Use the following information to calculate the value of inventory on hand on April 30 and issue price toproduction during April using FIFO inventory system.50 units @ R15 per01-April5Beginning InventoryPurchaseunit96Issue to production11Purchase16Purchase135 units @ 20 per unit95 units30 units @ R16 perunit78 units @ R17per unit302020Issue to production125 unitsIssue to production65 units

FIFO stands for "First-In, First-Out" A method of inventory valuation used in accounting and…

Beginning Inventory Purchase Issue to production 01-April 5 9 6 11 Purchase 16 Purchase 20 30 Issue to production Issue to production 50 units @R15 per unit 135 units @20 per unit 95 units 30 units @ R16 per unit 78 units @ R17per unit 125 units 65 units

Beginning Inventory Purchase Issue to production 01-April 5 9 6 11 Purchase 16 Purchase 20 30 Issue to production Issue to production 50 units @R15 per unit 135 units @20 per unit 95 units 30 units @ R16 per unit 78 units @ R17per unit 125 units 65 units

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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Cost Flow Methods The following three identical units of Item LO3V are purchased during April: Item Beta Purchase 1 Purchase 1 [[ Purchase 1 3 April 2 April 15 April 20 Total a. First-in, first-out (FIFO) b. Last-in, first-out (LIFO) c. Weighted average cost $ Units Cost $ Average cost per unit $221 ($663 3 units) Assume that one unit is sold on April 27 for $301. Determine the gross profit for April and ending inventory on April 30 using the (a) first-in, first-out (FIFO); (b) last-in, first-out (LIFO); and (c) weighted average cost method. Gross Profit 82 ✔ $219 X 221 223 $663 Ending Inventory $ X
Date Activities Units Acquired at Cost Units Sold at Retail January 1 Beginning inventory 580 units @ $40 per unit February 10 Purchase 420 units @ $38 per unit March 13 Purchase 180 units @ $25 per unit March 15 Sales 755 units @ $70 per unit August 21 Purchase 190 units @ $45 per unit September 5 Purchase 560 units @ $41 per unit September 10 Sales 750 units @ $70 per unit Totals 1,930 units 1,505 units Required: Compute cost of goods available for sale and the number of units available for sale what is the ending inventory?
Cost Flow Methods The following three identical units of Item Beta are purchased during June: Item Beta Units Cost June 2 Purchase 1 $50 12 Purchase 1 60 23 Purchase 1 70 Total 3 $180 Average cost per unit $60 ($180 ÷ 3 units) Assume that one unit is sold on June 27 for $110. Determine the gross profit for June and ending inventory on June 30 using the (a) first-in, first-out (FIFO); (b) last-in, first-out (LIFO); and (c) weighted average cost methods. Gross Profit Ending Inventory a. First-in, first-out (FIFO) $fill in the blank 1 $fill in the blank 2 b. Last-in, first-out (LIFO) $fill in the blank 3 $fill in the blank 4 c. Weighted average cost $fill in the blank 5 $fill in the blank 6
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Mastery Problem Hurst Company’s beginning inventory and purchases during the fiscal year ended December 31, 20-2, are shown. Units Unit Price Total Cost January 1, 20-2 Beginning inventory 1,500 $10.00 $15,000 January 12 1st purchase 500 11.50 5,750 February 28 2nd purchase 600 14.50 8,700 June 29 3rd purchase 1,200 15.00 18,000 August 31 4th purchase 800 16.50 13,200 October 29 5th purchase 300 18.00 5,400 November 30 6th purchase 700 18.50 12,950 December 21 7th purchase 400 20.00 8,000 6,000 $87,000 There are 1,200 units of inventory on hand on December 31, 20-2. Required: 1. Calculate the total amount to be assigned to the cost of goods sold for 20-2 and ending inventory on December 31 under each of the following periodic inventory methods: Cost of Goods Sold Cost of Ending Inventory a. FIFO $ $ b. LIFO $ $ c. Weighted-average (round calculations to two decimal places) $ $ 2. Assume that the…
Cost flow methods The following three identical units of Item P401C are purchased during April: Apr. 2 Apr. 15 Apr. 20 Total Average cost per unit ($348 ÷ 3 units) Item Beta Units Cost Purchase 1 $114 Purchase 1 116 Purchase 1 118 3 $348 $116 Assume that one unit is sold on April 27 for $159. Determine the gross profit for April and ending inventory on April 30 using the (a) first-in, first-out (FIFO); (b) last-in, first-ou and (c) weighted average cost method. a. First-in, first-out (FIFO) b. Last-in, first-out (LIFO) c. Weighted average cost Gross Profit Ending Inventory $ $ $
4. Inventories There are three identical units of item JC07 are purchased during August, as shown below: Cost $ 80 Item JC07 Units August 13 7 Purchase 1 Purchase 1 84 25 Purchase 1 3 $ 84 ($252/3 units) 88 Total $ 252 Average cost per unit Assume that one unit is sold on august 30 for $125 Please determine the gross profit for august and ending inventory on august 31 uşing the (a) First In First Out ( FIFO) (b) Last In Ffirst o ut (LIFO) and (c) Average Cost methods
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Required information Problem 6-1A Perpetual: Alternative cost flows LO P1 Skip to question [The following information applies to the questions displayed below.]Warnerwoods Company uses a perpetual inventory system. It entered into the following purchases and sales transactions for March. Date Activities Units Acquired at Cost Units Sold at Retail Mar. 1 Beginning inventory 100 units @ $51.00 per unit Mar. 5 Purchase 225 units @ $56.00 per unit Mar. 9 Sales 260 units @ $86.00 per unit Mar. 18 Purchase 85 units @ $61.00 per unit Mar. 25 Purchase 150 units @ $63.00 per unit Mar. 29 Sales 130 units @ $96.00 per unit Totals 560 units 390 units
Question 15 MCQs 15-18: Answer MCQs 15 to 18 based on the information in Problem 3 given below: Problem 3 (CLO5, PLO5, ZULO1): Davis provides the following information for the month of March 2011: March 1 Beginning Inventory March 7 Purchases March 18 Purchases March 24 Purchases 200 units Question 18 300 units 400 units 100 units Unsold units at month-end amounted to 180. $15 per unit $16 per unit $18 per unit $19 per unit 18. The ending inventory using the average cost method should amount to: O $3,042 $3,340 $13,560 O $13,858
e Acco Q Acco Unit Acco G the i G Whe G A me O Que: O Chap G A me + Accc ассо асco om Assume the beginning inventory as of January 1 consisted of 500 units that were purchased for $8.25 each. During the month, three new purchases were made. The first purchase consisted of 700 units costing $8.50 each, the second purchase had 800 units costing $9.00 each, and the third purchase had 600 units costing $9.50 each. At the end of the month, ending inventory shows 700 units. Compute the cost of goods sold and the ending inventory for the company using each of the following methods. Also determine the gross margin if the total sales revenue is $43,000. a. Specific identification: Of the units sold, 300 were from the beginning inventory, 600 from the first purchase, 700 from the second purchase, and 300 from the third purchase. Cost of goods sold Ending inventory Gross profit b. First-in, first-out (FIFO) Cost of goods sold %24 Ending inventory Gross profit c. Weighted-average (round the unit…
Date Activities Units Acquired at Cost Units Sold at Retail March 1 Beginning inventory 110 units @ $51.20 per unit March 5 Purchase 230 units @ $56.20 per unit March 9 Sales 270 units @ $86.20 per unit March 18 Purchase 90 units @ $61.20 per unit March 25 Purchase 160 units @ $63.20 per unit March 29 Sales 140 units @ $96.20 per unit Totals 590 units 410 units rev: 05_26_2021_QC_CS-265380, 07_10_2021_QC_CDR-376 Required:1. Compute cost of goods available for sale and the number of units available for sale.