James's Televisions produces television sets in three categories: portable, midsize, and flat-screen. On January 1, 2025, Jamesadopted dollar-value LIFO and decided to use a single inventory pool. The company's January 1 inventory consists of:CategoryPortableMidsizeFlat-screenCategoryPortableMidsizeQuantity Cost per Unit$100Flat-screen3,0004,0001,5008,500QuantityPurchased7,500During 2025, the company had the following purchases and sales.10,0005,00025022,500400Cost per Unit$110300Total Cost500$300,0001,000,000600,000$1,900,000QuantitySold7,00012,0003,00022,000Selling Priceper Unit$150400600 Assume the company uses three inventory pools instead of one. Compute ending inventory, cost of goods sold, and gross profit.(Round price index to 2 decimal places, e.g. 1.45 and final answers to O decimal places, e.g. 6,548.)Ending inventoryCost of goods soldGross profit$LA$$

The last-in-first-out method is also known as the LIFO method. It is a method in which the goods…

James's Televisions produces television sets in three categories: portable, midsize, and flat-screen. On January 1, 2025, James adopted dollar-value LIFO and decided to use a single inventory pool. The company's January 1 inventory consists of: Category Portable Midsize Flat-screen Category Portable Midsize Quantity Flat-screen 3,000 4,000 1,500 8,500 Quantity Purchased 7,500 10,000 5,000 Cost per Unit During 2025, the company had the following purchases and sales. 22,500 $100 250 400 Cost per Unit $110 300 Total Cost 500 $300,000 1,000,000 600,000 $1,900,000 Quantity Sold 7,000 12,000 3,000 22,000 Selling Price per Unit $150 400 600

James's Televisions produces television sets in three categories: portable, midsize, and flat-screen. On January 1, 2025, James adopted dollar-value LIFO and decided to use a single inventory pool. The company's January 1 inventory consists of: Category Portable Midsize Flat-screen Category Portable Midsize Quantity Flat-screen 3,000 4,000 1,500 8,500 Quantity Purchased 7,500 10,000 5,000 Cost per Unit During 2025, the company had the following purchases and sales. 22,500 $100 250 400 Cost per Unit $110 300 Total Cost 500 $300,000 1,000,000 600,000 $1,900,000 Quantity Sold 7,000 12,000 3,000 22,000 Selling Price per Unit $150 400 600

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 13P: Webster Company adopted do liar-value LIFO on January 1, 2019. Webster produces three products: X,...

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Use the following information to compute cost of goods sold under the FIFO and LIFO inventory methods. The firm sold 200 units.
Habicht Company was formed in 2018 to produce a single product. The production and sales for the next 4 years were as follows: Required: 1. Determine the gross profit for each year under each of the following periodic inventory methods: a. FIFO b. LIFO c. Average cost (Round unit costs to 3 decimal places.) 2. Next Level Explain whether the companys return on assets (net income divided by average total assets) would be higher under FIFO or LIFO.
Moore Company uses the LIFO cost flow assumption and carries Product A in inventory on December 31, 2019, at its unit cost of 9.50. Because of a sharp decline in demand for the product, the selling price was reduced to 10.00 per unit. Moores normal profit margin on Product A is 2.00, disposal costs are 1.00 per unit, and the replacement cost is 6.50. Under the lower of cost or market rule, Moores December 31, 2019, inventory of Product A should be valued at a unit cost of: a. 6.50 b. 9.00 c. 7.00 d. 9.50
Steven’s Televisions produces television sets in three categories: portable, midsize, and flat-screen. On January 1, 2020, Steven adopted dollar-value LIFO and decided to use a single inventory pool. The company’s January 1 inventory consists of: Category Quantity Cost per Unit Total Cost Portable 13,800 $100 $ 1,380,000 Midsize 18,400 250 4,600,000 Flat-screen 6,900 400 2,760,000 39,100 $8,740,000 During 2020, the company had the following purchases and sales. Category QuantityPurchased Cost per Unit QuantitySold Selling Priceper Unit Portable 34,500 $110 32,200 $150 Midsize 46,000 300 55,200 400 Flat-screen 23,000 500 13,800 600 103,500 101,200 Assume the company uses three inventory pools instead of one. Compute ending inventory, cost of goods sold, and gross profit. (Round price index to 2 decimal places, e.g. 1.45 and final answers to 0 decimal places, e.g.…
Norman's Televisions produces television sets in three categories: portable, midsize, and flat-screen. On January 1, 2020, Norman adopted dollar-value LIFO and decided to use a single inventory pool. The company's January 1 inventory consists of: Category Quantity Cost per Unit Total Cost Portable 6,000 $100 $ 600,000 Midsize 8,000 250 2,000,000 Flat-screen 3,000 400 1,200,000 17,000 $3,800,000 During 2020, the company had the following purchases and sales. Category QuantityPurchased Cost per Unit Quantity Sold Selling Price per Unit Portable 15,000 $110 14,000 $150 Midsize 20,000 300 24,000 405 Flat-screen 10,000 500 6,000 600 45,000 44,000 Instructions (Round to four decimals.) a. Compute ending inventory, cost of goods sold, and gross profit. b. Assume the company uses three inventory pools instead of one. Repeat instruction (a).
Home Stop sells two product categories, furniture and accessories. Information pertaining to its 2021 year-end inventory is as follows: Inventory,by Product Category Quantity Per UnitCost Market Furniture: Chairs 40 $ 44 $ 50 Desks 70 92 77 Tables 80 103 111 Accessories: Rugs 40 79 67 Lamps 20 41 37 Required:1. Determine the carrying value of inventory at year-end, assuming the lower of cost or market (LCM) rule is applied to (a) individual products, (b) product categories, and (c) total inventory.2. Assuming inventory write-downs are common for Home Stop, record any necessary year-end adjustment amount for each of the LCM applications in requirement 1. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Determine the carrying value of inventory at year-end, assuming the lower of cost or market…
Home Stop sells two product categories, furniture and accessories. Information pertaining to its 2021 year-end inventory is as follows: Inventory, Per Unit By Product Category Quantity Cost Market Furniture: Chairs 40 $40 $ 46 Desks 20 88 73 Tables 60 99 107 Accessories: Rugs 30 75 63 Lamps…
XYZ Company Began the year 2020 with 600 units of products in its January 1 Inventory costingBD35 each. The following information from XYZ Company for the year 2020.Date Activities Units Acquired at Cost Units sold at retailJanuary 4 Purchase 1,000 units @ BD 33May 18 Sales 1,100 unitsJuly 10 Purchase 1,200 units @ BD 30November 20 Sales 900 unitsRequired:Assume the XYZ uses a perpetual inventory system (FIFO method), What is the value of the cost ofgoods sold.
The Strawser-Morris Corporation uses a periodic inventory system and has used the FIFO cost method since inception of the company in 1985. In 2024, the company decided to change to the average cost method. Data for 2024 are as follows: Beginning inventory, FIFO (6,700 units @ $47.00) $ 314,900 Purchases: 6,700 units @ $53.00 $ 355,100 6,700 units @ $57.00 381,900 737,000 Cost of goods available for sale $ 1,051,900 Sales for 2024 (11,400 units @ $87.00) $ 991,800 Additional information: The company's effective income tax rate is 25% for all years. If the company had used the average cost method prior to 2024, ending inventory for 2023 would have been $288,100. 8,700 units remained in inventory at the end of 2024. Required: Prepare the journal entry at the beginning of 2024 to record the change in principle. In the 2024–2022 comparative financial statements, what will be the amounts of cost of goods sold and inventory reported for 2024?
Hammond Company adopted LIFO when it was formed on January 1, 2017. Since then, the company has had the following purchases and sales of its single inventory item: Year Units Purchased Cost per Unit Units Sold Price per Unit 2017 10,000 $5 8,000 $12 2018 12,000 6 9,000 13 2019 15,000 8 14,000 16 In December 2020, the controller realized that because of an unexpected increase in demand, the company had sold 22,000 units but had purchased only 19,000 units during the year. In 2020, each unit had been sold for $19, and each unit purchased had cost $10. The income tax rate is 21%. Required: 1. If Hammond makes no additional purchases in 2020, how much LIFO liquidation profit will it report? $fill in the blank 7a6026fb6f8f01d_1 2. Prepare the appropriate annual report disclosures for 2020. 2020 2019 Inventory at FIFO $fill in the blank b2a8b8fedfc6fff_1 $fill in the blank b2a8b8fedfc6fff_2 Less: LIFO valuation…
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