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 UnitsUnit CostTotal Cost 5-Jul 55,0005.1280,500 11-Jul 53,0005265,000 15-Jul 45,0005.5247,500 16-Jul 47,0005.3249,100 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 entityThe entity made a physical count at the end of each month in order to determine monthly endinginventory value.By examining various documents, the following data are gathered:Ending inventory at July 31Total cost of units available for sale in JulyCost of goods sold during JulyCost of beginning inventory, July 1Gross profit on sales for July60,000 units1,452,1001,164,1004.00 per unit935,900LITIUnitsUnit Cost Total CostJuly 5July 11July 15July 16Total purchases55,00053,00045,00047,000200,000280,500265,000247,500249.1001.042,1005.155.55.3Determine:(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

Name: Company A reported that a flood recently destroyed many of their finan
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Description: 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 ex

Ending inventory may be defined as the balance of inventory in the hands of company at the end of…

Answered: Company A reported that a flood…

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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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
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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