Compute the cost of goods sold of Incorporation B under FIFO.

Question

Want to see the full answer?

Answer 1

Question

Chapter 5, Problem 31BE

1.

To determine

Compute the cost of goods sold of Incorporation B under FIFO.

2.

To determine

Compute the cost of goods sold of Incorporation B under LIFO.

3.

To determine

Describe the method that results in higher cost of goods sold.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

Learning Objectives 1, 2: Show how to account for inventory in a perpetual systemusing the average-costing method) Western Trading Company purchases inventory in cratesof merchandise; each crate of inventory is a unit. The fiscal year of Western Trading ends eachJanuary 31. Assume you are dealing with a single Western Trading store in Nashville, Tennessee. The Nashville store began the year with an inventory of 20,000 units that cost a total of$1,060,000. During the year, the store purchased merchandise on account as follows:July (29,000 units at $59) ..................................... $1,711,000November (49,000 units at $63) ........................... 3,087,000December (59,000 units at $69)............................ 4,071,000Total purchases..................................................... $8,869,000Cash payments on account totaled $8,541,000. During fiscal year 2018, the store sold 155,000units of merchandise for $15,887,500, of which $4,900,000 was for cash and the balance…

I IBM Learning = Copy of Jacqueline. Periodic Inventory Using FIFO, LIFO, and Weighted Average Cost Methods The units of an item available for sale during the year were as follows: Jan. 1 Inventory 4 units at $4,200 $16,800 Aug. 7 Purchase 15 units at $4,300 64,500 Dec. 11 Purchase 13 units at $4,400 57,200 32 units $138,500 There are 18 units of the item in the physical inventory at December 31. The periodic inventory system is used. Determine the inventory cost using (a) the first-in, first-out (FIFO) method; (b) the last-in, first-out (LIFO) method; and (c) the weighted average cost method (Round per unit cost to two decimal places and your final answer to the nearest whole dollar). a. First-in, first-out (FIFO) $ 78,700 V b. Last-in, first-out (LIFO) 77,000 V Weighted average cost C. Feedback Check My Work a. When the FIFO method is used, costs are included in cost of merchandise sold in the order in which they were purchased. b. When the LIFO method is used, the cost of the units…

For all problems, assume the perpetual inventory system is used unless stated otherwise. P6-28A Accounting for inventory using the perpetual inventory system- FIFO, LIFO, and weighted-average Fit Gym began January with merchandise inventory of 78 crates of vitamins that cost a total of $4,290. During the month, Fit Gym purchased and sold merchandise on Merchandise Inventory 363 Learning Objectives 2, 3 2. Ending Merch. Inv., $990 account as follows: Jan. 5 Purchase 156 crates @ $ 64 each 13 Sale 180 crates @$ 100 each 18 Purchase 114 crates @ $ 75 each 26 Sale 150 crates @ $ 116 each Requirements 1 Prepare a perpetual inventory record, using the FIFO inventory costing method, and determine the company's cost of goods sold, ending merchandise inventory, and gross profit. 2. Prepare a perpetual inventory record, using the LIFO inventory costing method, and determine the company's cost of goods sold, ending merchandise inventory, and gross profit. 3. Prepare a perpetual inventory record,…

Answer 2

Question

Chapter 5, Problem 31BE

1.

To determine

Compute the cost of goods sold of Incorporation B under FIFO.

2.

To determine

Compute the cost of goods sold of Incorporation B under LIFO.

3.

To determine

Describe the method that results in higher cost of goods sold.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 3

Question

Chapter 5, Problem 31BE

1.

To determine

Compute the cost of goods sold of Incorporation B under FIFO.

2.

To determine

Compute the cost of goods sold of Incorporation B under LIFO.

3.

To determine

Describe the method that results in higher cost of goods sold.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 4

Question

Chapter 5, Problem 31BE

1.

To determine

Compute the cost of goods sold of Incorporation B under FIFO.

2.

To determine

Compute the cost of goods sold of Incorporation B under LIFO.

3.

To determine

Describe the method that results in higher cost of goods sold.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 5

Chapter 5, Problem 31BE

1.

To determine

Compute the cost of goods sold of Incorporation B under FIFO.

2.

To determine

Compute the cost of goods sold of Incorporation B under LIFO.

3.

To determine

Describe the method that results in higher cost of goods sold.

Answer 6

Chapter 5, Problem 31BE

1.

To determine

Compute the cost of goods sold of Incorporation B under FIFO.

Answer 7

Chapter 5, Problem 31BE

1.

To determine

Compute the cost of goods sold of Incorporation B under FIFO.

Answer 8

2.

To determine

Compute the cost of goods sold of Incorporation B under LIFO.

Answer 9

2.

To determine

Compute the cost of goods sold of Incorporation B under LIFO.

Answer 10

3.

To determine

Describe the method that results in higher cost of goods sold.

Answer 11

3.

To determine

Describe the method that results in higher cost of goods sold.

Answer 12

Expert Solution & Answer

Answer 13

Expert Solution & Answer

Answer 14

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 15

Ch. 5 - Prob. 1DQ Ch. 5 - How are the financial statements of a manufacturer...Ch. 5 - What is a cost-flow assumption? Why is a cost-flow...Ch. 5 - If a company had two units that cost 1 each in its...Ch. 5 - Prob. 5DQ Ch. 5 - Prob. 6DQ Ch. 5 - Prob. 7DQ Ch. 5 - Prob. 8DQ Ch. 5 - Prob. 9DQ Ch. 5 - Prob. 10DQ

Compute the cost of goods sold of Incorporation B under FIFO.

Solution Summary: The author explains how the cost of goods sold of Incorporation B under FIFO is computed.

Concept explainers

Videos

Compute the cost of goods sold of Incorporation B under FIFO.

Compute the cost of goods sold of Incorporation B under LIFO.

Describe the method that results in higher cost of goods sold.

Want to see the full answer?

Chapter 5 Solutions