Cost Allocation and Lower-of-Cost-or-Market Hall Company's beginning inventory and purchases during the fiscal year ended December 31, 20--, were as shown. Units Unit Price Total Cost January 1 Beginning inventory 800 $ 11.00 $4 8,800 March 5 1st purchase 600 12.00 7,200 April 16 2nd purchase 500 12.50 6,250 June 3 3rd purchase 700 14.00 9,800 August 18 4th purchase 800 15.00 12,000 September 13 5th purchase 900 17.00 15,300 November 14 6th purchase 400 18.00 7,200 December 3 7th purchase 500 20.30 10,150 5,200 $ 76,700 There are 1,100 units of inventory on hand on December 31. Required: 1. Calculate the total amount to be assigned to the ending inventory and cost of goods sold on December 31 under each of the following methods Cost of Goods Cost of Ending Sold Inventory a. FIFO b. LIFO C. Weighted-average (round calculations to two decimal places.) 2. Assume that the marlret
Cost Allocation and Lower-of-Cost-or-Market Hall Company's beginning inventory and purchases during the fiscal year ended December 31, 20--, were as shown. Units Unit Price Total Cost January 1 Beginning inventory 800 $ 11.00 $4 8,800 March 5 1st purchase 600 12.00 7,200 April 16 2nd purchase 500 12.50 6,250 June 3 3rd purchase 700 14.00 9,800 August 18 4th purchase 800 15.00 12,000 September 13 5th purchase 900 17.00 15,300 November 14 6th purchase 400 18.00 7,200 December 3 7th purchase 500 20.30 10,150 5,200 $ 76,700 There are 1,100 units of inventory on hand on December 31. Required: 1. Calculate the total amount to be assigned to the ending inventory and cost of goods sold on December 31 under each of the following methods Cost of Goods Cost of Ending Sold Inventory a. FIFO b. LIFO C. Weighted-average (round calculations to two decimal places.) 2. Assume that the marlret
College Accounting, Chapters 1-27
23rd Edition
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:HEINTZ, James A.
Chapter13: Accounting For Merchandise Inventory
Section: Chapter Questions
Problem 7SPB: COST ALLOCATION AND LOWER-OF-COST-OR-MARKET Hall Companys beginning inventory and purchases during...
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![Required:
1. Calculate the total amount to be assigned to the ending inventory and cost of goods sold on December 31 under each of the following methods:
Cost of Goods
Cost of Ending
Sold
Inventory
a. FIFO
$
b. LIFO
$
C. Weighted-average (round calculations to two
$
decimal places.)
2. Assume that the market price per unit (cost to replace) of Hall's inventory on December 31 was $16. Calculate the total amount to be assigned to the ending in
on December 31 under each of the following methods:
a. FIFO lower-of-cost-or-market
%$4
b. Weighted-average lower-of-cost-or-market
$
3. Prepare required entries to apply:
a. FIFO lower-of-cost-or-market
b. Weighted-average lower-of-cost-or-market
If no entry is required, select "No Entry Required".
Description
Debit
Credit
a.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8552db52-4a7d-476b-bba8-cd0aea4e0726%2Fc4538282-847e-44a2-a4a6-64a96c2ea687%2F64u8uap_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Required:
1. Calculate the total amount to be assigned to the ending inventory and cost of goods sold on December 31 under each of the following methods:
Cost of Goods
Cost of Ending
Sold
Inventory
a. FIFO
$
b. LIFO
$
C. Weighted-average (round calculations to two
$
decimal places.)
2. Assume that the market price per unit (cost to replace) of Hall's inventory on December 31 was $16. Calculate the total amount to be assigned to the ending in
on December 31 under each of the following methods:
a. FIFO lower-of-cost-or-market
%$4
b. Weighted-average lower-of-cost-or-market
$
3. Prepare required entries to apply:
a. FIFO lower-of-cost-or-market
b. Weighted-average lower-of-cost-or-market
If no entry is required, select "No Entry Required".
Description
Debit
Credit
a.
![Cost Allocation and Lower-of-Cost-or-Market
Hall Company's beginning inventory and purchases during the fiscal year ended December 31, 20--, were as shown.
Units Unit Price
Total Cost
January 1
Beginning inventory
800 $ 11.00
$
8,800
March 5
1st purchase
600
12.00
7,200
April 16
2nd purchase
500
12.50
6,250
June 3
3rd purchase
700
14.00
9,800
August 18
4th purchase
800
15.00
12,000
September 13
5th purchase
900
17.00
15,300
November 14
6th purchase
400
18.00
7,200
December 3
7th purchase
500
20.30
10,150
5,200
$ 76,700
There are 1,100 units of inventory on hand on December 31.
Required:
1. Calculate the total amount to be assigned to the ending inventory and cost of goods sold on December 31 under each of the following methods:
Cost of Goods
Cost of Ending
Sold
Inventory
a. FIFO
b. LIFO
$4
C. Weighted-average (round calculations to two
decimal places.)
2. Assume that the market price per unit (cost to replace) of Hall's inventory on December 31 was $16. Calculate the total amount to be assigned to th](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8552db52-4a7d-476b-bba8-cd0aea4e0726%2Fc4538282-847e-44a2-a4a6-64a96c2ea687%2F2xo7id5_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Cost Allocation and Lower-of-Cost-or-Market
Hall Company's beginning inventory and purchases during the fiscal year ended December 31, 20--, were as shown.
Units Unit Price
Total Cost
January 1
Beginning inventory
800 $ 11.00
$
8,800
March 5
1st purchase
600
12.00
7,200
April 16
2nd purchase
500
12.50
6,250
June 3
3rd purchase
700
14.00
9,800
August 18
4th purchase
800
15.00
12,000
September 13
5th purchase
900
17.00
15,300
November 14
6th purchase
400
18.00
7,200
December 3
7th purchase
500
20.30
10,150
5,200
$ 76,700
There are 1,100 units of inventory on hand on December 31.
Required:
1. Calculate the total amount to be assigned to the ending inventory and cost of goods sold on December 31 under each of the following methods:
Cost of Goods
Cost of Ending
Sold
Inventory
a. FIFO
b. LIFO
$4
C. Weighted-average (round calculations to two
decimal places.)
2. Assume that the market price per unit (cost to replace) of Hall's inventory on December 31 was $16. Calculate the total amount to be assigned to th
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VIEWCalculation of cost of goods sold and ending inventory using weighted average :
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