PROBLEM #4

1. Sunset Co.

Inventory Bal. 260,000

A. Good in transit 11,000
B. Unrecorded goods 5,000
c. Goods sold under FOB SP -16,000
D. G.S. under FON DEST. 20,000
E. Obsolote Inventory -4,000
TOTAL INVENTORY 276,000

2. GORDON COMPANY

Balance 75,000
A. -
B. -
Total inventory 75,000

3. Clem co.

Beg. Inventory 110,000

purchases 480,000
Freight in 10,000
Goods under cosignee 12,000
Purchases 60,000
Freight to consignee 5,000
Goods available for sale 677,000
ending inventory -145,000
ending inventory -20,000
Total inventory 512,000

4. Opal Co.

A. Mark up included (40,000 x 40%) 16,000

B. Goods held on consignment 27,000
Total 43,000

5. Stephan Company
Gross method Net method
Purchases 80,000 78,400
Purchases 100,000 98,000
Discount for 80,000 -1,600
Cost of goods available for sale 178,400 176,400

6. Pork stew Co.

Inventory 380,000
2//10
Accounts Payable 372,000

7. Neer Corp.
Inventory 20,000

Purchases within the discount 156,800

Purchases outside the discount 40,000
Available for sale 196,800
Ending Inventory 20,000
COGS 176,800

8. C
Cost of good sold 180,000
Discount -2,880
COGS with discount 177,120

ending Inventory 20,000

Discount -320
COGS with discount 19,680
9. d Unit Unit cost Total cost
Beginning 1,400 24 33,600
purchases 800 35 28,000
purchases 700 30 21,000
available for sale 2,900 82,600
ending inventory
Purchase 24 -700 30 -21,000
Purchase 14 -300 35 -10,500
COGS 1,900 51,100

10. A
Unit Unit cost Total Cost
Beginning 1,400 24 33,600
Purchases 800 35 28,000
Purchases 700 30 21,000
Available for sale 2,900 82,600
ending Inventory
Purchases 14 -1000 28.48 -28,482.76
COGS 1,900 54,117.24

11. C Unit Unit cost Total Cost

Beginning 2,000 36 72,000
purchases 3,000 37.2 111,600
purchases 4,800 38 182,400
Purchases 1,900 38.6 73,340
Purchase return -300 38.6 -11,580
available for sale 11,400 427,760
Ending Inventory
Purchase 29 -1,600 38.6 -61,760
Purchases 15 -2,400 38 -91,200 -152,960
COGS 7,400 274,800

12. A Unit Unit cost Total Cost

Beginning 2,000 36 72,000
purchases 3,000 37.2 111,600
purchases 4,800 38 182,400
Purchases 1,900 38.6 73,340
Purchase return -300 38.6 -11,580
available for sale 11,400 37.52 427,760
Ending Inventory
Purchases 15 -4,000 37.52 -150,080
COGS 7,400 277,680 -150,080

14. Thug co.

15. Headache Co.

sales 1,000,000
LESS: Sales Discount -50,000
sales return -10,000
net sales 940,000

Bge. Inventory 60,000

Purchases 500,000
Less: prchase returns -25,000
Purchase discount -10,000
Add: Freight in 60,000
Total Goods Available for sale 585,000
Less: Ending Inventory -75,000
Total Cost of goods sold 510,000
Gross profit 430,000

16. Crythena Co.

3,700 x 52 = 192,400
2,500 x 52 = 130,000
1,300 x 175 = 227, 500
Total 549,900
17. Bamboo Co.

Raw materials and supplies cost 160,000

Less: Fair value -148,000
Write down 12,000

18. Broken co.

At cost 20x1 440,000

NRV 410,000
Writedown -30,000

At cost 20x2 450,000

NRV 20x2 490,000
Reversal 40,000
Limit 30,000

19. Temple co.

Beginning inventory 60,000

Purchases 500,000
Purchases return -25,000
Purchase discount -10,000
Freight in 60,000
Available for sale 585,000
End Inventory -75,000
COGS 510,000

20. Lunch Co.

Beginning inventory 60,000
Purchases 500,000
Purchases return -25,000
Purchase discount -10,000
Freight in 60,000
Available for sale 585,000
End Inventory -75,000
COGS 510,000