Answered: a. Cost of merchandise sold on…

Business

Finance

a. Cost of merchandise sold on September 27 b. Inventory on September 30 %24 %24

Financial Accounting

15th Edition

ISBN:9781337272124

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter7: Inventories

Section: Chapter Questions

Problem 3PEA: Beginning inventory, purchases, and sales for Item Gidget are as follows: Assuming a perpetual...

See similar textbooks

Related questions

Q: Q1: The inventory records for QPG company for the month of April. Date Account Quantity Unit cost…

A: Cost of Goods Sold=Cost of goods available in inventory-Cost of ending inventory

Q: Compute the April 30 inventory and the April cost of goods sold using the average-cost method.…

A: The periodic inventory system is a method of inventory valuation for financial reporting purposes in…

Q: nstructions 1. Determine the inventory on March 31 and the cost of merchandise sold for the…

A: There are 3 types of methods for inventory valuation: a.FIFO b. LIFO c. Weighted average FIFO: In…

Q: Financial statement data for years ending December 31 for Holland Company follow: 20Υ4 20Υ3 Cost of…

A: (a)Determine inventory turnover for 20Y4 and 20Y3.

Q: QS 13-12 (Algo) Computing inventory turnover and days' sales in inventory LO P3 SCC Company reported…

A: Ratio analysis: Ratio analysis is a tool that establishes a relationship between the different…

Q: EE 7-3 Beginning inventory, purchases, and sales for Item FK7 are as follows: Sept. 1 Inventory 115…

A: LIFO method of inventory calculation indicates the assumption made by management that the units…

Q: QUESTION 4 The financial year of Mitex Co ended on 31 December 20X1. An inventory count on January 4…

A: As posted to answer only question number 4. So we are answering only specifically mentioned…

Q: Determine the cost of merchandise sold for the transaction on October 25 using the perpetual…

A: In FIFO it is assumed that the first purchased item will be sold first. So, the closing inventory…

Q: Beginning inventory, purchases, and sales for an inventory item are as follow Sep. 1 Beginning…

A: Inventory valuation is based on the flow of exemption used by the company. There are many methods…

Q: Selected data on merchandise inventory, purchases, and sales for Jaffe Co. and Coronado Co. are as…

A: 1.Working notes:

Q: Question 5 Opening and closing inventory balances and purchases for the month of May2020for…

A: The cost of goods sold is the cost of items which have been sold during the period. The different…

Q: Nov. 23 Purchase 8 units at $39 There are 12 units of the item in the physical inventory at December…

A: First in first out method means inventory which is coming first in the business will be sold first.…

Q: g Price Inventory, January 1 Purchase, March 7 Purchase, July 15 Sale, May 20 Sale, June 30 Sale,…

A: The moving average inventory approach recalculates the average cost of every stock product in stock…

Q: 5. Based upon the following data, determine the cost of merchandise sold for August. Merchandise…

A: Cost of merchandise sold is beginning inventory + net purchases - ending inventory. net purchases…

Q: Financial statement data for years ending December 31 for Tango Company follow: 20Υ7 20Υ6 Cost of…

A: (a)Determine the inventory turnover for 20Y7 and 20Y6.

Q: 1: Inventory Turnover and Days' Sales in Inventory Financial statement data for years ending…

A: The cost of goods sold involves all costs involved in the production of goods that are sold.…

Q: Question: (round off gross profit rate to whole number) 1. How much is the cost ratio as percentage…

A: Let us first make the adjustments to the figures given for purchase and sales and inventory of…

Q: 6. Assume that three identical units of merchandise are purchased during October, as follows: Units…

A: FIFO: FIFO stands for First-In, First-Out. In this method inventory purchased first will be sold…

Q: QUESTION 1 A company had the following purchases during its first year of operations: Sales…

A: The weighted average cost technique is for valuing and managing inventories. To get the weighted…

Q: Beginning inventory, purchases, and sales for an inventory item are as follows: Sep. 1 Beginning…

Q: 21 Sale 84 units Assuming a perpetual inventory system and using the last-in, first-out (LIFO)…

A: Perpetual inventory system: The method or system of maintaining, recording, and adjusting the…

Q: Financial statement data for years ending December 31 for Amsterdam Company follow: 20Υ4 20Y3 Cost…

A: Inventory Turnover = Cost of goods sold / Average Inventory Day's sales in inventory = 365 /…

Q: Question Content Area Based on the following data for the current year, what is the inventory…

A: The inventory turnover ratio can be calculated by dividing the cost of goods sold by the average…

Q: Units Cost July 3 Purchase 1 $23 10 Purchase 1 26 24 Purchase 1 29 Total 3 $78 Average cost per unit…

A: In the above question we have asked to calculate gross profit, cogs and ending inventory using…

Q: If the estimated rate of gross profit is 30%, what is the estimated cost of the merchandise…

A: Gross Profit is the difference between the sales and the cost of goods sold. The gross profit ratio…

Q: OF ACCOUNTING 9. Using the following information, what is the amount of gross profit? Purchases…

A: SOLUTION GROSS PROFIT = NET SALES - COST OF GOOD SOLD.

Q: a. Cost of merchandise sold b. Inventory, September 30

A: Table for the above transactions is as follows:

Q: Calculate using the gross profit method for the following: Gross profit on sales: 47% Beginning…

A: Given, Gross profit on sales = 47% Net sales at retail = $14,400 Gross profit = Net sales*Gross…

Q: 11. Using the following information, what is the amount of merchandise ava for sale? P28,000…

A: Formula: Net purchases = Purchases - Purchase discount - Purchase returns.

Q: Beginning inventory, purchases, and sales for an inventory item are as follows: Sep. 1 Beginning…

A: Using FIFO method, old units are sold first and newer units are sold later.

Q: a. Cost of goods sold on Jan. 27 b. Inventory on Jan. 31 %24

A: Under Lifo Method inventory that is last purchased is sold first Cost of Goods sold should be…

Q: Company X (A) S 105,200 350,600 Sales revenue Beginning inventory Net purchases Ending inventory…

A: The main purpose of every business organisation is to generate profits. Business needs to make sales…

Q: 9. Using the following information, what is the amount of gross profit? P28,000 Purchases 6,500…

A: "Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: Moving Question 1 National supplies company had the following activity during the current monthly…

A: Using weighted average method, the cost per unit is calculated as total cost of goods available for…

Q: Beginning inventory, purchases, and sales for an inventory item are as follows: Sept. 1 Beginning…

A: Cost of beginning inventory=Units×Per unit=28×$14=$392

Q: PE 7-4A Perpetual inventory using weighted average Beginning inventory, purchases, and sales for…

A: Weighted average cost per unit = Total cost of goods available for sale/Total units available for…

Q: Assume that three identical units of merchandise were purchased during October, as follows: Units…

A: LIFO Method of Inventory Valuation : The full form for LIFO is “Last-In, First-Out”. This is one…

Q: Beginning inventory, purchases, and sales for an inventory item are as follows: Sep. 1 Beginning…

A: FIFO: Under FIFO method, goods purchased first are sold first. FIFO stands out for…

Q: Beginning inventory, purchases, and sales for an invent Sep. 1 Beginning Inventory 24 units @ $15 5…

A: Solution a: Cost of goods sold for Sep 30 sale = 16 units from Sep 17 purchase = 16 *$18 = $288

Q: QUESTION 5 47 A company had the following purchases during its first year of operations: Purchases…

A: Calculation of cost of goods sold and total purchase are as follows

Q: Beginning inventory, purchases, and sales for an inventory item are as follows: Sep. 1 Beginning…

A: Inventory valuation is based on the flow of exemption used by the company. There are many methods…

Q: A company reports the following: Cost of merchandise sold $1,460,000 Average merchandise inventory…

A: Cost of goods sold =1460000 Average inventory =182500 Inventory turnover ratio =Cost of goods…

Q: final answers to 1 decimal place. Cost of Goods Sold $720,000 Beginning Inventory 51,000 Ending…

A: Efficiency ratios are also known as activity ratios. It measure how well companies utilize their…

Q: 18. finished goods inventory, end 19. cost of goods sold 20. sales

A: Assuming that the answers for the previous sub-parts are available. Working note 1: Determine the…

Question

Perpetual Inventory Using LIFO
Beginning inventory, purchases, and sales for Item FK7 are as follows:
Sept. 1
Inventory
115 units at $255
10
Sale
100 units
18
Purchase
110 units at $260
27
Sale
105 units
Assuming a perpetual inventory system and using the last-in, first-out (LIFO) method, determine (a) the cost of merchan
September 27 and (b) the inventory on September 30.
a. Cost of merchandise sold on September 27
$4
b. Inventory on September 30
8

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Part (a)

VIEW

Part (b)

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Financial Reporting in Hyperinflationary Economies

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.

Similar questions

Inventory Costing Methods Crandall Distributors uses a perpetual inventory system and has the following data available for inventory, purchases, and sales for a recent year. Required: 1. Compute the cost of ending inventory and the cost of goods sold using the specific identification method. Assume the ending inventory is made up of 40 units from beginning inventory, 30 units from Purchase 1, 80 units from Purchase 2, and 40 units from Purchase 3. 2. Compute the cost of ending inventory and cost of goods sold using the FIFO inventory costing method. 3. Compute the cost of ending inventory and cost of goods sold using the LIFO inventory costing method. 4. Compute the cost of ending inventory and cost of goods sold using the average cost inventory costing method. ( Note: Use four decimal places for per-unit calculations and round all other numbers to the nearest dollar.) 5. CONCEPTUAL CONNECTION Compare the ending inventory and cost of goods sold computed under all four methods. What can you conclude about the effects of the inventory costing methods on the balance sheet and the income statement?
Beginning inventory, purchases, and sales for Item Zebra 9x are as follows: Assuming a perpetual inventory system and using the last-in, first-out (LIFO) method, determine (a) the cost of merchandise sold on April 27 and (b) the inventory on April 30.
LIFO perpetual inventory The beginning inventory for Dunne Co. and data on purchases and sales for a three-month period are shown in Problem 6-1B. Instructions 1. Record the inventory, purchases, and cost of goods sold data in a perpetual inventory record similar to the one illustrated in Exhibit 4, using the last-in, first-out method. 2. Determine the total sales, the total cost of goods sold, and the gross profit from sales for the period. 3. Determine the ending inventory cost on June 30.
Calculate the cost of goods sold dollar value for B74 Company for the sale on November 20, 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).
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
FIFO perpetual inventory The beginning inventory at Dunne Co. and data on purchases and sales for a three-month period ending June 30 are as follows: Instructions 1. Record the inventory, purchases, and cost of goods sold data in a perpetual inventory record similar to the one illustrated in Exhibit 3, using the first-in, first-out method. 2. Determine the total sales and the total cost of goods sold for the period. Journalize the entries in the sales and cost of goods sold accounts. Assume that all sales were on account. 3. Determine the gross profit from sales for the period. 4. Determine the ending inventory cost on June 30. 5. Based upon the preceding data, would you expect the ending inventory using the last-in, first-out method to be higher or lower?
RE7-8 Johnson Company uses a perpetual inventory system. On October 23, Johnson purchased 100,000 of inventory on credit with payment terms of 1/15, net 45. Using the net price method, prepare journal entries to record Johnsons purchases on October 23 and the subsequent payment on October 31. Using the information from RE7-8, prepare journal entries to record Johnsons purchase on October 23 and the subsequent payment on November 30.
Perpetual inventory using FIFO Beginning inventory, purchases, and sales for Item Zeta9 are as follows: Oct. 1 Inventory 175 units at 30 7 Sale 155 units 15 Purchase 200 units at 33 24 Sale 140 units Assuming a perpetual inventory system and using the first-in, first-out (FIFO) method, determine (A) the cost of goods sold on October 24 and (B) the inventory on October 31.
Beginning inventory, purchases, and sales for WCS12 are as follows: Assuming a perpetual inventory system and using the weighted average method, determine (a) the weighted average unit cost after the October 22 purchase, (b) the cost of the merchandise sold on October 29, and (c) the inventory on October 31.
Beginning inventory, purchases, and sales for WCS12 are as follows: Assuming a perpetual inventory system and using the weighted average method, determine (a) the weighted average unit cost after the October 22 purchase, (b) the cost of goods sold on October 29, and (c) the inventory on October 31.
On January 1 of Year 1, Dorso Company adopted the dollar-value LIFO method of inventory costing. Dorsos December 31 ending inventory records are as follows: Year 1: Current cost, 20,000; Index, 100 Year 2: Current cost, 33,600; Index, 120 Using the dollar-value LIFO method, compute Dorsos December 31 ending inventory for Year 2.
PERPETUAL: LIFO AND MOVING-AVERAGE Kelley Company began business on January 1, 20-1. Purchases and sales during the month of January follow. REQUIRED Calculate the total amount to be assigned to cost of goods sold for January and the ending inventory on January 31, under each of the following methods: 1. Perpetual LIFO inventory method. 2. Perpetual moving-average inventory method.