QP Corp. sold 5,450 units of Its product at $45.50 per unit during the year and Incurred operating expenses of $6.50 peunit In selling the units. It began the year with 650 units In Inventory and made successive purchases of Its product asfollows.1 Beginning inventory20 Purchase650 units @ $18.50 per unit1,550 units @ $19.50 per unit750 units e $20.50 per unit450 units e $21.50 per unit3,350 units @ $22.50 per unitJan.Feb.16 PurchaseMayoct.3 Purchase11 PurchaseDec.Total6,750 unitsRequired:1. Prepare comparative Income statements for the three Inventory costing methods of FIFO, LIFO, and weighted averagewhich includes a detailed cost of goods sold section as part of each statement. The company uses a perlodic inventorysystem, and Its Income tax rate is 40%. (Round your average cost per unlt to 2 declmal places and round your finalanswers to nearest whole dollar amount.)QP CORP.Income Statements Comparing FIFO, LIFO, and Weighted AverageFor Year Ended December 31WeightedAverageFIFOLIFOSalesCost of goods sold:Beginning inventory, Jan. 1Cost of purchasesCost of goods available for saleLess: Ending inventory, Dec. 31Cost of goods soldGross profitOperating expensesIncome before taxesIncome taxes expenseNet income

The gross profit is calculated as difference between sales and cost of good sold. Income before tax…

QP Corp. sold 5,450 units of Its product at $45.50 per unit during the year and incurred operating expenses of $6.50 pe unit in selling the units. It began the year with 650 units in inventory and made successive purchases of Its product as follows. 1 Beginning inventory 650 units e s18.50 per unit 1,550 units e s19.50 per unit 750 units e s20.50 per unit 450 units e $21.50 per unit 3,350 units e s22.50 per unit Jan. Feb. 20 Purchase 16 Purchase Мay oct. 3 Purchase 11 Purchase Dec. Total 6,750 units Required: 1. Prepare comparative income statements for the three inventory costing methods of FIFO, LIFO, and weighted average which Includes a detalled cost of goods sold section as part of each statement. The company uses a periodic Inventory system, and Its income tax rate Is 40%. (Round your average cost per unit to 2 decimal places and round your final answers to nearest whole dollar amount.)

QP Corp. sold 5,450 units of Its product at $45.50 per unit during the year and incurred operating expenses of $6.50 pe unit in selling the units. It began the year with 650 units in inventory and made successive purchases of Its product as follows. 1 Beginning inventory 650 units e s18.50 per unit 1,550 units e s19.50 per unit 750 units e s20.50 per unit 450 units e $21.50 per unit 3,350 units e s22.50 per unit Jan. Feb. 20 Purchase 16 Purchase Мay oct. 3 Purchase 11 Purchase Dec. Total 6,750 units Required: 1. Prepare comparative income statements for the three inventory costing methods of FIFO, LIFO, and weighted average which Includes a detalled cost of goods sold section as part of each statement. The company uses a periodic Inventory system, and Its income tax rate Is 40%. (Round your average cost per unit to 2 decimal places and round your final answers to nearest whole dollar amount.)

Century 21 Accounting Multicolumn Journal

11th Edition

ISBN:9781337679503

Author:Gilbertson

Publisher:Gilbertson

Chapter20: Accounting For Inventory

Section: Chapter Questions

Problem 1MP

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Denali Company manufactures household products such as windows, light fixtures, ladders, and work tables. During the year it produced 10,000 Model 10X windows but only sold 5,000 units at $40 each. The remaining units cannot be sold through normal channels. Cost for inventory purposes on December 31 included the following data on the unsold units: Denali can sell the 5,000 windows at a liquidation price of $20.00 per window, but it will incur a packaging and shipping charge of $7.50 per window. Required: Identify the relevant costs and revenues for the liquidation sale alternative. Is Denali better off accepting the liquidation price rather than doing nothing? Assume that Model 10X can be reprocessed to another size window, Model 20X, which will require the same amount of labor and overhead as was required to initially produce, but sells for only $33. Determine the most profitable course of action—liquidate or reprocess.
For each of the following independent situations, calculate the missing values: 1. The Belen plant purchased 78,300 of direct materials during June. Beginning direct materials inventory was 2,500, and direct materials used in production were 73,500. What is ending direct materials inventory? 2. Forster Company produced 14,000 units at an average cost of 5.90 each. The beginning inventory of finished goods was 3,422. (The average unit cost was 5.90.) Forster sold 14,120 units. How many units remain in ending finished goods inventory? 3. Beginning work in process (WIP) was 116,000, and ending WIP was 117,300. If total manufacturing costs were 349,000, what was the cost of goods manufactured? 4. If the conversion cost is 84 per unit, the prime cost is 55, and the manufacturing cost per unit is 105, what is the direct materials cost per unit? 5. Total manufacturing costs for August were 412,000. Prime cost was 64,000, and beginning WIP was 76,000. The cost of goods manufactured was 434,000. Calculate the cost of overhead for August and the cost of ending WIP.
Johnson Corporation had beginning inventory of 20,000 at cost and 35,000 at retail. During the year, it made net purchases of 180,000 at cost and 322,000 at retail. Johnson nude sales of 300,000. Assuming a price index of 100 at the beginning of the year and 110 at the end of the year, compute Johnsons ending inventory at cost using the dollar-value LIFO retail method.
On January 1, Pope Enterprises inventory was 625,000. Pope made 950,000 of net purchases during the year. On its year-end income statement, Pope reported cost of goods sold of 1,025,000. Calculate Popes December 31 ending inventory.
Dollar-Value LIFO A company adopted the LIFO method when its inventory was 1,800. One year later its ending inventory was 2,100, and costs had increased 5% during the year. Required: What is the ending inventory using dollar-value LIFO? Round to the nearest dollar.
Comprehensive The following information for 2019 is available for Marino Company: 1. The beginning inventory is 100,000. 2. Purchases returns of 4,000 were made. 3. Purchases of 300,000 were made on terms of 2/10, n/30. Eighty percent of the discounts were taken. 4. At December 31, purchases of 20,000 were in transit, FOB destination, on terms of 2/10, n/30. 5. The company made sales of 640,000. The gross selling price per unit is twice the net cost of each unit sold. 6. Sales allowances of 6,000 were made. 7. The company uses the LIFO periodic method and the gross method for purchase discounts. Required: 1. Compute the cost of the ending inventory before the physical inventory is taken. 2. Compute the amount of the cost of goods sold that came from the purchases of the period and the amount that came from the beginning inventory.
Langstons purchased $3,100 of merchandise during the month, and its monthly income statement shows a cost of goods sold of $3,000. What was the beginning inventory if the ending inventory was $1,250?
Logo Gear purchased $2,250 worth of merchandise during the month, and its monthly income statement shows cost of goods sold of $2,000. What was the beginning inventory if the ending inventory was $1,000?
The following information is available for Cooke Company for the current year: The gross margin is 40% of net sales. What is the cost of goods available for sale? a. 5840,000 b. 960,000 c. 1,200,000 d. 1,220,000
Click the Chart sheet tab. On the screen is a column chart showing ending inventory costs. During a deflationary period, which bar (A, B, or C) represents FIFO costing, which represents LIFO costing, and which represents weighted average? Explain your reasoning. On January 4 following year-end, Rio Enterprises received a shipment of 60 units of product costing 580 each. These units had been ordered by Del in December and had been shipped to him on December 27. They were shipped FOB shipping point. Revise the FIFOLIFO3 worksheet to include this shipment. Preview the printout to make sure that the worksheet will print neatly on one page, and then print the worksheet. Save the completed file as FIFOLIFOT. Using the FIFOLIFO3 file, prepare a 3-D bar (stacked) chart showing the cost of goods sold and ending inventory under each of the four inventory cost flow assumptions. No Chart Data Table is needed. Use the values in the Calculations Section of the worksheet for your chart. Enter your name somewhere on the chart. Save the file again as FIFOLIFO3. Print the chart.
Habicht Company was formed in 2018 to produce a single product. The production and sales for the next 4 years were as follows: Required: 1. Determine the gross profit for each year under each of the following periodic inventory methods: a. FIFO b. LIFO c. Average cost (Round unit costs to 3 decimal places.) 2. Next Level Explain whether the companys return on assets (net income divided by average total assets) would be higher under FIFO or LIFO.
Reid Company uses the periodic inventory system. On January 1, it had an inventory balance of 250,000. During the year, it made 613,000 of net purchases. At the end of the year, a physical inventory showed it had ending inventory of 140,000. Calculate Reid Companys cost of goods sold for the year.