Provide your answers in the space given below by entering numbers only (e.g. 10000 or -10000). Do not round intermediate numbers and round the final results to the nearest dollar. ABC Co. has the following information in 2020: 2020 Units Unit cost Total Cost Jan 1 Beginning Inventory 22 $56 $1232 Purchases: Mar 28 Purchase 28 63 1764 Aug 22 Purchase 32 72 2304 Oct 14 Purchase 27 78 2106 Goods Available for Sale 109 $7406 Sales: Unit Sales Price Revenue May 1 Sales 38 $100 $3800 Oct 28 Sales 28 $100 $2800 Total Revenue 66 $6600 Required: Calculate the amount of ending inventory and cost of goods sold for ABC Co. under the following assumptions. a. Using the Weighted Average inventory costing methods, assuming the company uses the periodic system; Weight Average Cost per Unit: 2$ Ending Inventory: 2$ Cost of Goods Sold b. Using the FIFO inventory costing methods, assuming the company uses the periodic system; Ending Inventory: $ Cost of Goods Sold: $ c. Using the FIFO inventory costing method, assuming the company uses the perpetual system; Cost of Goods Sold: $ Ending Inventory: $ d. Using the Weighted Average inventory costing method, assuming the company uses the perpetual system. Cost of Goods Sold: Ending Inventory:

Provide your answers in the space given below by entering numbers only (e.g. 10000 or -10000). Do not round intermediate numbers and round the final results to the nearest dollar. ABC Co. has the following information in 2020: 2020 Units Unit cost Total Cost Jan 1 Beginning Inventory 22 $56 $1232 Purchases: Mar 28 Purchase 28 63 1764 Aug 22 Purchase 32 72 2304 Oct 14 Purchase 27 78 2106 Goods Available for Sale 109 $7406 Sales: Unit Sales Price Revenue May 1 Sales 38 $100 $3800 Oct 28 Sales 28 $100 $2800 Total Revenue 66 $6600 Required: Calculate the amount of ending inventory and cost of goods sold for ABC Co. under the following assumptions. a. Using the Weighted Average inventory costing methods, assuming the company uses the periodic system; Weight Average Cost per Unit: 2$ Ending Inventory: 2$ Cost of Goods Sold b. Using the FIFO inventory costing methods, assuming the company uses the periodic system; Ending Inventory: $ Cost of Goods Sold: $ c. Using the FIFO inventory costing method, assuming the company uses the perpetual system; Cost of Goods Sold: $ Ending Inventory: $ d. Using the Weighted Average inventory costing method, assuming the company uses the perpetual system. Cost of Goods Sold: Ending Inventory:

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

Chapter22: Accounting For Changes And Errors.

Section: Chapter Questions

Problem 3RE: Refer to RE22-2. Assume the pretax cumulative effect adjustment is 50,000. Prepare the journal entry...

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Refer to RE22-2. Assume the pretax cumulative effect adjustment is 50,000. Prepare the journal entry that Heller Company would make at the beginning of 2020 to record the cumulative effect of the change from LIFO to FIFO. 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.
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he dollar-value LIFO method was adopted by Bramble Corp. on January 1, 2020. Its inventory on that date was $298,300. On December 31, 2020, the inventory at prices existing on that date amounted to $280,000. The price level at January 1, 2020, was 100, and the price level at December 31, 2020, was 112. (a) Compute the amount of the inventory at December 31, 2020, under the dollar-value LIFO method.
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On January 1, 2020, Bay Inc. adopted dollar-value LIFO, and its inventory priced at current costs was $60,000. The following information is available on its inventories for 2020 through 2022. Year EndingInventoryat December 31 Year-EndConversionFactor* 2020 $68,000 1.10 2021 80,000 1.22 2022 72,000 1.15 *Computed as: Current (year-end) price index ÷ Base-year price index Compute the ending inventory on a dollar-value LIFO basis for each year, 2020 through 2022. Note: Do not round until your final answer. Round your final answer to the nearest whole dollar. Dollar-value LIFO ending inventory, 2020 Answer Dollar-value LIFO ending inventory, 2021 Answer Dollar-value LIFO ending inventory, 2022 Answer Question 2 Not yet answered Marked out of 25.00 Flag question Question text Estimating Inventory Using Gross Profit Method The following data is from Netflicks Company for 2020. Sales revenue $240,000 Beginning inventory 32,000…
A company adopted dollar-value LIFO on January 1, 2020, when the inventory value was $365,000 and the cost index was 1.45. On December 31, 2020, the inventory was valued at year-end cost of $400,000 and the cost index was 1.50. The company would report a LIFO inventory of:
Fantasy Fashions had used the LIFO method of costing inventories, but at the beginning of 2021 decided to change to the FIFO method. The inventory as reported at the end of 2020 using LIFO would have been $20 million higher using FIFO. Retained earnings reported at the end of 2019 and 2020 was $240 million and $260 million, respectively (reflecting the LIFO method). Those amounts reflecting the FIFO method would have been $250 million and $272 million, respectively. 2020 net income reported at the end of 2020 was $28 million (LIFO method) but would have been $30 million using FIFO. After changing to FIFO, 2021 net income was $36 million. Dividends of $8 million were paid each year. The tax rate is 25%.Required:1. Prepare the journal entry at the beginning of 2021 to record the change in accounting principle.2. In the 2021–2020 comparative income statements, what will be the amounts of net income reported for 2020 and 2021?3. Prepare the 2021–2020 retained earnings column of the…
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also could you please explain why ,cost of goods avarage for sale2020,and cost of goods sold change both of them? Staley Watch Company reported the following income statement data for a 2 year period: 2019 2020 Sales $210,000 $250,000 Cost of Goods Sold Beginning Inventory 32,000 44,000 Cost of Goods Purchased 173,000 202,000 Cost of Goods Available for Sale 205,000 246,000 Less: Ending Inventory 44,000 52,000 Cost of Goods Sold 161,000 194,000 Gross Profit 49,000 56,000 Staley uses periodic inventory system. The inventories at January 1, 2019, and December 31, 2020, are correct. However, the ending inventory at December 31, 2019, was overstated $5,000. Required: Prepare correct income statement data for the two years. What is the cumulative effect of the inventory error on total gross profit for the two years?