
|
Purchase, 1/28/2022 |
|
130 |
|
.. 4.70 |
|
611 |
An end of the month (1/31/2022) inventory showed that 210 units were on hand. If the company uses LIFO, what is the value of the ending inventory?
$ 840
$ 930
$ 979
$ 1409
16. Financial information is presented below:
|
Operating expenses |
|
$ 25000 |
|
Sales revenue |
|
193000 |
|
Cost of goods sold |
|
157000 |
Gross profit would be
$ 36000.
$ 25000.
$ 11000.
$ 168000.
17. Financial information is presented below:
|
Operating expenses |
|
$ 49000 |
|
Sales revenue |
|
208000 |
|
Cost of goods sold |
|
157000 |
The gross profit rate would be
0.25.
0.75.
0.01.
0.24.
18. Financial information is presented below:
|
Operating expenses |
$ 30000 |
|
Sales returns and allowances |
8000 |
|
Sales discounts |
3000 |
|
Sales revenue |
142000 |
|
Cost of goods sold |
93000 |
Gross profit would be
$49000.
$38000.
$41000.
$46000.
19. Financial information is presented below:
|
Operating expenses |
$ 24000 |
|
Sales returns and allowances |
6000 |
|
Sales discounts |
4000 |
|
Sales revenue |
154000 |
|
Cost of goods sold |
92000 |
The gross profit rate would be
0.34.
0.40.
0.64.
0.36.
20. Financial information is presented below:
|
Operating expenses |
$ 63000 |
|
Sales returns and allowances |
4000 |
|
Sales discounts |
6000 |
|
Sales revenue |
178000 |
|
Cost of goods sold |
92000 |
The gross profit rate would be
0.55.
0.43.
0.45.
0.48.
21. Financial information is presented below:
|
Operating expenses |
$ 41000 |
|
Sales returns and allowances |
2000 |
|
Sales discounts |
6000 |
|
Sales revenue |
178000 |
|
Cost of goods sold |
91000 |
The profit margin would be
0.44.
0.21.
0.46.
0.22.
22. Financial information is presented below:
|
Operating expenses |
$ 38000 |
|
Sales returns and allowances |
8000 |
|
Sales discounts |
2000 |
|
Sales revenue |
140000 |
|
Cost of goods sold |
86000 |
The gross profit rate would be
0.35.
0.66.
0.34.
0.39.
23. Assume Marigold Corp. uses the periodic inventory system and has a beginning inventory balance of $ 5300, purchases of $ 71000, and sales of $ 122000. Marigold closes its records once a year on December 31. In the accounting records, the inventory account would be expected to have a balance on December 31 prior to adjusting and closing entries that was
less than $ 5300.
indeterminate.
more than $ 5300.
equal to $ 5300.
24. Financial information is presented below:
|
Operating expenses |
$ 50000 |
|
Sales returns and allowances |
4000 |
|
Sales discounts |
7000 |
|
Sales revenue |
188000 |
|
Cost of goods sold |
99000 |
Gross Profit would be
$89000.
$78000.
$93000.
$85000.
25. Financial information is presented below:
|
Operating expenses |
$ 43000 |
|
Sales returns and allowances |
15000 |
|
Sales discounts |
2000 |
|
Sales revenue |
170000 |
|
Cost of goods sold |
100000 |
The amount of net sales on the income statement would be
$168000.
$170000.
$153000.
$155000.
26. At the beginning of the year, Monty had an inventory of $ 630000. During the year, the company purchased goods costing $ 2240000. If Monty reported ending inventory of $ 950000 and sales of $ 3720000, their cost of goods sold and gross profit rate would be
$ 2430000 and 48.39%.
$ 1290000 and 51.61%.
$ 1920000 and 48.39%.
$ 1920000 and 51.61%.
27. Pharoah Company accounting records show the following for the year ending on December 31, 2022.
|
Purchase Discounts |
$ 13200 |
|
Freight-in |
16300 |
|
Purchases |
715020 |
|
Beginning Inventory |
58000 |
|
Ending Inventory |
57600 |
|
Purchase Returns and Allowances |
10700 |
Using the periodic system, the cost of goods purchased is
$722620.
$707420.
$676220.
$728820.
28. Concord’s Fashions sold merchandise for $ 189000 cash during the month of July. Returns that month totaled $ 4800. If the company’s gross profit rate is 30%, Concord’s will report monthly net sales revenue and cost of goods sold of
$ 189000 and $ 132300.
$ 184200 and $ 55260.
$ 184200 and $ 128940.
$ 189000 and $ 128940.
29. United Services and Supplies reports net income of $ 56000 and cost of goods sold of $ 381000. If US&S’s gross profit rate was 40%, net sales were
$ 683500.
$ 1008500.
$ 635000.
$ 952500.
30.
