Date Transaction Number of Units Unit Cost Total Cost Jan. 1 Beginning inventory 20 $22 $ 440 Mar. 4 Purchase 25 21 525 Jun. 9 Purchase 30 20 600 Nov. 11 Purchase 30 18 540 105 $2,105
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During the year, Trombley Incorporated has the following inventory transactions.
For the entire year, the company sells 81 units of inventory for $30 each.
Required:
1. Using FIFO, calculate (a) ending inventory, (b) cost of goods sold, (c) sales revenue, and (d) gross profit.
2. Using LIFO, calculate (a) ending inventory, (b) cost of goods sold, (c) sales revenue, and (d) gross profit.
3. Using weighted-average cost, calculate (a) ending inventory, (b) cost of goods sold, (c) sales revenue, and (d) gross profit.
4. Determine which method will result in higher profitability when inventory costs are declining.
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- At what figure should the inventory be valued? *a. P 880,000b. P 760,000c. P 980,000d. P 940,000Hall Company’s beginning inventory and purchases during the fiscal year ended December 31, 20--, were as follows: UnitsUnit PriceTotal CostJanuary 1Beginning inventory800$11.00$8,800March 51st purchase60012.007,200April 162nd purchase50012.506,250June 33rd purchase70014.009,800August 184th purchase80015.0012,000September 135th purchase90017.0015,300November 146th purchase40018.007,200December 37th purchase50020.3010,150 5,200 $76,700 There are 1,100 units of inventory on hand on December 31.Required:1.Calculate the total amount to be assigned to the ending inventory and cost of goods sold on December 31 under each of the following 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 Hall’s inventory on December 31 was $16. 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…5. For the movement of the INVEST commodity from 01.01.20X1 to 31.12.20X1 you are given the following information: Initial Inventory and Purchases: Units unit price Total 01/01/20X1 Initial Stock 700 350 245.000,00 12/03/20X1 Market 1 270 400 108.000,00 05/06/20X1 Market 2 400 420 168.000,00 12/09/20X1 Market 3 500 440 220.000,00 21/11/20X1 Market 4 200 460 92.000,00 Total 2070 833.000,00 Sales: Units unit price Total 15/02/20X1 Sale 1 300 710 213.000,00 20/05/20X1 Sale 2 500 730 365.000,00 10/09/20X1 Sale 3 400 740 296.000,00 10/12/20X1 Sale 4 750 750 562.500,00 0,00 Total 1950 1.436.500,00 Whereas: A. ABC determines the cost of its goods sold on the basis of: The FIFO method The method of the weighted average (cost) B. During the inventory of the goods on 31/12/20X1 it was found that its current price amounted to € 520 per unit. It is requested to calculate without calendar entries: the cost of…
- E8.12 (LO 3) (FIFO, LIFO, Average-Cost Inventory) Shania Twain Company was formed onDecember 1, 2019. The following information is available from Twain’s inventory records for Product BAP. Units Unit CostJanuary 1, 2020 (beginning inventory) 600 $ 8.00Purchases:January 5, 2020 1,200 9.00January 25, 2020 1,300 10.00February 16, 2020 800 11.00March 26, 2020 600 12.00 A physical inventory on March 31, 2020, shows 1,600 units on hand.InstructionsPrepare schedules to compute the ending inventory at March 31, 2020, under each of the following inventory methods.a. FIFO b. LIFO. c. Weighted-average (round unit costs to two decimal places)Question: Compute the COGS. Beg Inventory $10000, COGM $2000, Ending Inventory $5000Presented below is information related to Rembrandt Inc.’s inventory. 000(per unit)000 00Skis00 0Boots0 Parkas Historical cost $190.00 $106.00 $53.00 Selling price 212.00 145.00 73.75 Cost to sell 19.00 8.00 2.50 Cost to complete 32.00 29.00 21.25 Determine the following: (a) the net realizable value for each item, and (b) the carrying value of each item under LCNRV.
- FE9Advice the closing inventory value as at July 31stProduct Qty On Hand Cost NRVWJ01 225 $0.05 $1.00WJ02 114 $0.20 $0.90WJ03 74 $2.00 $1.60WJ04 35 $6.20 $6.18WJ05 3 $2,500.00 $2,550.00WJ06 58 $1.50 $1.55a) 7,986.05b) 7,955.75c) 8,402.20d) 7,960.65Beginning inventory 32 000 Cost of goods sold 404 000 Ending inventory 45 000 Net icome 28 000 Net sales 750 000 Operating expenses 220 000 Sales revenue 765 000 Compute each of the follwoing ratios Gross profit rate Inventory turnover Days in inventory Profit maDetermine the missing amounts. Unit SellingPrice Unit VariableCosts Unit ContributionMargin Contribution MarginRatio 1. $750 $375 $ (a) % (b) 2. $450 $ (c) $153 % (d) 3. $ (e) $ (f) $760 40 %
- Extreme Company shows the following information:Units Unit cost Total costJanuary 1 Beginning 10,000 40 400,00031 Sale 5,000April 1 Purchase 15,000 50 750,000July 31 Sale 18,000October 1 Purchase 25,000 60 1,500,000December 31 Sale 12,000Required:Compute the cost of the ending inventory and cost of sales using:1. FIFO – periodic2. Weighted average3. Moving averageQ3 Computational. From the following information, determine the amount of ending inventory.Beginning Inventory - P20,000Purchases - 41,000Purchase Returns and Allowances - 3,000Purchase Discounts - 4,000Freight-In – 10% of gross purchasesCost of Goods Available for Sale - 55,000Cost of Goods Sold - 22,5001. In the statement of financial statement restated to current cost, what amount should be reported as inventory on December 31? a. 1080000 b. 2880000 c.975000 d. 870000 2. What amount should be reported as unrealized holding gain on inventory for the current year? a. 210000 b. 135000 c. 560000 d. 0 3. In the income statement restated to current cost, what amount should be reported as cost of goods sold for the current year? a. 2320000 b. 2880000 c. 2600000 d. 2375000 4. In the income statement restated to current cost, what amount should be reported as realized holding gain from the inventory sold for the current year? a. 225000 b. 135000 c. 350000 d. 505000