2. Manual Corp. determined the following information for the purpose of applying the retail method of inventory estimation: cost retail inventory beg. P45,000 P 75,000 Net sales ( net of 40k and 10k discount) 590,000 Purchases 270,000 590,000 Freight in 6,750 net mark up 50,000 net markdowns 20,000 normal shrinkage 12,000 How much is the cost of good solds under each of the following methods? Average FIFO a. 281,229.67 282,827.77 b. 273, 329.30 284, 698.80 с. 283,329.30 d. 283,329.30 282,827.77 284, 698.80

2. Manual Corp. determined the following information for the purpose of applying the retail method of inventory estimation: cost retail inventory beg. P45,000 P 75,000 Net sales ( net of 40k and 10k discount) 590,000 Purchases 270,000 590,000 Freight in 6,750 net mark up 50,000 net markdowns 20,000 normal shrinkage 12,000 How much is the cost of good solds under each of the following methods? Average FIFO a. 281,229.67 282,827.77 b. 273, 329.30 284, 698.80 с. 283,329.30 d. 283,329.30 282,827.77 284, 698.80

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter10: Inventory

Section: Chapter Questions

Problem 4PA: Calculate the cost of goods sold dollar value for A74 Company for the sale on March 11, considering...

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Black Corporation uses the LIFO cost flow assumption. Each unit of its inventory has a net realizable value of 300, a normal profit margin of 35, and a current replacement cost of 250. Determine the amount per unit that should be used as the market value to apply the lower of cost or market rule to determine Blacks ending inventory.
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Calculate a) cost of goods sold, b) ending inventory, and c) gross margin for A76 Company, considering the following transactions under three different cost allocation methods and using perpetual inventory updating. Provide calculations for last-in, first-out (LIFO).
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Calculate the cost of goods sold dollar value for A74 Company for the sale on March 11, considering the following transactions under three different cost allocation methods and using perpetual inventory updating. Provide calculations for (a) first-in, first-out (FIFO); (b) last-in, first-out (LIFO); and (c) weighted average (AVG).
Inventory Valuation Specific identification method Weighted average cost method FIFO method LIFO method LIFO liquidation LIFO conformity rule LIFO reserve Replacement cost Inventory profit Lower-of-cost-or-market (LCM) rule Inventory turnover ratio Number of days sales in inventory Moving average (Appendix) The name given to an average cost method when a weighted average cost assumption is used with a perpetual inventory system. An inventory costing method that assigns the same unit cost to all units available for sale during the period. A conservative inventory valuation approach that is an attempt to anticipate declines in the value of inventory before its actual sale. An inventory costing method that assigns the most recent costs to ending inventory. The current cost of a unit of inventory. An inventory costing method that assigns the most recent costs to cost of goods sold. A measure of how long it takes to sell inventory. The IRS requirement that when LIFO is used on a tax return, it must also be used in reporting income to stockholders. An inventory costing method that relies on matching unit costs with the actual units sold. The portion of the gross profit that results from holding inventory during a period of rising prices. The result of selling more units than are purchased during the period, which can have negative tax consequences if a company is using LIFO. The excess of the value of a companys inventory stated at FIFO over the value stated at LIFO. A measure of the number of times inventory is sold during the period.
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