Question
At May 1, 2022,Whispering Winds Corp.had beginning inventory consisting of280units with a unit cost of $6. During May, the company purchased inventory as follows: 550units
At May 1, 2022,Whispering Winds Corp.had beginning inventory consisting of280units with a unit cost of $6. During May, the company purchased inventory as follows:
550units at $6
830units at $7
The company sold1380units during the month for $11per unit.Whispering Winds Corp.uses the average cost method. The value ofWhispering Winds Corp.'s inventory at May 31, 2022 is(Round average cost per unit to 2 decimal places, e.g. 12.52.)
$10790.
$1960.
$1820.
$1680.
The manager ofBlueis given a bonus based on net income before taxes. The net income after taxes is $70060for FIFO and $58300for LIFO. The tax rate is30%. The bonus rate is20%. How much higher is the manager's bonus if FIFO is adopted instead of LIFO?
$11760
$16800
$23520
$3360
Assume that on September 1,Office Depothad an inventory that included a variety of calculators. The company uses a perpetual inventory system. During September, these transactions occurred.
Sept. 6Purchased calculators fromCraneCo. at a total cost of $1,610, terms n/30.9Paid freight of $40on calculators purchased fromCraneCo.10Returned calculators toCraneCo. for $52credit because they did not meet specifications.12Sold calculators costing $580for $760to Fryer Book Store, terms n/30.14Granted credit of $45to Fryer Book Store for the return of one calculator that was not ordered. The calculator cost $32.20Sold calculators costing $650for $800to Heasley Card Shop, terms n/30.
Journalize the September transactions.(If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.)
Date
Account Titles and Explanation
Debit
Credit
choose a transaction date
Sept. 6
Sept. 9
Sept. 10
Sept. 12
Sept. 14
Sept. 20
enter an account title for entry 1
enter a debit amount
enter a credit amount
enter an account title for entry 1
enter a debit amount
enter a credit amount
choose a transaction date
Sept. 6
Sept. 9
Sept. 10
Sept. 12
Sept. 14
Sept. 20
enter an account title for entry 2
enter a debit amount
enter a credit amount
enter an account title for entry 2
enter a debit amount
enter a credit amount
choose a transaction date
Sept. 6
Sept. 9
Sept. 10
Sept. 12
Sept. 14
Sept. 20
enter an account title for entry 3
enter a debit amount
Suppose in its income statement for the year ended June 30, 2022,The Clorox Companyreported the following condensed data (dollars in millions).
Salaries and wages expenses$460
Research and development expense$114Depreciation expense
90Income tax expense328Sales revenue
5,230Loss on disposal of plant assets46Interest expense
161Cost of goods sold2,500Advertising expense499Rent expense
105Sales returns and allowances230Utilities expense
60
Assume a tax rate of34%.
(a)
Prepare a multiple-step income statement.(Round answers to 0 decimal places, e.g. 15,222.)
The Clorox Company
Income Statement
choose the accounting period
June 30, 2022
For the Year Ended June 30, 2022
For the Month Ended June 30, 2022
(amounts in millions)
select an opening name for section one
Dividends
Net Income / (Loss)
Retained Earnings, July 1, 2008
Retained Earnings, June 30, 2009
Sales
Total Revenues
Net Sales
Gross Profit
Operating Expenses
Total Operating Expenses
Income Before Income Taxes
Other Revenues and Gains
Other Expenses and Losses
Income From Operations
BlossomWarehouse distributes hardback books to retail stores and extends credit terms of4/10, n/30 to all of its customers. During the month of June, the following merchandising transactions occurred.
June 1Purchased books on account for $2,355(including freight) from Catlin Publishers, terms4/10, n/30.3Sold books on account to Garfunkel Bookstore for $1,200. The cost of the merchandise sold was $700.6Received $55credit for books returned to Catlin Publishers.9Paid Catlin Publishers in full.15Received payment in full from Garfunkel Bookstore.17Sold books on account to Bell Tower for $1,400, terms of4/10, n/30. The cost of the merchandise sold was $900.20Purchased books on account for $900from Priceless Book Publishers, terms2/15, n/30.24Received payment in full, less discount from Bell Tower.26Paid Priceless Book Publishers in full.28Sold books on account to General Bookstore for $2,100. The cost of the merchandise sold was $950.30Granted General Bookstore $120credit for books returned costing $90.
Journalize the transactions for the month of June forBlossomWarehouse, using a perpetual inventory system.(If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.)
Date
Account Titles and Explanation
Debit
Credit
Choose a transaction date
June 1
June 3
June 6
June 9
June 15
June 17
June 20
June 24
June 26
June 28
June 30
Enter an account title
enter a debit amount
Buffalo Industriesuses a periodic inventory system. Its records show the following for the month of May, in which68units were sold.
Date
Explanation
Units
Unit Cost
Total Cost
May 1Inventory35
$9
$315
15Purchase25
10
250
24Purchase40
11
440
Total100
$1,005
(a)
Calculate the weighted-average unit cost.(Round answer to 3 decimal places, e.g. 5.125.)
Weighted-average unit cost$
Enter the Weighted-average unit cost in dollars
The following information is available forRiverbed Corpfor three recent fiscal years.
2022
2021
2020
Inventory$555,000$564,000$340,000Net sales1,865,0001,800,0001,345,000Cost of goods sold1,454,7001,220,400951,000
(a)
Calculate the inventory turnover, days in inventory, and gross profit rate for 2022 and 2021.(Round inventory turnover to 1 decimal place, e.g. 5.2, days in inventory to 0 decimal places, e.g. 125 and gross profit rate to 1 decimal place, e.g. 5.2%.)
20222021Inventory Turnoverenter an inventory turnover
timesenter an inventory turnover
timesDays in Inventoryenter a number of days
daysenter a number of days
daysGross Profit Rateenter percentages
%enter percentages
Bramble Corp.markets CDs of numerous performing artists. At the beginning of March,Bramblehad in beginning inventory2,700CDs with a unit cost of $6. During March,Bramblemade the following purchases of CDs.
March 52,000@$7March 214,600@$9March 133,700@$8March 262,000@$10
During March11,900units were sold.Brambleuses a periodic inventory system.
(a)
Determine the cost of goods available for sale.
The cost of goods available for sale$
enter the cost of goods available for sale in dollars
Calculate Average Cost.(Round answer to 3 decimal places, e.g. 5.125.)
Average Cost$
enter an average cost in dollars
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