Required Informatlon[The following Information applies to the questions displayed below.]The Shirt Shop had the following transactions for T-shirts for Year 1, Its first year of operations.Purchased 50e units @ $ 7 =Purchased 3e0 units @ $9 =Purchased 38e units @ $12 =Purchased 190 units @ $14 =$3,5002,700January 20April 21July 25September 194,5602,660During the year, The Shirt Shop sold 1,110 T-shirts for $23 each.c. Compute the difference in gross margin between the FIFO and LIFO cost flow assumptlons.Difference in gross margin between the FIFO and LIFO cost flow assumptions

FIFO is first in first out method for inventory valuation, in which units purchased first will be…

Answered: Requlred Information [The following…

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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Williams Corporation had the following purchases for May: May 3Bought ten lawn rakes from Owens Company, invoice no. J34Y9, 250.25; terms net 15 days; dated May 1; FOB shipping point, freight prepaid and added to the invoice, 15 (total 265.25). 11Bought one weed trimmer from Lionels Lawn Landscaping, invoice no. R7740, 219.72; terms 2/10, n/30; dated May 9; FOB shipping point, freight prepaid and added to the invoice, 35 (total 254.72). 15Bought five bags of fertilizer from Wrights Farm Supplies, invoice no. 478, 210.97; terms net 30 days; dated May 13; FOB destination. 25Bought one lawn mower from Gutierrez Corporation, invoice no. 2458, 425.39; terms net 30 days; dated May 22; FOB destination. Assume that Williams Corporation had beginning balances on May 1 of 3,492.29 (Accounts Payable 212), 4,239.49 (Purchases 511), and 234.89 (Freight In 514). Record the purchases of merchandise on account in the purchases journal (page 13) and then post to the general ledger.
Sports Haven keeps an inventory of FITBIT Wearable Technology. Assume an inventory of 35 FitBits at the beginning of the year at a cost of $44.32 each. Additional FitBits were purchased as follows: 15 at $45.50 each on March 22, 30 at $45.80 each on May 2, 10 at $46.20 each on July 14, and 40 at $43.90 each on September 9. Refer to the previous problem's answer. What was the Cost of Goods Sold (COGS)?
[The following information applies to the questions displayed below.] The Shirt Shop had the following transactions for T-shirts for 2018, its first year of operations: Jan. 20 Purchased 400 units @ $ 8 = $ 3,200 Apr. 21 Purchased 200 units @ $ 10 = 2,000 July 25 Purchased 280 units @ $ 13 = 3,640 Sept. 19 Purchased 90 units @ $ 15 = 1,350 During the year, The Shirt Shop sold 810 T-shirts for $20 each. Requireda. Compute the amount of ending inventory The Shirt Shop would report on the balance sheet, assuming the following cost flow assumptions: (1) FIFO, (2) LIFO, and (3) weighted average. (Round intermediate calculations to 2 decimal places and final answers to nearest whole dollar amount.) b. Compute the difference in gross margin between the FIFO and LIFO cost flow assumptions.
The Shirt Shop had the following transactions for T-shirts for Year 1, its first year of operations: Jan. 20 Purchased 400 units @ $ 8 = $ 3,200 Apr. 21 Purchased 200 units @ $ 10 = 2,000 July 25 Purchased 280 units @ $ 13 = 3,640 Sept. 19 Purchased 90 units @ $ 15 = 1,350 During the year, The Shirt Shop sold 810 T-shirts for $20 each. Required a. Compute the amount of ending inventory The Shirt Shop would report on the balance sheet, assuming the following cost flow assumptions: (1) FIFO, (2) LIFO, and (3) weighted average. (Round cost per unit to 2 decimal places and final answers to the nearest whole dollar amount.)
I need help with this: Elgin Flooring Company sells floor coverings through two departments, carpeting and hard covering (tile and linoleum). Operating information for 29019 appears below: Carpeting Dept Hard Covering Dept Inventory, January 1, 2019 $60,000 $26,000 Inventory, Dec 31, 2019 50,000 30,000 Net sales 500,000 800,000 Purchases 300,000 560,000 Purchases returns 28,000 8,000 Purchases discounts 16,000 4,000 Transportation in 18,000 14,000 Traceable department expenses 108,000 56,000 Common operating expenses of the firm were $225,000 Required a) Prepare a departmental income statement showing departmental contribution to common expenses and net income of the firm. Assume an over effective income tax rate of 20%. Elgin uses a periodic inventory system. b) Calculate the gross profit percentage for each department. c) If the common expenses were allocated 40% to the carpeting department and 60% to the hard covering department, what would the net…
Required information Use the following information for the Exercises below. Skip to question [The following information applies to the questions displayed below.] Hemming Co. reported the following current-year purchases and sales for its only product. Date Activities Units Acquired at Cost Units Sold at Retail Jan. 1 Beginning inventory 250 units @ $12.00 = $ 3,000 Jan. 10 Sales 200 units @ $42.00 Mar. 14 Purchase 400 units @ $17.00 = 6,800 Mar. 15 Sales 360 units @ $42.00 July 30 Purchase 450 units @ $22.00 = 9,900 Oct. 5 Sales 420 units @ $42.00 Oct. 26 Purchase 150 units @ $27.00 = 4,050 Totals 1,250 units $ 23,750 980 units Exercise 5-7 Perpetual: Inventory costing methods-FIFO and LIFO LO P1 Required:Hemming uses a perpetual inventory system. 1. Determine the costs assigned to ending…
The following hammers were available for sale during the year for Wilkins Tools: Beginning inventory 10 units at $40 First purchase 15 units at $50 Second purchase 30 units at $60 Third purchase 25 units at $65 Wilkins has 30 hammers on hand at the end of the year. What is the dollar amount of cost of goods sold for the year according to the first-in, first-out method? Select one: a. $1,575 b. $1,950 c. $1,975 d. $2,650
Pro Hockey Store is evaluating two supplies of hockey skates: JA skates and Power skates. Pertinent information about each potential supplier follows: Relevant Item JA Skates Power Skates Purchase Price $50.00 $51.20 Ordering cost per order $8.00 $8.00 Carrying cost per year 20% of Purchase price 5% of Purchase price Inspection cost per unit $0.02 $0.00 Insurance, material handling, and so on per unit per year $3.00 $3.50 Annual Demand 12,000 12,000 Average quantity of inventory held during the year 120 units 120 units Required Return on investment 10% 10% Stockout cost per unit $34 $22 Stockout units per year 350 65 Customer Returns 300 25 Customer-return costs per unit $45 $45 a. Calculate the EOQ for both suppliers b. Calculate the relevant costs of purchasing (1) JA Skates and (2) Power Skates. From where should Pro Hockey buy skates ?
Sports Haven keeps an inventory of FITBIT Wearable Technology. Assume an inventory of 35 FitBits at the beginning of the year at a cost of $44.32 each. Additional FitBits were purchased as follows: 15 at $45.50 each on March 22, 30 at $45.80 each on May 2, 10 at $46.20 each on July 14, and 40 at $43.90 each on September 9. Assume 32 FitBits in inventory at the end of the year. Using FIFO the cost at ending inventory is 1404.80.
The Hat Store had the following series of transactions for Year 2. Date Transaction Description January 1 Beginning inventory 70 units @ $22.00 March 15 Purchased 195 units @ $26.00 May 30 Sold 170 units @ $26.00 August 10 Purchased 265 units @ $27.00 November 20 Sold 340 units @ $39.75 Required a. Determine the quantity and dollar amount of inventory at the end of the year, assuming The Hat Store uses the FIFO cost flow assumption and keeps perpetual records. (Round your answers to 2 decimal places.) Only typing answer Please answer explaining in detail step by step without table and graph thankyou
The Hat Store had the following series of transactions for Year 2. Date Transaction Description January 1 Beginning inventory 45 units @ $21.50 March 15 Purchased 210 units @ $25.50 May 30 Sold 160 units @ $25.50 August 10 Purchased 275 units @ $26.50 November 20 Sold 345 units @ $40.75 Required a. Determine the quantity and dollar amount of inventory at the end of the year, assuming The Hat Store uses the FIFO cost flow assumption and keeps perpetual records. (Round your answers to 2 decimal places.)
Required information[The following information applies to the questions displayed below.]Shadee Corp. expects to sell 630 sun visors in May and 410 in June.Each visor sells for $24. Shadee’s beginning and ending finishedgoods inventories for May are 75 and 45 units, respectively. Endingfinished goods inventory for June will be 60 units.!Each visor requires a total of $4.00 in direct materials that includes an adjustableclosure that the company purchases from a supplier at a cost of $1.50 each. Shadeewants to have 31 closures on hand on May 1, 23 closures on May 31, and 20 closureson June 30. Additionally, Shadee’s fixed manufacturing overhead is $700 per month,and variable manufacturing overhead is $1.75 per unit produced. Each visor takes 0.80direct labor hours to produce and Shadee pays its workers $8 per hour.Additional information:Selling costs are expected to be 8 percent of sales.Fixed administrative expenses per month total $1,300.Required:Determine Shadee's budgeted selling and…

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