Company ABC purchases two types of goods and resells them to the customers. One of them is food material with short expiry dates, while the other is a chemical product that can stay longer days inthe warehouse.The table below shows the inventory, purchases, and sales transactions for 2021.Food materialsNumber of Units Cost per Unit ($) Total Cost1,00031,0002Beginning Inventory (1-1-2021)Purchases in 2021Number of Units sold in 2021Ending Inventory (31-12-2021)ChemicalsBeginning Inventory (1-1-2021)Purchases in 2021Number of Units sold in 2021Ending Inventory (31-12-2021)1,0001,0003,0002,000Number of Units Cost per Unit ($) Total Cost3,00022,00023,0002,000Answer the followings!If Company uses FIFO for Food Material and LIFO for Chemicals:Total COGS on the Income Statement will be6,0004,000Cost of Ending Inventory on the Balance Sheet (31-December-2021) will beIf Company uses LIFO for Food Material and Weighted Average for Chemicals:Total COGS on the Income Statement will beCost of Ending Inventory on the Balance Sheet (31-December-2021) will be◆

Name: Company ABC purchases two types of goods and resells them to the cust
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Description: Company ABC purchases two types of goods and resells them to the customers. One of them is food material with short expiry dates, while the other is a chemical product that can stay longer days inthe warehouse.The table below shows the inventory, pu

Under FIFO method of inventory accounting, it is assumed that materials purchased first are sold…

Business

Accounting

Answer the followings If Company uses FIFO for Food Material and LIFO for Chemicals: Total COGS on the Income Statement will be Cost of Ending Inventory on the Balance Sheet (31-December-2021) will be If Company uses LIFO for Food Material and Weighted Average for Chemicals: Total COGS on the Income Statement will be Cost of Ending Inventory on the Balance Sheet (31-December-2021) will be

Answer the followings If Company uses FIFO for Food Material and LIFO for Chemicals: Total COGS on the Income Statement will be Cost of Ending Inventory on the Balance Sheet (31-December-2021) will be If Company uses LIFO for Food Material and Weighted Average for Chemicals: Total COGS on the Income Statement will be Cost of Ending Inventory on the Balance Sheet (31-December-2021) will be

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter27: Adjustments, Financial Statements, And Year-end Accounting For A Manufacturing business

Section: Chapter Questions

Problem 1MP: Reese Manufacturing Company manufactures and sells a limited line of products made to customer...

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Givens Company uses a periodic inventory system.Its records show the following for the month of december 2019,in which 68 units were sold at$100 per unit. Units Units Cost Total Cost December 1 Beginning inventory 30 $9 $270 15 Purchase 25 $11 $275 24 Purchase 35 $12 $420 Totals 90 $965 Required: (show all calculate the Cost of Goods Sold on December 31,2019 for Given Company using the following cost flow assumptions: a.Calculate the Cost of Goods Sold on December 31,2019 for Given Company using the following cost flow assumptions: i)Weighted Average Cost method and ii) First-In-First-Out(FIFO) method. b.calculate the Gross Profit for the month ended December 31,2019 for Given Company using the following cost flow assumptions: i)Weighted Average Cost method and ii) First-In-First-Out(FIFO) method.
Almaden Hardware Store sells two product categories, tools and paint products. Information pertaining to its 2021 year-end inventory is as follows: Net Inventory, Per Unit Realizable By Product Category Quantity Cost Value Tools: Hammers 120 $4.30 $4.80 Saws 130 9.30 8.30 Screwdrivers 230 1.30 1.90 Paint products: 1-gallon cans 450 5.30 4.30 Paint brushes 120 3.30…
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Topanga Group began operations early in 2021. Inventory purchase information for the quarter ended March 31, 2021, for Topanga’s only product is provided below. The unit costs include the cost of freight. The company uses a periodic inventory system to report inventory and cost of goods sold. Date of Purchase Units Unit Cost Total Cost Jan. 7 5,000 $ 6.00 $ 30,000 Feb. 16 14,000 7.00 98,000 March 22 18,000 8.00 144,000 Totals 37,000 $ 272,000 Sales for the quarter, all at $9 per unit, totaled 20,000 units leaving 17,000 units on hand at the end of the quarter. Required:1. Calculate Topanga's cost of goods sold for the first quarter using: FIFO LIFO Average cost 2. Calculate Topanga's gross profit ratio for the first quarter using FIFO, LIFO, and Average cost.3. Comment on the relative effect of each of the three inventory methods on the gross profit ratio.
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