Need answer the accounting question A company is planning for its financing needs and usesthe basic fixed-order-quantity inventory model (EOQ).What is the total cost (TC), including purchasing cost, ofthe inventory given an annual demand of 10,000,ordering cost of $32, a holding cost per unit per yearof $4, an EOQ of 400 units, and a cost per unit ofinventory of $100?

Step 1: Define Inventory CostsInventory costs can fluctuate over time and based on customer demand.…

Answered: A company is planning for its financing…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter10: Inventory

Section: Chapter Questions

Problem 6PA: Use the last-in, first-out (LIFO) cost allocation method, with perpetual inventory updating, to...

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Use the weighted-average (AVG) cost allocation method, with perpetual inventory updating, to calculate (a) sales revenue, (b) cost of goods sold, and c) gross margin for A75 Company, considering the following transactions.
Use the first-in, first-out (FIFO) cost allocation method, with perpetual inventory updating, to calculate (a) sales revenue, (b) cost of goods sold, and c) gross margin for A75 Company, considering the following transactions.
Company Z had the following information: inventory at cost of $5,100, selling value of inventory of $5,250, inventory cost of completion of $100, inventory cost of distribution of $150, normal profit margin of $2,000, and inventory replacement cost of $4,800. What is the floor amount to be used in the determination of the inventory's market value in the lower-of- cost-or-market method of inventory? O $3,000 O $5,000 O $4,800 O $5,250
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The management of Tudor Living asks for your help in determining the comparative effects of the FIFO and average-cost inventory cost flow methods. For 2020, the accounting records provide the data shown below. Units purchased consisted of 40,000 units at £4.00 on May 10; 60,000 units at £4.20 on August 15; and 20,000 units at £4.45 on November 20. Income taxes are 28%. Instructions a.Prepare comparative condensed income statements for 2020 under FIFO and average cost. (Show computations of ending inventory.) b.Answer the following questions for management: 1.Which inventory cost flow method produces the more meaningful inventory amount for the statement of financial position? Why? 2.Which inventory cost flow method is more likely to approximate the actual physical flow of the goods? Why? 3.How much more cash will be available for management under average-cost thanunder FIFO? Why?
Income is to be evaluated under four different situations as follows: a. Prices are rising: (1) Situation A: FIFO is used. (2) Situation B: LIFO is used. b. Prices are falling: (1) Situation C: FIFO is used. (2) Situation D: LIFO is used. The basic data common to all four situations are sales, 660 units for $19,800; beginning inventory, 490 units; purchases, 560 units; ending inventory, 390 units; and operating expenses, $6,500. The income tax rate is 30%. Required: 1. Complete the following tabulation for each situation. In Situations A and B (prices rising), assume the following: beginning inventory, 490 units at $14 = $6,860; purchases, 560 units at $15 = $8,400. In Situations C and D (prices falling), assume the opposite; that is, beginning inventory, 490 units at $15 = $7,350; purchases, 560 units at $14 = $7,840. Use periodic inventory procedures. 2. Complete the following sentence: 3. Complete the following sentence regarding the relative effects on the cash position for each…
Income is to be evaluated under four different situations as follows: a. Prices are rising: (1) Situation A: FIFO is used. (2) Situation B: LIFO is used. b. Prices are falling: (1) Situation C: FIFO is used. (2) Situation D: LIFO is used. The basic data common to all four situations are sales, 530 units for $21,200; beginning inventory, 300 units; purchases, 380 units; ending inventory, 150 units; and operating expenses, $3,900. The income tax rate is 40%. Required: 1. Complete the following tabulation for each situation. In Situations A and B (prices rising), assume the following: beginning inventory, 300 units at $12 = $3,600; purchases, 380 units at $14 = $5,320. In Situations C and D (prices falling), assume the opposite; that is, beginning inventory, 300 units at $14 = $4,200; purchases, 380 units at $12 = $4,560. Use periodic inventory procedures. 2. Complete the following sentence: 3. Complete the following sentence regarding the relative effects on the cash position for each…
Income is to be evaluated under four different situations as follows: a. Prices are rising: (1) Situation A: FIFO is used. (2) Situation B: LIFO is used. b. Prices are falling: (1) Situation C: FIFO is used. (2) Situation D: LIFO is used. The basic data common to all four situations are sales, 520 units for $20,800; beginning inventory, 290 units; purchases, 410 units; ending inventory, 180 units; and operating expenses, $3,500. The income tax rate is 40%. Required: 1. Complete the following tabulation for each situation. In Situations A and B (prices rising), assume the following: beginning inventory, 290 units at $10 = $2,900; purchases, 410 units at $12 = $4,920. In Situations C and D (prices falling), assume the opposite; that is, beginning inventory, 290 units at $12 = $3,480; purchases, 410 units at $10 = $4,100. Use periodic inventory procedures. 2. Complete the following sentence: 3. Complete the following sentence regarding the relative effects on the cash position for each…
The following data are available for Sellco for the fiscal year ended on January 31, 2023: Sales Beginning inventory Purchases, in chronological order 1,600 units 500 units @ $4 600 units @ $5 800 units @ $6 500 units @ $8 Required: a. Calculate cost of goods sold and ending inventory under the cost flow assumptions, FIFO, LIFO and weighted average (using a periodic inventory system): b. Assume that net income using the weighted-average cost flow assumption is $80,000. Calculate net income under FIFO and LIFO.
Accounting Problem: give solution
Required: 15. If the FIFO cost flow method is used, the sale return shall be costed back into inventory at what unit cost?16. If the average cost flow method is used, the sale return shall be costed back into inventory at what unit cost?

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