7:30 S&WYDO< 1/2 >□E6A-27 Computing periodic inventory amountsLearning Objective 7 Appendix 6A:::e6a-27Consider the data of the following companies which use the periodic inventorysystem:Company NetLargeSmallMediumPetiteSalesRevenue$105,000Requirements.(b)96,00080,000Beginning Net CostMerchandise ofInventory$ 23,000 $ 59,00027,000(d)Purchases8,00094,00058,000366/ 1480QAA(f)EndingMerchandise ofInventoryCostGoodsSold5G l 69%$ 22,000 $ (a)GrossProfit$45,000(c) 99,000 40,00024,000 68,000 (e)6,500 (g) 44,000IG b III O <× 7:30 S&WYDO< 1/2 >□LargeSmall:::MediumPetiteеба-27SalesRevenue Inventory$105,000(b)96,000Merchandise of80,000$ 23,00027,000со(d)8,000Purchases Inventory$ 59,00094,00058,000(f)QAAMerchandise of366/ 1480GoodsSold$ 22,000 $ (a)5G l 69%Ę24,000 68,000Profit45,000(c) 99,000 40,000Requirements1. Supply the missing amounts in the preceding table.2. Prepare the income statement for the year ended December 31, 2019, forLarge Company, which uses the periodic inventory system. Include acomplete heading, and show the full computation of cost of goods sold.Large's operating expenses for the year were $12,000.Problems Group AFor all problems, assume the perpetual inventory system is used unless statedotherwise.6,500 (g) 44,000IG b III O <×

Operating expenses are the expenses that any entity or business incurs in its normal course of…

Requirements 1. Supply the missing amounts in the preceding table. 2. Prepare the income statement for the year ended December 31, 2019, for Large Company, which uses the periodic inventory system. Include a complete heading, and show the full computation of cost of goods sold. Large's operating expenses for the year were $12,000.

Requirements 1. Supply the missing amounts in the preceding table. 2. Prepare the income statement for the year ended December 31, 2019, for Large Company, which uses the periodic inventory system. Include a complete heading, and show the full computation of cost of goods sold. Large's operating expenses for the year were $12,000.

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 17MCQ: ( Appendix 6B) Refer to the information for Morgan Inc. above. If Morgan uses a periodic inventory...

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Lower-of-cost-or-market inventory Data on the physical inventory of Katus Products Co. as of December 31 follows: Description Inventory Quantity Market Value per Unit (Net Realizable Value) A54 37 56 C77 24 178 F66 30 132 H83 21 545 K12 375 5 Q58 90 18 S36 8 235 V97 140 20 Y88 17 744 Quantity and cost data from the last purchases invoice of the year and the next-to-the-last purchases invoice are summarized as follows: Description Last Purchases Invoice Next-to-the-Last Purchases Invoice Quantity Purchased Unit Cost Quantity Purchased Unit Cost A54 30 60 40 58 C77 25 174 15 180 F66 20 130 15 128 H83 6 547 15 540 K12 500 6 500 7 Q58 75 25 80 26 S36 5 256 4 260 V97 100 17 115 16 Y88 10 750 8 740 Instructions Determine the inventory at cost and also at the lower of cost or market, using the first-in, first-out method. Record the appropriate unit costs on the inventory sheet, and complete the pricing of the inventory. When there are two different unit costs applicable to an item, proceed as follows: 1. Draw a line through the quantity, and insert the quantity and unit cost of the last purchase. 2. On the following line, insert the quantity and unit cost of the next-to-the-last purchase. 3. Total the cost and market columns and insert the lower of the two totals in the LCM column. The first item on the inventory sheet has been completed as an example. Inventory Sheet December 31 Description Unit Inventory Quantity Cost per Unit Market Value per Unit(Net Realizable Value) Total Cost Market LCM A54 37 30 60 56 1,800 1,680 7 58 56 406 392 2,206 2,072 2,072
( 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) 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) 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?