Auto Dealers Incorporated sells a handmade automobile as its only product. Each automobile is identical; however, theycan be distinguished by their unique ID number. At the beginning of 2024, Auto Dealers had three cars in inventory, asfollows:Car ID203207210Cost$ 87,00087,00090,000During 2024, each of the three autos sold for $117,000. Additional purchases (listed in chronological order) and sales forthe year were as follows:Car IDCostSelling Price211212213$ 87,00087,00088,500$ 117,000120,000not sold21490,000123,00021593,000127,50021691,500not sold21796,000132,00021893,300133,50021999,000not sold. Calculate ending inventory and cost of goods sold assuming LIFO and a periodic inventory system.Ending inventoryCost of goods soldLIFO Periodic

Under the Periodic method of inventory costing, the inventories are costed at the end of the period…

Auto Dealers Incorporated sells a handmade automobile as its only product. Each automobile is identical; however, th can be distinguished by their unique ID number. At the beginning of 2024, Auto Dealers had three cars in inventory, a follows: Car ID 203 207 210 Cost $ 87,000 87,000 90,000 During 2024, each of the three autos sold for $117,000. Additional purchases (listed in chronological order) and sales the year were as follows: Car ID Cost Selling Price 211 $ 87,000 $ 117,000 212 87,000 120,000 213 88,500 not sold 214 90,000 123,000 215 93,000 127,500 216 91,500 not sold 217 96,000 132,000 218 93,300 133,500 219 99,000 not sold Calculate ending inventory and cost of goods sold assuming LIFO and a periodic inventory system. ding inventory st of goods sold LIFO Periodic

Auto Dealers Incorporated sells a handmade automobile as its only product. Each automobile is identical; however, th can be distinguished by their unique ID number. At the beginning of 2024, Auto Dealers had three cars in inventory, a follows: Car ID 203 207 210 Cost $ 87,000 87,000 90,000 During 2024, each of the three autos sold for $117,000. Additional purchases (listed in chronological order) and sales the year were as follows: Car ID Cost Selling Price 211 $ 87,000 $ 117,000 212 87,000 120,000 213 88,500 not sold 214 90,000 123,000 215 93,000 127,500 216 91,500 not sold 217 96,000 132,000 218 93,300 133,500 219 99,000 not sold Calculate ending inventory and cost of goods sold assuming LIFO and a periodic inventory system. ding inventory st of goods sold LIFO Periodic

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

Maraton Inc. imports gourmet coffee and sells it to local restaurants. All sales are made on account with terms net 30. Maraton Inc. uses the perpetual inventory method and the first-in first out costing method. At the beginning of the year, Maraton Inc. had the following account balances 1. Accounts receivable balance of $3,000 and an allowance for doubtful accounts of $800. All the amounts were owed from A Ltd. 2. Opening inventory of 100 units at $50 per unit. The company had the following transactions during the fiscal year ended December 31, 2023: Date Feb. 15 Mar 15 May 1 May 30 Aug 1 Sep 25 Transaction Purchase 300 units at $55 per unit on credit. Received $2,000 from A Ltd. Wrote off the remaining balance as uncollectible. Sold 300 units to B Ltd. on account at $110 per unit B Ltd. paid the balance owed from the May 1 sale. Purchased 300 units at $70 per unit on credit. Sold 300 units to C Ltd. on account at $120 per unit. Nov 15 Purchased 200 units at $60 per unit for cash.…
Bruce Bonner began a web-based computer sales and service company on August 1, 2024 called Bonner's Toys Corporation. The following information is available for August, 2024 (assume a perpetual inventory system). August 1 Purchased $8,000 of merchandise inventory from Allarco Inc.; terms 1/10, n30; FOB shipping point. 1 $16,000 of merchandise was purchased from Global Filter Corp. on account; terms 1/10, n30. 2 Received the August 1, 2024 purchase and paid cash of $200 for shipping. 2 Sold merchandise to Joey Juno that cost $3,200 for $4,000; terms 1/15, n30. 4 Paid for the merchandise purchased from Allarco Inc. on August 1, 2024. 8 The customer of August 2, 2024 returned $900 of their purchase due to defects; the returned merchandise will not be returned to inventory. 11 Collected the balance owing regarding the August 2, 2024 sale. 13 Paid for the merchandise purchased from Global Filter Corp. on August 1, 2024. 15 Sold…
Maraton Inc. imports gourmet coffee and sells it to local restaurants. All sales are made on account with terms net 30. Maraton Inc. uses the perpetual inventory method and the first-in first out costing method. At the beginning of the year, Maraton Inc. had the following account balances 1. Accounts receivable balance of $3,000 and an allowance for doubtful accounts of $800. All the amounts were owed from A Ltd. 2. Opening inventory of 100 units at $50 per unit. The company had the following transactions during the fiscal year ended December 31, 2023: Date Transaction Feb. 15 Purchase 400 units at $55 per unit for cash. Mar 15 May 1 May 30 Aug 1 Sep 25 Received $2,500 from A Ltd. Wrote off the remaining balance as uncollectible. Sold 300 units to B Ltd. on account at $110 per unit B Ltd. paid the balance owed from the May 1 sale. Purchased 300 units at $70 per unit on credit. Sold 300 units to C Ltd. on account at $120 per unit. Nov 15 Purchased 200 units at $65 per unit on credit.…
On July 15, 2024, the Niche Car Company purchased 2,700 tires from the Treadwell Company for $30 each. The terms of the sale were 3/10. n/30. Niche uses a perpetual inventory system and the net method of accounting for purchase discounts. Required: 1. Prepare the journal entries to record the purchase on July 15 and payment on July 23, 2024. 2. Prepare the journal entry for the payment, assuming instead that it was made on August 15, 2024.
Sylvester has a bird shop that sells canaries. Sylvester maintains accurate records on the number of birds purchased from its suppliers and the number sold to customers. The records show the following purchases and sales during 2021. Date Transactions Units Cost per Unit Total Cost January 1 Beginning inventory 37 $ 28 $ 1,036 April 14 Purchase 68 30 2,040 August 22 Purchase 118 32 3,776 October 29 Purchase 83 34 2,822 306 $ 9,674 Jan. 1–Dec. 31 Sales ($48 each) 272 Sylvester uses a periodic inventory system and believes there are 34 birds remaining in ending inventory. However, Sylvester neglects to make a final inventory count at the end of the year. An employee accidentally left one of the cages open one night and 10 birds flew away, leaving only 24 birds in ending inventory. Sylvester is not aware of the lost canaries. 4. Assuming that ending inventory is correctly counted at the end…
answer in text form please (without image), Note: .Every entry should have narration please
Carlson Auto Dealers Inc. sells a handmade automobile as its only product. Each automobile is identical; however, they can be distinguished by their unique ID number. At the beginning of 2021, Carlson had three cars in inventory, as follows: Car ID Cost 203 $ 93,000 207 93,000 210 96,000 During 2021, each of the three autos sold for $123,000. Additional purchases (listed in chronological order) and sales for the year were as follows: Car ID Cost Selling Price 211 $ 93,000 $ 123,000 212 93,000 126,000 213 94,500 not sold 214 96,000 129,000 215 99,000 133,500 216 97,500 not sold 217 102,000 138,000 218 99,300 139,500 219 105,000 not sold How do you calculate ending inventory and cost of goods sold assuming FIFO and a periodic inventory system?
Sylvester has a bird shop that sells canaries. Sylvester maintains accurate records on the number of birds purchased from its suppliers and the number sold to customers. The records show the following purchases and sales during 2021. Date Transactions Units Cost per Unit Total Cost January 1 Beginning inventory 34 $39 $1,326 April 14 Purchase 79 41 3,239 August 22 Purchase 129 43 5,547 October 29 Purchase 94 45 4,230 336 14,342 Jan. 1–Dec. 31 Sales ($59 each) 279 Sylvester uses a periodic inventory system and believes there are 57 birds remaining in ending inventory. However, Sylvester neglects to make a final inventory count at the end of the year. An employee accidentally left one of the cages open one night and 10 birds flew away, leaving only 47 birds in ending inventory. Sylvester is not aware of the lost canaries. Required:1. What amount will Sylvester calculate for ending inventory and cost of goods sold using FIFO, assuming he erroneously…
2
During 2025, which was the first year of operations, Ivanhoe Company purchased inventory with a cost of $973000 before cash discounts. All purchases were made on terms of 2/10, n/30. Three-fourths of the items purchased were paid for within 10 days of purchase. All of the goods available had been sold at year end. Which of the following recording procedures would result in the highest cost of goods sold for 2025? 1. Recording purchases at gross amounts 2. Recording purchases at net amounts, with the amount of discounts not taken shown under "other expenses" in the income statement 01 02 O Either 1 or 2 will result in the same cost of goods sold. O Cannot be determined from the information provided.
Edward's Music is a store that buys and sells musical instruments and uses a periodic inventory system. Transactions for the business are shown below: Nov. 2 4 5 7 8 10 12 13 16 20 22 Purchased two electric guitars from Fender Supply Limited, on account, at a cost of $700 each, terms 1/10, n/60. Made a cash sale of two keyboards for a total invoice price of $2,500. The cost of each keyboard was $950. Received a credit from Western Acoustic Inc. for the return of an acoustic guitar, which was defective. The original invoice price was $475 and the guitar had been purchased on account. One of the keyboards from the cash sale of Nov. 4 was returned to the store for a full cash refund because the customer was not satisfied with the instrument. Purchased store supplies for cash from a stationery store. The price of the supplies is $225. Sold one Omega trumpet to the Toronto Regional Band, on account, for an invoice price of $2,900. Terms are 1/10, n/60. The trumpet had cost Edward's Music…
Luther has a bird shop that sells canaries. Luther maintains accurate records on the number of birds purchased from its suppliers and the number sold to customers. The records show the following purchases and sales during 2024. Date Transactions Units Unit Cost Total Cost January 1 Beginning inventory 33 $38 $1,254 April 14 Purchase 78 40 3, 120 August 22 Purchase 128 42 5, 376 October 29 Purchase 93 44 4,092 332 $13,842 January 1 to December 31 Sales ($58 each) 278 Luther uses a periodic inventory system and believes there are 54 birds remaining in ending inventory. However, Luther neglects to make a final inventory count at the end of the year. An employee accidentally left one of the cages open one night and 10 birds flew away, leaving only 44 birds in ending inventory. Luther is not aware of the lost canaries. 1. What amount will Luther calculate for ending inventory and cost of goods sold using FIFO, assuming he erroneously believes 54 canaries remain in ending inventory?