Beginning inventory, 9/1/2021 7,500 units @ $10.00Purchases:9/74,500 units @ $10.4012,000 units @ $11.759/25Sales:9/109/2914,000 units were on hand at the end of September.4,000 units6,000 unitsRequired:1. Assuming that CNB uses a periodic inventory system and employs the average cost method, determinecost of goods sold for September and September's ending inventory.2. Assuming that CNB uses a perpetual inventory system and employs the average cost method, determinecost of goods sold for September and September's ending inventory.Complete this question by entering your answers in the tabs below.Required 1Required 2Assuming that CNB uses a perpetual inventory system and employs the average cost method, determine cost of goods sold for Septemberand September's ending inventory. (Enter inventory reductions for sales with a minus sign. Round cost per unit to 2 decimal places.)Inventory on handCost of Goods SoldPerpetual AverageAverageÇost perunit# of unitsInventoryValueCost ofGoods SoldCost# of unitsper unitsoldBeginning Inventory7,500 O $ 10.00 O $75,000Purchase - September 74,500 O10.40 O46,800Subtotal Average Cost12,00010.15 O121,800Sale - September 104,000 810.15 O40,600Subtotal Average Cost16,00011.75 X162,400Purchase - September 2512,000 O11.11 8133,320Subtotal Average Cost28,00011.11 O295,720Sale - September 296,000 X11.11 O66,660(6,000)11.11(66,660)Total34,00011.11 O $362,380(6,000)$ (66,660) Beginning inventory, 9/1/2021 7,500 units @ $10.00Purchases:9/79/25Sales:9/109/2914,000 units were on hand at the end of September.4,500 units @ $10.4012,000 units @ $11.754,000 units6,000 unitsRequired:1. Assuming that CNB uses a periodic inventory system and employs the average cost method, determinecost of goods sold for September and September's ending inventory.2. Assuming that CNB uses a perpetual inventory system and employs the average cost method, determinecost of goods sold for September and September's ending inventory.Complete this question by entering your answers in the tabs below.Required 1Required 2Assuming that CNB uses a periodic inventory system and employs the average cost method, determine cost of goods sold for September and September's endinginventory. (Round cost per unit to 2 decimal places.)Cost of Goods Available for SaleCost of Goods Sold - Average CostEnding Inventory - Average CostCost ofGoodsAvailable forSaleAverageCost perUnit# of unitsin endinginventoryAverageCost perunitAverage CostEndingInventory# of unitsCost of# of unitsUnit CostsoldGoods SoldBeginning Inventory7,500 $10.00$75.000|Purchases:9/74,500 $10.4046,8009/2512,000 $11.75141,000Total24,000$262,80010,000 $10.95 $ 109,50014,000 $10.95 $ 153,300

Name: Beginning inventory, 9/1/2021 7,500 units @ $10.00Purchases:9/74,500
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Description: Beginning inventory, 9/1/2021 7,500 units @ $10.00Purchases:9/74,500 units @ $10.4012,000 units @ $11.759/25Sales:9/109/2914,000 units were on hand at the end of September.4,000 units6,000 unitsRequired:1. Assuming that CNB uses a periodic inventory

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Beginning inventory, 9/1/2021 7,500 units @ $10.00 Purchases: 9/7 9/25 Sales: 4,500 units @ $10.40 12,000 units @ $11.75 9/10 9/29 14,000 units were on hand at the end of September. 4,000 units 6,000 units Required: 1. Assuming that CNB uses a periodic inventory system and employs the average cost method, determine cost of goods sold for September and September's ending inventory. 2. Assuming that CNB uses a perpetual inventory system and employs the average cost method, determine cost of goods sold for September and September's ending inventory.

Beginning inventory, 9/1/2021 7,500 units @ $10.00 Purchases: 9/7 9/25 Sales: 4,500 units @ $10.40 12,000 units @ $11.75 9/10 9/29 14,000 units were on hand at the end of September. 4,000 units 6,000 units Required: 1. Assuming that CNB uses a periodic inventory system and employs the average cost method, determine cost of goods sold for September and September's ending inventory. 2. Assuming that CNB uses a perpetual inventory system and employs the average cost method, determine cost of goods sold for September and September's ending inventory.

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 51E: Inventory Costing Methods On June 1, Welding Products Company had a beginning inventory of 210 cases...

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Reid Company uses the periodic inventory system. On January 1, it had an inventory balance of 250,000. During the year, it made 613,000 of net purchases. At the end of the year, a physical inventory showed it had ending inventory of 140,000. Calculate Reid Companys cost of goods sold for the year.
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?
Hurst Companys beginning inventory and purchases during the fiscal year ended December 31, 20-2, were as follows: There are 1,200 units of inventory on hand on December 31, 20-2. REQUIRED 1. Calculate the total amount to be assigned to the cost of goods sold for 20-2 and ending inventory on December 31 under each of the following periodic inventory methods: (a) FIFO (b) LIFO (c) Weighted-average (round calculations to two decimal places) 2. Assume that the market price per unit (cost to replace) of Hursts inventory on December 31 was 18. Calculate the total amount to be assigned to the ending inventory on December 31 under each of the following methods: (a) FIFO lower-of-cost-or-market (b) Weighted-average lower-of-cost-or-market 3. In addition to taking a physical inventory on December 31, Hurst decides to estimate the ending inventory and cost of goods sold. During the fiscal year ended December 31, 20-2, net sales of 100,000 were made at a normal gross profit rate of 35%. Use the gross profit method to estimate the cost of goods sold for the fiscal year ended December 31 and the inventory on December 31.
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.
Inventory Costing Methods VanderMeer Inc. reported the following information for the month of February: During February, VanderMeer sold 140 units. The company uses a periodic inventory system. Required What is the value of ending inventory and cost of goods sold for February under the following assumptions: Of the 140 units sold, 55 cost $20, 35 cost $22, 45 cost $23, and 5 cost $24. FIFO LIFO Weighted average
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.
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
Inventory Costing and LCM Ortman Enterprises sells a chemical used in various manufacturing processes. On January 1, 2019, Ortman had 5,000,000 gallons on hand, for which it had paid $0.50 per gallon. During 2019, Ortman made the following purchases: During 2019, Ortman sold 65 000,000 gallons at $0.75 per gallon (35,000,000 gallons were sold on June 29 and 30,000,000 gallons were sold on Nov. 22), leaving an ending inventory of 7,000,000 gallons. Assume that Ortman uses a perpetual inventory system. Ortman uses the lower of cost or market for its inventories, as required by generally accepted accounting principles. Required: 1. Assume that the market value of the chemical is $0.76 per gallon on December 31, 2019. Compute the cost of ending inventory using the FIFO and average cost methods, and then apply LCM. ( Note: Use four decimal places for per-unit calculations and round all other numbers to the nearest dollar.) 2. Assume that the market value of the chemical is $0.58 per gallon on December 31, 2019. Compute the cost of ending inventory using the FIFO and average cost methods, and then apply LCM. ( Note: Use four decimal places for per-unit calculations and round all other numbers to the nearest dollar.)
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?
The moving average inventory cost flow assumption is applicable to which of the following inventory systems? Questions M7-6 and M7-7 are based on the following data: City Stationers Inc. had 200 calculators on hand on January 1, 2019, costing 18 each. Purchases and sales of calculators during the month of January were as follows: City uses a periodic inventory system. According to a physical count, 150 calculators were on hand at January 31, 2019.
On January 1, Pope Enterprises inventory was 625,000. Pope made 950,000 of net purchases during the year. On its year-end income statement, Pope reported cost of goods sold of 1,025,000. Calculate Popes December 31 ending inventory.
Inventory Pools Stone Shoe Company adopted dollar-value LIFO on January 1, 2019. The company produces four products and uses a single inventory pool. The companys beginning inventory consists of the following: During 2019, the company has the following purchases and sales: Required: 1. Compute the dollar-value LIFO cost of the ending inventory. Round the cost index to 4 decimal places and all other amounts to the nearest dollar. 2. Next Level By how much would the companys gross profit differ if it had used four pools instead of a single pool?