ollowing.a) Cost of Goods Sold using Specific IdentificationAvailable for SaleCost of Goods SoldEnding InventoryUnitCostUnitsSoldEndingInventory Unit CostUnitsEndingInventoryCostDateActivityUnitsUnit CostCOGSJan. 1Beginning Inventory295$ 13.80240$13.80 $3,31255 $ 13.80 $759Mar. 14Purchase480 $ 18.80420 $ 18.807,89660 $ 18.801,128July 30Purchase495$ 23.80495 $ 23.8011,7810 $ 23.800.Oct. 26195$ 28.800 $ 28.80195 $ 28.805,616Purchase1,4651,155$ 22,9893107,503b) Gross Margin using Specific Identification$49,275SalesLess:Cost of goods sold21,425$27,850Equals:Gross marginNext >< Prev8.of 12earch%24 Check my worlHemming Co. reported the following current-year purchases and sales for its only product.DateActivitiesJan. 1 Beginning inventoryUnits Acquired at Cost295 units @ $13.80Units Sold at Retail$ 4,071Jan. 10 Sales240 units @ $43.80Mar.14 Purchase480 units @ $18.809,024Mar.15 Sales420 units @ $43.80July30 Purchase495 units @ $23.8011,781Oct. 5 Sales465 units @ $43.80Oct.26 Purchase195 units @ $28.805,616Totals1,465 units$30,492 1,125 unitsRequired:Hemming uses a perpetual inventory system. Assume that ending inventory is made up of 60 units from the March 14 purchase, 85units from the July 30 purchase, and all 195 units from the October 26 purchase. Using the specific identification method, calculate thefollowing.Ending InventoryEndinga) Cost of Goods Sold using Specific ldentificationCost of Goods SoldAvailable for SaleEndingUnitUnitsUnit CostInsventenCOCSUniteiteDateNext >< Prev8.of 12632 PM10/20/2021searchIIS 00

The technique is connected to inventory valuation, specifically tracking and assigning costs to each…

Hemming Co. reported the following current-year purchases and sales for its only product. Date Activities Units Acquired at Cost Jan. 1 Beginning inventory 295 units @ $13.80 Units Sold at Retail = $ 4,071 Jan. 10 Sales 240 units @ $43.80 Mar.14 Purchase 480 units @ $18.80 9,024 Mar.15 Sales 420 units @ $43.80 July30 Purchase 495 units @ $23.89 11.781 %3D

Hemming Co. reported the following current-year purchases and sales for its only product. Date Activities Units Acquired at Cost Jan. 1 Beginning inventory 295 units @ $13.80 Units Sold at Retail = $ 4,071 Jan. 10 Sales 240 units @ $43.80 Mar.14 Purchase 480 units @ $18.80 9,024 Mar.15 Sales 420 units @ $43.80 July30 Purchase 495 units @ $23.89 11.781 %3D

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter6: Cost Of Goods Sold And Inventory

Section: Chapter Questions

Problem 50E: Inventory Costing Methods Crandall Distributors uses a perpetual inventory system and has the...

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Kulsrud Company would like to estimate the current inventory level. Using the gross profit method and the following information, estimate the current inventory level for Kulsrud Company. Goods available for sale 100,000 Net sales 150,000 Normal gross profit as a percent of sales 40%
Inventory Costing Methods On June 1, Welding Products Company had a beginning inventory of 210 cases of welding rods that had been purchased for S88 per case. Welding Products purchased 1,150 cases at a cost of $95 per case on June 3. On June 19, the company purchased another 950 cases at a cost of $112 per case. Sales data for the welding rods are: Welding Products uses a perpetual inventory system, and the sales price of the welding rods was $130 per case. Required: 1. Compute the cost of ending inventory and cost of goods sold using the FIFO method. 2. Compute the cost of ending inventory and cost of goods sold using the LIFO method. 3. Compute the cost of ending inventory and cost of goods sold using the average cost method. ( Note: Use four decimal places for per-unit calculations and round all other numbers to the nearest dollar.) 4. CONCEPTUAL CONNECTION Assume that operating expenses are $21,600 and Welding Products has a 30% tax rate. How much will the cash paid for income taxes differ among the three inventory methods? 5. CONCEPTUAL CONNECTION Compute Welding Products' gross profit ratio (rounded to two decimal places) and inventory turnover ratio (rounded to three decimal places) under each of the three inventory costing methods. How would the choice of inventory costing method affect these ratios?
Reid Company uses the periodic inventory system. On January 1, it had an inventory balance of 250,000. During the year, it made 613,000 of net purchases. At the end of the year, a physical inventory showed it had ending inventory of 140,000. Calculate Reid Companys cost of goods sold for the year.
Calculate the cost of goods sold dollar value for B74 Company for the sale on November 20, considering the following transactions under three different cost allocation methods and using perpetual inventory updating. Provide calculations for (a) first-in, first-out (FIFO); (b) last-in, first-out (LIFO); and (c) weighted average (AVG).
Jessie Stores uses the periodic system of calculating inventory. The following information is available for December of the current year when Jessie sold 500 units of inventory. Using the FIFO method, calculate Jessies inventory on December 31 and its cost of goods sold for December. RE7-11 Using the information from RE7-10, calculate Jessie Storess inventory on December 31 and its cost of goods sold for December using the LIFO method.
Inventory Costing Methods Crandall Distributors uses a perpetual inventory system and has the following data available for inventory, purchases, and sales for a recent year. Required: 1. Compute the cost of ending inventory and the cost of goods sold using the specific identification method. Assume the ending inventory is made up of 40 units from beginning inventory, 30 units from Purchase 1, 80 units from Purchase 2, and 40 units from Purchase 3. 2. Compute the cost of ending inventory and cost of goods sold using the FIFO inventory costing method. 3. Compute the cost of ending inventory and cost of goods sold using the LIFO inventory costing method. 4. Compute the cost of ending inventory and cost of goods sold using the average cost inventory costing method. ( Note: Use four decimal places for per-unit calculations and round all other numbers to the nearest dollar.) 5. CONCEPTUAL CONNECTION Compare the ending inventory and cost of goods sold computed under all four methods. What can you conclude about the effects of the inventory costing methods on the balance sheet and the income statement?
Calculate the cost of goods sold dollar value for A67 Company for the month, considering the following transactions under three different cost allocation methods and using perpetual inventory updating. Provide calculations for weighted average (AVG).
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On January 1, Pope Enterprises inventory was 625,000. Pope made 950,000 of net purchases during the year. On its year-end income statement, Pope reported cost of goods sold of 1,025,000. Calculate Popes December 31 ending inventory.
RE7-8 Johnson Company uses a perpetual inventory system. On October 23, Johnson purchased 100,000 of inventory on credit with payment terms of 1/15, net 45. Using the net price method, prepare journal entries to record Johnsons purchases on October 23 and the subsequent payment on October 31. Using the information from RE7-8, prepare journal entries to record Johnsons purchase on October 23 and the subsequent payment on November 30.
Comprehensive The following information for 2019 is available for Marino Company: 1. The beginning inventory is 100,000. 2. Purchases returns of 4,000 were made. 3. Purchases of 300,000 were made on terms of 2/10, n/30. Eighty percent of the discounts were taken. 4. At December 31, purchases of 20,000 were in transit, FOB destination, on terms of 2/10, n/30. 5. The company made sales of 640,000. The gross selling price per unit is twice the net cost of each unit sold. 6. Sales allowances of 6,000 were made. 7. The company uses the LIFO periodic method and the gross method for purchase discounts. Required: 1. Compute the cost of the ending inventory before the physical inventory is taken. 2. Compute the amount of the cost of goods sold that came from the purchases of the period and the amount that came from the beginning inventory.
Carla Company uses the perpetual inventory system. The following information is available for January of the current year when Carla sold 1,600 units of inventory on January 14. Using the FIFO method, calculate Carlas cost of goods sold for January and its January 31 inventory.