Work Shown FH19

Question
In its 2010 Annual Report, Super-Mart reported inventory of $34,259 million on January 31, 2010, and $40,136 million on January 31, 2009, cost of sales of $273,604 million for fiscal year 2010, and net sales of $345,952 million. Compute Super-Mart’s inventory turnover and the average days to sell inventory for the fiscal year 2010. (Round calculations to 2 decimal places, e.g. 12,250.50 and use the rounded amount for future calculations. Round final answers to 2 decimal places, e.g. 2.25.)
Inventory turnover times

Maria Corporation’s April 30 inventory was destroyed by fire. January 1 inventory was $198,000, and purchases for January through April totaled $660,000. Sales for the same period were $709,100. Maria’s normal gross profit percentage is 35% on sales. Using the gross profit method, estimate Maria’s April 30 inventory that was destroyed by fire.
Inventory destroyed $

Question
Amsterdam Company uses a periodic inventory system. For April, when the company sold 600 units, the following information is available.
Units Unit Cost Total Cost
April 1 inventory 250 $16 $4,000
April 15 purchase 400 20 8,000
April 23 purchase 350 21 7,350
1,000 $19,350
Compute the April 30 inventory and the April cost of goods sold using the FIFO method.
Inventory $

Cost of goods sold $

Question
Amsterdam Company uses a periodic inventory system. For April, when the company sold 700 units, the following information is available.
Units Unit Cost Total Cost
April 1 inventory 250 $14 $3,500
April 15 purchase 400 16 6,400
April 23 purchase 350 18 6,300
1,000 $16,200
Compute the April 30 inventory and the April cost of goods sold using the average cost method. (Round computations for cost per unit to 2 decimal places, e.g. 10.25 and answers to 0 decimal places, e.g. 2,250.)
Inventory $

Cost of goods sold $

Bienvenu Enterprises reported cost of goods sold for 2012 of $1,792,000 and retained earnings of $6,656,000 at December 31, 2012. Bienvenu later discovered that its ending inventories at December 31, 2011 and 2012, were overstated by $140,800 and $57,600, respectively. Determine the corrected amounts for 2012 cost of goods sold and December 31, 2012, retained earnings.
Cost of goods sold $
Retained earnings $

(Inventoriable Costs)
Assume that in an annual audit of Webber Inc. at December 31, 2010, you find the following transactions below near the closing date.
Assuming that each of the amounts is material, state whether the merchandise should be included in the client’s inventory.
1. A special machine, fabricated to order for a customer, was finished and specifically segregated in the back part of the shipping room on December 31, 2010. The customer was billed on that date and the machine excluded from inventory although it was shipped on January 4, 2011
2. Merchandise costing $2,800 was received on January 3, 2011, and the related purchase invoice recorded January 5. The invoice showed the shipment was made on December 29, 2010, f.o.b. destination.
3. A packing case containing a product costing $3,400 was standing in the shipping room when the physical inventory was taken. It was not included in the inventory because it was marked “Hold for shipping instructions.” Your investigation revealed that the customer’s order was dated December 18, 2010, but that the case was shipped and the customer billed on January 10, 2011. The product was a stock item of your client.
4. Merchandise costing $720 was received on December 28, 2010, and the invoice was not recorded. You located it in the hands of the purchasing agent; it was marked “on consignment.”
5. Merchandise received on January 6, 2011, costing $680 was entered in the purchase journal on January 7, 2011. The invoice showed shipment was made f.o.b. supplier’s warehouse on December 31, 2010. Because it was not on hand at December 31, it was not included in inventory.

Question
Maria Alvarez is investing $219,120 in a fund that earns 10% interest compounded annually. What equal amounts can Maria withdraw at the end of each of the next 21 years? (Round the answer to zero decimal places, e.g. 10,250. Hint: Use tables in text.)