Calculate cost of goods sold using: Sald 0 5०० 1) FIFO 2) Weighted-average cost 3) LIFO Edns Intr 20 4) Heinrich Company, which uses a periodic inventory system, imports and sells a product produced in Germany. In the summer of 2018, a natural disaster disrupted production, affecting its supply of product. Heinrich uses the LIFO inventory method. On January 1, 2019, Heinrich's inventory records were as follows: Year purchased Quantity (units) Cost per unit Total cost 2017 2,500 $20 $ 50,000 4,500 Z000 2018 $40 180,000 Total $230,000 Through mid-December of 2019, purchases were limited to 50,000 units, because the cost had increased to $50 per unit. Heinrich sold 55,000 units during 2019 at a selling price of $100 per unit, which significantly depleted its inventory. The cost was expected to drop to $42 per unit by early January 2020. 1) Assume that Heinrich makes no further purchases during 2019. Compute the gross profit for 2019 2) Assume that Heinrich purchases 8,800 units before the end of December 2019 at $50 each. Compute its gross profit for 2019. ) At the beginning of the current period, Viraat Industries, which uses a periodic inventory system, has 150 units of a product with a unit cost of $480. The inventory records report the following transactions: Units Unit Cost Cost $72,000 79,200 Beginning Inventory 150 $480 Purchase #1 150 $528 39,900 18,900 $210,000 Purchase #2 70 $570 Purchase #3 30 $630 400
Calculate cost of goods sold using: Sald 0 5०० 1) FIFO 2) Weighted-average cost 3) LIFO Edns Intr 20 4) Heinrich Company, which uses a periodic inventory system, imports and sells a product produced in Germany. In the summer of 2018, a natural disaster disrupted production, affecting its supply of product. Heinrich uses the LIFO inventory method. On January 1, 2019, Heinrich's inventory records were as follows: Year purchased Quantity (units) Cost per unit Total cost 2017 2,500 $20 $ 50,000 4,500 Z000 2018 $40 180,000 Total $230,000 Through mid-December of 2019, purchases were limited to 50,000 units, because the cost had increased to $50 per unit. Heinrich sold 55,000 units during 2019 at a selling price of $100 per unit, which significantly depleted its inventory. The cost was expected to drop to $42 per unit by early January 2020. 1) Assume that Heinrich makes no further purchases during 2019. Compute the gross profit for 2019 2) Assume that Heinrich purchases 8,800 units before the end of December 2019 at $50 each. Compute its gross profit for 2019. ) At the beginning of the current period, Viraat Industries, which uses a periodic inventory system, has 150 units of a product with a unit cost of $480. The inventory records report the following transactions: Units Unit Cost Cost $72,000 79,200 Beginning Inventory 150 $480 Purchase #1 150 $528 39,900 18,900 $210,000 Purchase #2 70 $570 Purchase #3 30 $630 400
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Can you help with practice problem number 4 .1 and 4.2
Transcribed Image Text:Calculate cost of goods sold using:
Sald 0
5००
1) FIFO
2) Weighted-average cost
3) LIFO
Edns Intr 20
4) Heinrich Company, which uses a periodic inventory system, imports and sells a product produced in Germany.
In the summer of 2018, a natural disaster disrupted production, affecting its supply of product. Heinrich uses
the LIFO inventory method. On January 1, 2019, Heinrich's inventory records were as follows:
Year purchased
Quantity (units)
Cost per unit
Total cost
2017
2,500
$20
$ 50,000
4,500
Z000
2018
$40
180,000
Total
$230,000
Through mid-December of 2019, purchases were limited to 50,000 units, because the cost had increased to
$50 per unit. Heinrich sold 55,000 units during 2019 at a selling price of $100 per unit, which significantly
depleted its inventory. The cost was expected to drop to $42 per unit by early January 2020.
1) Assume that Heinrich makes no further purchases during 2019. Compute the gross profit for 2019
2) Assume that Heinrich purchases 8,800 units before the end of December 2019 at $50 each. Compute its
gross profit for 2019.
) At the beginning of the current period, Viraat Industries, which uses a periodic inventory system, has 150 units
of a product with a unit cost of $480. The inventory records report the following transactions:
Units
Unit Cost
Cost
$72,000
79,200
Beginning Inventory
150
$480
Purchase #1
150
$528
39,900
18,900
$210,000
Purchase #2
70
$570
Purchase #3
30
$630
400
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