- On February 26, Houghton shipped goods costing $800 to a customer and charged the customer $1,000. the goods were shipped with terms FOB shipping point and the receiving report indicates that the customer received the goods on March 2.
- On February 26, Crain Inc. shipped goods to Houghton under terms FOB shipping point. The invoice price was $450 plus $30 for freight. The receiving report indicates taht the goods were received by Houghton on March 2.
- Houghton had $720 of inventory isolated in the warehouse. The inventory is designated for a customer who as requested that the goods be shipped on March 10.
- Also included in Houghton's warehouse is $700 of inventory that Korenic Producers shipped to Houghton on consignment.
- On February 26, Houghton issued a purchase order to acquire goods costing $900. The goods were shipped with terms FOB destination on February 27. Houghton received the goods on March 2.
- On February 26, Houghton shipped goods to a customer under terms FOB destination. The invoice price was $390; the cost of the items was $240. The receiving report indicates that the goods were received by the customer on March 2.
|Mar. 15||400 units at $23||Sept. 4||330 units at $26|
|July 20||250 units at $24||Dec. 2||100 units at $29|
1,000 units were sold. Sekhon Company uses a periodic inventory system
- Determine the cost of goods available for sale
- Determine (1) the ending inventory, and (2) the cost of goods sold under each of the assumed cost flow methods (FIFO, LIFO, and average-cost). Prove the accuracy of the cost of goods under the FIFO and LIFO methods.
- Which cost flow method results in (1) the highest inventory amount for the balance sheet, and (2) the highest cost o goods sold for the income statement?
- Calculate (i) ending inventory, (ii) cost of goods sold, (iii) gross profit, and (iv) gross profit rate under each of the following methods.
(1) LIFO (2) FIFO (3) Average-cost
- Compare results for the three cost flow assumptions.
Houghton Limited is trying to determine the value of its ending inventory as of February 28, 109, the company's year-end. The following transactions occurred and the accountant asked your help...
Glee Distribution markets CDs of the performing artist Unique. At the beginning of October, Glee had in beginning inventory 2,000 of Unique's CDs with a unit cost of $7. During...
The management of Gresa Inc. is reevaluating the appropriateness of using its present inventory cost flow method, which is average-cost. The company requests your help in determining the results of...
You are provided with the following information for Koetteritz Inc. for the month ended June 30, 2019. Koetteritz uses the periodic method for inventory. Instructions Calculate (i) ending inventory, (ii)...
The management of Danica Co. asks your help in determining the comparative effects of the FIFO and LIFO inventory cost flow methods. For 2019, the accounting records provide the following...
Dempsey Inc is a retailer operating in British Columbia. Dempsey uses the perpetual inventory method. All sales returns from customers result in the goods being returned to inventory, the inventory...
Tri-State Bank and Trust is considering giving Wilfred Company a loan. Before doing so, management decides that further discussions with wilfred's accountant may be desirable. One area of particular concern...
Elsa's Boards sells a snowboard, Xpert, that is popular with snowboard enthusiasts, Information relating to Elsa's purchases of Xpert snowboards during September is shown below. Druing the same month, 121...
Ehrhart Appliance uses a perpetual inventory system. For its flat-screen television sets, the January 1 inventory was 3 sets at $600 each. On January 10, Ehrhart purchased 6 units at...
Information about Elsa's Boards is presented in below. Additional data regarding Elsa's sales of Xpert snowboards are provided below. Assume that Elsa's uses a perpetual inventory system.
Most Readed articles
- The Sum of three numbers in G.P. is 35 and their product is 1000. Find the numbers.
- Who are internal users of accounting data? How does accounting provide relevant data to these users?
- "A worksheet is a permanent accounting record and its use is required in the accounting cycle." Do you agree? Explain.
- What is the monetary unit assumption?
- "The term debit and credit mean increase and decrease, respectively." Do you agree?
- What uses of financial accounting information are made by investors and creditors?
- In a survey conducted of 2,000 clerks in an office it found that 48%preferred coffee (C), 54% liked Tea (T) and 64% used to smoke (S). Of the total 28% used C and T, 32% used T and S, and 30% preferred C and S. Only 6% did not of these. Find
- What is the basic accounting equation?
- What is the economic entity assumption?
- Define primary deposit and derivative deposit.