2. Calculate January's ending inventory and cost of goods sold for the month using LIFO, periodic system. !Required Information[The following information applies to the questions displayed below.]A company began January with 9,000 units of its principal product. The cost of each unit is $5. Inventory transactions forthe month of January are as follows:Date of PurchaseJanuary 10January 18TotalsTotalDate of SaleJanuary 5January 12January 20Total*Includes purchase price and cost of freight.SalesLIFOBeginning InventoryPurchases:UnitsJanuary 10January 186,0009,00015,000Units5,0003,0006,00014,00010,000 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.PurchasesUnit Cost*Number Cost perof units unit$679,000 $ 5.00Cost of Goods Available for Sale Cost of Goods Sold - Periodic LIFOCost ofGoodsAvailable forSale45,0006,000 $6.009,000 $7.0024,000$Total Cost$ 36,00063,000$ 99,00036,00063,000$ 144,000Number ofunits soldCost perunit$$$5.006.007.00Cost ofGoods SoldEnding Inventory - Periodic LIFONumber ofunits inendinginventoryCost perunit$69695.006.007.00EndingInventory

The LIFO approach is based on the assumption that the most recent items added to a company's…

A company began January with 9,000 units of its principal product. The cost of each unit is $5. Inventory transactions for the month of January are as follows: Date of Purchase January 10 January 18 Totals Units Date of Sale January 5 January 12 January 20 Total 6,000 9,000 15,000 * Includes purchase price and cost of freight. Sales Units Purchases Unit Cost* $6 7 5,000 3,000 6,000 14,000 10,000 units were on hand at the end of the month. Total Cost $ 36,000 63,000 $ 99,000 2. Calculate January's ending inventory and cost of goods sold for the month using LIFO, periodic system.

A company began January with 9,000 units of its principal product. The cost of each unit is $5. Inventory transactions for the month of January are as follows: Date of Purchase January 10 January 18 Totals Units Date of Sale January 5 January 12 January 20 Total 6,000 9,000 15,000 * Includes purchase price and cost of freight. Sales Units Purchases Unit Cost* $6 7 5,000 3,000 6,000 14,000 10,000 units were on hand at the end of the month. Total Cost $ 36,000 63,000 $ 99,000 2. Calculate January's ending inventory and cost of goods sold for the month using LIFO, periodic system.

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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Balamb Corporation had the following transactions for the month: Calculate the ending inventory dollar value for the period for each of the following cost allocation methods, using periodic inventory updating. Provide your calculations. first-in, first-out (FIFO) last-in, first-out (LIFO) weighted average
The units of an item available for sale during the year were as follows: Jan 1 Inventory 15 units at 122 April 15 Purchase 140 units at 116 September 9 Purchase 26 units at 122 There are 31 units of the item in the physical inventory at December 31. The periodic inventory system is used. Determine the inventory cost using the last-in, first-out (LIFO)
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Problem Hans Inc. is a merchandising company that resells equestrian saddles. The company's inventory data is as follows: Cost of Goods Available for Sale Jan. 1 Beginning Balance 2 units @ $200 $400 Jan. 5 Purchase 3 units @ $400 = $1,200 4 units @ $500 $2,000 Jan. 20 Purchase Retail Sales of Goods Jan. 15 Sales 3 units @ $900 = $2,700 Jan. 31 Sales 2 units @ $1,000 = $1,800 Assume Hans Inc. uses a perpetual inventory system. For the January 15th sale, the units sold consisted of 2 units from January 5th purchase and 1 unit from January 1st inventory balance. For the January 31st sale, the units sold consisted of 1 unit from the January 1st inventory balance and 1 unit from the January 20th purchase.
On ff Company Company Materials inventory, December 1 $81,110 $109,500 Materials inventory, December 31 (a) 123,730 Materials purchased 206,020 (a) Cost of direct materials used in production 217,370 (b) Direct labor 305,780 246,380 Factory overhead 94,900 122,640 Total manufacturing costs incurred in December (b) 708,470 Total manufacturing costs 773,780 773,780 Work in process inventory, December 1 155,730 263,900 Work in process inventory, December 31 131,400 (c) Cost of goods manufactured (c) 701,900 Finished goods inventory, December 1 137,080 122,640 Finished goods inventory, December 31 143,560 (d) Sales 1,195,560 1,095,000 Cost of goods sold (d) 708,470 Gross profit (e) (e) Operating expenses 155,730 (f) Net income (f) 243,090
3. Calculate January's ending inventory and cost of goods sold for the month using FIFO, perpetual system.