A company began January with 7,000 units of its principal product. The cost of each unit is $9. Inventory transactions for the month of January are as follows: Date of Purchase January 10 January 18 Totals otal Date of Sale January 5 January 12 January 20 Total * Includes purchase price and cost of freight. Sales erpetual FIFO: Units 6,000 7,000 13,000 eginning Inventory urchases: January 10 January 18 Units 3,000 1,000 4,000 8,000 12,000 units were on hand at the end of the month. Purchases Unit Cost* Calculate January's ending inventory and cost of goods sold for the month using FIFO, perpetual system. $10 11 Cost of Goods Available for Sale Cost of Goods Number Unit of units Cost Available for Sale 6,000 10.00 7,000 11.00 20,000 7,000 $9.00 $ 63,000 $ Total Cost $ 60,000 77,000 $ 137,000 60,000 77,000 200,000 Cost of Goods Sold - January 5 Number of units sold 0 Cost per unit $ Cost of Goods Sold 9.00 $ 10.00 11.00 $ 0 ooo 0 Cost of Goods Sold - January 12 Number of units sold 0 Cost per unit $ Cost of Goods Sold 9.00 $ 10.00 11.00 $ 0 0 0 0 Cost of Goods Sold - January 20 Number of units sold 0 Cost per unit Cost of Goods Sold $9.00 $ 10.00 11.00 $ 0 0 0 0 Number of units in ending inventory

A company began January with 7,000 units of its principal product. The cost of each unit is $9. Inventory transactions for the month of January are as follows: Date of Purchase January 10 January 18 Totals otal Date of Sale January 5 January 12 January 20 Total * Includes purchase price and cost of freight. Sales erpetual FIFO: Units 6,000 7,000 13,000 eginning Inventory urchases: January 10 January 18 Units 3,000 1,000 4,000 8,000 12,000 units were on hand at the end of the month. Purchases Unit Cost* Calculate January's ending inventory and cost of goods sold for the month using FIFO, perpetual system. $10 11 Cost of Goods Available for Sale Cost of Goods Number Unit of units Cost Available for Sale 6,000 10.00 7,000 11.00 20,000 7,000 $9.00 $ 63,000 $ Total Cost $ 60,000 77,000 $ 137,000 60,000 77,000 200,000 Cost of Goods Sold - January 5 Number of units sold 0 Cost per unit $ Cost of Goods Sold 9.00 $ 10.00 11.00 $ 0 ooo 0 Cost of Goods Sold - January 12 Number of units sold 0 Cost per unit $ Cost of Goods Sold 9.00 $ 10.00 11.00 $ 0 0 0 0 Cost of Goods Sold - January 20 Number of units sold 0 Cost per unit Cost of Goods Sold $9.00 $ 10.00 11.00 $ 0 0 0 0 Number of units in ending inventory

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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A company began January with 6,000 units of its principal product. The cost of each unit is $8. Inventory transactions fo the month of January are as follows: Date of Purchase January 10 January 18 Totals Total Date of Sale January 5 January 12 January 20 Total Sales Units * Includes purchase price and cost of freight. Average Cost Beginning Inventory Purchases: 5,000 6,000 11,000 Problem 8-5 (Static) Part 4 January 10 January 18 Units 3,000 2,000 4,000 9,000 8,000 units were on hand at the end of the month. 4. Calculate January's ending inventory and cost of goods sold for the month using Average cost, periodic system. Unit Cost* Purchases Number Unit of units Cost $9 10 Cost of Goods Available for Sale Cost of Goods Available for Sale 48,000 6,000 $8.00 $ 5,000 $9.00 6,000 $10.00 17,000 $ Total Cost $ 45,000 60,000 $ 105,000 45,000 60,000 153,000 Cost of Goods Sold - Average Cost Average Cost per Unit Number of units sold Cost of Goods Sold 0 Ending Inventory - Average Cost Number of…
A company began January with 7,000 units of its principal product. The cost of each unit is $6. Inventory transactions for the month of January are as follows: Date of Purchase Units January 10 6,000 Purchases Unit Cost✶ $ 7 Total Cost January 18 7,000 8 $ 42,000 56,000 Totals 13,000 $ 98,000 *Includes purchase price and cost of freight. Sales Date of Sale Units January 5 3,000 January 12 3,000 January 20 4,000 Total 10,000 10,000 units were on hand at the end of the month. 5. Calculate January's ending inventory and cost of goods sold for the month using Average cost, perpetual system. Note: Round average cost per unit to 4 decimal places. Enter sales with a negative sign. Inventory on hand Perpetual Average Number of units Cost per unit Inventory Value Number of units sold Average Cost per unit Cost of Goods Sold Cost of Goods Sold Beginning Inventory Sale - January 5 Subtotal Average Cost Purchase - January 10 Subtotal Average Cost Sale - January 12 Subtotal Average Cost Purchase -…
The beginning inventory at Midnight Supplies and data on purchases and sales for a three-month period ending March 31 are as follows: Date Transaction Number of Units Per Unit Total Jan. 1 Inventory 9,000 $ 60.00 $ 540,000 10 Purchase 21,000 70.00 1,470,000 28 Sale 10,250 140.00 1,435,000 30 Sale 5,750 140.00 805,000 Feb. 5 Sale 3,500 140.00 490,000 10 Purchase 39,500 75.00 2,962,500 16 Sale 15,000 150.00 2,250,000 28 Sale 10,000 150.00 1,500,000 Mar. 5 Purchase 25,000 82.00 2,050,000 14 Sale 30,000 150.00 4,500,000 25 Purchase 10,000 88.40 884,000 30 Sale 19,000 150.00 2,850,000 The beginning inventory for Midnight Supplies and data on purchases and sales for a three-month period are shown in Problem 6-1A. Instructions Determine the inventory on March 31 and the cost of goods sold for the three-month period, using the first-in, first-out method and the periodic inventory system. Determine the inventory on…
The units of Manganese Plus available for sale during the year were as follows: Mar. 1 Inventory 25 units @ $29 $725 June 16 Purchase 32 units @ $34 1,088 Nov. 28 Purchase 40 units @ $37 1,480 97 units $3,293 There are 17 units of the product in the physical inventory at November 30. The periodic inventory system is used. Round answers to the nearest whole dollar. a. Determine the inventory cost by the FIFO method. $4 b. Determine the inventory cost by the LIFO method. $4 c. Determine the inventory cost by the average cost methods.
ABC Company employs a periodic inventory system and sells its inventory to customers for $20 per unit. ABC Company had the following inventory information available for May: May 1 May 3 May 8 May 13 May 18 May 20 May 24 May 30 Beginning inventory 1,900 units @ $10.20 cost per unit Purchased 2,100 units @ $11.60 cost per unit Sold 1,400 units Purchased 3,700 units @ $8.10 cost per unit Sold 2,600 units Purchase 4,100 units @ $14.70 cost per unit Sold 2,900 units Purchased 2,200 units @ $12.60 cost per unit During May, ABC Company reported operating expenses of $14,000 and had an income tax rate of 36%. Calculate the amount of net income shown on ABC Company's income statement for May using the LIFO method.
Inventory records for Capetown, Incorporated revealed the following: Number of Date April 1 April 20 Transaction Units Unit Cost Beginning Inventory Purchase 460 310 $ 2.39 2.51 Capetown sold 630 units of inventory during the month. Cost of goods sold assuming LIFO would be: (Do not round your intermediate calculations. Round your answer to the nearest dollar amount.)
2. Calculate January's ending inventory and cost of goods sold for the month using LIFO, periodic system.
A company began January with 6,000 units of its principal product. The cost of each unit is $8. Inventory transactions for the month of January are as follows: Date of Purchase Purchases Units Unit Cost* Total Cost January 10 5,000 $ 9 $ 45,000 January 18 6,000 10 60,000 Totals 11,000 $ 105,000 * Includes purchase price and cost of freight. Sales Date of Sale Units January 5 3,000 January 12 2,000 January 20 4,000 Total 9,000 8,000 units were on hand at the end of the month. 2. Calculate January's ending inventory and cost of goods sold for the month using LIFO, periodic system.
A company began January with 4,000 units of its principal product. The cost of each unit is $7. Inventory transactions the month of January are as follows: Date of Purchase January 10 January 18 Totals * Includes purchase price and cost of freight. Date of Sale January 5 January 12 January 20 Total Perpetual Average Sales Beginning Inventory Sale - January 5 Subtotal Average Cost Purchase - January 10 Subtotal Average Cost 5,000 units were on hand at the end of the month. Sale - January 12 Subtotal Average Cost Units 3,000 4,000 7,000 Units 2,000 1,000 3,000 6,000 5. Calculate January's ending inventory and cost of goods sold for the month using Average cost, perpetual system. Note: Round average cost per unit to 4 decimal places. Enter sales with a negative sign. Number of units Purchases Unit Cost* $8 9 10,000 4,000 2,000 X 6,000 3,000 9,000 1,000 X Inventory on hand Cost per unit 7.0000 $ 28,000 0 8.0000 Answer is not complete. Inventory Value 28,000 24,000 52,000 Total Cost $…
The inventory records of TC show the following purchases:Month Units CostJanuary 15,000 190,500February 20,000 240,000March 12,500 165,00A physical count on March 31 shows 22,500 units on hand. What amount of inventory should be reported as of March 31, using FIFO method of costing?a. 120,000 b. 225,000 c. 280,500 d. 285,000
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Required information [The following information applies to the questions displayed below.] A company began January with 7,000 units of its principal product. The cost of each unit is $6. Inventory transactions for the month of January are as follows: Date of Purchase January 10 January 18 Totals Total * Includes purchase price and cost of freight. Date of Sale January 5 January 12 January 20 Total Sales LIFO Beginning Inventory Purchases: Units 6,000 7,000 13,000 January 10 January 18 Units 10,000 units were on hand at the end of the month. 3,000 3,000 4,000 10,000 2. Calculate January's ending inventory and cost of goods sold for the month using LIFO, periodic system. Cost of Goods Available for Sale Cost of Goods Available for Sale Number Cost per of units unit Purchases Unit Cost* $7 8 7,000 $ 6.00 6,000 $ 7.00 7,000 $ 8.00 20,000 $ $ 42,000 Total Cost $ 42,000 56,000 $ 98,000 42,000 56,000 140,000 Cost of Goods Sold - Periodic LIFO Cost of Goods Sold Number of units sold Cost per…