Periodic Inventory System: It is a system in which the inventory is updated in the accounting records on a periodic basis such as at the end of each month, quarter or year. In other words, it is an accounting method which is used to determine the amount of inventory at the end of each accounting period. In Last-in-First-Out method, the costs of last purchased items are sold first. The value of the closing stock consist the initial purchased items. To Compute: The ending inventory and cost of goods sold for 2018.

Question

Want to see the full answer?

Answer 1

Question

Chapter 8, Problem 8.4P

1.

To determine

Periodic Inventory System: It is a system in which the inventory is updated in the accounting records on a periodic basis such as at the end of each month, quarter or year. In other words, it is an accounting method which is used to determine the amount of inventory at the end of each accounting period.

In Last-in-First-Out method, the costs of last purchased items are sold first. The value of the closing stock consist the initial purchased items.

To Compute: The ending inventory and cost of goods sold for 2018.

2.

To determine

To Compute: The income before income taxes for 2018.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

TB EX Qu. 6-205 During 2021, a company sells... During 2021, a company sells 25 units of inventory. The company has the following inventory purchase transactions for 2021: Number Unit Date Transaction of Units Cost Total Cost Jan. 1 Beginning inventory Sep. 8 Purchase 20 $50 $1,000 10 78 780 30 $1,780 | Calculate ending inventory and cost of goods sold for 2021 assuming the company uses the weighted-average cost method. (Round weighted-average unit cost to 4 decimal places. Round your final answers to the nearest dollar amount.) Ending inventory Cost of goods sold ere to search ASUS

4. Inventory valuation Your firm had 450 units of product A on hand at January 1, 2021, costing $10 each. Purchases of product A during January, 2021 were as follows: Date Unit Cost Units 600 Jan. 10 $12 18 750 13 28 300 14 Your firm made one sale of 300 units at $20/unit on Jan. 15 and another sale of 700 units at $25/unit on Jan. 20. Required a. Determine the cost of goods sold and ending inventory on January 31, 2012 under the LIFO method and periodic inventory system is? b. Determine the cost of goods sold and ending inventory on January 31, 2012 under the FIFO method and perpetual inventory system is? c. Determine the cost of goods sold and ending inventory at January 31, 2012 under the weighted average method and periodic inventory system is?

Management of Inventory 9.22 (1) What is the total annual cost of the existing inventory policy? (ii) How much money would be saved by employing the economic order quantity (EOQ) ? [Ans. (1) 65,063 (including cost of boxes); (ii) 62.50 or say 63] 8. Ace Ltd. Manufactures a product and the following particulars are collected for the year ended March, 2011: 1000 Units Monthly demand *100 $ Cost of placing an order 15 per unit Annual carring cost 50 units per weak Normal usage 25 units per week Minimum usage Maximum usage 75 units per week 4-6 weeks Re-order period You are required to calculate : (i) Re-order quantity ) Re-order level (iii) Minimum level (iv) Maximum level (v) Average stock level. [Ans. (i) 186 units, (ii) 450 units; (iii) 200 units; (iv) 536 units; (v) 368 units, or 293 units]