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

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Assume that Whitewall Tire Store completed the following perpetual inventory transactions for a line of tires: (Click the icon to view the transactions.) Requirement 1. Compute cost of goods sold and gross profit using the FIFO inventory costing method. Begin by computing the cost of goods sold and cost of ending merchandise inventory using the FIFO inventory costing method. Enter the transactions in chronological order, calculating new inventory on hand balances after each transaction. Once all of the transactions have been entered into the perpetual record, calculate the quantity and total cost of merchandise inventory purchased, sold, and on hand at the end of the period. (Enter the oldest inventory layers first.) Cost of Goods Sold Date Quantity Dec. 1 11 23 26 29 Totals Purchases Unit Cost Total Unit Cost Quantity Cost Total Cost Inventory on Hand Unit Cost Quantity C Total Cost 1. Requirements More info Dec. 1 Beginning merchandise inventory Dec. 11 Purchase Dec. 23 Sale Dec. 26…
Required:Hemming uses a periodic inventory system. (a) Determine the costs assigned to ending inventory and to cost of goods sold using FIFO.
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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?
The following data regarding purchases and sales of a commodity were taken from the related inventory account (perpetual inventory system is used): May 1 Balance 25 units at $41 6 Sale 20 units 8 Purchase 20 units at $42 16 Sale 10 units 20 Purchase 20 units at $43 23 Sale 25 units 30 Purchase 15 units at $45 (a) Determine the total cost of the inventory balance at May 31, using the first-in, first-out method. Also, identify the quantity, unit price, and total cost of each lot/layer in the ending inventory. (b) Determine the total cost of the inventory balance at May 31, using the last-in, first-out method. Also, identify the quantity, unit price, and total cost of each lot/layer in the ending inventory. (a) FIFO (b) LIFO
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…
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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…
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