A company has a beginning inventory of $60,000 and purchases during the year of $120,000. The beginning inventory consisted of 4,000 units and 7,000 units were purchased BUR 2,680 units remain in ending inventory. The cost of the ending inventory using the average-cost method will be: (Round any intermediary calculations to two decimal places and your final answer tor the nearest dollar.) OA. $136,115. OB. $43,845. 'OC. $223,805. OD. $179,960. D

A company has a beginning inventory of $60,000 and purchases during the year of $120,000. The beginning inventory consisted of 4,000 units and 7,000 units were purchased BUR 2,680 units remain in ending inventory. The cost of the ending inventory using the average-cost method will be: (Round any intermediary calculations to two decimal places and your final answer tor the nearest dollar.) OA. $136,115. OB. $43,845. 'OC. $223,805. OD. $179,960. D

Name: A company has a beginning inventory of $60,000 and purchases during t
Uploaded: 2024-03-20T06:32:37.000Z
Channel: Bartleby
Description: A company has a beginning inventory of $60,000 and purchases during the year of $120,000. The beginning inventory consisted of 4,000 units and 7,000 units were purchased during the year.2,680 units remain in ending inventory. The cost of the ending

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: At December 31, 2022 the following information (in thousands) was available for Swifty Inc: ending…

A: Formula: Inventory turnover = Cost of goods sold / Average inventory.

Q: Sandals Company is preparing the annual financial statements dated December 31. Ending inventory is…

A: Lower of cost or market is an approach to valuation of inventory. The concept of lower of cost and…

Q: What is the Cost of Goods Available for Sale for the year? Beginning Inventory: $10,000 Purchase…

A: The price of the raw materials and labor used to produce the completed goods that a company has on…

Q: At May 1, 2020, Vaughn Company had beginning inventory consisting of 240 units with a unit cost of…

A: Weighted Average Method is one of the methods of inventory valuation in which it is assumed that…

Q: Eleanor Barker Company ended the month of March with inventory of $24,000. Eleanor Barker Company…

A: Purchase budget:- This budget is prepared to estimate the value of purchases made for desired sales…

Q: Sales for 2021 (6,000 units @ $74) $444,000 Additional Information: a. The company's effective…

A: Average Cost Method The average cost approach divides the overall cost of goods bought or produced…

Q: Mignon Company’s Number of Days’ Sales in Inventory is 30 days (assume 360 days in a year). The…

A: Inventory turnover ratio: This is a financial measure that is used to evaluate as to how many times…

Q: A company purchased 200 units for $40 each on January 31. It purchased 150 units for $35 each on…

A: Weighted average inventory costing method: - Weighted average inventory costing method is the method…

Q: At the beginning of the year, Pina Ltd. had 910 units with a cost of $6 per unit in its beginning…

A: Under FIFO method, inventory purchased first is sold first. First includes the inventory purchased…

Q: Inventory records for Eliza Company revealed the following: Number of Date Transaction Units Unit…

A: Under the First-in-first-out (FIFO) method, the inventory that comes first into the store is…

Q: Inventory records for Dunbar incorporated revealed the folowing Unit of Units Cost $2.10 2.70 Number…

A: Lets understand the basics. Last In First Out (LIFO):- In LIFO inventory method company assumes…

Q: Concord Company had 120 units in beginning inventory at a total cost of $14,400. The company…

A: Inventory methods are accounting techniques businesses use to determine the cost of goods sold…

Q: At May 1, 2022, Ayayai Corp. had beginning inventory consisting of 280 units with a unit cost of $7.…

Q: The following information is available for Heller Company: Beginning inventory $60,000 Cost of goods…

A: Inventory turnover8 timesDays in inventory45.6 daysExplanation:Inventory TurnoverInventory Turnover…

Q: A company adopted the LIFO method when its inventory was $1,800. One year later its ending inventory…

A: Value of inventory: One Year Later Value of ending inventory = ($ 1,800 X 1.00) + ($ 200 X 1.05)…

Q: At May 1, 2020, Sunland Company had beginning inventory consisting of 210 units with a unit cost of…

A: Lets understand the basics.There are various methods are followed for calculating inventory balance…

Q: Suppose GameStop Company uses a periodic inventory system. Details for the inventory account for the…

A: Inventory valuation is based on the flow-off issue used by the organization. It can be the first in…

Q: Part A. Conte Company has a beginning inventory in year one of $700,000 and an ending inventory of…

A: Answer: Dollar-value LIFO Method: Doller value LIFO method is an accounting method for inventory of…

Q: During the year, Wright Company sells 370 remote-control airplanes for $100 each. The company has…

A: Under the weighted average model, the cost of the goods that are available for sale is divided by…

Q: cost of goods sold and gross profit rate would be

A: The cost of goods sold is all the direct cost incurred by the company for making the product.

Q: Suppose that the following information was available for Carla Vista Company at December 31, 2025:…

A: Inventory turnover ratio is calculated by dividing cost of goods sold by average inventory. Average…

Q: Blue Company has the following data for the year: $140,000 Beginning inventory Net sales revenue…

A: Cost of goods sold is the actual cost of goods that are being sold to the customers. This is…

Q: TB MC Qu. 05-64 (Algo) Koontz Company uses the perpetual inventory... Koontz Company uses the…

A: Weighted average cost per unit = Total Cost of units available for sale/Total number of units…

Q: One hundred units of inventory on hand at the end of the year are recorded at their cost of $10 each…

A: LIFO Method : Under LIFO method the goods which comes last are sold first. Inventory in hand : 100…

Q: At December 31, 2022, the following information (in thousands) was available for Swifty Inc.: ending…

A: Formula: Inventory turnover = ( Cost of goods sold / Average inventory )

Q: Dollar-value LIFO method. Part A. Marshall Fields Company has a beginning inventory in year one of…

A: Dollar-value LIFO Method:Doller value LIFO method is an accounting method for inventory of business…

Q: Lily Company had 100 units in beginning inventory at a total cost of $10,000. The company purchased…

A: The choice of inventory valuation method can have a significant impact on a company's financial…

Q: Compute ending inventory and cost of good sold under LIFO, assuming Matthias Company uses the…

A: Cost of goods sold UnitUnit CostTota AmountInventory, beg2,800$0.60$1,680Dec 3…

Q: The inventory of Royal decking consisted of five products. Information about the December 31. 2021,…

A: LCM stands for Lower of cost or market method which is used to value the inventory through comparing…

Q: Apply the COGS equation used on the bottom of page 6-3 of the VLN to the following data set to…

A: The cost of goods sold is calculated as difference between cost of goods available for sale and…

Q: A firm that sells a single product had a beginning inventory of 10,000 units with a total cost of…

A: FIFO means the first in first out which means that goods purchased first will be sold first.…

Q: 2. What is the Cost of Goods Available for Sale for the year? Beginning Inventory: $10,000 Purchase…

A: INTRODUCTION: The cost of goods sold is the sum of all costs incurred in producing a sold product or…

Concept explainers

Inventory Valuation

Before discussing the topic inventory valuation let’s discuss the meaning of inventory. In accounting, inventory is also known as stock. Inventory means all the finished goods, materials, merchandise that a business holds for the purpose of selling it in the market with the motive of earning profit.

Topic Video

Question

A company has a beginning inventory of $60,000 and purchases during the year of $120,000. The beginning inventory consisted of 4,000 units and 7,000 units were purchased during the year.
2,680 units remain in ending inventory. The cost of the ending inventory using the average - cost method will be: (Round any intermediary calculations to two decimal places and your final answer to
the nearest dollar.)
OA. $136,115.
B. $43,845.
OC. $223,805.
OD. $179,960.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

Step 2

Step 3

Step 4

Step 5

Trending now

This is a popular solution!

Step by step

Solved in 5 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

A wholesale company prices its inventory at $143,483. If the original price of the items was $229,622, find the rate of markdown on the original price. The rate of markdown on the original price was %. (Round the final answer to two decimal places as needed. Round all intermediate values to six decimal places as needed.)
Crane Company had 100 units in beginning inventory at a total cost of $8,000. The company purchased 200 units at a total cost of $22,000. At the end of the year, Crane had 60 units in ending inventory. Crane Company uses a periodic inventory system. Compute the cost of the ending inventory and the cost of goods sold under FIFO, LIFO, and average-cost. (Round average-cost per unit and final answers to 0 decimal places, e.g. 1,250.) FIFO LIFO Average-cost The cost of the ending inventory $enter a dollar amount rounded to 0 decimal places $enter a dollar amount rounded to 0 decimal places $enter a dollar amount rounded to 0 decimal places The cost of goods sold $enter a dollar amount rounded to 0 decimal places $enter a dollar amount rounded to 0 decimal places $enter a dollar amount rounded to 0 decimal places
Classic Vehicles had a beginning inventory of $156,700 and an ending inventory of $98,500. If the cost of goodssold was $152,100, calculate the inventory turnover. (Round to the nearest tenth) 1.3 times 1.1 times 1.2 times 1.7 times
At May 31, Lily Company has net sales of $320,000 and cost of goods available for sale of $216,000.Compute the estimated cost of the ending inventory, assuming the gross profit rate is 35%. Estimated cost of ending inventory $________
A company has the following information for the current year's operations: Beginning inventory Purchases Net markups Net markdowns Net sales Multiple Choice O Average cost. Management calculates the cost-to-retail percentage as 57.9%, equal to cost of $440,000 ($40,000+ $400,000) divided by retail of $760,000 ($60,000+ $660,000+ $50,000 $10,000). Which application of the retail inventory method is the company using? O O LIFO. Conventional. Cost $ 40,000 400,000 Dollar-value LIFO. Retail $60,000 660,000 50,000 10,000 580,000
Tefft Industires has an average inventory of $170,000, sells on term of 2/10, net 30, and its cost of sales is $540,000. What is Tefft's inventory conversion period? *show work* A) 85 days B) 115 days C) 105 days D) cannot be determined from the data given
Landis Company is preparing its financial statements. Gross margin is normally 40% of sales. Information taken from the company's records revealed sales of $95,000; beginning inventory of $9,500 and purchases of $66,500. What is the estimated amount of ending inventory at the end of the period? Multiple Choice ο ο ο ο $30,400 $57,000 $38,000 $19,000
During the year, Wright Company sells 330 remote-control airplanes for $110 each. The company has the following inventory purchase transactions for the year. DateTransactionNumber of UnitsUnit CostTotal CostJan. 1Beginning inventory 60 $73 $4,380 May. 5Purchase 205 76 15,580 Nov. 3Purchase 110 81 8,910 375 $28,870 Calculate ending inventory and cost of goods sold for the year, assuming the company uses LIFO.
Landis Company is preparing its financial statements. Gross margin is normally 40% of sales. Information taken from the company's records revealed sales of $60,000; beginning inventory of $6,000 and purchases of $42,000. What is the estimated amount of ending inventory at the end of the period? Multiple Choice O O O $19,200 $36,000 $12,000 $24,000
Sunland Company had 140 units in beginning inventory at a total cost of $11,200. The company purchased 280 units at a total cost of $30,800. At the end of the year, Sunland had 75 units in ending inventory. (a) Partially correct answer icon Your answer is partially correct. Compute the cost of the ending inventory and the cost of goods sold under FIFO, LIFO, and average-cost. (Round average-cost per unit and final answers to 0 decimal places, e.g. 1,250.) FIFO LIFO Average-cost The cost of the ending inventory $ $ $ The cost of goods sold $ $ $