Filimonov Inc. has the following information related to purchases and sales of one of its inventory items: Date   Description Units Purchased at Cost Units Sold at Retail June 1   Beginning Inventory 150 units @ $9 = $1,350   9   Purchase 1 200 units @ $12 = $2,400   14   Sale 1   300 units @ $25 22   Purchase 2 250 units @ $14 = $3,500   29   Sale 2   225 units @ $25 Assume that Filimonov Inc. uses a perpetual inventory system. Required: Calculate the cost of goods sold and the cost of ending inventory using the LIFO inventory costing method. Cost of goods sold $ Cost of ending inventory $

Inventory Costing: LIFO

Filimonov Inc. has the following information related to purchases and sales of one of its inventory items:

Date   Description Units Purchased at Cost Units Sold at Retail
June 1   Beginning Inventory 150 units @ $9 = $1,350  
9   Purchase 1 200 units @ $12 = $2,400  
14   Sale 1   300 units @ $25
22   Purchase 2 250 units @ $14 = $3,500  
29   Sale 2   225 units @ $25

Assume that Filimonov Inc. uses a perpetual inventory system.

Required:

Calculate the cost of goods sold and the cost of ending inventory using the LIFO inventory costing method.

Cost of goods sold $
Cost of ending inventory $

he units of an item available for sale during the year were as follows: Jan. 1 Inventory 50 units at $115 Feb. 17 Purchase 88 units at $140 July 21 Purchase 35 units at $128 Nov. 23 Purchase 15 units at $155 There are 75 units of the item in the physical inventory at December 31. The periodic inventory system is used. Determine the inventory cost by (a) the first-in, first-out method, (b) the last-in, first-out method, and (c) the average cost method.

BUS 207 – Principles of Accounting I
Homework Assignment 6
Chapter 7
The units of an item available for sale during the year were as follows:
Jan. 1 Inventory 50 units at $115
Feb. 17 Purchase 88 units at $140
July 21 Purchase 35 units at $128
Nov. 23 Purchase 15 units at $155
There are 75 units of the item in the physical inventory at December 31. The periodic inventory system is used. Determine the inventory cost by (a) the first-in, first-out method, (b) the last-in, first-out method, and (c) the average cost method.

The cash account for Corey’s Construction Company at August 31, 2020, indicated a book balance of $19,885. The bank statement received by the company indicated a balance of $39,473.63as at August 31, 2020. A comparison of the bank statement and the accompanying cancelled cheques and memos with the records revealed the following:   A deposit of $6,794.62 was received by the bank on August 31 after the bank statement was prepared.   Cheques #251 for $1,200 and#260 for $1,333.25 were not presented to the bank for encashment as at August 31, 2020. The bank erroneously debited a cheque drawn Corey’s Construction as $16,000 instead of $1,600.

Question for Week 6-Bank Reconciliation Statement.

 

The cash account for Corey’s Construction Company at August 31, 2020, indicated a book balance of $19,885. The bank statement received by the company indicated a balance of $39,473.63as at August 31, 2020. A comparison of the bank statement and the accompanying cancelled cheques and memos with the records revealed the following:

 

  1. A deposit of $6,794.62 was received by the bank on August 31 after the bank statement was prepared.

 

  1. Cheques #251 for $1,200 and#260 for $1,333.25 were not presented to the bank for encashment as at August 31, 2020.
  2. The bank erroneously debited a cheque drawn Corey’s Construction as $16,000 instead of $1,600.

 

  1. The company’s accountant recorded a $3,500.00 cheque for payment of accounts payables as $35,000

 

  1. The bank credited a deposit of $200 as $2,000 to Corey’s Construction account.
  2. A cheque for $13,500from a customer Ali Woods was returned for insufficient funds. The bank charged$50for Wood’s NSF cheque. The company’s policy states that the bank charges associated with NSF cheques are to be recovered from the customer.
  3. A note was collected by the bank of $21,000 on August 31 which included interest of $1,500.

 

  1. A debit memo from the bank showed service charge amounting to $2,500 as at August 31, 2020.

 

 

Required:

 

  1. Prepare the necessary journal entries for Corey’s Construction Company at August 31, 2020.

 

  1. Prepare Corey’s Construction Company adjusted cash book for August 31st. 2020.

 

  1. Prepare Corey’s Construction Company bank reconciliation statement for August 31, 2020

 

Moona Inc. produces Mobile phones. Information of the company’s operations last year appear below:   Fixed cost:   Fixed Manufacturing overhead Rs 40,000 Fixed Selling & Administrative Rs    60,000     Selling Price per unit Rs100     Variable cost per unit:   Direct Materials Rs 30 Direct labor Rs 10 Variable Manufacturing overhead Rs5 Variable Selling & Administrative Rs2     Units In beginning Inventory 0 Units Produced 2000 Units sold 1900       Required: a. Compute the unit product cost under both absorption and variable costing. b. Prepare an income statement for the year using absorption costing. c. Prepare a contribution format income statement for the year using variable costing. d.Prepare a report reconciling the difference in net operating income between absorption and variable costing for the year.

 

Moona Inc. produces Mobile phones. Information of the company’s operations last year appear below:

 

Fixed cost:

 

Fixed Manufacturing overhead

Rs 40,000

Fixed Selling & Administrative

Rs    60,000

 

 

Selling Price per unit

Rs100

 

 

Variable cost per unit:

 

Direct Materials

Rs 30

Direct labor

Rs 10

Variable Manufacturing overhead

Rs5

Variable Selling & Administrative

Rs2

 

 

Units In beginning Inventory

0

Units Produced

2000

Units sold

1900

 

 

 

Required:

a. Compute the unit product cost under both absorption and variable costing.
b. Prepare an income statement for the year using absorption costing.
c. Prepare a contribution format income statement for the year using variable costing.

d.Prepare a report reconciling the difference in net operating income between absorption and variable costing for the year. 

Assume Hom held the sculpture for 4 months and the $700 ($1,700 − $1,000) of appreciation is a short-term capital gain. Calculate the amount of his itemized deduction for the contribution.  Assume Hom held the sculpture for 2 years and the $700 appreciation is a long-term capital gain. Calculate the amount of his itemized deduction for the contribution.

During the current year, Hom donates a sculpture that cost $1,000 to a museum for exhibition. The sculpture’s fair market value was $1,700 on the date of the donation, and Hom’s adjusted gross income is $40,000.

  1. Assume Hom held the sculpture for 4 months and the $700 ($1,700 − $1,000) of appreciation is a short-term capital gain. Calculate the amount of his itemized deduction for the contribution. 
  2. Assume Hom held the sculpture for 2 years and the $700 appreciation is a long-term capital gain. Calculate the amount of his itemized deduction for the contribution. 

Things to remember  -The business began on August 1, 2018, and has selected a July 31, 2019, fiscal year-end. -Journalize Accounts Payable and Receivables in two separate steps. -Tax on Insurance (charged at 8%/0 is non refundable.   Create journal entries for sage 50. ? 1. Negotiated a 5-year bank loan of $40000 at an annual interest rate of 9.50% with Loyal Bank. The money was deposited in the bank account today. 2.Received invoice 402 for $1200 plus HST from Captain Insurance, for a one-year business Insurance Policy, commencing Aug 1, 2018. Issued cheque #1001 to pay this invoice. 3.Purchased  -office furniture and fixtures for $2500. -computer equipment for $3500. -from the business place, invoice 6488 was for $6000 plus HST paid cheque #1002

Things to remember 

-The business began on August 1, 2018, and has selected a July 31, 2019, fiscal year-end.

-Journalize Accounts Payable and Receivables in two separate steps.

-Tax on Insurance (charged at 8%/0 is non refundable.

 

Create journal entries for sage 50. ?

1. Negotiated a 5-year bank loan of $40000 at an annual interest rate of 9.50% with Loyal Bank. The money was deposited in the bank account today.

2.Received invoice 402 for $1200 plus HST from Captain Insurance, for a one-year business Insurance Policy, commencing Aug 1, 2018. Issued cheque #1001 to pay this invoice.

3.Purchased 

-office furniture and fixtures for $2500.

-computer equipment for $3500.

-from the business place, invoice 6488 was for $6000 plus HST paid cheque #1002

The inventory account of Vanda Manufacturing Co. includes raw materials and work in process and is on a perpetual inventory basis using the FIFO costing method. There is no finished goods inventory. The opening inventory of P30,500 includes obsolete materials recorded at P250. The following are debits to certain accounts in March, 20C: Purchases – P49,400, Direct labor – P24,100, Factory overhead control – P50,400, Cost of goods sold – P137,200. Factory overhead rate is 200% of direct labor cost. The given cost of goods sold includes direct labor cost of P13,800. The obsolete materials (in the beginning inventory) of P250 was charged to cost of goods sold upon removal thereof from the inventory account. Factory overhead has been charged for an excessive scrap loss of P1,600 identified with a special order (that was started on and completed during the month). Normal scrap loss on regular product lines is considered negligible. Based on the information given, how much must be the overabsorbed (underabsorbed) factory overhead as of March 31?  P600 P (600) P(2,200)

The inventory account of Vanda Manufacturing Co. includes raw materials and work in process and is on a perpetual inventory basis using the FIFO costing method. There is no finished goods inventory. The opening inventory of P30,500 includes obsolete materials recorded at P250. The following are debits to certain accounts in March, 20C: Purchases – P49,400, Direct labor – P24,100, Factory overhead control – P50,400, Cost of goods sold – P137,200. Factory overhead rate is 200% of direct labor cost. The given cost of goods sold includes direct labor cost of P13,800. The obsolete materials (in the beginning inventory) of P250 was charged to cost of goods sold upon removal thereof from the inventory account. Factory overhead has been charged for an excessive scrap loss of P1,600 identified with a special order (that was started on and completed during the month). Normal scrap loss on regular product lines is considered negligible. Based on the information given, how much must be the overabsorbed (underabsorbed) factory overhead as of March 31? 

P600

P (600)

P(2,200)

Two or more items are omitted in each of the following tabulations of income statement data. Fill in the amounts that are missing.     2019   2020   2021 Sales revenue   $290,220   $     $406,640 Sales returns and allowances   (10,120)   (13,630)     Net sales       347,802     Beginning inventory   21,500   30,300     Ending inventory             Purchases       258,310   297,477 Purchase returns and allowances   (5,090)   (7,370)   (10,330) Freight-in   8,390   8,240   11,340 Cost of goods sold   (230,540)       (295,670) Gross profit on sales   49,560   93,400   89,130

Two or more items are omitted in each of the following tabulations of income statement data. Fill in the amounts that are missing.

   
2019
 
2020
 
2021
Sales revenue   $290,220  
$

 
  $406,640
Sales returns and allowances   (10,120)   (13,630)  
 
Net sales  
 
  347,802  
 
Beginning inventory   21,500   30,300  
 
Ending inventory  
 
 
 
 
 
Purchases  
 
  258,310   297,477
Purchase returns and allowances   (5,090)   (7,370)   (10,330)
Freight-in   8,390   8,240   11,340
Cost of goods sold   (230,540)  
 
  (295,670)
Gross profit on sales   49,560   93,400   89,130

Journal Entries Rocky Mountain Tours Co. is a travel agency. The nine transactions recorded by Rocky Mountain Tours during June 20Y2, its first month of operations, are indicated in the following T accounts: Cash   Equipment   Dividends (1) 36,500 (2) 2,550   (3) 26,300     (9) 3,700   (7) 14,600 (3) 4,750               (4) 4,000               (6) 10,950               (9) 3,700             Accounts Receivable   Accounts Payable   Service Revenue (5) 19,700 (7) 14,600   (6) 10,950 (3) 21,550     (5) 19,700                 Supplies   Common Stock   Operating Expenses (2) 2,550 (8) 1,450     (1) 36,500   (4) 4,000               (8) 1,450   Prepare the nine journal entries from which the postings were made. If an amount box does not require an entry, leave it blank.

Journal Entries

Rocky Mountain Tours Co. is a travel agency. The nine transactions recorded by Rocky Mountain Tours during June 20Y2, its first month of operations, are indicated in the following T accounts:

Cash   Equipment   Dividends
(1) 36,500 (2) 2,550   (3) 26,300     (9) 3,700  
(7) 14,600 (3) 4,750            
  (4) 4,000            
  (6) 10,950            
  (9) 3,700            
Accounts Receivable   Accounts Payable   Service Revenue
(5) 19,700 (7) 14,600   (6) 10,950 (3) 21,550     (5) 19,700
               
Supplies   Common Stock   Operating Expenses
(2) 2,550 (8) 1,450     (1) 36,500   (4) 4,000  
            (8) 1,450  

Prepare the nine journal entries from which the postings were made. If an amount box does not require an entry, leave it blank.

Altaf Manufacturing Corporation work in process inventory at start consisted of 10,000 units, 100% complete as materials cost and 40% complete as to conversion costs. The total cost in the beginning inventory was Rs. 30,000. During June, 50,000 units were transferred out. The equivalent unit cost was computed to be Rs. 2.00 for materials and Rs.3.70 for conversion costs under the weighted-average method.   The total cost of the units completed and transferred out was:

Altaf Manufacturing Corporation work in process inventory at start consisted of 10,000 units, 100% complete as materials cost and 40% complete as to conversion costs. The total cost in the beginning inventory was Rs. 30,000. During June, 50,000 units were transferred out. The equivalent unit cost was computed to be Rs. 2.00 for materials and Rs.3.70 for conversion costs under the weighted-average method.

 

The total cost of the units completed and transferred out was: