Required information[The following Information applies to the questions displayed below.]Laker Company reported the following January purchases and sales data for Its only product.DateActivitiesUnits Acquired at Cost225 units @ $15.e0 = $ 3,375Units sold at RetailJan. 1 Beginning inventoryJan. 10 sales175 units e s24.00Jan. 20 Purchase180 units @ $14.e0 =2,520Jan. 25 Sales210 units @ $24.00Jan. 30 Purchase350 units e $13.50 =4,725Totals755 units$1e,620385 unitsThe Company uses a perpetual Inventory system. For specific lidentification, ending Inventory consists of 370 units, where350 are from the January 30 purchase, 5 are from the January 20 purchase, and 15 are from beginning Inventory.Required:1. Complete the table to determine the cost assigned to ending Inventory and cost of goods sold using specific identification.2. Determine the cost assigned to ending Inventory and to cost of goods sold using welghted average.3. Determine the cost assigned to ending inventory and to cost of goods sold using FIFO.4. Determine the cost assigned to ending Inventory and to cost of goods sold using LIFO.Complete this question by entering your answers in the tabs below.Required 1Required 2Required 3Required 4Determine the cost assigned to ending inventory and to cost of goods sold using weighted average. (Round cost per unit to 2 decimal places.)Weighted Average - Perpetual:Goods PurchasedCost of Goods SoldInventory Balance# ofunitssoldCost per Cost of Goodsunit# ofCost perunitCost perunitInventoryBalanceDate# of unitsunitsSoldJanuary 1225 @ s 15.00 =s 3,375.00January 10175 @$ 24.00 =$ 4,200.00January 20180| @S 14.00180 @ $ 14.00 =2,520.00Average cost180 @$ 2,520.00January 25210 @$ 24.00 -$ 5,040.00January 30350@S 13.50350 @$ 13.50 =4,725.00Totals$ 9,240.00350 @

1. Computation of ending inventory and cost of goods sold under Specific Identification…

aker Company reported the following January purchases and sales data for Its only product. Activities Units Acquired at Cost 225 unitse $15.0e = $ 3,375 Date Units sold at Retail Jan. 1 Beginning inventory 175 units e s24.e0 Jan. 10 sales Jan. 20 Purchase Jan. 25 Sales 180 units@ $14.0e - 2,528 210 units e $24.0e 350 units @ $13.5e = 755 units Jan. 30 Purchase 4,725 385 units Totals $18,620 he Company uses a perpetual Inventory system. For specific identification, ending Inventory consists of 370 units, where 50 are from the January 30 purchase, 5 are from the January 20 purchase, and 15 are from beginning Inventory.

aker Company reported the following January purchases and sales data for Its only product. Activities Units Acquired at Cost 225 unitse $15.0e = $ 3,375 Date Units sold at Retail Jan. 1 Beginning inventory 175 units e s24.e0 Jan. 10 sales Jan. 20 Purchase Jan. 25 Sales 180 units@ $14.0e - 2,528 210 units e $24.0e 350 units @ $13.5e = 755 units Jan. 30 Purchase 4,725 385 units Totals $18,620 he Company uses a perpetual Inventory system. For specific identification, ending Inventory consists of 370 units, where 50 are from the January 30 purchase, 5 are from the January 20 purchase, and 15 are from beginning Inventory.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter7: Inventories: Cost Measurement And Flow Assumptions

Section: Chapter Questions

Problem 8P: Comprehensive The following information for 2019 is available for Marino Company: 1. The beginning...

See similar textbooks

Similar questions

Inventory Costing Methods On June 1, Welding Products Company had a beginning inventory of 210 cases of welding rods that had been purchased for S88 per case. Welding Products purchased 1,150 cases at a cost of $95 per case on June 3. On June 19, the company purchased another 950 cases at a cost of $112 per case. Sales data for the welding rods are: Welding Products uses a perpetual inventory system, and the sales price of the welding rods was $130 per case. Required: 1. Compute the cost of ending inventory and cost of goods sold using the FIFO method. 2. Compute the cost of ending inventory and cost of goods sold using the LIFO method. 3. Compute the cost of ending inventory and cost of goods sold using the average cost method. ( Note: Use four decimal places for per-unit calculations and round all other numbers to the nearest dollar.) 4. CONCEPTUAL CONNECTION Assume that operating expenses are $21,600 and Welding Products has a 30% tax rate. How much will the cash paid for income taxes differ among the three inventory methods? 5. CONCEPTUAL CONNECTION Compute Welding Products' gross profit ratio (rounded to two decimal places) and inventory turnover ratio (rounded to three decimal places) under each of the three inventory costing methods. How would the choice of inventory costing method affect these ratios?
Reese Manufacturing Company manufactures and sells a limited line of products made to customer order. The company uses a perpetual inventory system and keeps its accounts on a calendar year basis. A 6-column spreadsheet is presented on page 1100. Additional information needed to prepare the income statement and schedule of cost of goods manufactured is as follows: REQUIRED 1. Prepare an income statement and schedule of cost of goods manufactured for the year ended December 31,20--. 2. Prepare a statement of retained earnings for the year ended December 31,20--. 3. Prepare a balance sheet as of December 31, 20--. 4. Prepare the adjusting, closing, and reversing entries.
Comprehensive The following information for 2019 is available for Marino Company: 1. The beginning inventory is 100,000. 2. Purchases returns of 4,000 were made. 3. Purchases of 300,000 were made on terms of 2/10, n/30. Eighty percent of the discounts were taken. 4. At December 31, purchases of 20,000 were in transit, FOB destination, on terms of 2/10, n/30. 5. The company made sales of 640,000. The gross selling price per unit is twice the net cost of each unit sold. 6. Sales allowances of 6,000 were made. 7. The company uses the LIFO periodic method and the gross method for purchase discounts. Required: 1. Compute the cost of the ending inventory before the physical inventory is taken. 2. Compute the amount of the cost of goods sold that came from the purchases of the period and the amount that came from the beginning inventory.
Golden Eagle Company began operations on April 1 by selling a single product. Data on purchases and sales for the year are as follows: Purchases: Sales: The president of the company, Connie Kilmer, has asked for your advice on which inventory cost flow method should be used for the 32,000-unit physical inventory that was taken on December 31. The company plans to expand its product line in the future and uses the periodic inventory system. Write a brief memo to Ms. Kilmer comparing and contrasting the LIFO and FIFO inventory cost flow methods and their potential impacts on the companys financial statements.
Johnson Corporation had beginning inventory of 20,000 at cost and 35,000 at retail. During the year, it made net purchases of 180,000 at cost and 322,000 at retail. Johnson nude sales of 300,000. Assuming a price index of 100 at the beginning of the year and 110 at the end of the year, compute Johnsons ending inventory at cost using the dollar-value LIFO retail method.
Communication Golden Eagle Company began operations on April 1 by selling a single product. Data on purchases and sales for the year are as follows: Purchases: Sales: The president of the company, Connie Kilmer, has asked for your advice on which inventory cost flow method should be used for the 32,000-unit physical inventory that was taken on December 31. The company plans to expand its product line in the future and uses the periodic inventory system. Write a brief memo to Ms. Kilmer comparing and contrasting the LIFO and FIFO inventory cost flow methods and their potential impacts on the companys financial statements.
Cost of goods sold and related items The following data were extracted from the accounting records of Harkins Company for the year ended April 30, 20Y8: Estimated returns of current year sales 11,600 Inventory, May 1, 20Y7 380,000 Inventory, April 30, 20Y8 415,000 Purchases 3,800,000 Purchases returns and allowances 150,000 Purchases discounts 80,000 Sales 5,850,000 Freight in 16,600 a. Prepare the Cost of goods sold section of the income statement for the year ended April 30, 20Y8, using the periodic inventory system. b. Determine the gross profit to be reported on the income statement for the year ended April 30, 20Y8. c. Would gross profit be different if the perpetual inventory system was used instead of the periodic inventory system?
Calculate the cost of goods sold dollar value for A65 Company for the month, considering the following transactions under three different cost allocation methods and using perpetual inventory updating. Provide calculations for first-in, first-out (FIFO).
Calculate the cost of goods sold dollar value for A66 Company for the month, considering the following transactions under three different cost allocation methods and using perpetual inventory updating. Provide calculations for last-in, first-out (LIFO).
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.
Lower of Cost or Market Garcia Company uses FIFO, and its inventory at the end of the year was recorded in the accounting records at $17,800. Due to technological changes in the market, Garcia would be able to replace its inventory for $16,500. Required: 1. Using the lower of cost or market method, what amount should Garcia report for inventory on its balance sheet at the end of the year? 2. Prepare the journal entry required to value the inventory at the lower of cost or market.
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).