During the year, Wright Company sells 475 remote-control airplanes for $120 each. The company has the following inventory purchasetransactions for the year.Number ofUnits40255205UnitCost$717479TotalCost$2,84018,87016,195DateTransactionBeginning inventoryPurchaseJan. 1May. 5Nov. 3Purchase500$37,905Calculate ending inventory and cost of goods sold for the year, assuming the company uses LIIFO.LIFOCost of Goods Available for SaleCost of Goods SoldEnding InventoryCost of GoodsAvailable for SaleCost of GoodsSoldEndingInventory# of units Cost per unit# of units Cost per unit#of units Cost per unitBeginning Inventory402,84025711.775Purchases:May 52557418,870255$47418.870Nov. 32057916,1952057916,195Total50037,90548536.840%24%24%24%24%24%24

LIFO: LIFO stands for Last-In, First-Out. In this method inventory purchased at last will be sell…

During the year, Wright Company sells 475 remote-control airplanes for $120 each. The company has the following inventory purchase transactions for the year. Number of Unit Total Date Transaction Units Cost Beginning inventory Purchase Purchase Cost $ 2,840 18,870 16,195 Jan. 1 40 $ 71 May. 5 Nov. 3 255 74 205 79 500 $37,905 Calculate ending inventory and cost of goods sold for the year, assuming the company uses LIFO. LIFO Cost of Goods Available for Sale Cost of Goods Sold Ending Inventory # of units Cost per unit Cost of Goods Available for Sale # of units Cost per unit Cost of Goods Sold Ending Inventory # of units Cost per unit Beginning Inventory 40 S 25 $ 71 2.840 71 2$ 1,775 Purchases: May 5 255 S 255 $ 205 $ 485 74 18,870 74 18,870 Nov. 3 205 S 79 16.195 79 16,195 Total 500 37,905 2$ 36,840

During the year, Wright Company sells 475 remote-control airplanes for $120 each. The company has the following inventory purchase transactions for the year. Number of Unit Total Date Transaction Units Cost Beginning inventory Purchase Purchase Cost $ 2,840 18,870 16,195 Jan. 1 40 $ 71 May. 5 Nov. 3 255 74 205 79 500 $37,905 Calculate ending inventory and cost of goods sold for the year, assuming the company uses LIFO. LIFO Cost of Goods Available for Sale Cost of Goods Sold Ending Inventory # of units Cost per unit Cost of Goods Available for Sale # of units Cost per unit Cost of Goods Sold Ending Inventory # of units Cost per unit Beginning Inventory 40 S 25 $ 71 2.840 71 2$ 1,775 Purchases: May 5 255 S 255 $ 205 $ 485 74 18,870 74 18,870 Nov. 3 205 S 79 16.195 79 16,195 Total 500 37,905 2$ 36,840

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...

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