ACC301-sol-ch09

ACC301-sol-ch09 - PRACTICE EXERCISES PRACTICE 9-1 PERPETUAL...

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PRACTICE EXERCISES PRACTICE 9 - 1 PERPETUAL AND PERIODIC JOURNAL ENTRIES 1. Periodic: Purchases 3,000 Accounts Payable 3,000 Accounts Receivable 10,000 Sales 10,000 Cash 9,000 Accounts Receivable 9,000 2. Perpetual: Inventory 3,000 Accounts Payable 3,000 Accounts Receivable 10,000 Sales 10,000 Cost of Goods Sold 4,500 Inventory 4,500 Cash 9,000 Accounts Receivable 9,000 PRACTICE 9 - 2 PERPETUAL AND PERIODIC COMPUTATIONS 1. Beginning inventory $100,000 Plus: Purchases   550,000 Cost of goods available for sale 650,000 Less: Ending inventory   130,000 Cost of goods sold $520,000
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2. Beginning inventory $100,000 Plus: Purchases   550,000 Cost of goods available for sale 650,000 Less: Preliminary cost of goods sold   460,000 Ending inventory, predicted 190,000 Less: Ending inventory, actual   130,000 Cost of missing inventory $  60,000 Cost of Goods Sold (or Inventory Shrinkage Expense)60,000 Inventory 60,000
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PRACTICE 9 - 3 GOODS IN TRANSIT AND ON CONSIGNMENT Before adjustment $200,000 Consignment no adjustment needed, correctly excluded Sold, FOB destination + $20,000 Purchased, FOB shipping point + $30,000 Sold, FOB shipping point no adjustment needed, correctly excluded Adjusted total $250,000 PRACTICE 9 - 4 SCHEDULE OF COST OF GOODS MANUFACTURED Direct materials: Beginning raw materials inventory $  40,000 Plus: Purchases of raw materials 230,000 Less: Ending raw materials inventory    (34,000 ) Raw materials used in production $  236,000 Direct labor 198,000 Manufacturing overhead: Depreciation on factory building $ 32,000 Factory supervisor’s salary 56,000 Indirect labor    36,000 Total manufacturing overhead    124,000 Total manufacturing costs $  558,000 Plus: Beginning work-in-process inventory 76,000 Less: Ending work-in-process inventory      (100,000 ) Cost of goods manufactured $  534,000 PRACTICE 9 - 5 ACCOUNTING FOR PURCHASE DISCOUNTS 1. Net method, paid within discount period Inventory 98,000 Accounts Payable 98,000 Accounts Payable 98,000 Cash 98,000 2. Net method, paid after discount period Inventory 98,000
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Accounts Payable 98,000 Accounts Payable 98,000 Discounts Lost 2,000 Cash 100,000
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PRACTICE 9 - 5 (Concluded) 3. Gross method, paid within discount period Inventory 100,000 Accounts Payable 100,000 Accounts Payable 100,000 Inventory
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This note was uploaded on 06/11/2009 for the course ACC 301 taught by Professor Pendarvis during the Spring '09 term at St. Leo.

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ACC301-sol-ch09 - PRACTICE EXERCISES PRACTICE 9-1 PERPETUAL...

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