Orion Iron Corp. tracks the number of units purchased and sold throughout each year but applies its inventory costing method at the end of the year as if it uses a periodic inventory system. Assume its accounting records provided the following information at the end of the annual accounting period, December 31. a. Inventory, Beginning For the year: Transactions b. Purchase, April 11 c. Purchase, June 1 d. Sale, May 1 (sold for $54 per unit) e. Sale, July 3 (sold for $54 per unit) f. Operating expenses (excluding income tax expense), $237,000 Required: 1. Calculate the number and cost of goods available for sale. Number of goods available for sale Cost of goods available for sale units 2. Calculate the number of units in ending inventory. Units 3,000 10,900 9,900 3,000 7,400 Unit Cost $26 24 27

Orion Iron Corp. tracks the number of units purchased and sold throughout each year but applies its inventory costing method at the end of the year as if it uses a periodic inventory system. Assume its accounting records provided the following information at the end of the annual accounting period, December 31. a. Inventory, Beginning For the year: Transactions b. Purchase, April 11 c. Purchase, June 1 d. Sale, May 1 (sold for $54 per unit) e. Sale, July 3 (sold for $54 per unit) f. Operating expenses (excluding income tax expense), $237,000 Required: 1. Calculate the number and cost of goods available for sale. Number of goods available for sale Cost of goods available for sale units 2. Calculate the number of units in ending inventory. Units 3,000 10,900 9,900 3,000 7,400 Unit Cost $26 24 27

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Description: Orion Iron Corp. tracks the number of units purchased and sold throughout each year but applies its inventory costing method at theend of the year as if it uses a periodic inventory system. Assume its accounting records provided the following inform

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter7: Inventories: Cost Measurement And Flow Assumptions

Section: Chapter Questions

Problem 11E: Alternative Inventory Methods Nevens Company uses a periodic inventory system. During November, the...

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