2. Assume that Playground Specialists uses a perpetual inventory system. Using each of the flowplayground sets on September 25 and (b) the cost of the BigGym sets in inventory at Decem-assumptions listed below, compute (a) the cost of goods sold relating to the sale of BigGymInstructionsber 31.1. Average cost2. FIFO3. LIFOthe number of units and the unit costs. of each cost layer comprising the cost of goodssold and the ending inventory.Assume that Playground Specialists uscs a perindic inventory system. Compute the ending in-ventory of BigGym playground sets at December 31 and the related cost of goods sold undereach of the following year-end costing procedures:1. Average cost2. FIFO3. LIFOShow the number of units and the unit costs in each cost layer of the ending inventory. (Youmay determine the cost of goods sold by deducting ending inventory from the cost of goodsavailable for sale.)G. Now assume that Playground Specialists maintains perpetual inventory records and uses theLIFO flow assumption. At year-end, however, the company adjusts its inventory records to re-flect the costs indicated by applying periodic LIFO costing procedures (as in part b). Preparea journal entry to adjust the Inventory account for the revaluation of the BigGym playgroundsets in the year-end inventory.d. Explain why a company using a perpetual inventory system would restate its year-end inven-tory to the unit costs indicated by periodic LIFO costing procedures. PROBLEM 8.9Comparison of Periodic andPerpetual Inventory SystemsDuring the current year. Playground Specialists purchased six BigGym redwood playground setat the following dates and acquisition costs:UnitsPurchasedUnit CostTotal CostDateAug. 4$2,100$ 4,200Sept. 232,3004,600Oct. 2.Available for sale during the year2.5605,120$13,920On September 25. the company sold three of these BigGym sets to the Department of Parks andRecreation. The other three sets remained in inventory at December 31.222611

The method of inventory valuation states the way for computing the aggregate value of the owned…

Assume that Playground Specialists uses a perpetual inventory system. Using each of the flow playground sets on September 25 and (b) the cost of the BigGym sets in inventory at Decem- 2ssumptions listed below, compute (a) the cost of goods sold relating to the sale of BigGym 25smund sets on September 25 and (b) the cost of the BigGym sets in inventory at Decem- ber 31. 1. Average cost 2. FIFO . LIFO how the number of units and the unit costs of each cost laver pld and the ending inventory.

Assume that Playground Specialists uses a perpetual inventory system. Using each of the flow playground sets on September 25 and (b) the cost of the BigGym sets in inventory at Decem- 2ssumptions listed below, compute (a) the cost of goods sold relating to the sale of BigGym 25smund sets on September 25 and (b) the cost of the BigGym sets in inventory at Decem- ber 31. 1. Average cost 2. FIFO . LIFO how the number of units and the unit costs of each cost laver pld and the ending inventory.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Required:Hemming uses a periodic inventory system. (a) Determine the costs assigned to ending inventory and to cost of goods sold using FIFO.
Please see image
UMET's Stores had the following inventory transactions in 2020: Transaction Units Cost per unit 1/1 Balance 50 $6 2/14 Sale 25 5/23 Purchase 100 8 8/21 Sale 50 11/5 Purchase 25 12 11/18 Sale 95 Required: Compute tge cost of goods sold and the ending inventory using the periodic inventory system for each of the following cost flow assumptions: a. FIFO b. LIFO c. Weighted average
The following are the transactions for the month of July. Units Unit Cost Unit Selling Price July 1 Beginning Inventory 55 $ 10 July 13 Purchase 275 11 July 25 Sold (100 ) $ 14 July 31 Ending Inventory 230 Calculate cost of goods available for sale and ending inventory, then sales, cost of goods sold, and gross profit, under FIFO. Assume a periodic inventory system is used. How would i creat a FIFO periodic table?
Balance Sheet Presentation Thiel Company reports the following deferred tax items at the end of 2019: Deferred TaxItem # AccountBalance Related Asset or LiabilityCreating the Deferred Tax Item 1 $6,700 debit Current asset 2 7,200 credit Current liability 3 10,600 debit Noncurrent asset 4 15,500 credit Noncurrent liability Required: Show how the preceding deferred tax items are reported on Thiel's December 31, 2019, balance sheet. THIEL COMPANYBalance Sheet (Tax Items)December 31, 2019 Noncurrent Liabilities Deferred Tax asset or liability $
Identify which of the following statement is correct for perpetual inventory system? Under the perpetual Inventory system, on the purchase of Inventory purchase account is debited. When valuing ending Inventory under a perpetual Inventory system, oldest units purchased during the period using FIFO are allocated to the cost of goods sold when units are sold. When valuing ending Inventory under a perpetual Inventory system, weighted average cost method requires that a new weighted average unit cost be calculated after every sale. 09/03/2024 15:01 When valuing ending Inventory under a perpetual inventory system, valuation using weighted average is the same as the valuation using weighted average under the periodic Inventory system.
On January 1, Year 1, Eureka Company issued $250,000 of 5-year, 6% bonds at face value. The annual cash payment for interest is due on January 1 of each year beginning January 1, Year 2. Based on this information, what is the total amount of liabilities related to these bonds that will be reported on the balance sheet at December 31, Year 1? (Hint: Consider the interest that might be owed to bondholders at December 31, Year 1.) Multiple Choice O O O O $15,000 $250,000 $265,000 $248,500
The cost of merchandise sold and merchandise inventory is determined from the inventory cost flow assumption. To illustrate, beginning inventory, purchases and sales of shoes are shown below for Grant Co., using a perpetual inventory system. 1. In the table below, fill in the March 24 quantity, unit cost, and total cost in the spaces provided for determining Cost of Merchandise Sold (COMS) and Merchandise Inventory under the FIFO cost flow assumption, assuming 32 shoes are sold on March 24. Determine the COMS and Merchandise inventory final balances. If units are in inventory or are listed under cost of merchandise sold at two different costs, enter the units that were purchased earliest first. 2. In the table below, fill in the March 24 quantity, unit cost, and total cost in the spaces provided for determining Cost of Merchandise Sold (COMS) and Merchandise Inventory under the LIFO cost flow assumption, assuming 32 shoes are sold on March 24. Determine the COMS and Merchandise…
The Company uses a periodic inventory system. For specific identification, ending inventory consists of 200 units, where 180 are from the January 30 purchase, 5 are from the January 20 purchase, and 15 are from beginning inventory. Determine the cost assigned to ending inventory and to cost of goods sold using (a) specific identification, (b) weighted average, (c) FIFO, and (d) LIFO. Determine the cost assigned to ending inventory and to cost of goods sold using weighted average. (Round cost per unit to 2 decimal places.)
Use the following information for the Exercises below. [The following information applies to the questions displayed below.] Laker Company reported the following January purchases and sales data for its only product. Units sold at Retail Units Acquired at Cost 165 units@ $9.00 = $1,485 Date Activities Jan. 1 Beginning inventory 125 units @ $18.00 Jan. 10 Sales Jan. 20 Purchase 110 units@ $8.00 = 088 125 units @ $18.00 Jan. 25 Sales Jan. 30 Purchase 230 units@ $7.50 = 1,725 505 units $4,090 250 units Totals The Company uses a perpetual inventory system. For specific identification, ending inventory consists of 255 units, where 230 are from the January 30 purchase, 5 are from the January 20 purchase, and 20 are from beginning inventory. Exercise 5-3 Perpetual: Inventory costing methods LO P1 Required: 1. Complete the table to determine the cost assigned to ending inventory and cost of goods sold using specific identification. 2. Determine the cost assigned to ending inventory and to cost…
Compute the amount of goods available for sale, ending inventory and cost of good sold at January 31 under each of the following inventory cost methods A. Weighted cost average B. First in first out C. Last in first out D. Specific identification, assuming that the January 10 sale was from the beginning inventory, and the January 17 sale was from the January 12 purchase Thank you in advance !
3. Calculate the cost of goods sold dollar value for A74 Company for the sale on March 11, considering the following transactions under three different cost allocation methods and using perpetual inventory updating. Provide calculations for (a) first-in, first-out (FIFO); (b) last-in, first-out (LIFO); and (c) weighted average (AVG). Number of Units Unit Cost Beginning inventory Mar. 1 Purchased Mar. 8 Sold Mar. 11 for $120 per unit 110 $87 140 89 95