3. On June 1, 2020, Company AAA has 10 units of inventory with a unit cost of $5. The company purchased additional 10 units @ $5.5, 15 units @$4, and 20 units @ $6 on June 5, June 15, and June 28, respectively. The company sold 15 units each on the following dates: June 6, June 18, and June 29. What is the cost of ending inventory using the LIFO cost flow in a perpetual inventory system? $50 $51.25 $55 $60

3. On June 1, 2020, Company AAA has 10 units of inventory with a unit cost of $5. The company purchased additional 10 units @ $5.5, 15 units @$4, and 20 units @ $6 on June 5, June 15, and June 28, respectively. The company sold 15 units each on the following dates: June 6, June 18, and June 29. What is the cost of ending inventory using the LIFO cost flow in a perpetual inventory system? $50 $51.25 $55 $60

Name: 3. On June 1, 2020, Company AAA has 10 units of inventory with a unit
Uploaded: 2024-03-20T06:32:37.000Z
Channel: Bartleby
Description: 3. On June 1, 2020, Company AAA has 10 units of inventory with a unit cost of $5. The company purchased additional 10 units @ $5.5, 15 units @$4, and20 units @ $6 on June 5, June 15, and June 28, respectively. The company sold 15 units each on the f

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

3. On June 1, 2020, Company AAA has 10 units of inventory with a unit cost of $5. The company purchased additional 10 units @ $5.5, 15 units @$4, and 20 units @ $6 on June 5, June 15, and June 28, respectively. The company sold 15 units each on the following dates: June 6, June 18, and June 29. What is the cost of ending inventory using the LIFO cost flow in a perpetual inventory system? $50 $51.25 $55 $60
You have the following information for Tamarisk, Inc. for the month ended October 31, 2022. Tamarisk uses a periodic method for inventory. Date Description Units Unit Cost or Selling Price Oct. 1 Beginning inventory 60 24 Oct. 9 Purchase 115 26 Oct. 11 Sale 95 45 Oct. 17 Purchase 95 27 Oct. 22 Sale 60 50 Oct. 25 Purchase 70 29 Oct. 29 Sale 105 50 A(3) Calculate gross profit rate under each of the following: 1.LIFO 2.FIFO 3. Average-cost. Gross profit rate - LIFO% - FIFO% AND AVERAGE-COST %
During 2021, a company sells 280 units of inventory for $86 each. The company has the following inventory purchase transactions for 2021: Date Transaction Numberof Units UnitCost Total Cost Jan. 1 Beginning inventory 68 $ 68 $ 4,624 May 5 Purchase 166 69 11,454 Nov. 3 Purchase 190 71 13,490 424 $ 29,568 Calculate ending inventory and cost of goods sold for 2021 assuming the company uses FIFO. Ending inventory: __________ Cost of goods sold: ___________
Opening and closing inventory balances and purchases for the month of October 2020 for Haadiyah Hearing Ltd are as follows: Units Per unit Inventory, 1 October 7,000 $4.00 Purchase, 3 October 8,000 $4.10 Purchase, 15 October 11,000 $4.20 Purchase, 20 October 15,000 $4.25 Inventory, 31 October 20,000 - Required: Determine the cost of goods sold for October under each of the following cost flow assumptions: FIFO Weighted average LIFO
1. Prepare a perpetual inventory record for All Things Auto, using the first in, first out (FIFO) method to determine the value of ending inventory at December 31, 2020, and the total amount to be assigned to cost of goods sold for the period. 2. Given that selling, distribution and administrative costs for the quarter were $23,445, $10,250 and$75,435 respectively, prepare an income statement for All Things Auto (DieHard) for the quarter ended December 31, 2020, to determine the net profit for the quarter. 3. Journalize the transactions on November 12 and November 27, assuming the business uses a:- Perpetual inventory system- Periodic inventory system 4. Vallie Enterprise sells a product that cost $200 per unit and has a monthly demand of 500 units. The annual holding cost per unit is calculated as 2% of the unit purchase price. It costs thebusiness $30 to place a single order.The maximum number of units sold for any one week is 150 and minimum sales 80 units. The vendor takes…
Mist Company uses a PERIODIC inventory system. Mist had the following inventory purchases and sales during 2021: 2021 Beginning Inventory (purchased in 2020) Purchases: 60 units @ $20 per unit Purchase 1 on 3/8/21 140 units @ $28 per unit Purchase 2 on 8/5/21 50 units @ $32 per unit Sales: Sale 1 on 5/8/21 80 units @ $90 per unit Sale 2 on 9/13/21 125 units @ $90 per unit Of the items sold on 5/8/2021, 60 units were from the beginning inventory and 20 units were from 3/8/21 purchase. The 9/13/21 sale included 85 units from the 3/8/21 purchase and 40 units from the 8/5/21 purchase. Show how Mist's Balance Sheet and Income Statement would look under each of the inventory cost flow assumptions. Compute Ending Inventory, Sales, COGS, and Gross Profit under Specific Identification, Weighted Average Cost, FIFO and LIFO. Fill in your answers on the table below. SHOW YOUR WORK. Round per…
The following units of an inventory item were available for sale during the year. Use this information to answer the following question. Beginning inventory 10 units at $55 First purchase 25 units at $60 Second purchase 30 units at $65 Third purchase 15 units at $70 The firm uses the periodic inventory system. During the year, 60 units of the item were sold.The value of ending inventory using LIFO is
Muscat Company uses the periodic inventory system to account for inventories. Information related to Muscat Company's inventory for the month of January 2020 is given as follows: Units Per unit price Total Balance, 1/1/20 200 OMR 5.00 Purchase, 1/15/2020 100 5.30 Purchase, 1/28/2020 100 5.50 The physical inventory count on January 31 shows 120 units are on hand. Using the FIFO method, what is the cost of goods sold? Select one: O a. OMR 600 O b. OMR 520 O c. None of the answers are correct O d. OMR 1,424 O e. OMR 656
Riverside Inc. began business on January 1, 2020. The firm made the following inventory purchases during the year: Number Unit Price Number of Units Total Cost 1 $3 4 $12 2 $5 3 15 3 $6 3 18 10 $45 Use the information above to complete the following cost of goods section. Riverside sold 7 units in 2020. Complete the following cost of goods sold sections under the first-in, first-out (FIFO) and last-in, first-out (LIFO) cost assumptions. FIFO LIFO Beginning inventory $0 $0 Purchases Goods available for sale Ending inventory Cost of goods sold $ $ Assume that Riverside sold 7 units for $10 each during 2020. Complete the following income statements through gross profit and ending inventory on the balance sheet under the FIFO and LIFO cost assumptions. Income Statements: FIFO LIFO Sales revenue $70 $70 Cost of goods sold Gross…
The Rockwell Corporation uses a periodic inventory system and has used the FIFO cost method since inception of the company in 1982. In 2021, the company decided to change to the average cost method. Data for 2021 are as follows: Beginning inventory, FIFO (6,500 units @ $45.00) Purchases: 6,500 units @ $51.00 6,500 units @ $55.00 Cost of goods available for sale Sales for 2021 (11,000 units @ $85.00) Additional information: 1. The company's effective income tax rate is 25% for all years. 2. If the company had used the average cost method prior to 2021, ending inventory for 2020 would have been $266,500. 3. 8,500 units remained in inventory at the end of 2021. Answer is not complete. Complete this question by entering your answers in the tabs below. $331,500 357,500 Required: 1. Prepare the journal entry at the beginning of 2021 to record the change in principle. 2. In the 2021-2019 comparative financial statements, what will be the amounts of cost of goods sold and inventory reported…
The management of Carla Vista Inc. asks your help in determining the comparative effects of the FIFO and LIFO inventory cost flow methods. For 2025, the accounting records show these data. They use the periodic inventory system. Inventory, January 1 (14,500 units) Cost of 123,000 units purchased Selling price of 95,000 units sold Operating expenses Units purchased consisted of 35,000 units at $3.20 on May 10, 63,000 units at $3.40 on August 15, and 25,000 units at $3.70 on November 20. Income taxes are 26%. (a) Prepare comparative condensed income statements for 2025 under FIFO and LIFO. Sales Revenue Cost of Goods Sold Beginning Inventory Cost of Goods Purchased Cost of Goods Available for Sale Less : Ending Inventory Cost of Goods Sold Gross Profit/(Loss) Operating Expenses Income before Income Taxes Income Tax Expense $43,500 418,700 727,000 123,000 Net Income /(Loss) Carla Vista Inc. Condensed Income Statements For the Year Ended December 31, 2025 $ FIFO 727,000 43.500 418.700 462…
Rockwell Corporation uses a periodic inventory system and has used the FIFO cost method since inception of the company in 1979. In 2021, the company decided to switch to the average cost method. Data for 2021 are as follows: Beginning inventory, FIFO (5,000 units @ $28) Purchases: 5,000 units @ $34 5,000 units @ $38 Cost of goods available for sale Sales for 2021 (6,000 units @ $74) Additional Information: a. The company's effective income tax rate is 25% for all years. b. If the company had used the average cost method prior to 2021, ending inventory for 2020 would have been $120,000. c. 9,000 units remained in inventory at the end of 2021. Required 1 $170,000 190,000 Required: 1. Ignoring income taxes, prepare the 2021 journal entry to adjust the accounts to reflect the average cost method. 2. What is the effect of the change in methods on 2021 net income? Required 2 $140,000 Complete this question by entering your answers in the tabs below. What is the effect of the change in…