Problem 4Retail Inventory Method. The Times Company uses the relnil inventenmethod. The following information relates to 20XS:CostP 29,000140,0003,0005,00020.000RetailInventory, January IPureliases (gross price)Purchases discounts takenP 45,000190,000Purchases returns8,000Freight-inEmployee discountsAdditional markupsMarkup cancellationsMarkdownsMarkdown cancellationsSales3,00050.00010,00015,0003,000190,000Required: Compute the cost of the ending inventory under each of thefollowing cost flow assumptions:1. FIFO2. Average cost3. Lower of cost or market (based on average cost)

Name: Problem 4Retail Inventory Method. The Times Company uses the relnil i
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Description: Problem 4Retail Inventory Method. The Times Company uses the relnil inventenmethod. The following information relates to 20XS:CostP 29,000140,0003,0005,00020.000RetailInventory, January IPureliases (gross price)Purchases discounts takenP 45,000190,0

Valuing Inventory - There are a various method used to determine the value of inventory at the end…

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Accounting

Problem 4 Retail Inventory Method. The Times Company uses the relnil inventon method. The following information relates to 20XS: Inventory, January 1 Pureliases (gross price) Purchases discounts taken Purchases returns Freight-in Employee discounts Additionnl markups Markup cancellations Markdowns Cost P 29,000 140,000 3,000 5,000 20,000 Retail P 45,000 190,000 8,000 3,000 50,000 10,000 15,000 3,000 190,000 Markdown cancellations Sales Required: Compute the cost of the ending inventory under each of the following cost flow assumptions: 1. FIFO 2. Average cost 3. Lower of cost or market (based on average cost)

Problem 4 Retail Inventory Method. The Times Company uses the relnil inventon method. The following information relates to 20XS: Inventory, January 1 Pureliases (gross price) Purchases discounts taken Purchases returns Freight-in Employee discounts Additionnl markups Markup cancellations Markdowns Cost P 29,000 140,000 3,000 5,000 20,000 Retail P 45,000 190,000 8,000 3,000 50,000 10,000 15,000 3,000 190,000 Markdown cancellations Sales Required: Compute the cost of the ending inventory under each of the following cost flow assumptions: 1. FIFO 2. Average cost 3. Lower of cost or market (based on average cost)

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 64E: ( Appendix 6B) Inventory Costing Methods: Periodic System Harrington Company had the following data...

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( Appendix 6B) Refer to the information for Morgan Inc. above. If Morgan uses a periodic inventory system, what is the cost of goods sold under FIFO at April 30? a. $32,800 b. $38,400 c. $63,600 d. $69,200
( Appendix 6B) Refer to the information for Morgan Inc. above. If Morgan uses a periodic inventory system, what is the cost of ending inventory under LIFO at April 30? a. $32,800 b. $38,400 c. $63,600 d. $69,200
( 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 System Harrington Company had the following data for inventory during a recent year: Assume that Harrington uses a periodic inventory accounting system. Required: 1. Using the FIFO, LIFO, and average cost methods, compute the ending inventory and cost of goods sold. ( Note: Use four decimal places for per-unit calculations and round all other numbers to the nearest dollar.) 2. CONCEPTUAL CONNECTION Which method will produce the most realistic amount for income? For inventory? 3. CONCEPTUAL CONNECTION Which method will produce the lowest amount paid for taxes?
( Appendix 6B) Inventory Costing Methods Grencia Company uses a periodic inventory system. For 2018 and 2019, Grencia has the following data (assume all purchases and sales are for cash): Required: 1. Compute cost of goods sold, the cost of ending inventory, and gross margin for each year using FIFO. 2. Compute cost of goods sold, the cost of ending inventory, and gross margin for each year using LIFO. 3. Compute cost of goods sold, the cost of ending inventory, and gross margin for each year 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 Which method would result in the lowest amount paid for taxes? 5. CONCEPTUAL CONNECTION Which method produces the most realistic amount for income? For inventory? Explain your answer. 6. CONCEPTUAL CONNECTION What is the effect of purchases made later in the year on the gross margin when LIFO is employed? When FIFO is employed? Be sure to explain why any differences occur. 7. CONCEPTUAL CONNECTION If you worked Problem 6-68B, compare your answers. What are the differences? Be sure to explain why any differences occurred.
( Appendix 6B) Inventory Costing Methods Jet Black Products uses a periodic inventory system. For 2018 and 2019, Jet Black has the following data: All purchases and sales are for cash. Required: 1. Compute cost of goods sold, the cost of ending inventory, and gross margin for each year using FIFO. 2. Compute cost of goods sold, the cost of ending inventory, and gross margin for each year using LIFO. 3. Compute cost of goods sold, the cost of ending inventory, and gross margin for each year 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 Which method would result in the lowest amount paid for taxes? 5. CONCEPTUAL CONNECTION Which method produces the most realistic amount for income? For inventory? Explain your answer. 6. CONCEPTUAL CONNECTION What is the effect of purchases made later in the year on the gross margin when LIFO is employed? When FIFO is employed? Be sure to explain why any differences occur. 7. CONCEPTUAL CONNECTION If you worked Problem 6-68A, compare your answers. What are the differences? Be sure to explain why any differences occurred.
( 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.)