York Co. sells one product, which it purchases from various suppliers. York’s trial balance at December 31, 2021, included the following accounts: Sales (33,000 units @ $16) $ 528,000 Sales discounts 7,500 Purchases 380,600 Purchase discounts 18,000 Freight-in 5,000 Freight-out 11,000 York Co.’s inventory purchases during 2021 were as follows: Units Cost per Unit Total Cost Beginning inventory 7,000 $ 7.70 $ 53,900 Purchases, quarter ended March 31 13,000 7.50 97,500 Purchases, quarter ended June 30 15,000 7.90 118,500 Purchases, quarter ended September 30 12,000 8.25 99,000 Purchases, quarter ended December 31 8,000 8.20 65,600 55,000 $ 434,500 Additional Information:a. York’s accounting policy is to report inventory in its financial statements at the lower of cost or net realizable value, applied to total inventory. Cost is determined under the first-in, first-out (FIFO) method.b. York has determined that, at December 31, 2021, the net realizable value was $8.00 per unit.Required:1a. Prepare York’s schedule of cost of goods sold. York includes inventory write-down losses in cost of goods sold.
York Co. sells one product, which it purchases from various suppliers. York’s trial balance at December 31, 2021, included the following accounts: Sales (33,000 units @ $16) $ 528,000 Sales discounts 7,500 Purchases 380,600 Purchase discounts 18,000 Freight-in 5,000 Freight-out 11,000 York Co.’s inventory purchases during 2021 were as follows: Units Cost per Unit Total Cost Beginning inventory 7,000 $ 7.70 $ 53,900 Purchases, quarter ended March 31 13,000 7.50 97,500 Purchases, quarter ended June 30 15,000 7.90 118,500 Purchases, quarter ended September 30 12,000 8.25 99,000 Purchases, quarter ended December 31 8,000 8.20 65,600 55,000 $ 434,500 Additional Information:a. York’s accounting policy is to report inventory in its financial statements at the lower of cost or net realizable value, applied to total inventory. Cost is determined under the first-in, first-out (FIFO) method.b. York has determined that, at December 31, 2021, the net realizable value was $8.00 per unit.Required:1a. Prepare York’s schedule of cost of goods sold. York includes inventory write-down losses in cost of goods sold.
Chapter18: Accounting Periods And Methods
Section: Chapter Questions
Problem 67P
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York Co. sells one product, which it purchases from various suppliers. York’s
Sales (33,000 units @ $16) | $ | 528,000 |
Sales discounts | 7,500 | |
Purchases | 380,600 | |
Purchase discounts | 18,000 | |
Freight-in | 5,000 | |
Freight-out | 11,000 | |
York Co.’s inventory purchases during 2021 were as follows:
Units | Cost per Unit | Total Cost | ||||||
Beginning inventory | 7,000 | $ | 7.70 | $ | 53,900 | |||
Purchases, quarter ended March 31 | 13,000 | 7.50 | 97,500 | |||||
Purchases, quarter ended June 30 | 15,000 | 7.90 | 118,500 | |||||
Purchases, quarter ended September 30 | 12,000 | 8.25 | 99,000 | |||||
Purchases, quarter ended December 31 | 8,000 | 8.20 | 65,600 | |||||
55,000 | $ | 434,500 | ||||||
Additional Information:
a. York’s accounting policy is to report inventory in its financial statements at the lower of cost or net realizable value, applied to total inventory. Cost is determined under the first-in, first-out (FIFO) method.
b. York has determined that, at December 31, 2021, the net realizable value was $8.00 per unit.
Required:
1a. Prepare York’s schedule of cost of goods sold. York includes inventory write-down losses in cost of goods sold.
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