acc 510 module 2 home work

Use the information in the following adjusted trial balance for the Webb Trucking Company.

  Account Title

Debit

Credit

  Cash

$

7,300  

  Accounts receivable

16,500  

  Office supplies

2,000  

  Trucks

197,000  

  Accumulated depreciation—Trucks

$

40,582  

  Land

75,000  

  Accounts payable

11,300  

  Interest payable

3,000  

  Long-term notes payable

52,000  

  K. Webb, Capital

183,638  

  K. Webb, Withdrawals

19,000  

  Trucking fees earned

134,500  

  Depreciation expense—Trucks

26,175  

  Salaries expense

63,080  

  Office supplies expense

7,398  

  Repairs expense—Trucks

11,567  

  Totals

$

425,020  

$

425,020  

(1)

Calculate the current ratio. (Assume that the industry average for the current ratio is 1.5.) (Round your answer to 2 decimal places.)

  Current ratio

$ 

$ 

$ 

$ 

$ 

$ 

[removed]

[removed]

[removed]

    Cost of goods sold

[removed]  

[removed]  

[removed]  

  Gross profit

$ [removed]  

$ [removed]  

$ [removed]  

Duke Associates, antique dealers, purchased the contents of an estate for $37,600. Terms of the purchase were FOB shipping point, and the cost of transporting the goods to Duke Associates’ warehouse was $1,250. Duke Associates insured the shipment at a cost of $160. Prior to putting the goods up for sale, they cleaned and refurbished them at a cost of $500.

Determine the cost of the inventory acquired from the estate. (Omit the "$" sign in your response.)

  Cost of inventory

$ [removed]  

Harold Co. reported the following current-year purchases and sales data for its only product.

Date

Activities

Units Acquired at Cost

Units Sold at Retail

Jan.

1

Beginning inventory

135

 units

 @ $11.40

=

$

1,539

Jan.

10

Sales

125

 units

 @$41.40

Mar.

14

Purchase

285

 units

 @ $16.40

=

4,674

Mar.

15

Sales

175

 units

 @$41.40

July

30

Purchase

435

 units

 @ $21.40

=

9,309

Oct.

5

Sales

265

 units

 @$41.40

Oct.

26

Purchase

635

 units

 @ $26.40

=

16,764

Totals

1,490

 units

$

32,286

565

 units

Assume that ending inventory is made up of 120 units from the March 14 purchase, 170 units from the July 30 purchase, and all 635 units from the October 26 purchase. Using the specific identification method, calculate the following. (Omit the "$" sign in your response.)

 (a) Cost of goods sold

$ [removed]  

 (b) Gross profit

$ [removed]  

Ripken Company's ending inventory includes the following items.

Per Unit

  Product

Units

Cost

Market

  Helmets

33     

$

55   

$

51    

  Bats

26     

73   

79    

  Shoes

47     

92   

96    

  Uniforms

51     

37   

37    

Compute the lower of cost or market for ending inventory applied separately to each product. (Omit the "$" sign in your response.)

  Product

LCM applied
to products

  Helmets

$ [removed]  

  Bats

[removed]  

  Shoes

[removed]  

  Uniforms

[removed]  

  Total inventory at LCM

$ [removed]