solve within 30 mins. 1) Calculate a business's inventory turnover rate if theopening inventory is valued at $1,800 and the closinginventory is valued at $1,400 for the month. There are$6,200 in purchases for the month. Assume that therestaurant has no adjustments to the cost of food soldfrom employee meals, promotions, etc.2) A restaurant purchases chicken breast four timeseach week and conducts an inventory weekly. Themost recent week's deliveries have been:Monday-20 # chicken at $1.87/#Wednesday25 #chicken at $1.86/#Friday-20 #chicken at $1.92/#Saturday 45 # chicken at $1.93/#Calculate the possible values for 30 # of chicken left ininventory on Sunday afternoon using the FIFO, LIFO,weighted average, and most recent price methods.Assuming the restaurant rotates stock properly,provide the value using the actual price method aswell.

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1) Calculate a business's inventory turnover rate if the opening inventory is valued at $1,800 and the closing inventory is valued at $1,400 for the month. There are $6,200 in purchases for the month. Assume that the restaurant has no adjustments to the cost of food sold from employee meals, promotions, etc.

1) Calculate a business's inventory turnover rate if the opening inventory is valued at $1,800 and the closing inventory is valued at $1,400 for the month. There are $6,200 in purchases for the month. Assume that the restaurant has no adjustments to the cost of food sold from employee meals, promotions, etc.

Excel Applications for Accounting Principles

4th Edition

ISBN:9781111581565

Author:Gaylord N. Smith

Publisher:Gaylord N. Smith

Chapter8: Gross Profit Method (gp)

Section: Chapter Questions

Problem 1R: On September 30, 2013, the general ledger of Leons Golf Shop, which uses the calendar year as its...

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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.
Langstons purchased $3,100 of merchandise during the month, and its monthly income statement shows a cost of goods sold of $3,000. What was the beginning inventory if the ending inventory was $1,250?
XYZ Company prepares monthly interim financial statements. The company needs to estimate the month-end inventories because inventory is counted only every month-end. All sales are made on account and the mark up on cost is 25%. The following information is made available: (Refer to image) What is the estimated cost of inventory on June 30? * Accounts receivable, June 1 Accounts receivable, June 30 625,000.00 775,000.00 Collections made in June 2,150,000.00 Inventory, June 1 Purchases during June 1,280,000.00 1,800,000.00
10) The company recorded cash sales for an additional 12) 20 pairs of shoes for $65 each on the 24th of the month. 11) On the last day of the month, the company estimated sales returns for their sales. They estimate that 2% of sales will be returned. (Hint: use total sales from above) Prepare the appropriate journal entries for each transaction under a perpetual inventory system.
Utley Co. prepares monthly income statements. Inventory is counted only at year end; thus, month-end inventories must be estimated. All sales are made on account. The rate of mark-up on cost is 20%. The following information relates to the month of May. Accounts receivable, May 1 Accounts receivable, May 31 Collections of accounts during May Inventory, May 1 Purchases during May $21,000 27,000 90,000 45,000 58,000 Answer the following Questions [DO NOT use commas (.) or dollar signs ($) when entering a number. For example, if you want to enter $1.000 simply write 1000]. 1. Sales revenue for the month of May = $ 2. Cost of goods sold for the month of May = $ 3. The gross profit for the month of May = $ 4. The cost of goods available for sale for the month of May = $ 5. The ending inventory to be reported on the balance sheet at the end of May=
2. Daniel Company prepares monthly income statements. A physical inventory is taken only at year-end; hence, month-end inventories must be estimated. All sales are made on account. The rate of markup on cost is 50 percent. The following information relates to the month of August: Accounts receivable, August 1 P20,000; Accounts receivable, August 31 P30,000Collection of accounts receivable during August P50,000; Inventory, August 1 P36,000; Purchases of inventory during August P32,000. The estimated cost of the May 31 inventory is choices: P44,000 P38,000 P24,000 P28,000 3. Purchases of materials P10,000; Direct labor4,000; Manufacturing overhead P2,000; Materials beginning P1,000; Materials ending P2,000; Work in Process beginning P4,000; Work in Process ending P2,000. Cost of goods manufactured is choices: 15,000 16,000 17,000 18,000
Journalize the following transactions that occurred in March for Downton Company. Assume Downton uses the periodic inventory system. No explanations are needed. Identify each accounts payable and accounts receivable with the vendor or customer name. Downton estimates sales returns at the end of each month. (Record debits first, then credits. Exclude explanations from journal entries. Assume the company records sales at the net amount. Round all amounts to the nearest whole dollar.) More info Mar. 3 Mar. 4 Mar. 4 Mar. 6 Mar. 8 Mar. 9 Mar. 10 Mar. 12 Mar. 13 Mar. 15 Mar. 22 Mar. 23 Mar. 25 Mar. 29 Mar. 30 Purchased merchandise inventory on account from Sherry Wholesalers, $4,000. Terms 1/15, n/EOM, FOB shipping point. Paid freight bill of $90 on March 3 purchase. Purchase merchandise inventory for cash of $1,900. Returned $1,100 of inventory from March 3 purchase. Sold merchandise inventory to Hillis Company, $2,500, on account. Terms 1/15, n/35. Purchased merchandise inventory on…
Royal Gorge Company uses the gross profit method to estimate ending inventory and cost of goods sold when preparing monthly financial statements required by its bank. Inventory on hand at the end of October was $58,500. The following information for the month of November was available from company records: Purchases $110,000Freight-in 3,000Sales 180,000Sales returns 5,000Purchases returns 4,000 In addition, the controller is aware of $8,000 of inventory that was stolen during November from one of the company’s warehouses. Required:1. Calculate the estimated inventory at the end of November, assuming a gross profit ratio of 40%.2. Calculate the…
Concord Corporation's retail store and warehouse closed for an entire weekend while the year-end inventory was counted. When the count was finished, the controller gathered all the count books and information from the clerical staff, completed the ending inventory calculations, and prepared the following partial income statement for the general manager for Monday morning: Sales Beginning inventory Purchases Total goods available for sale Less: Ending inventory Cost of goods sold Gross profit 642,000 untany 1,550,000 4 2,192,000 642,000 $ 2,741,000 The general manager called the controller into her office after quickly reviewing the preliminary statements. "You've made an error in the inventory," she stated. "My pricing all year has been carefully controlled to provide a gross profit of 35%, and I know the sales are correct." (a) How much should the ending inventory have been? 1,550,000 $1,191,000
Use the following information for the next two questions: ABC Co. bills its branch for merchandise at 140% of cost. At the end of its first month, the branch submitted the following data: Merchandise from home office (at billed price) 98,000 Merchandise purchased locally by branch 40,000 Inventory, December 31 of which 7,000 are of local purchase 28,000 Net sales for the month 180,000 How much is the branch’s ending inventory at cost? a. 92,000 b. 20,000 c. 22,000 d. 23,800 How much is the branch’s gross profit in so far as the home office is concerned? a. 70,000 b. 72,000 c. 90,000 d. 92,000
Selected transactions follow for Runner Sports Ltd. during the company's first month of business. The company expects a return rate of 8% and uses a perpetual inventory system. Feb. 2 Sold $1,145 of merchandise to Andrew Noren on account, terms n/30. The goods had cost Runner $768. Andrew Noren returned for credit $141 of the merchandise purchased on February 2. The goods had cost Runner $84 and they were returned to inventory. Sold $767 of merchandise to Dong Corporation on account, terms n/30. The goods had cost Runner $491. Sold $837 of merchandise to Michael Collins for cash. The goods had cost Runner $623. Sold $929 of merchandise to Rafik Kurji on account, terms n/30. The goods had cost Runner $685. Dong Corporation paid its account in full. Andrew Noren purchased an additional $693 of merchandise on account, terms n/30. The goods had cost Runner $410. Sold $1,737 of merchandise to Batstone Corporation, terms n/30. The goods had cost Runner $1,108. Andrew Noren paid $1,004 on…
Martinez Corporation’s retail store and warehouse closed for an entire weekend while the year-end inventory was counted. When the count was finished, the controller gathered all the count books and information from the clerical staff, completed the ending inventory calculations, and prepared the following partial income statement for the general manager for Monday morning: Sales $ 2,752,000 Beginning inventory $ 641,000 Purchases 1,550,000 Total goods available for sale 2,191,000 Less ending inventory 641,000 Cost of goods sold 1,550,000 Gross profit $ 1,202,000 The general manager called the controller into her office after quickly reviewing the preliminary statements. “You’ve made an error in the inventory,” she stated. “My pricing all year has been carefully controlled to provide a gross profit of 35%, and I know the sales are correct.”(a)How much should the ending inventory have been?…