The following information is available for Goode Company: May 1 Beginning inventory 18 units @ $4 per unit May 7 Purchase 12 units @ $5 per unit May 10 Sale 14 units May 17 Purchase 10 units @ $6 per unit May 19 Sale 4 units Required:
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A: Calculation of gross profit and ending inventory:
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A: Solution... Total costs of goods available for sale = $2,840 Total units available for sale =…
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A: Average Cost = Total Cost of InventoryTotal number of Units
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A:
Q: Use the following to answer questions 7– 17 During September, KC Company sells 730 mountain bikes…
A: Using weighted average method, cost per unit is calculated as total cost of goods available for sale…
Q: The following information is available for Motta Company: Beginning inventory 200 units at $8 First…
A: Formula: Average cost per unit = Total cost of goods available for sale / Total no. of units…
Q: The following information is available for Goode Company: May 1 Beginning inventory 18 units @ $4…
A: Perpetual inventory system: Under this inventory system, the records of inventory are continuously…
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A: Solution: Introduction: Inventory Valuation Methods are generally used to determine the Cost of…
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A: Average cost method is the method to value the cost of inventory. It is calculated by dividing total…
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A: Cost of goods sold for 80 units = 80 units x $11 = $880 Sales = 80 units x $25 = $2,000
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A: Solution... Cost of goods available for sale = $2,840 Units available for sale = 500
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A: Under LIFO method the units sold will be first from the latest purchases and ending inventory should…
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A: Solution: Average cost per unit = Total cost of goods available / Total units = 20150 / 1000 =…
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A: Sales on account means credit sales.
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A: Solution: Cost of goods available for sale = (20*19) + (70*20) + (10*22) = OMR 2,000 Units available…
Q: The following information is available for Zhang Company: Item Units Beginning inventory p00 Unit…
A: Solution.. Total costs of goods available for sale = $2,840 Total units available for sale =…
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A: FIFO method records its cost of goods sold at the initial purchase prices and that is why it is…
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A: Ending inventory is $2,685
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A: Average unit cost is calculated as Cost of goods available for sale divided by the number of units…
Q: Use the following to answer questions 7– 17 During September, KC Company sells 730 mountain bikes…
A: 1. FIFO Method - Under FIFO Method, Inventory purchased first is sold first. 2. LIFO Method - Under…
Q: A company reports the following beginning inventory and two purchases for the month of January. On…
A: Under LIFO Method, using perpetual inventory system, value of ending inventory is calculated on the…
Q: Use the following to answer questions 7 – 17 During September, KC Company sells 730 mountain bikes…
A: 1. FIFO Method - Under FIFO Method, Inventory that purchased first is sold first. 2. LIFO Method -…
Q: Fong Sai-Yuk Company sells one product. Presented below is information for January for Fong Sai-Yuk…
A: Under the perpetual inventory system, the inventory sales and purchases are recorded on a continuous…
Q: Use the following to answer questions 7– 17 During September, KC Company sells 730 mountain bikes…
A: Using FIFO method, older units are sold first and using LIFO method newer units are sold first. Cost…
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A: Introduction:- Calculation of cost of goods sold as follows:- Beginning inventory (100 units X $5…
Q: The following three identical units of Item A are purchased during April: Item A Units Cost $ 68…
A: Gross profit is the profit earned, it is = Sales - Cost of goods soldEnding inventory is the value…
Q: Muharraq company had the following purchases and sales information: Purchases 13 units at $150 20…
A: As per FIFO (First in first out) method, inventory which is purchased first will be sold first.
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A: In the periodic method, all inventory is physically counted at the end of the accounting period and…
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- Calculate the cost of goods sold dollar value for A66 Company for the month, considering the following transactions under three different cost allocation methods and using perpetual inventory updating. Provide calculations for last-in, first-out (LIFO).Kulsrud Company would like to estimate the current inventory level. Using the gross profit method and the following information, estimate the current inventory level for Kulsrud Company. Goods available for sale 100,000 Net sales 150,000 Normal gross profit as a percent of sales 40%Use the following information to compute cost of goods sold under the FIFO and LIFO inventory methods. The firm sold 200 units.
- Calculate the cost of goods sold dollar value for A74 Company for the sale on March 11, considering the following transactions under three different cost allocation methods and using perpetual inventory updating. Provide calculations for (a) first-in, first-out (FIFO); (b) last-in, first-out (LIFO); and (c) weighted average (AVG).Trini Company had the following transactions for the month. Calculate the ending inventory dollar value for each of the following cost allocation methods, using periodic inventory updating. Provide your calculations. A. first-in, first-out (FIFO) B. last-in, first-out (LIFO) C. weighted average (AVG)Trini Company had the following transactions for the month. Calculate the cost of goods sold dollar value for the period for each of the following cost allocation methods, using periodic inventory updating. Provide your calculations. A. first-in, first-out (FIFO) B. last-in, first-out (LIFO) C. weighted average (AVG)
- Inventory Costing Methods Andersons Department Store has the following data for inventory, purchases, and sales of merchandise for December. Andersons uses a perpetual inventory system. All purchases and sales were for cash. Required: 1. Compute cost of goods sold and the cost of ending inventory using FIFO. 2. Compute cost of goods sold and the cost of ending inventory using LIFO. 3. Compute cost of goods sold and the cost of ending inventory using the average cost method. ( Note: Use four decimal places for per-unit calculations.) 4. Prepare the journal entries to record these transactions assuming Anderson chooses to use the FIFO method. 5. CONCEPTUAL CONNECTION Which method would result in the lowest amount paid for taxes?Akira Company had the following transactions for the month. Calculate the gross margin for the period for each of the following cost allocation methods, using periodic inventory updating. Assume that all units were sold for $25 each. Provide your calculations. A. first-in, first-out (FIFO) B. last-in, first-out (LIFO) C. weighted average (AVG)Comparison of Inventory Costing Methods—Periodic System Bitten Companys inventory records show 600 units on hand on October 1 with a unit cost of $5 each. The following transactions occurred during the month of October: All expenses other than cost of goods sold amount to $3,000 for the month. The company uses an estimated tax rate of 30% to accrue monthly income taxes. Required Prepare a chart comparing cost of goods sold and ending inventory using the periodic system and the following costing methods: What does the Total column represent? Prepare income statements for each of the three methods. Will the company pay more or less tax if it uses FIFO rather than LIFO? How much more or less?
- Inventory Costing Methods Crandall Distributors uses a perpetual inventory system and has the following data available for inventory, purchases, and sales for a recent year. Required: 1. Compute the cost of ending inventory and the cost of goods sold using the specific identification method. Assume the ending inventory is made up of 40 units from beginning inventory, 30 units from Purchase 1, 80 units from Purchase 2, and 40 units from Purchase 3. 2. Compute the cost of ending inventory and cost of goods sold using the FIFO inventory costing method. 3. Compute the cost of ending inventory and cost of goods sold using the LIFO inventory costing method. 4. Compute the cost of ending inventory and cost of goods sold using the average cost inventory costing method. ( Note: Use four decimal places for per-unit calculations and round all other numbers to the nearest dollar.) 5. CONCEPTUAL CONNECTION Compare the ending inventory and cost of goods sold computed under all four methods. What can you conclude about the effects of the inventory costing methods on the balance sheet and the income statement?Assume your company uses the periodic inventory costing method, and the inventory count left out an entire warehouse of goods that were in stock at the end of the year, with a cost value of $222,000. How will this affect your net income in the current year? How will it affect next years net income?Alternative Inventory Methods Park Companys perpetual inventory records indicate the following transactions in the month of June: Required: 1. Compute the cost of goods sold for June and the inventory at the end of June using each of the following cost flow assumptions: a. FIFO b. LIFO c. Average cost (Round unit costs to 3 decimal places and other amounts to the nearest dollar.) 2. Next Level Why are the cost of goods sold and ending inventory amounts different for each of the three methods? What do these amounts tell us about the purchase price of inventory during the year? 3. Next Level Which method produces the most realistic amount for net income? For inventory? Explain your answer. 4. Next Level If Park uses IFRS, which of the previous alternatives would be acceptable and why?