Crane Company uses the periodic inventory method and had the following inventory information available:UnitsUnit CostTotal Cost1/1 Beginning Inventory104$6$6241/20Purchase416$72.9127/25Purchase208$81,66410/20Purchase312$92,8081,040$8,008A physical count of inventory on December 31 revealed that there were 500 units on hand.Answer the following independent questions. (Round average per unit cost to 2 decimal places, es 15.25 and other answers to 0 decimal places, es 1,525)1Assume that the company uses the FIFO method. The value of the ending inventory at December 31 is2Assume that the company uses the Average-Cost method. The value of the ending inventory on December 31 is$3.Assume that the company uses the LIFO method. The value of the ending inventory on December 31 is$4. (4)Determine the difference in the amount of income that the company would have reported if it had used the FIFO method instead of the LIFO method.$4. (b)Would income have been greater or less?

Name: Crane Company uses the periodic inventory method and had the followin
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Description: Crane Company uses the periodic inventory method and had the following inventory information available:UnitsUnit CostTotal Cost1/1 Beginning Inventory104$6$6241/20Purchase416$72.9127/25Purchase208$81,66410/20Purchase312$92,8081,040$8,008A physical c

The inventory can be valued using various methods as, FIFO, LIFO, and average method. Using FIFO…

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Units Unit Cost Total Cost 1/1 Beginning Inventory 104 $6 $624 1/20 Purchase 416 $7 2,912 7/25 Purchase 208 $8 1,664 10/20 Purchase 312 $9 2,808 1,040 $8.008 A physical count of inventory on December 31 revealed that there were 500 units on hand. Answer the following independent questions. (Round average per unit cost to 2 decimal places, es 15.25 and other answers to 0 decimal places, g 1,525) 1 Assume that the company uses the FIFO method. The value of the ending inventory at December 31 is 2 Assume that the company uses the Average-Cost method. The value of the ending inventory on December 31 is 3. Assume that the company uses the LIFO method. The value of the ending inventory on December 31 is $ 4.000 Determine the difference in the amount of income that the company would have reported if it had used the FIFO method instead of the LIFO method. 5

Units Unit Cost Total Cost 1/1 Beginning Inventory 104 $6 $624 1/20 Purchase 416 $7 2,912 7/25 Purchase 208 $8 1,664 10/20 Purchase 312 $9 2,808 1,040 $8.008 A physical count of inventory on December 31 revealed that there were 500 units on hand. Answer the following independent questions. (Round average per unit cost to 2 decimal places, es 15.25 and other answers to 0 decimal places, g 1,525) 1 Assume that the company uses the FIFO method. The value of the ending inventory at December 31 is 2 Assume that the company uses the Average-Cost method. The value of the ending inventory on December 31 is 3. Assume that the company uses the LIFO method. The value of the ending inventory on December 31 is $ 4.000 Determine the difference in the amount of income that the company would have reported if it had used the FIFO method instead of the LIFO method. 5

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter13: Accounting For Merchandise Inventory

Section: Chapter Questions

Problem 1MP: Hurst Companys beginning inventory and purchases during the fiscal year ended December 31, 20-2,...

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Hurst Companys beginning inventory and purchases during the fiscal year ended December 31, 20-2, were as follows: There are 1,200 units of inventory on hand on December 31, 20-2. REQUIRED 1. Calculate the total amount to be assigned to the cost of goods sold for 20-2 and ending inventory on December 31 under each of the following periodic inventory methods: (a) FIFO (b) LIFO (c) Weighted-average (round calculations to two decimal places) 2. Assume that the market price per unit (cost to replace) of Hursts inventory on December 31 was 18. Calculate the total amount to be assigned to the ending inventory on December 31 under each of the following methods: (a) FIFO lower-of-cost-or-market (b) Weighted-average lower-of-cost-or-market 3. In addition to taking a physical inventory on December 31, Hurst decides to estimate the ending inventory and cost of goods sold. During the fiscal year ended December 31, 20-2, net sales of 100,000 were made at a normal gross profit rate of 35%. Use the gross profit method to estimate the cost of goods sold for the fiscal year ended December 31 and the inventory on December 31.
On January 1 of Year 1, Dorso Company adopted the dollar-value LIFO method of inventory costing. Dorsos December 31 ending inventory records are as follows: Year 1: Current cost, 20,000; Index, 100 Year 2: Current cost, 33,600; Index, 120 Using the dollar-value LIFO method, compute Dorsos December 31 ending inventory for Year 2.
Lower-of-cost-or market inventory Data on the physical inventory of Moyer Company as of December 31, 20Y9, are presented below. Quantity and cost data from the last purchases invoice of the year and the next-to-the-last purchases invoice are summarized as follows: Instructions Determine the inventory at cost and at the lower of cost or market, using the first-in, first-out method. Record the appropriate unit costs on an 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 below as an example.
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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?
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Beginning inventory, purchases, and sales for WCS12 are as follows: Assuming a perpetual inventory system and using the weighted average method, determine (a) the weighted average unit cost after the October 22 purchase, (b) the cost of goods sold on October 29, and (c) the inventory on October 31.
Data on the physical inventory of Ashwood Products Company as of December 31 follow: Quantity and cost data from the last purchases invoice of the year and the next-to-the-last purchases invoice are summarized as follows: Instructions Determine the inventory at cost as well as 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 Lower of C or M column. The first item on the inventory sheet has been completed as an example.
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