Ask Accounting Basics Expert

Question - Kramer Corp. reported the following sale and purchase transactions related to a specific product in January 2017:

Date Transaction Quantity Unit Cost Unit Sales Price

Jan 01 Beginning inventory 5 $90

Jan 03 Sale on account 3 $120

Jan 06 Purchase on account 11 $95

Jan 08 Sale on account 4 $120

Jan 09 Sale on account 5 $120

Jan 15 Sale on account Sales returned due to damage, $240 (two units that were sold on January 9). The units were in very poor condition and were destroyed.

Kramer Corp. uses a perpetual inventory system and the FIFO inventory costing method.

Required:

1. Compute net sales and gross profit for January 2017.

2. Determine the inventory turnover ratio and the average days to sell inventory for January 2017, and explain what the numbers mean.

3. Prepare the Journal Entries to record the purchase transaction on January 6, the sale transaction on January 8, and the sales return on January 15.

4. Compute the cost of sales for January 2017, assuming for this part only that Kramer uses the weighted-average cost method.

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M93133764
  • Price:- $25

Priced at Now at $25, Verified Solution

Have any Question? 


Related Questions in Accounting Basics

Question - in 2002 the executives at telecommunications

Question - In 2002, the executives at telecommunications giant WorldCom perpetrated accounting fraud that led to the largest bankruptcy in US history. The company improperly booked about $4 billion as capital expenditure ...

Question - the asset account office supplies had a

Question - The asset account, office supplies had a beginning balance of 5700. During the accounting period, office supplies were purchased, on account for 5100. A physical count, on the last day of the accounting period ...

Question - on january 1 2017 palka inc acquired 70 percent

Question - On January 1, 2017, Palka, Inc., acquired 70 percent of the outstanding shares of Sellinger Company for $1,479,800 in cash. The price paid was proportionate to Sellinger's total fair value, although at the acq ...

Question - good cash management is an essential job of the

Question - Good cash management is an essential job of the financial manager! You own a small auto sales business called King Kars. You stock up on inventory in February, April, June, and September. Your annual cash budg ...

Question - robben company is considering investing in an

Question - Robben Company is considering investing in an annuity contract that will return $40,000 annually at the end of each year for 15 years. What amount should Robben Company pay for this investment if it earns an 8 ...

Question - hunter co purchased a delivery truck the total

Question - Hunter Co. purchased a delivery truck. The total cash payment was $30,020, including: Negotiated purchase price $24,000 Installation of special shelving 1,100 Painting and lettering 900 Motor vehicle license 1 ...

Question - restricted stockon december 31 2014 ying

Question - Restricted Stock On December 31, 2014, Ying Corporation granted 5,000 shares of its $1 par value common stock to certain of its key employees. The shares are restricted until 2 years of employment is completed ...

Question - alpha corp was organized on january 2 2018

Question - Alpha Corp., was organized on January 2, 2018. During the first year of operation, Alpha issued 100,000 shares of $1 par value common stock at a price of $50 cash per share. On December 31, 2018, Alpha reporte ...

Question - what are the steps to obtain the expected stock

Question - What are the steps to obtain the expected stock price 5 years from now if stock is currently selling for $62.8 per share? The dividend is projected to increase at a constant rate of 7.5% per year. Required rat ...

Question - aqua corporation is a retail operation

Question - Aqua Corporation is a retail operation specializing in pool equipment and outdoor furniture. It is very interested in merging with Icterine Corporation, a lamp manufacturer; Aqua is very profitable and Icterin ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Why might a bank avoid the use of interest rate swaps even

Why might a bank avoid the use of interest rate swaps, even when the institution is exposed to significant interest rate

Describe the difference between zero coupon bonds and

Describe the difference between zero coupon bonds and coupon bonds. Under what conditions will a coupon bond sell at a p

Compute the present value of an annuity of 880 per year

Compute the present value of an annuity of $ 880 per year for 16 years, given a discount rate of 6 percent per annum. As

Compute the present value of an 1150 payment made in ten

Compute the present value of an $1,150 payment made in ten years when the discount rate is 12 percent. (Do not round int

Compute the present value of an annuity of 699 per year

Compute the present value of an annuity of $ 699 per year for 19 years, given a discount rate of 6 percent per annum. As