Sunshine Store manages its inventory on a "First in, First out" basis. On 1 February2020, there were 20 units of stock costing $3 600.bought (up)Sold (CP)The business had the following credit transactions in February 2020:(a)(b)2020₁(c)Feb 57920 XBought 10 unitsBought 20 units<Sold 30 units X142022 Sold 20 unitsBought 10 unitsBought 10 unitsREQUIRED$1 4002-7006 400 (JP)2 000740038001 8004 600 (sr)(d) State how ending inventory is valued.30 (3600+ 1400.5000)20 (2700)SP-saver revenueExplain what is meant by "cost of sales".Calculate the cost of sales for the month ended 29 February 2020.Prepare the trading portion of the Statement of Financial Performance for themonth ended 29 February 2020.Ysri Expenses,Income, cost of sales

Name: Sunshine Store manages its inventory on a "First in, First out" basis
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Description: Sunshine Store manages its inventory on a "First in, First out" basis. On 1 February2020, there were 20 units of stock costing $3 600.bought (up)Sold (CP)The business had the following credit transactions in February 2020:(a)(b)2020₁(c)Feb 57920 XBo

FIFO stans for First in First Out. It is one of a method of valauation of inventory. Under this…

Business

Accounting

(a) (b) (c) (d) Explain what is meant by "cost of sales". Calculate the cost of sales for the month ended 29 February 2020. Prepare the trading portion of the Statement of Financial Performance for the month ended 29 February 2020. SR, Expenses, State how ending inventory is valued. Income, cost of sales

(a) (b) (c) (d) Explain what is meant by "cost of sales". Calculate the cost of sales for the month ended 29 February 2020. Prepare the trading portion of the Statement of Financial Performance for the month ended 29 February 2020. SR, Expenses, State how ending inventory is valued. Income, cost of sales

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter15: Financial Statement Analysis

Section: Chapter Questions

Problem 46E

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Reid Company uses the periodic inventory system. On January 1, it had an inventory balance of 250,000. During the year, it made 613,000 of net purchases. At the end of the year, a physical inventory showed it had ending inventory of 140,000. Calculate Reid Companys cost of goods sold for the year.
On June 30, 2019, the balances of the accounts appearing in the ledger of Simkins Company are as follows: Instructions 1. Does Simkins Company use a periodic or perpetual inventory system? Explain. 2. Prepare a multiple-step income statement for Simkins Company for the year ended June 30, 2019. The merchandise inventory as of June 30, 2019, was 508,000. The adjustment for estimated returns inventory for sales for the year ending December 31, 2019, was 33,000. 3. Prepare the closing entries for Simkins Company as of June 30, 2019. 4. What would the net income have been if the perpetual inventory system had been used?
On September 30, 2013, the general ledger of Leons Golf Shop, which uses the calendar year as its accounting period, showed the following year-to-date account balances: The merchandise inventory account had a 48,000 balance on January 1, 2013. The historical gross profit percentage is 40%. Leon prepares quarterly financial statements and takes physical inventory once a yearat the end of the accounting period. In order to prepare the financial statements for the third quarter, the store needs to have an estimate of ending inventory. You have been asked to use the gross profit method to estimate the ending inventory. Review the worksheet called GP. Study it carefully because it may have a solution format somewhat different from the one shown in your textbook.
ABC Merchandise business follows perpetual inventory system. The business had 200 units in inventory at 1st January 2019 valued at RO 20. On 10th January Purchase was made 300 units at RO 30 each. On 30th January Sales was made 400 units at RO 40 each. What will be the cost of goods sold value at the end of January 2019 assuming that the business uses LIFO method? a. OMR 16,000 b. OMR 2,000 c. OMR 11,000 d. OMR 10,000
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Use the following transaction to answer the all of the questions. A company purchases inventory on credit for $80.000. Inventory costing $30,000 is sold on credit for $40,000. The applicable HST rate is 13% on sales and purchases. HST are remitted at the end of the month. What does the journal entry look like for the purchase of inventory using the periodic inventory system? Credit Purchases $30,000, Credit HST Payable $3,900, Credit, A/P the rest Debit Purchases $30,000, Debit HST Recoverable $3,900, Credit A/P the total of the 2 debits Credit Purchases $80,000, Credit HST Payable $10,400, Credit, A/P the rest Debit Purchases $80,000, Debit HST Recoverable $10,400, Credit, A/P the total of the 2 debits
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A company that uses the perpetual inventory system purchased inventory for $1,130,000 on account with terms of 5/7, n/20. Which of the following correctly records the payment made 15 days after the date of invoice? A. Accounts Payable 1,130,000 Merchandise Inventory 1,130,000 B. Accounts Payable 1,130,000 Merchandise Inventory 56,500 Cash 1,073,500 C. Accounts Payable 1,130,000 Cash 1,130,000 D. Cash 1,130,000 Accounts Payable 1,130,000
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