Assume the beginning inventory as of January 1 consisted of 500 units that were purchased for $8.25 each. During the month, three new purchases were made. The first purchase consisted of 700 units costing $8.50 each, the second purchase had 800 units costing $9.00 each, and the third purchase had 600 units costing $9.50 each. At the end of the month, ending inventory shows 700 units. Compute the cost of goods sold and the ending inventory for the company using each of the following methods. Also determine the gross margin if the total sales revenue is $43,000. a. Specific identification: Of the units sold, 300 were from the beginning inventory, 600 from the first purchase, 700 from the second purchase, and 300 from the third purchase. Cost of goods sold Ending inventory Gross profit %$4 b. First-in, first-out (FIFO) Cost of goods sold Ending inventory Gross profit c. Weighted-average (round the unit price) Cost of goods sold Ending inventory Gross profit d. Last-in, first-out (LIFO) Cost of goods sold Ending inventory Gross profit

Assume the beginning inventory as of January 1 consisted of 500 units that were purchased for $8.25 each. During the month, three new purchases were made. The first purchase consisted of 700 units costing $8.50 each, the second purchase had 800 units costing $9.00 each, and the third purchase had 600 units costing $9.50 each. At the end of the month, ending inventory shows 700 units. Compute the cost of goods sold and the ending inventory for the company using each of the following methods. Also determine the gross margin if the total sales revenue is $43,000. a. Specific identification: Of the units sold, 300 were from the beginning inventory, 600 from the first purchase, 700 from the second purchase, and 300 from the third purchase. Cost of goods sold Ending inventory Gross profit %$4 b. First-in, first-out (FIFO) Cost of goods sold Ending inventory Gross profit c. Weighted-average (round the unit price) Cost of goods sold Ending inventory Gross profit d. Last-in, first-out (LIFO) Cost of goods sold Ending inventory Gross profit

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Description: O UnitO AccG theG WheG A meO Que.O ChapGA meaccoAcccO AcAcccaccoometakeAssignmeniMam.do?nvoker 8takeAssignmentSessiont ocator-8inprogrAssume the beginning inventory as of January 1 consisted of 500 units that were purchased for $8.25 each. During th

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Assume the following events for a month for Company X: Beginning Balance of Inventory is 400 Units and the cost is $ 200 per Unit. October 5 Company X purchases 400 Units at a cost of $220 per Unit. October 9 Company X sells 600 units for $500 per Unit. October 17 Company X purchases 200 Units at a cost of $230 per Unit. October 27 Company X sells 300 units for $500 per Unit. October 29 Company X purchases 200 units for $250 per Unit. Use this data to answer all questions. Using FIFO Periodic, what is the Gross Profit for October?
Kangaroo Jim Company reported beginning inventory of 100 units at a per unit cost of $25. It hadthe following purchase and sales transactions during the year:Jan. 14 Sold 25 units at unit sales price of $45 on account.Apr. 9 Purchased 15 additional units at a per unit cost of $25 on account.Sept. 2 Sold 50 units at a sales price of $50 on account.Dec. 31 Counted inventory and determined 40 units were still on hand.Required:Record each transaction, assuming that Kangaroo Jim Company uses (a) a perpetual inventorysystem and (b) a periodic inventory system.
Altis Company reported the following information for the currentyear: Sales (100,000 units atP150). Sales discount. Purchases Purchase discount. 15,000,000 1,000,000 9,300,000 400,000 The inventory purchases during the year were as follows: Unit cost Total cost 1,200,000 1,950,000 2,800,000 3,750,000 800,000 10,500,000 Units Beginning inventory, January 1 Purchases, quarter ended March 31 Purchases, quarter ended June 30 Purchases, quarter ended Sept. 30 Purchases, quarter ended Dec. 31 20,000 30,000 40,000 50,000 10,000 150,000 60 65 70 75 80 The accounting policy is to report inventory in the financial statements at the lower of cost and net realizable value. Cost is determined under the first-in, first-out method. Atyear-end,theentityhasdeterminedthatthereplacementcostofinventorywasP70perunitandthenetrealizable value was P72 per unit. The normal profit margin is P10 perunit. What amount should be reported as cost of goods sold for the currentyear? a.6,500,000 b.6,300,000 c.6,700,000…
Cullumber Company Inc. had a beginning inventory of 120 units of Product RST at a cost of $7 per unit. During the year, purchases were: Feb. 20 630 units at May 5 535 units at $8 $9 Aug. 12 Dec. 8 445 120 units at units at $10 $11 Cullumber Company uses a periodic inventory system. Sales totaled 1,500 units.
Assume the beginning inventory as of January 1 consisted of 500 units that were purchased for $8.25 each. During the month, three new purchases were made, The first purchase consisted of 700 units costing $8.50 each, the second purchase had 800 units costing $9.00 each, and the third purchase had 600 units costing $9.50 each, At the end of the month, ending inventory shows 700 units. Compute the cost of goods sold and the ending inventory for the company using each of the following methods. Also determine the gross margin if the total sales revenue $43,000. a. Specific identification: Of the units sold, 300 were from the beginning inventory, 600 from the first purchase, 700 from the second purchase, and 300 from the third purchase. Cost of goods sold $ Ending inventory Gross profit $ b. First-in, first-out (FIFO) Cost of goods sold $4 Ending inventory 24 Gross profit $ c. Weighted-average (round the unit price) Cost of goods sold $ Ending inventory Gross profit d. Last-in, first-out…
Assume the beginning Inventory as of January 1 conststed of 500 units that were purchased for $8.25 each. During the month, three new purchases were made. The first purchase consisted of 700 units costing $8.50 each, the second purchase had 800 units costing $9.00 each, and the third purchase had 600 units costing $9.50 each. At the end of the month, ending Inventory shows 700 units. Compute the cost of goods sold and the ending Inventory for the company using each of the following methods. Also determine the gross margin if the total sales revenue is $43,000. a. Specific Identafication: of the units sold, 300 were from the beginning Inventory, 600 from the first purchase, 700 from the second purchase, and 300 from the third purchase. Cost of goods sold Ending Inventory Gross profit b. Arst-in, first-out (FIFO) Cost of goods sold Ending Inventory Gross profit %24 C Weighted-average (round the unit price) Cost of goods sold Ending inventory Gross profit d. Last-in, first-out (LIFO) Cost…
Joe's Products Co. had the following purchase transaction during the first quarter of its fiscal year: Number : Per of Units Unit Date Transaction Jan. 1 Beg. Inv. 50 $15 | Jan. 15 Purchase 100 $18 Feb. 15 Purchase 120 $21 March 15 Purhcase 80 $25 Joe's Products sold 170 units at $30/unit during the quarter. Of the untis sold, 20 came from beginning inventory, 30 came from the Feb. 15 purchase, and 50 came form the March 15 purchase with the remaining units coming from Jan. 15. Fill out the table below with the COGS, Ending Inventory, and Gross Margin under the four different inventory flow assumptions: Specific First-In, Last-In, Weighted Identification First-Out First-Out Average Cost Cost of Goods Sold 3,640 2,970 3,890 3,434 Ending Inventory 3,430 4,100 3,180 3,636 Gross Margin 1,460 2,130 1,210 1,666
Assume the beginning inventory as of January 1 consisted of 500 units that were purchased for $8.25 each. During the month, three new purchases were made. The first purchase consisted of 700 units costing $8.50 each, the second purchase had 800 units costing $9.00 each, and the third purchase had 600 units costing $9.50 each. At the end of the month, ending inventory shows 700 units. Compute the cost of goods sold and the ending inventory for the company using each of the following methods. Also determine the gross margin if the total sales revenue is $43,000. a. Specific identification: Of the units sold, 300 were from the beginning inventory, 600 from the first purchase, 700 from the second purchase, and 300 from the third purchase. Cost of goods sold _____ Ending inventory _____ Gross profit _____ b. First-in, first-out (FIFO) Cost of goods sold ______ Ending inventory ______ Gross profit ______ c.…
Assume the beginning Inventory as of January 1 consisted of 500 units that were purchased for $8.25 each. During the month, three new purchases were made. The first purchase consisted of 700 units costing $8.50 each, the second purchase had 800 units costing $9.00 each, and the third purchase had 600 units costing $9.50 each. At the end of the month, ending inventory shows 700 units. Compute the cost of goods sold and the ending inventory for the company using each of the following methods. Also determine the gross margin if the total sales revenue is $43,000. a. Specific identification: Of the units sold, 300 were from the beginning inventory, 600 from the first purchase, 700 from the second purchase, and 300 from the third purchase. Cost of goods sold Ending inventory %24 Gross profit b. First-in, first-out (FIFO) Cost of goods sold 2$ Ending inventory Gross profit $4 c. Weighted-average (round the unit price) Cost of goods sold %24 Ending inventory $ profit d. Last-in, first-out…
Akira Company had the following transactions for the month. Sales for the month are $25 per unit. # of Units Cost per Unit Beginning Inventory 150 $10 Purchased Mar. 31 160 $12 Purchased Oct. 15 130 $15 Ending Inventory 50 ? In the table below, calculate the dollar value for the period for each of the following items using the listed cost allocation methods and using periodic inventory updating. PLEASE NOTE: All dollar amounts will be rounded to whole dollars using "$" with commas as needed (i.e. $12,345), except for the Weighted Average cost per unit, which will be rounded to two decimal places and include "$". Weighted average cost per unit = ___?_____ per unit Cost Allocation Method Cost of Goods Available Cost of Goods Sold Ending Inventory Sales Gross Margin First-in, First-out (FIFO) Last-in, First-out (LIFO) Weighted Average (AVG)
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