"Cowboy Jeans" Line# of UnitsCost per UnitValueBeginning Inventory Balance3,500$13.10$ 45,850Purchases# of UnitsCost per UnitValueApril 51000$13$13,000April 27600$12.75$ 7,650May 12700$12.70$ 8,890May 291500$12.55$ 18,825June 231750$12.40$ 21,700Total Value (BB + Purchases)$115,915Ending physical inventory at June 30th: 3,800As a training piece, Ryan explained three different ways the value of remaininginventory and the cost of goods sold could be determined (FIFO, LIFO, AverageCost). He said that the method used by Blue Jeans by the Pound was selected to meetthe following financial goal: to have the lowest income tax expense. This meant thecompany wanted to have the lowest taxable income, which happens when the companyshows the lowest profits.Based on this goal, he asked Katherine to do the following:⚫ Calculate the total number of units sold during the quarterDetermine the value of the remaining inventory using FIFO and LIFO• Calculate the COGS under each method⚫ Guess which method the company was using in order to meet its tax goals

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Answered: "Cowboy Jeans" Line # of Units Cost per…

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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Unit Total Balance Date Date Explanation Units Cost Cost in Units June Jun-01 Beginning inventory 50 1.0 50 50 Jun-06 Purchase 50 1.2 60 100 Jun-10 Sales 20 80 Jun-13 Purchase 150 1.4 210 230 Jun-18 Sales 100 130 Jun-20 Purchase 100 1.6 160 230 Jun-30 Purchase 150 1.8 270 380 750 Round your answer to the nearest dollar. (eg $54.4.input as 54, $54.5 input as 55 ) (do not input comma ",", dollar sign "$" for numerical figures) FIFO Periodic System Cost of Good Sold Ending Inventory Average Cost Periodic System Cost of Good Sold Ending Inventory FIFO Perpetual System Cost of Good Sold Ending Inventory Average Cost Perpetual System Cost of Good Sold Ending Inventory
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compute highlighted cells using the LIFO method A B E F G Units in Cost per unit Total cost Units H Selling Total Sales price per K unit 6 January 01 Beginning inventory 210 $13.50 $2,835.00 7 January 10 Sales 160 $22.50 $3,600.00 8 January 20 Purchase 150 $12.50 $1,875.00 9 January 25 Sales 180 $22.50 $4,050.00 10 January 30 11 Purchase Totals 340 $12.00 $4,080.00 700 $8,790.00 340 $7,650.00 12 13 Perpetual LIFO 14 Units available Cost of Goods Sold - Jan 10 Units Cost Cost of per unit goods sold Cost of Goods Sold - Jan 25 Units Cost Cost of Ending Inventory Units Cost Invento per unit goods sold per unit 15 210 units from beginning inventory $13.50 $13.50 $13.50 16 150 units purchased on January 20 $12.50 $12.50 $12.50 17 340 units purchased on January 30 $12.00 $12.00 $12.00 18 Totals 0 $0.00 ° $0.00 ° $0 19 an
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Date Total $510.00 $504.00 $798.00 $220.00 $26.00 $1,300.00 Item Quantity 30 28 Cost Per Unit 1-May Beginning Inventory 8-May Purchase 15-May Purchase 22-May Purchase 29-May Purchase $17.00 $18.00 $19.00 $22.00 42 10 50 Sold 135 Units @ $37 each Sales
What is the average inventory turnover? I keep coming up with 2.362.
Lower-of-Cost-or-Market Method On the basis of the following data, determine the value of the inventory at the lower-of-cost-or-market by applying lower-of-cost-or-market to each inventory item, as shown in Exhibit 10. Item Inventory Quantity JFW1 SAW9 X 69 131 Cost per Unit $50 26 Market Value per Unit (Net Realizable Value) $45 30
e Acco Q Acco Unit Acco G the i G Whe G A me O Que: O Chap G A me + Accc ассо асco om Assume the beginning inventory as of January 1 consisted of 500 units that were purchased for $8.25 each. During the month, three new purchases were made. The first purchase consisted of 700 units costing $8.50 each, the second purchase had 800 units costing $9.00 each, and the third purchase had 600 units costing $9.50 each. At the end of the month, ending inventory shows 700 units. Compute the cost of goods sold and the ending inventory for the company using each of the following methods. Also determine the gross margin if the total sales revenue is $43,000. a. Specific identification: Of the units sold, 300 were from the beginning inventory, 600 from the first purchase, 700 from the second purchase, and 300 from the third purchase. Cost of goods sold Ending inventory Gross profit b. First-in, first-out (FIFO) Cost of goods sold %24 Ending inventory Gross profit c. Weighted-average (round the unit…
('$) ('$) Unit Total Balance Date Explanation Units Cost Cost in Units Jun-01Beginning inventory 50 1.0 50 50 Jun-06Purchase 50 1.2 60 100 Jun-10Sales 60 40 Jun-13Purchase 150 1.4 210 190 Jun-20Purchase 100 1.6 160 290 Jun-25Purchase 150 1.8 270 440 Jun-30Sales 150 290 Round your answer to the nearest dollar. (eg $54.4 .input as 54, $54.5 input as 55 ) (do not input comma ",", dollar sign "$" for numerical figures) FIFO Periodic System COGS $ Ending Inventory $ Average Cost Periodic System COGS $ Ending Inventory $ FIFO Perpetual System COGS $ Ending Inventory $ Average Cost Perpetual System COGS $ Ending Inventory $

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