Chapter 5: accounting When COGS is recorded in a periodic inventory system and when it is...
Chapter 5:
accounting
- When COGS is recorded in a periodic inventory system and when it is recorded in a perpetual inventory system.
- Calculate gross profit, gross profit rate, net sales
Homework Answers
Under the periodic inventory system:
COGS (Cost of Goods Sold).is recorded at the year-end by making an adjusting entry (usually after physical verification of inventory is done).
.
Under the perpetual inventory system.
COGS is recorded as and when the sale is made.
Sales are made throughout the year. So, COGS would be updated continuously throughout the year.
.
Gross profit = Net Sales - Cost of Goods Sold
Gross profit rate = (Gross profit / Net Sales) x 100 -->expressed in percentage
Net sales = Gross sales - Sales discounts - Sales returns and Allowances
Add Answer to:
Chapter 5:
accounting
When COGS is recorded in a periodic inventory system and when
it is...
In a periodic inventory system, the cost of goods sold is: In a periodic inventory system,...
In a periodic inventory system, the cost of goods sold is:
In a periodic inventory system, the cost of goods sold is: Multiple Choice Recorded as sales transactions occur. Determined by a computation which is performed at year-end, after the taking of a complete physical inventory. Equal to the beginning inventory, plus purchases made during the period, less sales revenue for the period. O Determined by subtracting the balance in the Gross Profit account from the amount of net sales.
Soundview Centre uses a periodic inventory system. At the end of 2015, the accounting records include...
Soundview Centre uses a periodic inventory system. At the end of 2015, the accounting records include the following information: Inventory dec 31 2014 = 23100 inventory dec 31 2015 = 15900 net sales= 318000 purchases= 183000 Compute the following for 2015: Cost of goods sold= Gross profit=
Flounder Corp. uses a periodic inventory system and reports the following information: sales $1,840,000; sales returns...
Flounder Corp. uses a periodic inventory system and reports the following information: sales $1,840,000; sales returns and allowances $125,000; sales discounts $29,000; purchases $879,000; purchase returns and allowances $12,000; purchase discounts $15,000; freight in $14,000; freight out $41,000; beginning inventory $99,000; and ending inventory $78,000. Assuming Flounder uses a multiple-step income statement Calculate net sales Net sales $ Calculate net purchases. Net purchases $ Calculate cost of goods purchased. Cost of goods purchased 5 Calculate cost of goods sold. Cost...
P6-29A Accounting for inventory using the perpetual inventory system FIFO, LIFO, and weighted-average, and comparing FIFO,...
P6-29A Accounting for inventory using the perpetual inventory system FIFO, LIFO, and weighted-average, and comparing FIFO, LIFO, and weighted-average Learning Objectives 2, 3 5. FIFO GP $5,235 Steel Mill began August with 50 units of iron inventory that cost $35 each. During August, the company completed the following inventory transactions: Units Unit Cost Unit Sales Price Aug. 3 Sale 45 $85 8 Purchase 90 $54 21 Sale 85 88 30 Purchase 15 58 Requirements 1. Prepare a perpetual inventory record...
This exercise stresses This exercise stresses the relationships between the information recorded in a periodic inventory...
This exercise stresses
This exercise stresses the relationships between the information recorded in a periodic inventory system and the basic elements of an income statement. Each of the five lines represents a separate set of information. You are to fill in the missing amounts (Input all amounts as positive values except het loss which should be indicated with a minus sign. Omit the sign in your response.) Beginning Net Ending Cost of Net Sales Inventory Purchases Inventory | Goods Sold...
value: 15.00 points This exercise stresses the relationships between the information recorded in a periodic inventory...
value: 15.00 points This exercise stresses the relationships between the information recorded in a periodic inventory system and the basic elements of an income statement. Each of the five lines represents a separate set of information. You are to fill in the missing amounts. (Input all amounts as positive values except net loss which should be indicated with a minus sign. Omit the "$" sign in your response.) Profit Cost of Goods Sold Beginning Inventory Net Purchases Ending Inventory 35,200...
Choose one: Periodic Inventory Accounting is less expensive to maintain than Perpetual Inventory Accounting Periodic Inventory...
Choose one: Periodic Inventory Accounting is less expensive to maintain than Perpetual Inventory Accounting Periodic Inventory Accounting is more expensive to maintain than Perpetual Inventory Accounting There is no difference between the expense of using Periodic Inventory Accounting versus Perpetual Inventory Accounting ABC's beginning inventory is $2,000 and its ending inventory is $1,000. The inventory turnover is 6 times. Cost of goods sold for the year must equal: A) $6,000. B) $12,000. C) $18,000. D) $9,000. In January, 2018, ABC....
Use the following data for #5-12: Inventory information is presented below. Please calculate the ending inventory,...
Use the following data for #5-12: Inventory information is presented below. Please calculate the ending inventory, cost of goods sold, and gross profit for each of the six inventory methods below and answer the questions. Round answers to the nearest dollar. 4/1 - Beginning inventory - 12 units at $22 cost 4/10 - Purchase - 22 units at $23 cost 4/15 - Sale - 26 units ($30 sales price) 4/20 - Purchase - 27 units at $24 cost 4/25 -...
Riverbed Corporation sells one product, with information for July as follows: July 1 Inventory 100 units...
Riverbed Corporation sells one product, with information for July as follows: July 1 Inventory 100 units at $16.00 each 4 Sale 80 units at $20.00 each 11 Purchase 150 units at $16.40 each 13 Sale 120 units at $18.80 each 20 Purchase 160 units at $16.40 each 27 Sale 100 units at $20.90 each Riverbed uses the FIFO cost formula. All purchases and sales are on account. Ignore any estimated returns on purchases and sales. Assume Riverbed uses a periodic...
Choose one: Periodic Inventory Accounting is less expensive to maintain than Perpetual Inventory Accounting Periodic Inventory Accounting is more expensive to maintain than Perpetual Inventory Accou...
Choose one: Periodic Inventory Accounting is less expensive to maintain than Perpetual Inventory Accounting Periodic Inventory Accounting is more expensive to maintain than Perpetual Inventory Accounting There is no difference between the expense of using Periodic Inventory Accounting versus Perpetual Inventory Accounting ABC's beginning inventory is $2,000 and its ending inventory is $1,000. The inventory turnover is 6 times. Cost of goods sold for the year must equal: A) $6,000. B) $12,000. C) $18,000. D) $9,000. In January, 2018, ABC....
In a periodic inventory system, the cost of goods sold is:
In a periodic inventory system, the cost of goods sold is: Multiple Choice Recorded as sales transactions occur. Determined by a computation which is performed at year-end, after the taking of a complete physical inventory. Equal to the beginning inventory, plus purchases made during the period, less sales revenue for the period. O Determined by subtracting the balance in the Gross Profit account from the amount of net sales.
Flounder Corp. uses a periodic inventory system and reports the following information: sales $1,840,000; sales returns and allowances $125,000; sales discounts $29,000; purchases $879,000; purchase returns and allowances $12,000; purchase discounts $15,000; freight in $14,000; freight out $41,000; beginning inventory $99,000; and ending inventory $78,000. Assuming Flounder uses a multiple-step income statement Calculate net sales Net sales $ Calculate net purchases. Net purchases $ Calculate cost of goods purchased. Cost of goods purchased 5 Calculate cost of goods sold. Cost...
P6-29A Accounting for inventory using the perpetual inventory system FIFO, LIFO, and weighted-average, and comparing FIFO, LIFO, and weighted-average Learning Objectives 2, 3 5. FIFO GP $5,235 Steel Mill began August with 50 units of iron inventory that cost $35 each. During August, the company completed the following inventory transactions: Units Unit Cost Unit Sales Price Aug. 3 Sale 45 $85 8 Purchase 90 $54 21 Sale 85 88 30 Purchase 15 58 Requirements 1. Prepare a perpetual inventory record...
This exercise stresses
This exercise stresses the relationships between the information recorded in a periodic inventory system and the basic elements of an income statement. Each of the five lines represents a separate set of information. You are to fill in the missing amounts (Input all amounts as positive values except het loss which should be indicated with a minus sign. Omit the sign in your response.) Beginning Net Ending Cost of Net Sales Inventory Purchases Inventory | Goods Sold...
value: 15.00 points This exercise stresses the relationships between the information recorded in a periodic inventory system and the basic elements of an income statement. Each of the five lines represents a separate set of information. You are to fill in the missing amounts. (Input all amounts as positive values except net loss which should be indicated with a minus sign. Omit the "$" sign in your response.) Profit Cost of Goods Sold Beginning Inventory Net Purchases Ending Inventory 35,200...
Use the following data for #5-12: Inventory information is presented below. Please calculate the ending inventory, cost of goods sold, and gross profit for each of the six inventory methods below and answer the questions. Round answers to the nearest dollar. 4/1 - Beginning inventory - 12 units at $22 cost 4/10 - Purchase - 22 units at $23 cost 4/15 - Sale - 26 units ($30 sales price) 4/20 - Purchase - 27 units at $24 cost 4/25 -...
Most questions answered within 3 hours.
-
Your group is required to develop a comprehensive Business plan
that will be used as a...
asked 20 seconds ago -
a radio station transmits at 78.1 mhz. a hz is an inverse
second. how far apart...
asked 18 minutes ago -
Write the equilibrium expression for the dissociation in
water for CH5N, C2H5O2COOH, H3AsO4, KClO2, HC2H2ClO2.
asked 24 minutes ago -
In risk management, insurance is an example of:
Select one:
a. Risk avoidance
b. Risk deflection...
asked 26 minutes ago -
Wildhorse Company follows the practice of pricing its inventory
at the lower-of-cost-or-market, on an individual-item
basis....
asked 1 hour ago -
3. (10 pts) You grow a corn crop that yields 150 bushels ac-1,
with the following...
asked 49 minutes ago -
7. The term Six Sigma refers to:
Select one:
a. The control limits established in a...
asked 58 minutes ago -
For the following reaction: A(g) + 2 B(g) ⇌ 2 C(g) Calculate the
equilibrium constant K...
asked 1 hour ago -
Which of the following best describes tidal volume? options:
1.The amount of oxygen in the air...
asked 1 hour ago -
1. Smaller cost distortions occur when the traditional systems'
single indirect-cost rate and the activity-cost-driver rates:...
asked 1 hour ago -
Using either a FMECA approach or some other appropriate RCA
tool, identify five risk treatment actions...
asked 1 hour ago -
If for a test the P-value is between 0.0025 and 0.005, what
conclusion can you draw?...
asked 1 hour ago