Question

Skysong Co. purchased goods with a list price of $185,700, subject to trade discounts of 20% and 10%, with no cash discounts allowable. How much should Skysong Co. record as the cost of these goods? Cost of goods purchased $enter the Cost of goods purchased in dollars LINK TO TEXT LINK TO TEXT LINK TO TEXT

Concord Company’s inventory of $1,058,900 at December 31, 2020, was based on a physical count of goods priced at cost and before any year-end adjustments relating to the following items. (a) Goods shipped from a vendor f.o.b. shipping point on December 24, 2020, at an invoice cost of $69,520 to Concord Company were received on January 4, 2021. (b) The physical count included $31,120 of goods billed to Sakic Corp. f.o.b. shipping point on December 31, 2020. The carrier picked up these goods on January 3, 2021. What amount should Concord report as inventory on its balance sheet? Inventory to be reported $enter Inventory to be reported in dollars LINK TO TEXT LINK TO TEXT LINK TO TEXT

Marigold Corp. had 1,700 units of part M.O. on hand May 1, 2020, costing $25 each. Purchases of part M.O. during May were as follows. Units Units Cost May 9 2,200 $26 17 3,700 28 26 1,200 29 A physical count on May 31, 2020, shows 2,200 units of part M.O. on hand. Using the FIFO method, what is the cost of part M.O. inventory at May 31, 2020? Using the LIFO method, what is the inventory cost? Using the average-cost method, what is the inventory cost? (Round average cost per unit to 2 decimal places, e.g. 15.25 and final answers to 0 decimal places, e.g. 1,620.) FIFO LIFO Average Cost Inventory Cost $enter a dollar amount rounded to 0 decimal places $enter a dollar amount rounded to 0 decimal places $enter a dollar amount rounded to 0 decimal places LINK TO TEXT LINK TO TEXT LINK TO TEXT

Swifty Company adopted the dollar-value LIFO method on January 1, 2020 (using internal price indexes and multiple pools). The following data are available for inventory pool A for the 2 years following adoption of LIFO. Inventory At Base-Year Cost At Current-Year Cost 1/1/20 $201,600 $201,600 12/31/20 248,900 273,790 12/31/21 255,500 291,270 Computing an internal price index and using the dollar-value LIFO method, at what amount should the inventory be reported at December 31, 2021? December 31, 2021 Price Index enter the price index Dollar-value LIFO inventory $enter a dollar amount LINK TO TEXT LINK TO TEXT LINK TO TEXT

Nash Inc., a retail store chain, had the following information in its general ledger for the year 2021. Merchandise purchased for resale $898,098 Interest on notes payable to vendors 7,836 Purchase returns 14,980 Freight-in 21,560 Freight-out (delivery expense) 18,084 Cash discounts on purchases 7,333 What is Nash’s inventoriable cost for 2021? Nash’s inventoriable cost for 2021 $enter Nash’s inventoriable cost for 2021 in dollars

Answer 1

Answer to Question 1.

List price of goods = $185,700

Discount 1 = 20%
Discount 2 = 10%

Discount 1 given on goods = $185,700 * 20%
Discount 1 given on goods = $37,140

Value of Goods after Discount 1 = $185,700 - $37,140
Value of Goods after Discount 1 = $148,560

Discount 2 given on goods = $148,560 * 10%
Discount 2 given on goods = $14,856

Value of Goods after Discount 2 = $148,560 - $14,856
Value of Goods after Discount 2 = $133,704

Therefore, Cost of Goods purchased is $133,704.