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(Appendix 6B) Inventory Costing Methods: Periodic Average Cost Filimonov Inc. has the following information related to purchases and sales of one of its inventory items: Date June 1 Beginning Inventory Purchase 1 9 14 Description 22 Sale 1 Purchase 2 Units Purchased at Cost 150 units @ $15 = $2,250 200 units @ $12 = $2,400 Cost of goods sold Cost of ending inventory 250 units @ $14 = $3,500 Units Sold at Retail 300 units @ $25 29 Sale 2 Assume that Filimonov uses a periodic inventory system. Required: Calculate the cost of goods sold and the cost of ending inventory using the average cost method. (Note: Use four decimal places for per-unit calculations and round all other numbers to the nearest dollar.) 225 units @ $25

(Appendix 6B) Inventory Costing Methods: Periodic Average Cost Filimonov Inc. has the following information related to purchases and sales of one of its inventory items: Date June 1 Beginning Inventory Purchase 1 9 14 Description 22 Sale 1 Purchase 2 Units Purchased at Cost 150 units @ $15 = $2,250 200 units @ $12 = $2,400 Cost of goods sold Cost of ending inventory 250 units @ $14 = $3,500 Units Sold at Retail 300 units @ $25 29 Sale 2 Assume that Filimonov uses a periodic inventory system. Required: Calculate the cost of goods sold and the cost of ending inventory using the average cost method. (Note: Use four decimal places for per-unit calculations and round all other numbers to the nearest dollar.) 225 units @ $25

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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(Appendix 6B) Inventory Costing Methods: Periodic Average Cost Filimonov Inc. has the following information related to purchases and sales of one of its inventory items: Date June 1 9 14 22 Description Beginning Inventory Purchase 1 Sale 1 Purchase 2 29 Sale 2 Units Purchased at Cost 150 units @ $15 = $2,250 200 units @ $12 = $2,400 250 units @ $14 = $3,500 Assume that Filimonov uses a periodic inventory system. Units Sold at Retail 300 units @ $25 225 units @ $25 Required: Calculate the cost of goods sold and the cost of ending inventory using the average cost method. (Note: Use four decimal places for per-unit calculations and round all other numbers to the nearest dollar.) Cost of goods sold Cost of ending inventory
Transcribed Image Text:(Appendix 6B) Inventory Costing Methods: Periodic Average Cost Filimonov Inc. has the following information related to purchases and sales of one of its inventory items: Date June 1 9 14 22 Description Beginning Inventory Purchase 1 Sale 1 Purchase 2 29 Sale 2 Units Purchased at Cost 150 units @ $15 = $2,250 200 units @ $12 = $2,400 250 units @ $14 = $3,500 Assume that Filimonov uses a periodic inventory system. Units Sold at Retail 300 units @ $25 225 units @ $25 Required: Calculate the cost of goods sold and the cost of ending inventory using the average cost method. (Note: Use four decimal places for per-unit calculations and round all other numbers to the nearest dollar.) Cost of goods sold Cost of ending inventory
Inventory Errors Haywood Inc. reported the following information for Year 1: Beginning inventory $25,000 Ending inventory 40,000 Sales revenue 1,000,000 Cost of goods sold 620,000 A physical count of inventory at the end of the year showed that ending inventory was actually $65,000. Required: 1. What is the correct cost of goods sold and gross profit for Year 1? Cost of goods sold Gross profit $ 2. Assuming the error was not corrected, what is the effect on the balance sheet at December 31, Year 1? At December 31, Year 2? December 31, Year 1 December 31, Year 2
Transcribed Image Text:Inventory Errors Haywood Inc. reported the following information for Year 1: Beginning inventory $25,000 Ending inventory 40,000 Sales revenue 1,000,000 Cost of goods sold 620,000 A physical count of inventory at the end of the year showed that ending inventory was actually $65,000. Required: 1. What is the correct cost of goods sold and gross profit for Year 1? Cost of goods sold Gross profit $ 2. Assuming the error was not corrected, what is the effect on the balance sheet at December 31, Year 1? At December 31, Year 2? December 31, Year 1 December 31, Year 2
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