D1.Account Q1: The Dayton company sells product Z. During a move to new location, the inventory record forproduct Z were misplaced. The bookkeeper has been able to gather some information from salerecords and gives you the data shown below:July sales: 53500 units at 10 $ per unitJuly purchases:DateJuly 5July 9OnUnit price6.5 $6.25Quantity10000 1012500 5July 12150000006July 2514000 400 6.2On July 31, 15000 units were on hand with total value 92800 $. Daytons has always used periodicFIFO inventory costing system. Gross profit on sales during July was 205875 $.Required:1) Calculate the beginning inventory (quantity and dollar value) for the month of July?2) Calculate the beginning inventory Cost under LIFO method6500078125190.00086800

As per the FIFO (First in first out) method the inventory which comes first will out first, hence in…

Q1: The Dayton company sells product Z. During a move to new location, the inventory record for product Z were misplaced. The bookkeeper has been able to gather some information from sal records and gives you the data shown below: July sales: 53500 units at 10 $ per unit July purchases: Date July 5 July 9 Unit price 6.5 $ 6.25 Quantity 10000 10 12500 5 15000000 July 12 July 25 14000 400 On July 31, 15000 units were on hand with total value 92800 $. Daytons has always used periodic FIFO inventory costing system. Gross profit on sales during July was 205875 S. Required: 6 6.2 65000 178125 190 000 86800 1) Calculate the beginning inventory (quantity and dollar value) for the month of July? 2) Calculate the beginning inventory Cost under LIFO method

Q1: The Dayton company sells product Z. During a move to new location, the inventory record for product Z were misplaced. The bookkeeper has been able to gather some information from sal records and gives you the data shown below: July sales: 53500 units at 10 $ per unit July purchases: Date July 5 July 9 Unit price 6.5 $ 6.25 Quantity 10000 10 12500 5 15000000 July 12 July 25 14000 400 On July 31, 15000 units were on hand with total value 92800 $. Daytons has always used periodic FIFO inventory costing system. Gross profit on sales during July was 205875 S. Required: 6 6.2 65000 178125 190 000 86800 1) Calculate the beginning inventory (quantity and dollar value) for the month of July? 2) Calculate the beginning inventory Cost under LIFO method

SWFT Individual Income Taxes

43rd Edition

ISBN:9780357391365

Author:YOUNG

Publisher:YOUNG

Chapter18: Accounting Periods And Methods

Section: Chapter Questions

Problem 67P

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Communication Golden Eagle Company began operations on April 1 by selling a single product. Data on purchases and sales for the year are as follows: Purchases: Sales: The president of the company, Connie Kilmer, has asked for your advice on which inventory cost flow method should be used for the 32,000-unit physical inventory that was taken on December 31. The company plans to expand its product line in the future and uses the periodic inventory system. Write a brief memo to Ms. Kilmer comparing and contrasting the LIFO and FIFO inventory cost flow methods and their potential impacts on the companys financial statements.
Golden Eagle Company began operations on April 1 by selling a single product. Data on purchases and sales for the year are as follows: Purchases: Sales: The president of the company, Connie Kilmer, has asked for your advice on which inventory cost flow method should be used for the 32,000-unit physical inventory that was taken on December 31. The company plans to expand its product line in the future and uses the periodic inventory system. Write a brief memo to Ms. Kilmer comparing and contrasting the LIFO and FIFO inventory cost flow methods and their potential impacts on the companys financial statements.
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