Jonson Inc. shows the following data for its raw material inventory used in a manufacturing process. Date Oct. 1 Oct. 4 Oct. 5 Oct. 20 Oct. 24 Oct. 31 Inventory (beginning). Purchase Transfer out. Purchase Transfer out.. Purchase Units 4,000 3,000 5,000 8,000 7,000 3,000 a. Moving Average-Perpetual system. b. FIFO Perpetual system. Unit Cost $14.00 15.40 16.00 16.80 Required Compute cost of materials transferred out (to work in process) and the cost of its raw materials ending inventory assuming use of: c. LIFO Perpetual system.

Jonson Inc. shows the following data for its raw material inventory used in a manufacturing process. Date Oct. 1 Oct. 4 Oct. 5 Oct. 20 Oct. 24 Oct. 31 Inventory (beginning). Purchase Transfer out. Purchase Transfer out.. Purchase Units 4,000 3,000 5,000 8,000 7,000 3,000 a. Moving Average-Perpetual system. b. FIFO Perpetual system. Unit Cost $14.00 15.40 16.00 16.80 Required Compute cost of materials transferred out (to work in process) and the cost of its raw materials ending inventory assuming use of: c. LIFO Perpetual system.

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 32CE: ( Appendix 6B) Inventory Costing Methods: Periodic Average Cost Refer to the information for...

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Perpetual inventory using FIFO Assume that the business in Exercise 6-5 maintains a perpetual inventory system, costing by the first-in, first-out method. Determine the cost of goods sold for each sale and the inventory balance after each sale, presenting the data in the form illustrated in Exhibit 3.
( Appendix 6B) Inventory Costing Methods: Periodic Inventory Systems. Refer to the information for Tyler Company in Brief Exercise 6-35 and assume that the company uses the periodic inventory system. Required: Calculate the cost of goods sold and the cost of ending inventory using the FIFO, LIFO, and average cost methods. ( Note: Use four decimal places for per-unit calculations and round all other numbers to the nearest whole dollar.)
( Appendix 6B) Inventory Costing Methods: Periodic Average Cost Refer to the information for Filimonov Inc. (p. 337) and assume that the company uses a periodic inventory system. Required: Calculate the cost of goods sold and the cost of ending inventory using the average cost method. ( Note: Use four decimal places for per-unit calculations and round all other numbers to the nearest dollar.)
Periodic inventory by three methods Pappas Appliances uses the periodic inventory system. Details regarding the inventory of appliances at January 1, purchases invoices during the year, and the inventory count at December 31 are summarized as follows: Instructions 1. Determine the cost of the inventory on December 31 by the first-in, first-out method. Present data in columnar form, using the following headings: Model Quantity Unit Cost Total Cost If the inventory of a particular model comprises one entire purchase plus a portion of another purchase acquired at a different unit cost, use a separate line for each purchase. 2. Determine the cost of the inventory on December 31 by the last-in, first-out method, following the procedures indicated in (1). 3. Determine the cost of the inventory on December 31 by the weighted average cost method, using the columnar headings indicated in (1). 4. Discuss which method (FIFO or LIFO) would be preferred for income tax purposes in periods of (a) rising prices and (b) declining prices.
( Appendix 6B) Inventory Costing Methods: Periodic Inventory System The inventory accounting records for Lee Enterprises contained the following data: Required: 1. Calculate the cost of ending inventory and the cost of goods sold using the FIFO, LIFO, and average cost methods. ( Note: Use four decimal places for per-unit calculations and round all other numbers to the nearest dollar.) 2. CONCEPTUAL CONNECTION Compare the ending inventory and cost of goods sold computed under all three methods. What can you conclude about the effects of the inventory costing methods on the balance sheet and the income statement?