Anthony thomas candies atc reported

Is There Someone Better In Intermediate Accounting?

Fulbright Corp. uses the periodic inventory system. During its first year of operations, Fulbright made the following purchases (listed in chronological order of acquisition):

• 43 units at $97

• 74 units at $71

• 175 units at $61

Sales for the year totaled 268 units, leaving 24 units on hand at the end of the year.

Ending inventory using the average cost method is (Do not round unit cost calculation. Round your final answer to the nearest whole dollar amount):

$1,652.

$2,328.

$1,464.

$1,514.

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Nu Company reported the following pretax data for its first year of operations.

Net sales

2,810

Cost of goods available for sale

2,310

Operating expenses

780

Effective tax rate

30%

Ending inventories:

If LIFO is elected

970

If FIFO is elected

1,130

What is Nu's net income if it elects LIFO?

$690.

$850.

$595.

$483.

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Nueva Company reported the following pretax data for its first year of operations.

Net sales

7,400

Cost of goods available for sale

5,650

Operating expenses

1,578

Effective tax rate

40%

Ending inventories:

If LIFO is elected

634

If FIFO is elected

809

What is Nueva's net income if it elects FIFO? (Round your intermediate and final answer to the nearest whole dollar amount.)

$806.

$484.

$981.

$589.

Thompson TV and Appliance reported the following in its 2016 financial statements:

2016

Sales

$437,000

Cost of goods sold:

Inventory, January 1

73,000

Net purchases

333,000

Goods available for sale

406,000

Inventory, December 31

87,000

Cost of goods sold

319,000

Gross profit

$118,000

Thompson's 2016 gross profit ratio is (Round your answer to the nearest whole percentage):

24%.

26%.

27%.

None of these is correct.

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Anthony Thomas Candies (ATC) reported the following financial data for 2016 and 2015:

2016

2015

Sales

$315,000

$295,000

Sales returns and allowances

7,500

5,500

Net sales

$307,500

$289,500

Cost of goods sold:

Inventory, January 1

47,000

31,000

Net purchases

138,000

129,000

Goods available for sale

185,000

160,000

Inventory, December 31

60,000

47,000

Cost of goods sold

125,000

113,000

Gross profit

$182,500

$176,500

ATC's gross profit ratio in 2016 is (Round your answer to one decimal place e.g., .123 as 12.3%):

59.3%.

60.1%.

56.2%.

None of these is correct.

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Anthony Thomas Candies (ATC) reported the following financial data for 2016 and 2015:

2016

2015

Sales

$306,000

$288,000

Sales returns and allowances

8,100

5,000

Net sales

$297,900

$283,000

Cost of goods sold:

Inventory, January 1

62,000

18,000

Net purchases

139,000

142,000

Goods available for sale

201,000

160,000

Inventory, December 31

62,000

62,000

Cost of goods sold

139,000

98,000

Gross profit

$158,900

$185,000

The average days inventory for ATC for 2016 is (Round intermediate calculations to two decimal places. Round your final answer to a whole number):

rev: 11_19_2015_QC_CS-33523

223 days.

163 days.

Less than 100 days.

213 days.

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On January 1, 2016, Badger Inc. adopted the dollar-value LIFO method. The inventory cost on this date was $115,000. The 2016 ending inventory, valued at year-end costs, was $150,800. The relative cost index for this inventory in 2016 was 1.16. Assume that Badger's 2017 ending inventory, valued at year-end costs, was $164,700 and that the relative cost index for this inventory in 2016 was 1.22.

Suppose that Badger's 2018 ending inventory, valued at year-end costs, was $167,500 and that the relative cost index for this inventory in 2018 was 1.25. What inventory balance would Badger report on its 12/31/18 balance sheet?

$134,000

$137,280

$167,500

None of these answer choices is correct.

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Linguini Inc. adopted dollar-value LIFO (DVL) as of January 1, 2016, when it had an inventory of $864,000. Its inventory as of December 31, 2016, was $897,000 at year-end costs and the cost index was 1.15. What was DVL inventory on December 31, 2016?

780,000

864,000

897,000

993,600

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Data related to the inventories of Costco Medical Supply are presented below:

Surgical
Equipment

Surgical
Supplies

Rehab
Equipment

Rehab
Supplies

Selling price

$268

$134

$351

$158

Cost

153

131

251

155

Costs to sell

26

17

23

10

In applying the lower of cost and net realizable value rule, the inventory of surgical supplies would be valued at:

$99.

$131.

$77.

$117.

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Data related to the inventories of Costco Medical Supply are presented below:

Surgical
Equipment

Surgical
Supplies

Rehab
Equipment

Rehab
Supplies

Selling price

$264

$134

$324

$150

Cost

165

106

288

148

Costs to sell

15

9

28

9

In applying the lower of cost and net realizable value rule, the inventory of rehab equipment would be valued at:

$267.

$296.

$288.

$215.

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Data related to the inventories of Costco Medical Supply are presented below:

Surgical
Equipment

Surgical
Supplies

Rehab
Equipment

Rehab
Supplies

Selling price

$266

$123

$357

$161

Cost

164

100

251

162

Costs to sell

24

13

25

6

In applying the lower of cost and net realizable value rule, the inventory of rehab supplies would be valued at:

$162.

$107.

$158.

$155.

Data related to the inventories of Alpine Ski Equipment and Supplies is presented below:

Skis

Boots

Apparel

Supplies

Selling price

$165,000

$142,000

$119,000

$77,000

Cost

139,000

140,000

83,300

50,050

Replacement cost

111,000

115,000

103,300

46,050

Sales commission

10%

10%

10%

10%

In applying the lower of cost and net realizable value rule, the inventory of boots would be valued at:

$127,800.

$92,300.

$115,000.

$140,000.

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On July 8, a fire destroyed the entire merchandise inventory on hand of Larrenaga Wholesale Corporation. The following information is available:

Sales, January 1 through July 8

$694,000

Inventory, January 1

136,000

Purchases, January 1 through July 8

644,000

Gross profit ratio

25%

What is the estimated inventory on July 8 immediately prior to the fire?

$161,000.

$260,100.

$520,500.

$259,500.

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Fad City sells novel clothes that are subject to a great deal of price volatility. A recent item that cost $20.80 was marked up $13.00, marked down for a sale by $5.40 and then had a markdown cancellation of $3.30. The latest selling price is:

$35.70.

$26.20.

$31.70.

$37.10.

Data below for the year ended December 31, 2016, relates to Houdini Inc. Houdini started business January 1, 2016, and uses the LIFO retail method to estimate ending inventory.

Cost

Retail

Beginning inventory

$76,000

$115,000

Net purchases

362,610

530,000

Net markups

31,000

Net markdown

51,000

Net sales

474,000

Estimated ending inventory at cost is (Do not round intermediate calculations):

$101,596.

$106,486.

$110,770.

None of these answer choices are correct.

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Willie Nelson's Boots uses the conventional retail method to estimate ending inventory. Cost data for the most recent quarter is shown below:

Cost

Retail

Beginning inventory

$48,000

$65,000

Net purchases

156,000

219,000

Net markups

20,000

Net markdowns

37,000

Net sales

222,000

The conventional cost-to-retail percentage (rounded) is:

76.4%.

67.1%.

84.3%.

71.8%.

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Willie Nelson's Boots uses the conventional retail method to estimate ending inventory. Cost data for the most recent quarter is shown below:

Cost

Retail

Beginning inventory

$32,000

$69,000

Net purchases

151,000

201,000

Net markups

30,000

Net markdowns

35,000

Net sales

220,000

To the nearest thousand, estimated ending inventory using the conventional retail method is (Do not round intermediate calculations):

$40,000.

$28,000.

$27,000.

$12,000.

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Poppy Co. uses a periodic inventory system. Beginning inventory on January 1 was understated by $31,000, and its ending inventory on December 31 was understated by $17,000. In addition, a purchase of merchandise costing $21,700 was incorrectly recorded as a $2,170 purchase. None of these errors were discovered until the next year. As a result, Poppy's cost of goods sold for this year was:

Overstated by $33,530.

Overstated by $5,530.

Understated by $50,530.

Understated by $33,530.

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On July 10, 2016, Johnson Corporation signed a purchase commitment to purchase inventory for $360,000 on or before February 15, 2017. The company's fiscal year-end is December 31. The contract was exercised on February 1, 2017 and the inventory was purchased for cash at the contract price. On the purchase date of February 1, the market price of the inventory was $368,000. The market price of the inventory on December 31, 2016, was $332,000. The company uses a perpetual inventory system.

How much loss on purchase commitment will Johnson recognize in 2016?

$8,000.

$28,000.

$36,000.

None.

On July 10, 2016, Johnson Corporation signed a purchase commitment to purchase inventory for $214,000 on or before February 15, 2017. The company's fiscal year-end is December 31. The contract was exercised on February 1, 2017, and the inventory was purchased for cash at the contract price. On the purchase date of February 1, the market price of the inventory was $224,000. The market price of the inventory on December 31, 2016, was $187,000. The company uses a perpetual inventory system.

At what amount will Johnson record the inventory purchased on February 1, 2017?

$197,000

$187,000

$224,000

$214,000

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Haskell Corporation has determined its year-end inventory on a FIFO basis to be $803,000. Information pertaining to that inventory is as follows:

Selling price

$832,000

Costs to sell

44,000

Replacement cost

774,000

What should be the reported value of Haskell’s inventory if the company prepares its financial statements according to International Financial Reporting Standards (IFRS)?

$709,000.

$774,000.

$788,000.

$803,000.

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