Business, 25.02.2020 20:51, CheddaDsk

Thompson Plumbing Inc. is a wholesaler of plumbing accessories. Thompson Plumbing began operations in September of the current year and engaged in the following transactions during September and October of this year. Thompson Plumbing uses a perpetual inventory system.
Sept.03 Purchased $240,000 of plumbing accessories, terms n/30.
Sept.15 Sold $180,000 of plumbing accessories, terms n/60. The cost of the accessories sold is $120,000
Sept.28 Purchased $360,000 of plumbing accessories, terms n/45
Oct.03 Settled the $240,000 purchase of September 3 t of the accessories sold is $300,000.
Oct.15 Sold $450,000 of plumbing accessories, terms n/60.
Oct.27 Purchased $540,000 of plumbing accessories, terms n/30. The cost of the accessories sold is $300,000
Required
a. Compute the gross profit (loss) on Thompson Plumbing's transactions during September and October.
b. Compute the gross profit (loss) on Thompson Plumbing's transactions during September and October if a cash-basis accounting system was used
c. Assume that the fair value of Thompson Plumbing's inventory at October 31 is $900,000. A potential lender asks Thompson Plumbing to prepare a fair-value-based balance sheet.
Prepare the journal entry to reflect inventory at fair value. Comment on howa wholesaler might determine fair value for inventory items. (Hint: Increase the Inventory account by the difference between fair value and book value with the offset to an account titled Revaluation of Inventory to Market Value)

Answers: 1

Show answers

Other questions on the subject: Business

Business, 21.06.2019 21:00, janiyaf8941

The following cost data relate to the manufacturing activities of chang company during the just completed year: manufacturing overhead costs incurred: indirect materials $ 15,800 indirect labor 138,000 property taxes, factory 8,800 utilities, factory 78,000 depreciation, factory 150,600 insurance, factory 10,800 total actual manufacturing overhead costs incurred $ 402,000 other costs incurred: purchases of raw materials (both direct and indirect) $ 408,000 direct labor cost $ 68,000 inventories: raw materials, beginning $ 20,800 raw materials, ending $ 30,800 work in process, beginning $ 40,800 work in process, ending $ 70,800 the company uses a predetermined overhead rate of $20 per machine-hour to apply overhead cost to jobs. a total of 20,500 machine-hours were used during the year. required: 1. compute the amount of underapplied or overapplied overhead cost for the year. 2. prepare a schedule of cost of goods manufactured for the year.

Answers: 3

continue

Business, 21.06.2019 21:00, sickboi

Consider a small island country whose only industry is weaving. the following table shows information about the small economy in two different years. complete the table by calculating physical capital per worker as well as labor productivity. hint: recall that productivity is defined as the amount of goods and services a worker can produce per hour. in this problem, measure productivity as the quantity of goods per hour of labor. year physical capital labor force physical capital per worker labor hours output labor productivity (looms) (workers) (looms) (hours) (garments) (garments per hour of labor) 2024 160 40 1,800 14,400 2025 180 60 3,900 23,400

Answers: 2

continue

Business, 22.06.2019 03:40, josie122

Your parents have accumulated a $170,000 nest egg. they have been planning to use this money to pay college costs to be incurred by you and your sister, courtney. however, courtney has decided to forgo college and start a nail salon. your parents are giving courtney $20,000 to her get started, and they have decided to take year-end vacations costing $8,000 per year for the next four years. use 8 percent as the appropriate interest rate throughout this problem. use appendix a and appendix d for an approximate answer, but calculate your final answer using the formula and financial calculator methods. a. how much money will your parents have at the end of four years to you with graduate school, which you will start then?

Answers: 1

continue

Business, 22.06.2019 04:40, aidanfbussiness

Select the correct answerwhat is the responsibility of each of the twelve federal reserve's banks in their districts? a. they set the prime rateob. they monitor functioning of banks in their through onsite and offsite reviewsc. they assess taxes in their destnictd. they write fiscal policies

Answers: 1

continue

Do you know the correct answer?

Thompson Plumbing Inc. is a wholesaler of plumbing accessories. Thompson Plumbing began operations i...