Port Corporation sells item X-100. Purchases, sales and costs of item X-100 for the last quarter of 2019 follow: Units Sold Date October 1 October15 Units Purchased 500 Unit Cost $4.00 $4.10 300 October 30 600 400 November 10 November 25 December 5 December 20 The selling price for all units sold in the quarter was $10.00. REQUIRED: 1. Assume the company uses a periodic inventory system. Calçulate the cost of goods sold for the last quarter of 2019 using the FIFO method of cost valuation 2. Prepare the journal entry to record the sale on October 30th (on accound Assume the company uses a perpetual inventory system and FIFO method of valuation. 3. Prepare the journal entry to record the sale on October 30th (on account). Assume the company uses a periodic inventory system and FIFO method of valuation $4.20 500 800 $3.90 700

Port Corporation sells item X-100. Purchases, sales and costs of item X-100 for the last quarter of 2019 follow: Units Sold Date October 1 October15 Units Purchased 500 Unit Cost $4.00 $4.10 300 October 30 600 400 November 10 November 25 December 5 December 20 The selling price for all units sold in the quarter was $10.00. REQUIRED: 1. Assume the company uses a periodic inventory system. Calçulate the cost of goods sold for the last quarter of 2019 using the FIFO method of cost valuation 2. Prepare the journal entry to record the sale on October 30th (on accound Assume the company uses a perpetual inventory system and FIFO method of valuation. 3. Prepare the journal entry to record the sale on October 30th (on account). Assume the company uses a periodic inventory system and FIFO method of valuation $4.20 500 800 $3.90 700

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 70APSA: Inventory Costing and LCM Ortman Enterprises sells a chemical used in various manufacturing...

See similar textbooks

Similar questions

Webster Company adopted do liar-value LIFO on January 1, 2019. Webster produces three products: X, Y, and Z. Websters beginning inventory consisted of the following: During 2019, Webster had the following purchases and sales: Required: 1. Compute the LIFO cost of the ending inventory assuming Webster uses a single inventory pool. Round cost index to 4 decimal places. 2. Compute the LIFO cost of the ending inventory assuming Webster uses three inventory pools. Round cost indexes to 4 decimal places.
Refer to RE22-2. Assume Heller Company had sales revenue of 510,000 in 2019 and 650,000 in 2020. Prepare Hellers partial income statements (through gross profit) for 2019 and 2020. RE22-2 Heller Company began operations in 2019 and used the LIFO method to compute its 300,000 cost of goods sold for that year. At the beginning of 2020, Heller changed to the FIFO method. Heller determined that its cost of goods sold under FIFO would have been 250,000 in 2019. For 2020, Hellers cost of goods sold under FIFO was 360,000, while it would have been 410,000 under LIFO. Heller is subject to a 21% income tax rate. Compute the cumulative effect of the retrospective adjustment on prior years income (net of taxes) that Heller would report on its retained earnings statement for 2020.
Inventory Costing and LCM Ortman Enterprises sells a chemical used in various manufacturing processes. On January 1, 2019, Ortman had 5,000,000 gallons on hand, for which it had paid $0.50 per gallon. During 2019, Ortman made the following purchases: During 2019, Ortman sold 65 000,000 gallons at $0.75 per gallon (35,000,000 gallons were sold on June 29 and 30,000,000 gallons were sold on Nov. 22), leaving an ending inventory of 7,000,000 gallons. Assume that Ortman uses a perpetual inventory system. Ortman uses the lower of cost or market for its inventories, as required by generally accepted accounting principles. Required: 1. Assume that the market value of the chemical is $0.76 per gallon on December 31, 2019. Compute the cost of ending inventory using the FIFO and average cost methods, and then apply LCM. ( Note: Use four decimal places for per-unit calculations and round all other numbers to the nearest dollar.) 2. Assume that the market value of the chemical is $0.58 per gallon on December 31, 2019. Compute the cost of ending inventory using the FIFO and average cost methods, and then apply LCM. ( Note: Use four decimal places for per-unit calculations and round all other numbers to the nearest dollar.)
Webster Company adopted dollar-value LIFO on January 1, 2019. Webster produces three products: X, Y, and Z. Webster's beginning inventory consisted of the following: Type Quantity Cost perUnit Total Cost X 30,000 $4.25 $127,500 Y 10,000 3.50 35,000 Z 25,000 2.00 50,000 65,000 $212,500 During 2019, Webster had the following purchases and sales: Type QuantityPurchased Cost PerUnit QuantitySold Selling Priceper Unit X 110,000 $4.75 90,000 $10.00 Y 100,000 3.75 85,000 7.50 Z 75,000 2.10 70,000 5.00 285,000 245,000 Required: 1. Compute the LIFO cost of the ending inventory assuming Webster uses a single inventory pool. Round cost index to four decimal places.$
Dynasty Company sells gift certificates redeemable only whenmerchandise is purchased. Upon redemption, Dynasty Companyrecognizes the unearned revenue as realized. Information for 2019 is asfollows: Unearned Revenue, January 1, 2019 P650,000; Gift certificatessold P2,250,000; Gift certificates redeemed P1,950,000; Gift certificatesunredeemed for a long time P100,000; Cost of Goods Sold 60%. Whatamount should be reported as Unearned Revenue on December 31, 2019,following the ruling by the Department of Trade and Industry that giftcertificates no longer have an expiration period?
On December 28, 2020, INDIGO Company purchased goods costing 500,000. The terms were FOB destination. Some of the costs incurred in connection with the sale and delivery of the goods were packaging for shipment 10,000, shipping 15,000, and special handling charges 25,000. These goods were received on December 31, 2020. On December 31, 2020, what total cost for these goods should be included in inventory? a. 500,000 b. 550,000 c. 525,000 d. 510,000
On December 28, 2021, Videotech Corporation (VTC) purchased 10 units of a new satellite uplink system from Tristar Communications for $25,000 each. The terms of each sale were 1/10, n/30. VTC uses the net method to account for purchase discounts and a perpetual inventory system. VTC paid the net-of-discount amount on January 6, 2022. Prepare the necessary journal entries assuming that VTC uses the net method to account for purchase discounts. Videotech Corporation (VTC) purchased 10 units of a new satellite uplink system from Tristar Communications for $25,000 each. The terms of each sale were 1/10, n/30. Record the purchase on December 28, 2021. Videotech Corporation (VTC) purchased 10 units of a new satellite uplink system from Tristar Communications for $25,000 each. The terms of each sale were 1/10, n/30. Record the payment on January 6, 2022.
B.Storm Inc. had 500 units of Product X at 30 June 2020 in inventory. The product had beenpurchased at list price of $18 per unit and normally sells for $24 per unit.Additional information relating to the units in inventory: VAT – 10%; wharehousing cost - $0.55per unit; purchase discount - $0.40 per unit; carriage inwards - $0.60 per unit.Recently , Product X started to deteriorate but can still be sold for $24 per unit, provided thatsome rectification/re-packaging work is undertaken at a cost of $3 per unit.Required:At what amount would Product X be required to be stated on 30 June 2020? Provide detailedanalysis to support your answer.
On December 28, 2024, Videotech Corporation (VTC) purchased 14 units of a new satellite uplink system from Tristar Communications for $23,000 each. The terms of each sale were 110/110 , n30/n30 . VTC uses the net method to account for purchase discounts and a perpetual inventory system. VTC paid the net-of-discount amount on January 6, 2025. Prepare the necessary journal entries assuming that VTC uses the net method to account for purchase discounts. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Videotech Corporation (VTC) purchased 14 units of a new satellite uplink system from Tristar Communications for $23,000 each. The terms of each sale were 1/10, n/30. Record the purchase on December 28, 2024. Videotech Corporation (VTC) purchased 14 units of a new satellite uplink system from Tristar Communications for $23,000 each. The terms of each sale were 1/10, n/30. Record the payment on January 6, 2025.
On December 28, 2024, Videotech Corporation (VTC) purchased 16 units of a new satellite uplink system from Tristar Communications for $24,000 each. The terms of each sale were 210/210 , n30/n30 . VTC uses the gross method to account for purchase discounts and a perpetual inventory system. VTC paid the net-of-discount amount on January 6, 2025. Prepare the journal entries on December 28 and January 6 to record the purchase and payment. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Videotech Corporation (VTC) purchased 16 units of a new satellite uplink system from Tristar Communications for $24,000 each. The terms of each sale were 2/10, n/30. Record the purchase on December 28, 2024. Videotech Corporation (VTC) purchased 16 units of a new satellite uplink system from Tristar Communications for $24,000 each. The terms of each sale were 2/10, n/30. Record the payment on January 6, 2025.
On December 28, 2019, Carr Company purchased goods costing P500,000. The term is FOB Destination. Some of the costs incurred in connection with the purchase of the goods were as follows: Packaging for shipment P10,000 Shipping 15,000 Special handling charges 25,000 These goods were received on December 31, 2019. In the December 31, 2019 balance sheet, what amount of cost for these goods should be included in inventory? Choices: P550,000 P535,000 P540,000 P500,000
Jep Corp. purchased goods with invoice price of P3,000 on account on December 27, 2020. The related shipping costs amounted to P50. The seller shipped the goods on December 31, 2020. Jep Corp. received the goods on January 2, 2021 and settled the account on January 5, 2021. How much is the capitalizable cost of the inventory purchased if the terms of the shipment are FOB shipping point, freight prepaid?