The company uses the perpetual inventory method and started the month of November with 500 units of inventory at a cost of $3 each. Purchases November 5, 500 units at $5 each November 18, 500 units at $6 each November 29, 500 units at $9 each Sales November 12, 400 units sold at $14 each November 25, 900 units sold at $14 each 1. Use the following format to set up this inventory costing problem, as shown in Video #2. Inventory Date Cost per Unit Units Total Cost Date Units Total Cost Beg Balance Units Cost Beginning Balance + Purchases Goods Available for Sale - Sold Ending Balance 2. Use the moving weighted average method to calculate cost of goods sold and ending inventory. 3. Calculate the company's gross margin based on using the average cost method.

The company uses the perpetual inventory method and started the month of November with 500 units of inventory at a cost of $3 each. Purchases November 5, 500 units at $5 each November 18, 500 units at $6 each November 29, 500 units at $9 each Sales November 12, 400 units sold at $14 each November 25, 900 units sold at $14 each 1. Use the following format to set up this inventory costing problem, as shown in Video #2. Inventory Date Cost per Unit Units Total Cost Date Units Total Cost Beg Balance Units Cost Beginning Balance + Purchases Goods Available for Sale - Sold Ending Balance 2. Use the moving weighted average method to calculate cost of goods sold and ending inventory. 3. Calculate the company's gross margin based on using the average cost method.

Name: Problem 9-2 Part BThe company uses the perpetual inventory method and
Uploaded: 2024-03-20T06:32:37.000Z
Channel: Bartleby
Description: Problem 9-2 Part BThe company uses the perpetual inventory method and started the month of November with 500 unitsof inventory at a cost of $3 each.PurchasesNovember 5, 500 units at $5 eachNovember 18, 500 units at $6 eachNovember 29, 500 units at $

Corporate Financial Accounting

14th Edition

ISBN:9781305653535

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter6: Inventories

Section: Chapter Questions

Problem 6.2BPR: LIFO perpetual inventory The beginning inventory for Dunne Co. and data on purchases and sales for a...

See similar textbooks

Similar questions

FIFO and UFO costs under perpetual inventory system The following units of an item were available for sale during the year: Beginning inventory 7,200 units at 160 Sale 4,800 units at 300 First purchase 16,000 units at 168 Sale 12,000 units at 300 Second purchase 15,000 units at176 Sale 11,000 units at 300 The firm uses the perpetual inventory system, and there are 10,400 units of the item on hand at the end of the year. What is the total cost of the ending inventory according to (A) FIFO and (B) UFO?
Periodic inventory using FIFO, UFO, and weighted average cost methods The units of an item available for sale during the year were as follows: Jan. 1 Inventory 20 units at 360 7,200 Aug. 13 Purchase 260 units at 342 88,920 Nov. 30 Purchase 40 units at 357 14,280 Available for sale 320 units 110,400 There are 57 units of the item in the physical inventory at December 31. The periodic inventory system is used. Determine the inventory cost using the (A) first-in, first-out (FIFO) method; (B) last-in, first-out (LIFO) method; and (C) weighted average cost method.
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: Sales April 16,000 units May 16,000 June 20,000 July 24,000 August 28,000 September 28,000 October 18,000 November 10,000 December 8,000 Total units 168,000 Total sales 10,000,000 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.
LIFO perpetual inventory The beginning inventory for Dunne Co. and data on purchases and sales for a three-month period are shown in Problem 6-IB. Instructions 1. Record the inventory, purchases, and cost of goods sold data in a perpetual inventory record similar to the one illustrated in Exhibit 4, using the last-in, first-out method. 2. Determine the total sales, the total cost of goods sold, and the gross profit from sales for the period. 3. Determine the ending inventory cost on June 30.
Perpetual inventory using LIFO Beginning inventory, purchases, and sales for Item 88-HX are as follows: July 1 Inventory 90 units at 54 8 Sale 75 units 15 Purchase 125 units at 60 27 Sale 80 units Assuming a perpetual inventory system and using the last-in, first-out (LIFO) method, determine (A) the cost of goods sold on July 27 and (B) the inventory on July 31.