During July 2014, Leesburg, Inc., sold 250 units of its product Empire for $4,000. The following units were available (see image). A sale of 250 units was made after purchase 3. Of the units sold, 100 came from begin-ning inventory and 150 came from purchase 3.Determine cost of goods available for sale and ending inventory in units. Then determine the costs that should be assigned to cost of goods sold and ending inventory under each of the following assumptions: (For each alternative, show the gross margin. Round unit costs to the nearest cent and totals to dollars.) 1.Costs are assigned under the periodic inventory system using (a) the specific iden-tification method, (b) the average-cost method, (c) the FIFO method, and (d) the LIFO method. 2.Costs are assigned under the perpetual inventory system using (a) the average-cost method, (b) the FIFO method, and (c) the LIFO method.

Question

During July 2014, Leesburg, Inc., sold 250 units of its product Empire for $4,000. The following units were available (see image).

A sale of 250 units was made after purchase 3. Of the units sold, 100 came from begin-ning inventory and 150 came from purchase 3.Determine cost of goods available for sale and ending inventory in units. Then determine the costs that should be assigned to cost of goods sold and ending inventory under each of the following assumptions: (For each alternative, show the gross margin. Round unit costs to the nearest cent and totals to dollars.)

1.Costs are assigned under the periodic inventory system using (a) the specific iden-tification method, (b) the average-cost method, (c) the FIFO method, and (d) the LIFO method.

2.Costs are assigned under the perpetual inventory system using (a) the average-cost method, (b) the FIFO method, and (c) the LIFO method.

Expand

Expert Answer

Want to see the step-by-step answer?

Check out a sample Q&A here.

Want to see this answer and more?

Experts are waiting 24/7 to provide step-by-step solutions in as fast as 30 minutes!*

*Response times may vary by subject and question complexity. Median response time is 34 minutes for paid subscribers and may be longer for promotional offers.
Tagged in
Business
Accounting

Inventory Valuation

Related Accounting Q&A

Find answers to questions asked by students like you.

Q: The following are information related to April 2020 transaction of Magnolia company, manufacturer of...

A: Work-in process: This is the cost of units which were semi-finished in a particular period. Further ...

Q: 11. Gallatin County Motors Inc. assembles and sells snowmobile engines. The company began operations...

A: Absorption Costing Income Statement: Under the absorption costing, the operating income is calculate...

Q: Horizontal analysis of income statement (No incorrect answers so far most Experts today are giving m...

A: Horizontal analysis is prepared to calculate the variance from previous year by showing increase/dec...

Q: Times interest earned A company reports the following: Income before income tax expense $3,120,00...

A: Times interest earned ratio measures the company's ability to pay its interest obligations. Times in...

Q: Mandy Corporation sells a single product. Budgeted sales for the year are anticipated to be 625,000 ...

A: The budget is prepared by the management on the basis of past experience. On the basis of the budget...

Q: 4. Below are the transactions for the month of February 2020 for Mrs Lamuna, a sole trader: Feb 1 St...

A: b)

Q: Pierce & Company provides the following information concerning the work in process at its plant: • B...

A: Under weighted-average method, units completed and transferred out are 100% complete with respect to...

Q: 1. In accounting, we usually use historical cost (i.e. original price) on the balance sheet. However...

A: Answer 1: The carrying value is the lower cost and fair/market value of current investments. Regardi...

Q: Here is the partial work sheet for Eckland Stereo: Required:  4. Determine the current ratio (carry ...

A: Formula: Current ratio = Current Assets / Current liabilities Division of current liabilities with c...

Q: What is a major shortcoming of just using Income from Operations as a performance measure for Invest...

A: Click to see the answer

Q: Big Wheel, Inc. collects 25% of its sales on account in the month of the sale and 75% in the month f...

A: Budgeted Sales is the forecast of How much revenue a company can earn in future.

Q: Hardy's Landscape Service's total revenue on account for 2018 amounted to $273,205. The company, whi...

A: Estimated bad debts = 1/2 percent of total revenue on account = $273,205 x 1/2% = $1,366

Q: Socorro Company sells color television sets with a two-year repair warranty The sale price for each ...

A: Hello. Since your question has multiple sub-parts, we will solve the first three sub-parts for you. ...

Q: Requirement 4. No preferred dividends are in arrears . Journalize the declaration of a $ 700,000 div...

A: Dividend distribution is a method of distributing profit among the stockholder of the organization. ...

Q: The following was taken from Stickers Corp.’s accounting records for the year ended December 31, 201...

A: Raw material used = Raw material purchased - Increase in raw material inventory

Q: Perpetual Inventory Using LIFO Beginning inventory, purchases, and sales data for prepaid cell phone...

A: Perpetual Inventory System:   Perpetual Inventory System refers to the inventory system that maintai...

Q: The 2014 comparative balance sheet and 2014 income statement of Simple Things Industries Ltd, have j...

A: Cash Flow Statement is the statement that shows inflows and the outflows of cash and cash equivalent...

Q: Whispering Inc. purchased land at a price of $29,900. Closing costs were $3,230. An old building was...

A: The cost of land would be the cost incurred to make land available for purchase

Q: Beck Inc. and Bryant Inc. have the following operating data:   Beck Inc. Bryant Inc. Sales $326...

A: Operating leverage: It is calculated by dividing the contribution margin by the operating income of ...

Q: Today, a very high percentage of publicly traded companies are audited by only four very large publi...

A: The public accounting firms are the firms with experts providing various kinds of accounting, auditi...

Q: A company manufactures Chemical X, in a single process. At the start of the month there was no work-...

A:  S.No  units particulars  Amount 1.  300 Raw material cost $6000 2.   Conversion cost $4500   ...

Q: Camilo's property, with an adjusted basis of $304,000, is condemned by the state. Camilo receives pr...

A: Step 1: Compute Camilo's realized gain: Step 2: Compute Camilo's recognized gain: Camilo's recogniz...

Q: Question 2) Dartis Company is considering investing in a specialized equipment costing $800,000. The...

A: Accounting rate of return = average annual operating income/average initial investment   Where avera...

Q: Hello question is attached, thanks.

A: Flexible budget operating loss=Contribution×Units sold-Fixed cost($6,000)=$4×Units sold-$70,000Units...

Q: The 2014 comparative balance sheet and 2014 income statement of Byfield Co Ltd, have just been distr...

A: Cash flow statement: It is a statement which reports the cash inflows and outflows of a business dur...

Q: 1. The adjusted trial balance columns of the worksheet for Savaglia Company are as follows. SAVAGLIA...

A: Income statement reports revenues and expenses, whereas balance sheet reports assets, liabilities, a...

Q: Resources' requirements, standard pounds per unit Resources' standard price, per pound Units produce...

A: Formula: Direct materials price variance = ( Standard price - actual price ) x Actual quantity. Dedu...

Q: A key ethical issue in cost allocation involves costing in an international context, because the cho...

A: Cost allocation is a process of identifying, assigning, aggregating the costs to various cost object...

Q: A sales invoice included the following information: merchandise price, P5,000; freight, P900; terms ...

A: Net Purchases = Total purchases - Purchase return = P5,000 - P700 = P4,300

Q: Please answer all questions with explanations. Thx

A: Sales mix refers to the concept of determining the proportion of all products sold by the business e...

Q: In an effort to keep low-wage workers' salaries commensurate with the cost of living, a number of st...

A: As you have posted multiple independent questions, we are answering the first three questions. Kindl...

Q: Anna Company purchased an equipment costing P100,000 on July 1, 2016. The equipment has an estimated...

A: Depreciation expense is part of cost of the asset charged as expense in the income statement. Deprec...

Q: Use the following Company T adjusted trial balance to prepare the following: Adjusted Trial Balance ...

A: Financial statement: Financial statements are organized summaries of detailed information about the ...

Q: Theta prepares its financial statements for the year to 30 April each year. The company pays rent fo...

A: Monthly rent until 30 June 2000 = Total yearly rent / 12 months = P84,000 / 12 months = P7,000 Month...

Q: You are the lead S-Corporations tax specialist in your area. Your client, Cathyrn, has purchased an ...

A: The following are the criteria which should be fulfilled for recognizing a company as S Corporation:...

Q: Scenario: The 2014 comparative balance sheet and 2014 income statement of Bradshaw and Fran Co Ltd, ...

A: Introduction: Statement of cash flows: All cash in and out flows of transactions are recorded in sta...

Q: An entity’s unadjusted trial balance does not equal. The following information was determined: • The...

A: Trial balance is prepared to find out the arthimetical accuracy of books of account with all ledger ...

Q: Which of the following performance measures will increase if inventory decreases and all else remain...

A:   Return on investment is a simple ratio of the gain from an investment relative to the amount inves...

Q: Requirement 2. Prepare the stockholders ' equity section of the KCAS - TV balance sheet at September...

A: Click to see the answer

Q: Thomas is a cost accountant and business analyst for Dashing Design Company​ (DDC), which manufactur...

A: Variance analysis: In budgeting, variance analysis is summarized as the analysis of the study of the...

Q: Journal Entries – General FundSun City incurred the following transactions during the year. Prepare ...

A: General fund: General Fund is a fund created by the federal government to record all the inflows of ...

Q: The 2014 comparative balance sheet and 2014 income statement of Byfield Co Ltd, have just been distr...

A: Click to see the answer

Q: Assuming the following Adjusted Trial Balance: Adjusted Trial Balance Debit Credit Cash $23,900 Prep...

A: Closing entries are the journal entries made at the end of the accounting year that closes the tempo...

Q: Metlock enters into an agreement with Traveler Inc. to lease a car on December 31, 2019. The followi...

A: Journal entries are the entries to be recorded in the accounting books of the business for all the f...

Q: CVP analysis using activity-based costs will tend to shift some costs from fixed to variable classif...

A: CVP Analysis:   CVP analysis establishes the relation between cost, volume and profit of the compan...

Q: Use the following Adjusted Trial Balance. Adjusted Trial Balance Debit Credit Cash $16,500 Accounts ...

A: Click to see the answer

Q: Oriole Leasing Company leases a new machine to Sharrer Corporation. The machine has a cost of $65.00...

A: Amortization schedule: This shows the periodic lease payments, interest and balance outstanding for ...