5 E8-13 (FIFO and Average-Cost Determination) LoBianco Company's record of transactions for the month of April was as follows. Purchases Sales April 1 (balance on hand) April 3 500 @ $10.00 600 @ $6.00 1,500 6.08 4 9 1,300 10.00 8 800 6.40 11 600 11.00 13 1,200 @ 6.50 23 1,200 11.00 21 27 12.00 700 @ 6.60 500 @ 6.79 29 4,500 5,300 Instructions (a) Assuming that periodic inventory records are kept, compute the inventory at April 30 using (1) FIFO and (2) average-cost. (b) Assuming that perpetual inventory records are kept in both units and dollars, determine the inventory at April 30 using (1) FIFO and (2) average-cost. (c) In an inflationary period, which inventory method-FIFO or average-cost-will show the highest net income? 900 @

5 E8-13 (FIFO and Average-Cost Determination) LoBianco Company's record of transactions for the month of April was as follows. Purchases Sales April 1 (balance on hand) April 3 500 @ $10.00 600 @ $6.00 1,500 6.08 4 9 1,300 10.00 8 800 6.40 11 600 11.00 13 1,200 @ 6.50 23 1,200 11.00 21 27 12.00 700 @ 6.60 500 @ 6.79 29 4,500 5,300 Instructions (a) Assuming that periodic inventory records are kept, compute the inventory at April 30 using (1) FIFO and (2) average-cost. (b) Assuming that perpetual inventory records are kept in both units and dollars, determine the inventory at April 30 using (1) FIFO and (2) average-cost. (c) In an inflationary period, which inventory method-FIFO or average-cost-will show the highest net income? 900 @

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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3.85/6 = Concord Book Warehouse Ltd. distributes hardcover books to retail stores. At the end of May. Concord's inventory consists of 240 books purchased at $18 each. Concord uses a perpetual inventory system. Return rates in the book industry are high, with Concord experiencing a 15% return rate historically. During the month of June, the following merchandise transactions occurred: June 1 Purchased 180 books on account for $16 each from Reader's World Publishers, terms n/45. 3 5 esc 8 9 11 12 17 Sold 230 books on account to The Book Nook for $25 each, with an assumed average cost of $17, terms n/45. Received a $144 credit for 9 books returned to Reader's World Publishers. Sold 85 books on account to Read-A-Lot Bookstore for $25 each, with an assumed average cost of $17, terms n/45. Issued a $300 credit memorandum to Read-A-Lot Bookstore for the return of 12 damaged books. The books were determined to be no longer saleable and were destroyed. 22 25 Purchased 130 books on account for…
Ma3. Monte Vista uses the perpetual inventory system. At the beginning of the quarter, Monte Vista has $48,000 in inventory. During the quarter the company purchases $10,600 of new inventory from a vendor, returned $1,000 of inventory to the vendor, and took advantage of discounts from the vendor of $380. At the end of the quarter the balance in inventory is $35,500. What is the cost of goods sold?
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A record of transactions for the month of May was as follows: Purchases Sales May 1 (balance) 480 @ $5.50 May 3 240@ $8.00 4 1,390 @ $5.40 6 1,080 @ $8.00 8 800 @ $5.60 12 900 @ $8.50 14 700 @ $5.70 18 450 @ $8.50 22 1,250 @ $5.80 25 1,400 @ $9.00 29 560 @ $5.85 Assuming that perpetual inventory records are kept in dollars, determine the ending inventory using LIFO. Ending inventory +A $
The problem is stated in the picture. Here is the question: 1. How much is the gross profit for the year?
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E7-7 Analyzing and Interpreting the Financial Statement Effects of FIFO, LIFO, and Weighted Average Cost [LO 7-3] Scoresby Inc. 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. Transactions Units Unit Cost a. Inventory, Beginning 1,500 $ 28 For the year: b. Purchase, March 5 7,500 29 c. Purchase, September 19 3,500 31 d. Sale, April 15 (sold for $73 per unit) 2,200 e. Sale, October 31 (sold for $76 per unit) 6,500 f. Operating expenses (excluding income tax expense), $398,000 Required: 1. Calculate the number and cost of goods available for sale. 2. Calculate the number of units in ending inventory. 3. Compute the cost of ending inventory and…
Transactions for the month of June were: Purchases Sales June 1 (balance) 3180 @ $3.30 June 2 2350 @ $5.40 3 8820 @ 3.20 6 6380 @ 5.40 7 4900 @ 3.40 9 3920 @ 5.40 15 7180 @ 3.50 10 1540 @ 8.00 22 1960 @ 3.60 18 5610 @ 8.00 25 760 @ 8.00 Assuming that periodic inventory records are kept in units only, the ending inventory on a LIFO basis is
Example 3: The following data are extracted from the records of a commercial company for the year 2011 (amounts in dinars): 1. The balance at the beginning of the period (1/1) for this item was 7,000 units at a purchase price of 10 dinars per unit 2- On 3/8 4500‪ units were sold 3- On 5/10, 900‪0 units were purchased at a purchase price of 12 dinars per unit. 4- On 7/15, 3250 units were sold 5- On 9/18, 6,500 units were purchased at a purchase price of 12 dinars per unit. 6- On 12/24, 2,000 units were sold. 7- On 12/29 sold, 275‪0 units. Required: Photocopy of the item card for this material using the following pricing methods: - 1- First-in-first-sell (FIFO) method. 2- What comes last is sold first method (LIFO ). 3- The weighted average price method.
Universal Suppliers had sales of $475,000 in the month of June. Use the retail method to estimate the value of the inventory (in $) as of June 30 given the following financial information: Universal SuppliersFinancial HighlightsJune 1–June 30 Cost Retail Beginning Inventory $304,371 $583,900 Net Purchases (June) 109,137 226,900 $
Lady Gaga Company provided the following data for the current year: Inventory, January 1 - P2,000,000 Purchases P7,500,000 Purchase returns and allowances - P500,000 Sales returns and allowances - P750,000 Inventory, December 31 - P2,800,000 Gross profit rate based on sales - 20% What is the cost of goods sold? A P7,200,000 B P6,200,000 P9,000,000 P6,700,000