(b1)X Your answer is incorrect.Calculate price index. (Round answer to 4 decimal places, e.g. 2.7653.)Price Index194.3346eTextbook and MediaSave for Later(b2)The parts of this question must be completed in order. This part will be available when you Coronado Corporation began operations on December 1, 2019. The only inventory transaction in 2019 was the purchase of inventoryon December 10, 2019, at a cost of $ 23 per unit. None of this inventory was sold in 2019. Relevant information is as follows.Ending inventory unitsDecember 31, 2019165December 31, 2020, by purchase dateDecember 2, 2020165July 20, 202050215During the year 2020, the following purchases and sales were made.PurchasesSalesMarch 15365 unitsat $28April 10265July 20365 unitsat29August 20365September 4265 unitsat32November 18215December 2165 unitsat35December 12265The company uses the periodic inventory method.(a1)

LIFO is an accounting method used for valuing inventory based on last-in-first-out model. It is…

Answered: Coronado Corporation began operations…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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On January 1, 2021, Sanderson Variety Store adopted the dollar-value LIFO retail inventory method. Accounting records provided the following information: Cost Retail Beginning inventory $ 42,350 $ 77,000 Net purchases 165,890 315,000 Net markups 9,000 Net markdowns 11,000 Net sales 292,000 Retail price index, end of year 1.04 During 2022, purchases at cost and retail were $192,750 and $385,500, respectively. Net markups, net markdowns, and net sales for the year were $4,000, $5,000, and $325,000, respectively. The retail price index at the end of 2022 was 1.05.Estimate ending inventory in 2022 using the dollar-value LIFO retail method. (Round your intermediate calculations to the nearest whole dollar. Round ratio calculation to the nearest whole percent.)
Denger
Taylor Company uses a periodic inventory system. The following is partial information from its income statements for 2019 and 2020: 2019 2020 Beginning inventory $ (b) $ (d) Sales 250,000 (f) Purchases 120,000 140,000 Purchase returns 2,000 3,000 Ending inventory 45,000 70,000 Gross profit (a) 88,000 Cost of goods sold 111,000 (e) Expenses 70,000 62,000 Net income (c) 26,000 Required Fill in the blanks lettered a through f. (Hint: It probably is easiest to work through the blanks according to the sequential letters.) (a) Gross profit (b) Beginning inventory (c) Net income (d) Beginning inventory of 2020 (e) Cost of goods sold (f) Sales
ABC Co. uses net method for discounts of inventory. ABC Co. has the following transactions in May 2021: May 1, Purchased inventory on credit terms 1/10 n,30 for 10000 May 9 Return 50% of inventory purchased on May 1, it was defective. Which one is the correct journal entry for May 9? Select one: a. Debit A/P 5000 credit inventory 5000 b. Debit A/P 4500, Credit inventory 4500 O c. Debit A/P 5000, Credit Cash 5000 d. Debit Cash 4500, Credit A/P 4500
5. On December 31, 2020, XYZ's fiscal year end, a physical count of inventory revealed an inventory balance of $80,000. The following items were not yet included in the physical count: i. ii. iii. Merchandise shipped to a customer on 12/28 FOB destination (merchandise arrives at customer's location on 1/5/21) $3,000 Merchandise shipped to a customer on 12/29 FOB shipping point (merchandise arrives at customer's location on 1/2/21) $1,500 Merchandise purchased from a supplier, shipped FOB destination on 12/26, arrives on January 4, 2021 $6,000. Barrington's 2016 ending inventory should be: a. $80,000. b. $89,000. c. $83,000. d. $87,750.
1. The following information relates to the one typy of inventory of Toy Ltd during the month of May 2022. Ignore GST. 1/5 Beginning inventory 10/5 Purchase 15/5 Purchase 23/5 Purchase Totals Units 2,520 1,800 1,080 1,800 7,200 Units cost ($) 33 34.8 36.6 39 Total cost ($) 83,160 62,640 39,528 70,200 $255,528 Toy Ltd has adopted the Periodic Inventory System. A physical count on 31 May verified that 2160 units of the type of inventory were on hand. Required: a) Determine the Ending inventory and Cost of Sales for the month of May, using the FIFO costing method. b) Discuss at least 4 differences between Perpetual and Periodic Inventory systems. Your comparison should be based on aspects such as recording keeping, internal control, end of period process and business opportunity etc.
Coronado Corporation began operations on December 1, 2019. The only inventory transaction in 2019 was the purchase of inventory on December 10, 2019, at a cost of $ 23 per unit. None of this inventory was sold in 2019. Relevant information is as follows. Ending inventory units December 31, 2019 165 December 31, 2020, by purchase date December 2, 2020 165 July 20, 2020 50 215 During the year 2020, the following purchases and sales were made. Purchases Sales March 15 365 units at $ 28 April 10 265 July 20 365 units at 29 August 20 365 September 4 265 units at 32 November 18 215 December 2 165 units at 35 December 12 265 The company uses the periodic inventory method. (a1) Your answer is correct.
Sunrise company inventory records contained the following information regarding its latest Sunrise model. The company uses a periodic inventory system. Beginning inventory, January 1,2019 1,200 units @ OR 80 each Purchases: January 15 2,000 units@ OR 95 each January 21 1,600 units@ OR100 each Sales: January 5 800 units @ OR 120 each January 22 1,600 units@ OR 130 each January 29 800 units @ OR 135 each Ending inventory, January 31, 2019 was 1,600 units Required : Compute COGS for January and ending the inventory using FIFO, LIFO and weighted average…
Overton Company uses a perpetual inventory system for its single product. Its beginning inventory, purchases and sales during calendar year 2021 follow. Jan 1 Beginning inventory $5,600 Jan 15 Sold 200 units @ $30.00 March 10 Purchase 200 units @ $15 April 1 Sold 200 units @ $30 May 9 Purchased 300 units @ $16 Sept 22 Purchase 250 units @ $20 Nov 1 Sold 300 units @ $35 Nov 28 Purchased 100 units @21 Required Calculate the cost of goods available for sale. Calculate (a) ending inventory and ( b) Cost of goods sold under the LIFO and AVCO inventory costing methods. Given that expenses after gross profit totalled $ 5,000.00, compute the gross and net profit earned by the company under the LIFO and AVCO costing methods. If the company had used the FIFO inventory costing method, cost of goods sold under FIFO would have been $ 10,200.00. Management wants a report that shows how changing from FIFO to another method would change net income. Prepare a table showing (1) the amount by which…
Sunland Company's inventory on January 1, 2025, at cost and retail are $97,500 and $141,000, respectively. Sunland established its base year amounts on January 1, 2025. The current year price index was 1.20. Sunland also had the following information: Purchases Sales Mark-ups Mark-downs Cost $195,000 Retail $282,000 243,000 19,740 (11,280) Determine ending inventory using: (Round ratio to 2 decimal places, e.g. 75.35% and final answer to O decimal places, e.g. 5,275.) (a) LIFO retail. (b) Dollar Value LIFO. (a) Ending inventory under LIFO retail $ tA (b) Ending inventory under Dollar Value LIFO $
Mist, Inc. uses a PERIODIC inventory system and has the following transactions for one of its inventory items during 2020: Beginning Inventory 124 units @ $50 per unit Purchases Purchase 1 on 3/11/20 75 units @ $52 per unit Purchase 2 on 10/18/20 94 units @ $54 per unit Sales Sale 1 on 3/15/20 110 units @ $79 per unit Sale 2 on 10/22/20 130 units @ $79 per unit All units sold on 3/15/20 were from beginning inventory. The 10/22/20 sale included 60 units from the 3/11/20 purchase and 70 units from the 10/18/20 purchase. Show how Mist's Balance Sheet and Income Statement would differ under each of the inventory cost flow assumptions. Compute Ending Inventory, COGS and Gross Profit under Specific Identification, Weighted Average Cost, FIFO and LIFO. Fill in your answers on the table. Specific Identification First-In, First-Out Last-In, First-Out Weighted Average Cost (round to 2 decimal places) 12/31/20 Balance Sheet Ending Inventory 2020 Income Statement Cost of Goods Sold Gross Profit
During the year, TRC Corporation has the following inventory transactions. Date Transaction Number of Units Unit Cost Total Cost January 1 Beginning inventory 60 $52 $3,120 April 7 Purchase 140 54 7,560 July 16 Purchase 210 57 11,970 October 6 Purchase 120 58 6,960 530 $29,610 For the entire year, the company sells 450 units of inventory for $70 each. Required: 1-a & b. Using FIFO, calculate ending inventory and cost of goods sold.1-c & d. Using FIFO, calculate sales revenue and gross profit.2-a & b. Using LIFO, calculate ending inventory and cost of goods sold.2-c & d. Using LIFO, calculate sales revenue and gross profit.3-a & b. Using weighted-average cost, calculate ending inventory and cost of goods sold.3-c & d. Using weighted-average cost, calculate sales revenue and gross profit.4. Determine which method will result in higher profitability when inventory costs are rising.

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