PROBLEM 13-1
- c. 2,025,000
Beginning Inventory
Purchases
Add: Freight in
Total:
650,000
3,200,000
50,000
3,250,000
Less: Purchase return
75,000
Goods available for sale
3,175,000
3,825,000
Less: Cost of goods sold:
Net sales
x cost ratio
Ending inventory
4,500,000
40%
1,800,000
2,025,000
Problem 13-2
- a. 151,000
Beginning inventory
Purchases
Add: freight in
Total:
Less: purchase return
650,000
2,300,000
60,000
2,360,000
80,000
Goods available for sale
2,280,000
2,930,000
Less: Cost of goods sold:
Sales
Sales return
Net sales
x cost ratio
3,400,000
(30,000)
3,370,000
70%
2,359,000
Ending inventory (should be)
571,000
Less: on hand inventory
420,000
Estimated missing inventory
151,000
Problem 13-3 - c. 3,900,000
Sales
5,600,000
Sales return
(400,000)
Net sales
5,200,000
x cost ratio
Cost of goods sold
75%
3,900,000
Problem 13-4 b. 1,400,000
Beginning inventory
1,100,000
Net purchases
6,000,000
Goods available for sale
7,100,000
Less: cost of goods sold:
Net sales
7,280,000
Divide sales ratio
130%
5,600,000
Estimated ending inventory
1,500,000
Less: value of usable damaged goods
Estimated loss from fire
100,000
1,400,000
Problem 13-5
1. a. 28,00,000
2. B.
Beginning inventory
Purchases
Add: freight in
Total:
5,000,000
26,000,000
2,000,000
28,000,000
Less: PRA
Purchase discounts
3,500,000
1,500,000
Goods available for sale
23,000,000
28,000,000
Less: COGS
Sales
Sales return
Net sales
x cost ratio
40,000,000
3,000,000
37,000,000
40%
14,800,000
Problem 13-6 b. 1,840,000
Sales- 2019
6,000,000
Cost of goods sold
Net purchases
5,500,000
Less: inventory- dec 2019
1,000,000
Gross income
4,500,000
1,500,000
Rate in 2019
(1,500,000/6,000,000)= 25%
Rate in 2020
(25%+5%) =30%
Inventory- January 1, 2020
1,000,000
Net purchases- 2020
7,500,000
TGAS
8,500,000
Less: cost of goods sold
net sales
9,000,000
x cost ratio
70%
Inventory – Dec. 31,2020
2,200,000
Less: undamaged merchandise (500k x 70%)
Realizable value of damaged merch
350,000
10,000
Fire loss
7,000,000
Ending inventory
(1,400,000)
Cost of goods sold
5,600,000
Markup on cost (40%x5,600,000)
2,240,000
Sales (140%x5,600,000)
Collections from customers
Accounts receivable- Dec 31
360,000
1,840,000
Problem 13-7 d. 3,840,000
Purchases
6,300,000
7,840,000
(4,000,000)
3,840,000
Problem 13-8 c. 630,000
Problem 13-9 a. 2,370,000
Beginning inventory-2020
Purchases
Add: freight in
Total:
2,355,000
3,180,000
220,000
3,400,000
Less: purchases returns
40,000
Purchase discount
45,000
Purchase allowances
15,000
TGAS
3,300,000
5,655,000
Less: cost of goods sold
Net sales
4,500,000
x cost ratio
73%
Ending inventory-2020
Sales
3,285,000
2,370,000
100%
Cost of goods sold
73%
Gross profit rate
27%
Problem 13-10 b. 600,000
Net sales in 2019
8,000,000
Less: cost of goods sold
Beginning inv
2,000,000
Net purchases in 2019
4,800,000
TGAS
6,800,000
Less: ending inv
1,200,000
Gross profit
Gross profit rate (2,400,000/8,000,000)
5,600,000
2,400,000
30%
Inventory- January 1, 2020
1,200,000
Net purchases- 2020
4,960,000
Less: COGS
Sales
Less: SRA
Net sales
x cost ratio
7,880,000
80,000
7,800,000
70%
5,460,000
Estimated ending inv.
700,000
Less: cost of inventory not stolen
100,000
Estimated cost stolen inventory
600,000