1.6 The following information was extracted from the records of Boyle Stores for May 2020:MayUnits ofCost priceper unitinventoryInventory on hand4 00001R2014Purchases20 000R2221Purchases16 000R2431Sales for May 202022 000The value of inventory on 31 May 2020, using the First-In-First-Out (FIFO) method isA R432 000B R388 000C R428 000D R360 00

Name: 1.6 The following information was extracted from the records of Boyle
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Description: 1.6 The following information was extracted from the records of Boyle Stores for May 2020:MayUnits ofCost priceper unitinventoryInventory on hand4 00001R2014Purchases20 000R2221Purchases16 000R2431Sales for May 202022 000The value of inventory on 31

First in First Out (FIFO Method) - It refers to the method of inventory valuation, under which units…

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1.6 The following information was extracted from the records of Boyle Stores for May 2020: May Units of Cost price inventory per unit 01 Inventory on hand | 4 000 R20 14 Purchases 20 000 R22 21 Purchases 16 000 R24 31 Sales for May 2020 22 000 The value of inventory on 31 May 2020, using the First-In-First-Out (FIFO) method is A R432 000 B R388 000 C R428 000 D R360 00

1.6 The following information was extracted from the records of Boyle Stores for May 2020: May Units of Cost price inventory per unit 01 Inventory on hand | 4 000 R20 14 Purchases 20 000 R22 21 Purchases 16 000 R24 31 Sales for May 2020 22 000 The value of inventory on 31 May 2020, using the First-In-First-Out (FIFO) method is A R432 000 B R388 000 C R428 000 D R360 00

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter6: Cost Of Goods Sold And Inventory

Section: Chapter Questions

Problem 6MCQ: Refer to the information for Morgan Inc. above. If Morgan uses a perpetual inventory system, what is...

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(Appendix 8.1) Inventory Write-Down The inventories of Berry Company for the years 2019 and 2020 are as follows: Berry uses the periodic inventory method and the FIFO inventory cost flow assumption. Required: 1. Assume the inventory that existed at the end of 2019 was sold in 2020. Prepare the necessary journal entries at the end of each year to record the correct inventory valuation if Berry uses the: a. direct method b. allowance method 2. Next Level Refer to your answer for E8-6. How does the use of a periodic or perpetual inventory system affect the valuation of inventory?
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Refer to the information for Morgan Inc. above. If Morgan uses a perpetual inventory system, what is the cost of ending inventory under FIFO at April 30? a. $32,500 b. $38,400 c. $63,600 d. $69,500
Retail Inventory Method Turner Corporation uses the retail inventory method. The following information relates to 2019: Required: Compute the cost of the ending inventory under each of the following cost flow assumptions (round the cost-to-retail ratio to 3 decimal places): 1. FIFO 2. average cost 3. LIFO 4. lower of cost or market (based on average cost)
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The cost of the inventory on January 31, 2019, under the FIFO method is: a. 400 b. 2,700 c. 3,100 d. 3,200
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Inventory Write-Down The inventories of Berry Company for the years 2019 and 2020 are as follows: Berry uses a perpetual inventory system and the FIFO inventory cost flow assumption. Required: 1. Assume the inventory that existed at the end of 2019 was sold in 2020. Prepare the necessary journal entries at the end of each year to record the correct inventory valuation if Berry uses the: a. direct method b. allowance method 2. Next Level Explain any differences in inventory valuation and income between the two methods.
(Appendix 8.1) Inventory Write-Down Frost Companys inventory records tor the years 2019 and 2020 reveal the cost and market of the January 1, 2019, inventory to be 125,000. On December 31, 2019, the cost of inventory was 130,000, while the market value was only 128,000. The December 31, 2020, market value of inventory was 140,000, and the cost was only 135,000. Frost uses a periodic inventory system. Purchases for 2019 were 100,000 and for 2020 were 110,000. Required: 1. Assume the inventory that existed at the end of 2019 was sold in 2020. Prepare the journal entries at the end of 2019 and 2020 to record the lower of cost or net realizable value under the (a) allowance method and (b) direct method. 2. Prepare the cost of goods sold section of the income statement and show how the company would record the inventory on its balance sheet for 2019 and 2020 under the (a) allowance method and (b) direct method. 3. Next Level Refer to your answer for P8-3. How does the use of a periodic inventory system versus a perpetual inventory system affect the valuation of inventory and the amount reported as income?
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