For numbers 10-12: Layla Company reported that a flood recently destroyed many of the financial records. The entity used an average cost of inventory valuation. The entity made a physical count at the end of each month in order to determine monthly ending inventory value. By examining various documents, the following data are gathered: Ending inventory at July 31 6,000 units Total cost of units available for sale in July 1,452,100 Cost of goods sold during July 1,164,100 Cost of beginning inventory, July 1 4.00 per unit Gross profit on sales for July 935,900 Units Unit cost Total cost July 5 55,000 5.10 280,500 11 53,000 5.00 265,000 15 45,000 5.50 247,500 16 47,000 5.30 249,100 Total purchases 200,000 1,042,100 10. What is the number of units on July 1? a. 102,500 c. 76,500 b. 140,000 d. 60,000 11. How many units were sold during the month of July? a. 140,000 c. 302,500 b.
For numbers 10-12: Layla Company reported that a flood recently destroyed many of the financial records. The entity used an average cost of inventory valuation. The entity made a physical count at the end of each month in order to determine monthly ending inventory value. By examining various documents, the following data are gathered: Ending inventory at July 31 6,000 units Total cost of units available for sale in July 1,452,100 Cost of goods sold during July 1,164,100 Cost of beginning inventory, July 1 4.00 per unit Gross profit on sales for July 935,900 Units Unit cost Total cost July 5 55,000 5.10 280,500 11 53,000 5.00 265,000 15 45,000 5.50 247,500 16 47,000 5.30 249,100 Total purchases 200,000 1,042,100 10. What is the number of units on July 1? a. 102,500 c. 76,500 b. 140,000 d. 60,000 11. How many units were sold during the month of July? a. 140,000 c. 302,500 b.
Chapter18: Accounting Periods And Methods
Section: Chapter Questions
Problem 67P
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For numbers 10-12:
Layla Company reported that a flood recently destroyed many of the financial records. The entity used an average cost of inventory valuation . The entity made a physical count at the end of each month in order to determine monthly ending inventory value.
By examining various documents, the following data are gathered:
Ending inventory at July 31 6,000 units
Total cost of units available for sale in July 1,452,100
Cost of goods sold during July 1,164,100
Cost of beginning inventory, July 1 4.00 per unit
Gross profit on sales for July 935,900
Units Unit cost Total cost
July 5 55,000 5.10 280,500
11 53,000 5.00 265,000
15 45,000 5.50 247,500
16 47,000 5.30 249,100
Total purchases 200,000 1,042,100
10. What is the number of units on July 1?
a. 102,500 c. 76,500
b. 140,000 d. 60,000
11. How many units were sold during the month of July?
a. 140,000 c. 302,500
b. 242,500 d. 260,000
12. What is the cost of inventory on July 31?
a. 240,000 c. 312,600
b. 410,000 d. 288,000
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