alculate a) cost of goods sold, b) ending inventory, and c) gross margin for A76 Company, considering the following transactions under three different cost allocation methods and using perpetual inventory updating. Provide calculations for last-in, first-out (LIFO). Calculate a) cost of goods sold, b) ending inventory, and c) gross margin for A76 Company, considering the following transactions under three different cost allocation methods and using perpetual inventory updating. Provide calculationsfor last-in, first-out (LIFO).Numberof Units Unit CostSalesBeginning inventory260$130Sold160$170Purchased500133Sold400172Purchased380140Sold370204Ending inventory210LIFO (perpetual) InventoryCost of Goods PurchasedCost of Goods SoldCost of Inventory RemainingNumberNumberNumberof UnitsUnit CostTotal Costof UnitsUnit CostTotal Costof UnitsUnit CostTotal CostBeginning260 V$Sale160170 x27,200 x100 VPurchase50013366,500100500 VSale400172 X68,800 X200 xXPurchase38014053,200XSaleX

LIFO Method is a method used for valuing Inventory and Cost of Goods sold. The LIFO method assumes…

alculate a) cost of goods sold, b) ending inventory, and c) gross margin for A76 Company, considering the following transactions under three different cost allocation methods and using perpetual inventory updating. Provide calculations for last-in, first-out (LIFO).

alculate a) cost of goods sold, b) ending inventory, and c) gross margin for A76 Company, considering the following transactions under three different cost allocation methods and using perpetual inventory updating. Provide calculations for last-in, first-out (LIFO).

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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Concept explainers

Overheads

In cost accounting, overhead refers to those expenses which occur during the operating of a business. Overhead includes the fixed, variable, or semi-variable which is not directly involved with a company product or service. It is very important to analyze overhead expense as it helps the company in determining how much a company must charge for its products and services so that they can generate profit. Overhead expenses depend upon the nature of the business operations.

Question

Calculate a) cost of goods sold, b) ending inventory, and c) gross margin for A76 Company, considering the following transactions under three different cost allocation methods and using perpetual inventory updating. Provide calculations
for last-in, first-out (LIFO).
Number
of Units Unit Cost
Sales
Beginning inventory
260
$130
Sold
160
$170
Purchased
500
133
Sold
400
172
Purchased
380
140
Sold
370
204
Ending inventory
210
LIFO (perpetual) Inventory
Cost of Goods Purchased
Cost of Goods Sold
Cost of Inventory Remaining
Number
Number
Number
of Units
Unit Cost
Total Cost
of Units
Unit Cost
Total Cost
of Units
Unit Cost
Total Cost
Beginning
260 V
$
Sale
160
170 x
27,200 x
100 V
Purchase
500
133
66,500
100
500 V
Sale
400
172 X
68,800 X
200 x
X
Purchase
380
140
53,200
X
Sale
X

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