Tenace Corporation uses a periodicinventory system and has provided the following information about one of their laptop computers: Date Transaction Number of Units Cost per Unit 1/1 Beginning inventory 100 $800 5/5 Purchase 200 $900 8/10 Purchase 300 $1,000 10/15 Purchase 200 $1,050 During the year, 275 laptop computers were sold on 5/8 and 475 laptops were sold on 10/20. What was cost of goods sold using the LIFOcost flow assumption?

Tenace Corporation uses a periodicinventory system and has provided the following information about one of their laptop computers: Date Transaction Number of Units Cost per Unit 1/1 Beginning inventory 100 $800 5/5 Purchase 200 $900 8/10 Purchase 300 $1,000 10/15 Purchase 200 $1,050 During the year, 275 laptop computers were sold on 5/8 and 475 laptops were sold on 10/20. What was cost of goods sold using the LIFOcost flow assumption?

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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Tenace Corporation uses a periodicinventory system and has provided the following information about one of their laptop computers: Date Transaction Number of Units Cost per Unit 1/1 Beginning inventory 100 $800 5/5 Purchase 200 $900 8/10 Purchase 300 $1,000 10/15 Purchase 200 $1,050 During the year, 250 laptop computers were sold on 8/15 and 500 laptops were sold on 10/31. What was ending inventory using the FIFOcost flow assumption? Group of answer choices A)$60,000 B)$52,500 C)$52,000 D)$40,000 E)None of the above
Lauer Corporation uses the periodic inventory system and thefollowing information about their laptop computer is available: Date Transaction Number of Units Cost per Unit 1/1 BeginningInventory 100 $800 5/5 Purchase 200 $900 8/10 Purchase 300 $1,000 10/15 Purchase 200 $1,050 During the year, 750 laptop computers were sold.What was ending inventory and cost of goods sold on 12/31 under the FIFO costflow assumption? A. $60,000 and $710,000 B. $52,500 and $717,500 C. $52,000 and $718,000 D. None of the answers is correct
On May 10, Hudson Computing sold 140 Millennium laptop computers to Apex Publishers. At the date of this sale, Hudson’s perpetual inventory records included the following cost layers for the Millennium laptops. Purchase Date Quantity Unit Cost Total Cost Apr. 9 110 $ 1,530 $ 168,300 May 1 40 $ 1,500 60,000 Total on hand 150 $ 228,300 Prepare journal entries to record the cost of the 140 Millennium laptops sold
On May 10, Hudson Computing sold 90 Millennium laptop computers to Apex Publishers. At thedate of this sale, Hudson's perpetual inventory records included the following cost layers for theMillennium laptops: Purchase DateApr. 9May 1Total on hand Quantity Unit Cost 70 30 $1,500$1,600 100 Total Cost$105,000 48,000$153,000 Prepare journal entries to record the cost of the 90 Millennium laptops sold on May 10, assumethat Hudson Computing uses the:a. Specific identification method (62 of the units sold were purchased on April 9, and the tmaining units were purchased on May 1).b. Average-cost method.c. FIFO method.d. LIFO method.e. Discuss briefly the financial reporting differences that may arise from choosing the FlFOmethod over the LIFO method.
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Crane, Inc. has 8 computers which have been part of the inventory for over two years. Each computer cost $580 and originally retailed for $930. At the statement date, each computer has a current replacement cost of $430. What value should Crane, Inc., have for the computers at the end of the year? $7440. $2320. $4640. $3440.
Late in the year, sofware city began carry WorldCrafter, a new word processing software program. At December 31, Software City's perpetual inventory records included the following cost layers in its inventory of worldCrafter program. Purchase Date Quantity Unit Cost Total Coost Nov. 4 ....................................... 8 $400 $3,200 Dec. 12 ..................................... 20 $310 6,200 Total on hand .................... 28 $9,400 a. At December 31, Software City takes a physical inventory and finds that all 28 units WordCrafter are on hand. However, the current replacement cost (whosale price) of product is $250 only per unit. Prepare the entries to record the following 1. This write down of the inventory tho the lower of cost or marker at December 31.(Company policy is to charge LCM…
E-Max sold 40 laptops during November and their purchases are given below. Calculate the cost of goods sold by E-Max using average cost method. Purchases No of Laptops Cost/Unit November 10 13 80 November 18 25 100 November 27 30 120 a. 2940 RO b. 4600 RO c. 4200 RO d. 3780 RO
Sheffield, Inc. has 8 computers which have been part of the inventory for over two years. Each computer cost $550 and originally retailed for $940. At the statement date, each computer has a current replacement cost of $350. How much loss should Sheffield, Inc., record for the year? $4400. $1600. $2800. $2200.
Late in the year, Software City began carrying WordCrafter, a new word processing software program. At December 31, Software City’s perpetual inventory records included the following cost layers in its inventory of WordCrafter programs: Purchase Date Quantity Unit Cost Total Cost Nov. 14 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 $400 $3,200 Dec. 12 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 310 6,200 Total available for sale at Dec. 31 . . . . . . . . . . . . . . . . 28 $9,400 a. At December 31, Software City takes a physical inventory and finds that all 18 units of WordCrafter are on hand. However, the current replacement cost (wholesale price) of this product is only $255 per unit. Prepare the entries to record: 1. This write-down of the inventory to the lower-of-cost-or-market at December 31. (Company policy is to charge LCM adjustments of less than $2,100 to Cost of Goods Sold and larger amounts to a separate loss…
CPI sells computer peripherals. At December 31, 2011, CPI’s inventory amounted to $500,000.During the first week in January 2012, the company made only one purchase and one sale. Thesetransactions were as follows:Jan. 2 Purchased 20 modems and 80 printers from Sharp. The total cost of these machineswas $25,000, terms 3/10, n/60.Jan. 6 Sold 30 different types of products on account to Pace Corporation. The total salesprice was $10,000, terms 5/10, n/90. The total cost of these 30 units to CPI was $6,100(net of the purchase discount).CPI has a full-time accountant and a computer-based accounting system. It records sales at the gross sales price and purchases at net cost and maintains subsidiary ledgers for accounts receiv-able, inventory, and accounts payable. Instructions a. Briefly describe the operating cycle of a merchandising company. Identify the assets and lia-bilities directly affected by this cycle. b. Prepare journal entries to record these transactions, assuming that CPI uses…
XYZ owns a branch in New York. During the year, the home office shipped to the branch supplies costing P120,000 at a billed price of 20% above cost. The inventories of supplies at the branch were as follows: Beg Inventory, P90,000 Ending inventory P108,000. On December 31, the home office holds inventories of P160,500 which included P10,500 held on consignment. Both locations use the periodic inventory method. Compute for the inventories in a combined Statement of Financial Position as of December 31.