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#11 Mastering Inventory In Managerial Accounting

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Inventory
B
10. YiCo buys 800 cases of tennis balls listed at $130 per case and for which
YiCo is given a 15% volume discount. YiCo sells 70% of the cases for cash.
The cost of the unsold merchandise is . ..
a. $15,600 b. $31,200
c. $26,520
d. $77,350
11. JaCo uses the periodic method and records merchandise purchases at
net. Its 20X4 ending inventory is $69,000. During 20X5, JaCo purchases
merchandise for $878,000, with freight-in of $11,000. Purchase returns are
$17,000, purchase discounts lost are $4,000, and the cost of merchandise
on hand at year end is $91,000. At year end, JaCo records the following
entry:
a. Ending Inventory
91,000
Purchase Returns
17,000
Cost of Goods Sold
850,000
Purchases
878,000
Freight-In
11,000
Beginning Inventory
69,000
b. Ending Inventory
91,000
Purchase Returns
17,000
Cost of Goods Sold
846,000
Purchase Discounts Lost
4,000
Purchases
878,000
Freight-In
11,000
Beginning Inventory
69,000
e. Ending Inventory
91,000
Purchase Returns
17,000
Cost of Goods Sold
854,000
Purchases
878,000
Freight-In
11,000
Beginning Inventory
69,000
Purchase Discounts Lost
4,000
d. Beginning Inventory
69,000
Purchase Returns
17,000
Cost of Goods Sold
894,000
Purchases
878,000
Freight-In
11,000
Ending Inventory
91,000Managerial Accounting