During 2021, a company sells 260 units of inventory for $90 each. The company has the following inventory purchase transactions for2021:Numberof UnitsUnitDateTransactionCost.Total CostJan. 1 Beginning inventoryMay 5 PurchaseNov. 3 Purchase67$62$ 4,1541666310,45812,22018865421$26,832Calculate ending inventory and cost of goods sold for 2021 assuming the company uses FIFO.Ending inventoryCost of goods sold< Prev25 of 60Next >吕口F388F44)FI1F5FBF9F12F10@#$4&35678{WEYFHJK>?CValtcommandoptioncommand.. .*V •* coB.

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FIFO method of inventory computation makes the management assume that the goods which have been sold…

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During 2021, a company sells 260 units of inventory for $90 each. The company has the following inventory purchase transactions for 2021: Number Unit Date Transaction of Units Cost $62 Total Cost Jan. 1 Beginning inventory May 5 Purchase Nov. 3 Purchase $ 4,154 10,458 67 166 188 63 65 12,220 $26,832 421 Calculate ending inventory and cost of goods sold for 2021 assuming the company uses FIFO. Ending inventory Cost of goods sold

During 2021, a company sells 260 units of inventory for $90 each. The company has the following inventory purchase transactions for 2021: Number Unit Date Transaction of Units Cost $62 Total Cost Jan. 1 Beginning inventory May 5 Purchase Nov. 3 Purchase $ 4,154 10,458 67 166 188 63 65 12,220 $26,832 421 Calculate ending inventory and cost of goods sold for 2021 assuming the company uses FIFO. Ending inventory Cost of goods sold

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter10: Inventory

Section: Chapter Questions

Problem 13PA: Company Elmira reported the following cost of goods sold but later realized that an error had been...

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Refer to the information provided in RE8-4. If Paul Corporations inventory at January 1, 2019, had a cost and net realizable value of 300,000, prepare the journal entry to record the reductions to NRV for Paul Corporation assuming that Paul uses a periodic inventory system and the allowance method. Paul Corporation uses FIFO and reports the following inventory information: Assuming Paul uses a perpetual inventory system and the direct method, prepare the journal entry to record the write-down of inventory.
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.)
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