[The following information applies to the questionsdisplayed below.]A company reports the following beginning inventory andtwo purchases for the month of January. On January 26, thecompany sells 360 units. Ending inventory at January 31totals 130 units.UnitsUnit Cost$ 3.10Beginning inventory on January 1Purchase on January 9Purchase on January 25320703.301003.40Assume the perpetual inventory system is used. Determine thecosts assigned to ending inventory when costs are assignedbased on the LIFO method.Perpetual LIFO:Goods purchasedCost of Goods SoldDateCost per # of unitsCost per Cost of Goods# of units# of uunitsoldunitSoldJanuary 1January 9Total January 9January 25Total January 25January 26Total January 26 1 applies to the questionsllowing beginning inventory andnth of January. On January 26, theEnding inventory at January 31UnitsUnit CostJanuary 1320$ 3.10703.301003.40ntory system is used. Determine theiventory when costs are assignedPerpetual LIFO:Cost of Goods SoldedInventory Balancet per # of unitsnitCost perCost perunitCost of GoodsInventoryBalance# of unitssoldunitSold$

Under Perpetual LIFO Method, value of ending inventory is calculated assuming that latest bought…

A company reports the following beginning inventory and two purchases for the month of January. On January 26, the company sells 360 units. Ending inventory at January 31 totals 130 units. Units Unit Cost $ 3.10 Beginning inventory on January 1 Purchase on January 9 Purchase on January 25 320 70 3.30 100 3.40

A company reports the following beginning inventory and two purchases for the month of January. On January 26, the company sells 360 units. Ending inventory at January 31 totals 130 units. Units Unit Cost $ 3.10 Beginning inventory on January 1 Purchase on January 9 Purchase on January 25 320 70 3.30 100 3.40

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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Lopez Company reported the following current-year data for its only product. The company uses a periodic inventory system, and its ending inventory consists of 510 units—170 from each of the last three purchases. January 1 Beginning inventory 270 units @ $4.80 = $ 1,296 March 7 Purchase 580 units @ $5.75 = 3,335 July 28 Purchase 1,220 units @ $5.30 = 6,466 October 3 Purchase 1,100 units @ $5.60 = 6,160 December 19 Purchase 600 units @ $5.80 = 3,480 Totals 3,770 units $ 20,737 (a-d) Determine the cost assigned to ending inventory and to cost of goods sold for the following. (e) Which method yields the highest net income?
The beginning inventory at Midnight Supplies and data on purchases and sales for a three-month period ending March 31 are as follows: Date Jan. Feb. Mar. Transaction Number of Units 9,000 21,000 10,250 5,750 3,500 1 Inventory 10 Purchase 28 Sale 30 Sale 5 Sale 10 16 28 5 Purchase 14 25 30 Purchase Sale Sale Sale Purchase Sale 39,500 15,000 10,000 25,000 30,000 10,000 19,000 Per Unit $60.00 70.00 140.00 140.00 140.00 75.00 150.00 150.00 82.00 150.00 88.40 150.00 Total $540,000 1,470,000 1,435,000 805,000 490,000 2,962,500 2,250,000 1,500,000 2,050,000 4,500,000 884,000 2,850,000 Required: 1. Record the inventory, purchases, and cost of goods sold data in a perpetual inventory record similar to the one illustrated in Exhibit 3, using the first-in, first-out method. 2. Determine the total sales and the total cost of goods sold for the period. Journalize summary entries for the sales and corresponding cost of goods sold for the period. Assume that all sales were on account and date your…
The beginning inventory was 500 units at a cost of $11 per unit. Goods available for sale during the year were 1,900 units at a total cost of $22,900. In May, 800 units were purchased at a total cost of $9,600. The only other purchase transaction occurred during October. Ending inventory was 850 units. Required: a. Calculate the number of units purchased in October and the cost per unit purchased in October. b. 1. Assume the periodic inventory system is used. Calculate cost of goods sold and ending inventory using FIFO method. 2. Assume the periodic inventory system is used. Calculate cost of goods sold and ending inventory using LIFO method. Complete this question by entering your answers in the tabs below. Required A Required B1 Required B2 Assume the periodic inventory system is used. Calculate cost of goods sold and ending inventory using LIFO method. Note: Enter all values as a positive value. Periodic LIFO Beginning Inventory Purchases: May October Total Cost of Goods Available…
Waterway Company had a beginning inventory on January 1 of 180 units of Product 4-18-15 at a cost of $20 per unit. During the year, purchases were as follows. Mar. 15 July 20 450 units 320 units at $23 at $25 Sept. 4 Dec. 2 350 units at $27 100 units at $29 Waterway Company uses a periodic inventory system. Sales totaled 1,180 units.
Crane Enterprises uses a periodic inventory system for buckets it sells. It had a beginning inventory on April 1 of 72 units at a cost of $ 6 per unit. During April, the following purchases and sales were made. Purchases April 7 62 units at $ 7.00 13 124 units at $ 8.00 23 94 units at $ 9.00 29 52 units at $ 10.00 332 Sales April 5 124 units at $ 20 11 94 units at $ 20 20 84 units at $ 20 30 42 units at $ 20 344 Compute the April 30 ending inventory and April cost of goods sold under (a) average cost, (b) FIFO, and (c) LIFO. (Round cost per unit to 2 decimal places, e.g. 15.25 and final answer to 0 decimal places, e.g. 1,525.)
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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 2,700 $50.00 $135,000 10 Purchase 7,300 58.00 423,400 28 Sale 4,050 100.00 405,000 30 Sale 1,200 100.00 120,000 Feb. 5 Sale 500 100.00 50,000 10 Purchase 17,000 60.00 1,020,000 16 Sale 9,200 105.00 966,000 28 Sale 8,000 105.00 840,000 Mar. 5 Purchase 14,300 61.60 880,880 14 Sale 10,300 105.00 1,081,500 25 Purchase 3,200 62.00 198,400 30 Sale 8,000 105.00 840,000 Instructions 1. Record the inventory, purchases, and cost of merchandise sold data in a perpetual inventory record similar to the one illustrated in Exhibit 3, using the first-in, first-out method. 2. Determine the total sales and the total cost of merchandise sold for the period. Journalize the entries in the sales and cost of merchandise…
Current Attempt in Progress At the beginning of its operations in July 2024, Crane Pet Shop Ltd. began with 7,790 units of inventory that it purchased at a cost of $14.60 each. The company's purchases during July were as follows: July 5 Sales during July: July 2 July 27 6,150 units @ $18.00 6,970 units 4,100 units Crane Pet Shop uses a periodic inventory system.
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