Company A reported that a flood recently destroyed many of their financial records. The entity used average cost inventory valuation. The entity made a physical count at the end of each month in order to determine monthly ending inventory value. By examining various documents, the following data are gathered: Ending inventory at July 31 60,000 units Total cost of units available for sale in July 1,452,100 Cost of goods sold during July 1,164,100 Cost of beginning inventory, July 1 4.00 per unit Gross profit on sales for July 935,900 Units Unit Cost Total Cost 5-Jul 55,000 5.1 280,500 11-Jul 53,000 5 265,000 15-Jul 45,000 5.5 247,500 16-Jul 47,000 5.3 249,100 Total purchases 200,000 1,042,100 Determine: (1) Cost of ending inventory on July 31 (2) Cost of goods sold under FIFO valuation method (3) Cost of ending inventory on July 31 under FIFO valuation method
Company A reported that a flood recently destroyed many of their financial records. The entity used average cost inventory valuation. The entity made a physical count at the end of each month in order to determine monthly ending inventory value. By examining various documents, the following data are gathered: Ending inventory at July 31 60,000 units Total cost of units available for sale in July 1,452,100 Cost of goods sold during July 1,164,100 Cost of beginning inventory, July 1 4.00 per unit Gross profit on sales for July 935,900 Units Unit Cost Total Cost 5-Jul 55,000 5.1 280,500 11-Jul 53,000 5 265,000 15-Jul 45,000 5.5 247,500 16-Jul 47,000 5.3 249,100 Total purchases 200,000 1,042,100 Determine: (1) Cost of ending inventory on July 31 (2) Cost of goods sold under FIFO valuation method (3) Cost of ending inventory on July 31 under FIFO valuation method
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter7: Inventories: Cost Measurement And Flow Assumptions
Section: Chapter Questions
Problem 11RE: Jessie Stores uses the periodic system of calculating inventory. The following information is...
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Company A reported that a flood recently destroyed many of their financial records. The entity used average cost |
|||||||||||
The entity made a physical count at the end of each month in order to determine monthly ending inventory value. | |||||||||||
By examining various documents, the following data are gathered: | |||||||||||
Ending inventory at July 31 | 60,000 units | ||||||||||
Total cost of units available for sale in July | 1,452,100 | ||||||||||
Cost of goods sold during July | 1,164,100 | ||||||||||
Cost of beginning inventory, July 1 | 4.00 per unit | ||||||||||
Gross profit on sales for July | 935,900 | ||||||||||
Units | Unit Cost | Total Cost | |||||||||
5-Jul | 55,000 | 5.1 | 280,500 | ||||||||
11-Jul | 53,000 | 5 | 265,000 | ||||||||
15-Jul | 45,000 | 5.5 | 247,500 | ||||||||
16-Jul | 47,000 | 5.3 | 249,100 | ||||||||
Total purchases | 200,000 | 1,042,100 | |||||||||
Determine: | |||||||||||
(1) Cost of ending inventory on July 31 | |||||||||||
(2) Cost of goods sold under FIFO valuation method | |||||||||||
(3) Cost of ending inventory on July 31 under FIFO valuation method |
![Company A reported that a flood recently destroyed many of their financial records. The entity
The entity made a physical count at the end of each month in order to determine monthly ending
inventory value.
By examining various documents, the following data are gathered:
Ending inventory at July 31
Total cost of units available for sale in July
Cost of goods sold during July
Cost of beginning inventory, July 1
Gross profit on sales for July
60,000 units
1,452,100
1,164,100
4.00 per unit
935,900
LITI
Units
Unit Cost Total Cost
July 5
July 11
July 15
July 16
Total purchases
55,000
53,000
45,000
47,000
200,000
280,500
265,000
247,500
249.100
1.042,100
5.1
5
5.5
5.3
Determine:
(1) Cost of ending inventory on July 31
(2) Cost of goods sold under FIFO valuation method
(3) Cost of ending inventory on July 31 under FIFO valuation method](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F71293ba4-a12b-4986-a14a-001da38cb493%2F82e6a00a-ca88-4b6a-a2ec-cdd5448c709a%2Frhm9gri_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Company A reported that a flood recently destroyed many of their financial records. The entity
The entity made a physical count at the end of each month in order to determine monthly ending
inventory value.
By examining various documents, the following data are gathered:
Ending inventory at July 31
Total cost of units available for sale in July
Cost of goods sold during July
Cost of beginning inventory, July 1
Gross profit on sales for July
60,000 units
1,452,100
1,164,100
4.00 per unit
935,900
LITI
Units
Unit Cost Total Cost
July 5
July 11
July 15
July 16
Total purchases
55,000
53,000
45,000
47,000
200,000
280,500
265,000
247,500
249.100
1.042,100
5.1
5
5.5
5.3
Determine:
(1) Cost of ending inventory on July 31
(2) Cost of goods sold under FIFO valuation method
(3) Cost of ending inventory on July 31 under FIFO valuation method
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