Question 2 Shelton Distribution markets CDs of numerous performing artists. At the beginning of March, Shelton had the beginning inventory 2,500 CDs with a unit cost RM7. During March, Shelton made the following purchases of CDs: March 3 March 13 2,000 @ RM8 3,500 @ RM9 March 21 5,000 @ RM10 March 26 2,000 @ RM11 During March, 12,200 units were sold and 200 units were returned back to Shelton. Shelton uses a periodic inventory system. Required: i) Determine the cost of goods available for sale. ii) Determine the ending inventory and the cost of goods sold under each of the assumed cost flow methods: a) FIFO. b) Average cost (Round cost per unit to three decimal places).
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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.QUESTION SIX For six months ended 31st October, 2013, Luanshya Limited (LL), an importer and distributor of one type of printer’s machine has the following transactions in his records. There was an opening balance of 100 units which had a value of K3,900. Date Bought Quantity in Units Cost per Unit K May 100 41 June 200 50 August 400 51.875 The price of K51 875 each for the August receipt was K6.125 per unit less than the normal price because of the large quantity ordered. Date Sold Quantity in Units Price Each K July 250 64 September 350 70 October 100 74 Required: Prepare the stores ledger records…Question 1Hobart Sign Company began the month of June with an inventory of 50 signs that cost a total of$1,500. Hobart purchased and sold merchandise on account as follows:June 3 Purchase ……………………………….. 60 signs @ $35 eachJune 8 Sale …………………………………….... 100 signs @ $60 eachJune 18 Purchase ……………………………….. 90 signs @ $40 eachJune 28 Sale …………………………………….... 70 signs @ $70 eachHobart uses the FIFO cost method. Cash payments, on account, totaled $5,000. Operating expenseswere $2,700; Hobart paid two-thirds in cash and accrued the rest as Accounts Payable.i) Prepare a perpetual inventory record, at FIFO cost, for this merchandise.ii) Make journal entries to record the company’s transactionsiii)Prepare an income statement for Hobart Sign Company for the month ended June 30
- QUESTION 1 a) The annual demand for Praise Limited’s inventory is 10,500 units. The item costs GH¢400 a unit to purchase. The holding cost for one unit for one year is 12% of the unit cost and ordering costs are GH¢450 per order. The supplier offers a 2% discount for orders of 700 units or more and a discount of 3% for orders of 950 units or more. Required: Determine the cost minimising order size of the company. b) Kwame after his National Service and with no hope of securing a job in the formal sector has decided to run a taxi service. The following forecast has been made for the operation of a service between Abisim and Sunyani. i) Revenue totaling GH¢300 a week for 52 weeks in a year. This is net of fuel and other variable costs. ii) Tyres; four pieces for a year at GH¢120 per unit. iii) Maintenance and servicing; GH¢120 per month. iv) Salaries GH¢3,000 per year v) Insurance GH¢350 per year The net cash flow will increase at 5% per annum for the next five years due to inflation.…NEEDED IN 10 MINUTES Computational. ABC sells item A as part of its product line. Information as to balances on hand, purchases, and sales of item A are given in the following table for the first six months of 20X3.Date Purchased Sold Balance of PurchaseJanuary 1 (Inventory beginning) 3,000 units @ P250PurchasesJanuary 24, 3,300 units @ P260June 11, 2,140 units @ P280SalesFebruary 8, 4,800 units @ P350March 16, 1,060 @ P350For the 6 months under weighted average cost (periodic) determine the gross profit (Sample answer: 254,360. Round off your answer to the nearest peso)PART 4 PLEASE! The following inventory date have been established for Warriors Company: Order must be placed in multiples of 100 Annual sales are 338,000 units The purchase price per unit is P6 Carrying cost is 20% of the purchase price of the goods Fixed order costs is P48 Three days are required for delivery. What is the EOQ? How many orders should Warriors placed each year? How many units must be order every time? Calculate the total cost of ordering and carrying cost if the order quantity is 4,000 units 4,800 units 6,000 units At EOQ Thank you so much!
- Question 3Classique Designs sells a variety of merchandise, including school shoes for girls. The businessbegan the last quarter of 2013 with 30 pairs of the “Aerosoles” brand at a total cost of $54,000.The following transactions, relating to the “Aerosoles” brand were completed during the quarter:October 3 Purchased 45 pairs of shoes at a cost of $1,900 each.October 15 Sold 55 pairs to Casually Elegant Ltd at a unit price of $2,780October 26 Purchased 70 pairs at a cost of $2,400 each but these were subject to a tradediscount of 5%.November 10 Sold 60 pairs to Best City Store which yielded total sales revenue of $192,000.November 14 Owing to an increased demand for this brand, the manager of Classique purchased80 additional pairs of the “Aerosole” brand at a unit cost of $2,500, but additionallythere was freight charge of $100 on each pair.November 24 Sold 60 pairs of shoes to Big Buy Company at a price of $3,600 each.November 30 A physical stock count on that date revealed that there…Question 4Syarikat Layang uses the LIFO (Last-in, First-out) costing method for its perpetualinventory system. It had inventory on 1 January 2021 consisting of 400 articles boughtat RM4 each. The purchases during the month of January consisted of 800 at RM4.20each purchased on 8 January, and 2,000 at RM3.80 each on 18 January. It sold 2,400at RM5.00 each on 28 January. 40 of those sold were returned in perfect condition on31 January. The returned goods were bought on 18 January.Required: a. i. Calculate, by means of an inventory account the number and cost of the articles held in inventory during January 2021. ii. The unit price and total cost of the inventory. b. Show the trading account for the month ended 31 January 2021.Vaughn Distribution markets CDs of the performing artist Unique. At the beginning of October, Vaughn had in beginning inventory 2,000 of Unique’s CDs with a unit cost of $5. During October, Vaughn made the following purchases of Unique’s CDs. Oct. 3 2,500 @ $6 Oct. 19 3,000 @ $8 Oct. 9 3,500 @ $7 Oct. 25 4,000 @ $9 During October, 10,850 units were sold. Vaughn uses a periodic inventory system.
- Q5 Allied Merchandisers was organized on May 1. Macy Company is a major customer (buyer) of Allied (seller) products. May 3 Allied made its first and only purchase of inventory for the period on May 3 for 1,000 units at a price of $8 cash per unit (for a total cost of $8,000). May 5 Allied sold 500 of the units in inventory for $12 per unit (invoice total: $6,000) to Macy Company under credit terms 2/10, n/60. The goods cost Allied $4,000. May 7 Macy returns 50 units because they did not fit the customer’s needs (invoice amount: $600). Allied restores the units, which cost $400, to its inventory. May 8 Macy discovers that 50 units are scuffed but are still of use and, therefore, keeps the units. Allied gives a price reduction (allowance) and credits Macy's accounts receivable for $200 to compensate for the damage. May 15 Allied receives payment from Macy for the amount owed on the May 5 purchase; payment is net of returns, allowances, and any cash discount. Prepare…IN 10 MINUTES Computational. ABC sells item A as part of its product line. Information as to balances on hand, purchases, and sales of item A are given in the following table for the first six months of 20X3.Date Purchased Sold Balance of PurchaseJanuary 1 (Inventory beginning) 3,000 units @ P250PurchasesJanuary 24, 3,300 units @ P260June 11, 2,140 units @ P280SalesFebruary 8, 4,800 units @ P350March 16, 1,060 @ P350For the 6 months under weighted average cost (periodic) determine the cost per unit (Sample answer: 112.25. Round off your answer to 2-decimal places)Question Greg’s Bicycle Shop has the following transactions related to its top-selling Mongoose mountain bike for the month of March. Greg's Bicycle Shop uses a periodic inventory system. Date Transactions Units Unit Cost Total Cost March 1 Beginning inventory 20 $ 175 $ 3,500 March 5 Sale ($250 each) 15 March 9 Purchase 10 195 1,950 March 17 Sale ($300 each) 8 March 22 Purchase 10 205 2,050 March 27 Sale ($325 each) 12 March 30 Purchase 8 225 1,800 $ 9,300 For the specific identification method, the March 5 sale consists of bikes from the beginning inventory, the March 17 sale consists of bikes from the March 9 purchase, and the March 27 sale consists of four bikes from the beginning inventory and eight bikes from the March 22 purchase. Required: ***Only…