a)
VIBRANT COMPANY | |||||||
Comparative Income Statements | |||||||
2016 | 2017 | 2018 | 3-year total | ||||
Sales | $1090000 | $1090000 | $1090000 | $3270000 | |||
Cost of goods sold | |||||||
Beginning inventory | 390000 | 390000 | 390000 | 1170000 | |||
Add: Purchases | 595000 | 595000 | 595000 | 1785000 | |||
Cost of goods available for sale | 985000 | 985000 | 985000 | 2955000 | |||
Less: Ending inventory | (390000) | (390000) | (390000) | (1170000) | |||
Cost of goods sold | (595000) | (595000) | (595000) | (1785000) | |||
Gross profit | $495000 | $495000 | $495000 | $1485000 | |||
b)
VIBRANT COMPANY | |||||||
Comparative Income Statements | |||||||
2016 | 2017 | 2018 | 3-year total | ||||
Sales | $1090000 | $1090000 | $1090000 | $3270000 | |||
Cost of goods sold | |||||||
Beginning inventory | 390000 | 370000 | 390000 | 1150000 | |||
Add: Purchases | 595000 | 595000 | 595000 | 1785000 | |||
Cost of goods available for sale | 985000 | 965000 | 985000 | 2935000 | |||
Less: Ending inventory | (370000) | (390000) | (390000) | (1150000) | |||
Cost of goods sold | (615000) | (575000) | (595000) | (1785000) | |||
Gross profit | $475000 | $515000 | $495000 | $1485000 | |||
Chapter 6 Homework mework Vibrant Company had $1,090,000 of sales in each of three consecutive years...
Vibrant Company had $930,000 of sales in each of three consecutive years 2016-2018, and it purchased merchandise costing $515,000 in each of those years. It also maintained a $230,000 physical inventory from the beginning to the end of that three-year period. In accounting for inventory, it made an error at the end of year 2016 that caused its year-end 2016 inventory to appear on its statements as $210,000 rather than the correct $230,000. Required: 1. Determine the correct amount of...
Vibrant Company had $950,000 of sales in each of three consecutive years 2016–2018, and it purchased merchandise costing $525,000 in each of those years. It also maintained a $250,000 physical inventory from the beginning to the end of that three-year period. In accounting for inventory, it made an error at the end of year 2016 that caused its year-end 2016 inventory to appear on its statements as $230,000 rather than the correct $250,000. Required: 1. Determine the correct amount of...
Vibrant Company had $1,050,000 of sales in each of three consecutive years 2016–2018, and it purchased merchandise costing $575,000 in each of those years. It also maintained a $350,000 physical inventory from the beginning to the end of that three-year period. In accounting for inventory, it made an error at the end of year 2016 that caused its year-end 2016 inventory to appear on its statements as $330,000 rather than the correct $350,000. 1. Determine the correct amount of the...
Exercise 5-12 Analysis of inventory errors LO A2 Vibrant Company had $990,000 of sales in each of three consecutive years 2016–2018, and it purchased merchandise costing $545,000 in each of those years. It also maintained a $290,000 physical inventory from the beginning to the end of that three-year period. In accounting for inventory, it made an error at the end of year 2016 that caused its year-end 2016 inventory to appear on its statements as $270,000 rather than the correct...
Exercise 5-12 Analysis of inventory errors LO A2 2016-2018, and it purchased merchandise had $1.000,000 of sales in each of three consecutive years 2016-2 Vibrant Company $550000 in each of period. In accounting for inventory, it made an error at the end statements as $280,000 rather than the correct $300,000 those years. It also maintained a $300,000 physical inventory from the beginning to the end of that three-year of year 2016 that caused its year-end 2016 inventory to appear on...
Required information The following information applies to the questions displayed below! Laker Company reported the following January purchases and sales data for its only product. Activities Jan. 1 Beginning inventory Jan 10 Sales Jan, 20 Purchase zon, 25 sales. Units Acquired at Cost Units sold at Retail 190 its 56.0 840 100 units $15 60 units @ $5.00 80 units $15 110 units $4.50 380 units $1.950 Required: The Company uses a periodic inventory system. For specific identification, ending inventory...
Partial income statements for Sherwood Company summarized for a four-year period show the following: Net Sales Cost of Goods Sold Gross Profit 2015 $1,500,000 1,125,000 $ 375,000 2016 $1,900,000 1,406,000 $ 494,000 2017 $2,000,000 1,520,000 $ 480,000 2018 $2,500,000 1,875,000 $ 625,000 An audit revealed that in determining these amounts, the ending inventory for 2016 was overstated by $15,000 on December 31, 2017, was accurately stated. The company uses a periodic inventory system. Required: 1. Restate the partial income statements...
Partial income statements for Sherwood Company summarized for a four-year period show the following: Net Sales Cost of Goods Sold Gross Profit 2015 $2,200,000 1,496,000 $ 704,000 2016 $2,600,000 1,742,00 $ 858,000 1 2017 $2,700,000 ,863,eee $837,000 2018 $3,200,000 2,176,000 $1,024,000 An audit revealed that in determining these amounts, the ending inventory for 2016 was overstated by $22.000. The inventory balance on December 31, 2017, was accurately stated. The company uses a periodic inventory system. Required: 1. Restate the partial...
Gladstone Company tracks the number of units purchased and sold throughout each accounting period but applies Its Inventory costing method at the time of each sale, as if It uses a perpetual Inventory system. Assume its accounting records provided the following Information at the end of the annual accounting period, December 31. Units 2,950 Unit Cost $ 50 Transactions Beginning inventory, January 1 Transactions during the year: a. Purchase, January 30 b. Sale, March 14 ($199 each) c. Purchase, May...
An audit revealed that in determining these amounts, the ending inventory for 2016 was overstated by $22,000. The inventory balance on December 31, 2017, was accurately stated. The company uses a periodic inventory system. Required: 1. Restate the partial income statements to reflect the correct amounts, after fixing the inventory error. 2-a. Compute the gross profit percentage for each year (a) before the correction and (b) after the correction. 2-b. Does the pattern of gross profit percentages lend confidence to...