Craig Company buys and sells one product. Its beginning inventory, purchases, and sales during calendar-year 2018 follow.ProblemDate Activity Units Acquired at Cost Total Units Sold at Retail Unit InventoryJan. 1 Beg. Inventory 400 units @ $14 =Jan. 15 SaleMar. 10 PurchaseApr. 1 SaleMay 9 PurchaseSep. 22 PurchaseNov. 1 SaleNov. 28 PurchaseTotals200 units @ $15 =300 units @ $16 =250 units @ $20=100 units @ $21 =$5,600 -$3,000 -200 units @ $30 200 units400 units$5,000200 units @ $30$4,800 -400 units$2,100 -200 units500 units750 units300 units @ $35 450 units550 units1,250 units$20,500 700 units550 unitsAdditional tracking data for specific identification: (1) January 15 sale-200 units @ $14, (2) April 1 sale-200 units @ $15, and (3) November 1sale-200 units @ $14 and 100 units @ $20.1. What is the Cost of Good Available for Sale? How many units available for sale?2. Using the Periodic System, determine Cost of Goods Sold (COGS) and Ending Inventory using one of the methods: Specific Identification,Weighted Average, FIFO or LIFO. Show your work.3. Explain how the calculation might be different if you used Perpetual System instead.

Perpetual and periodic inventory system Businesses utilize the accounting process of inventory…

Answered: Craig Company buys and sells one…

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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Cost Flow Methods The following three identical units of Item K113 are purchased during April: Item Beta Units Cost April 2 Purchase 1 $300 April 15 Purchase 1 301 April 20 Purchase 1 302 Total 3 $903 Average cost per unit $301 ($903 ÷ 3 units) Assume that one unit is sold on April 27 for $376. Determine the gross profit for April and ending inventory on April 30 using the (a) first-in, first-out (FIFO); (b) last-in, first-out (LIFO); and (c) weighted average cost method. Gross Profit Ending Inventory a. First-in, first-out (FIFO) $fill in the blank 1 $fill in the blank 2 b. Last-in, first-out (LIFO) $fill in the blank 3 $fill in the blank 4 c. Weighted average cost $fill in the blank 5 $fill in the blank 6
Required information Skip to question [The following information applies to the questions displayed below.] Hemming Company reported the following current-year purchases and sales for its only product. Date Activities Units Acquired at Cost Units Sold at Retail January 1 Beginning inventory 220 units @ $10.80 = $ 2,376 January 10 Sales 190 units @ $40.80 March 14 Purchase 330 units @ $15.80 = 5,214 March 15 Sales 280 units @ $40.80 July 30 Purchase 420 units @ $20.80 = 8,736 October 5 Sales 390 units @ $40.80 October 26 Purchase 120 units @ $25.80 = 3,096 Totals 1,090 units $ 19,422 860 units Required: Hemming uses a perpetual inventory system. Determine the costs assigned to ending inventory and to cost of goods sold using FIFO. Determine the costs assigned to ending inventory and to cost of goods sold using LIFO. Compute the gross profit for FIFO method and LIFO method.
Tree Seedlings has the following current-year purchases and sales for its only product. Units Sold at Retail Date Activities Units Acquired at Cost Jan. 1 Beginning inventory Jan. 3 Sales 180 units @ $2 = $ 360 Feb. 14 Feb. 15 Sales Purchase 282 units @ $3 = $ 846 118 units @ $8 200 units @ $8 June 30 Purchase 230 units @ $4 = $ 920 Nov. 6 Sales Nov. 19 Purchase Totals 170 units @ $8 76 units @ $5 768 units = $ 380 $2,506 488 units Required: The company uses a perpetual inventory system. a. Determine the costs assigned to ending inventory and to cost of goods sold using FIFO. b. Determine the costs assigned to ending inventory and to cost of goods sold using LIFO. c. Compute the gross margin for each method.
compute the number of units in ending inventory
Sunland Company reports the following for the month of June. Date Explanation Units Unit Cost Total Cost June 1 Inventory 150 $2 $300 12 Purchase 450 5 2,250 23 Purchase 400 6 2,400 30 Inventory 80 Assume a sale of 500 units occurred on June 15 for a selling price of $7 and a sale of 420 units on June 27 for $8. (a1) Calculate cost of goods available for sale. The cost of goods available for sale $Enter the cost of goods available for sale in dollars eTextbook and Media Attempts: 0 of 3 used (a2) Calculate Moving-Average unit cost for June 1, 12, 15, 23 & 27. (Round answers to 3 decimal places, e.g. 2.525.) June 1 $Enter a dollar amount June 12 $Enter a dollar amount June 15 $Enter a dollar amount June 23 $Enter a dollar amount June 27 $Enter a dollar…
Cost Flow Methods The following three identical units of Item Alpha are purchased during April: Item Alpha Units Cost Apr. 2 Purchase 1 $145 14 Purchase 1 149 28 Purchase 1 153 Total 3 $447 Average cost per unit $149 ($4473 units) Assume that one unit is sold on April 30 for $215. Determine the gross profit for April and ending inventory on April 30 using the (a) first-in, first-out (FIFO); (b) last-in, first-out (LIFO); and (c) weighted average cost methods. Gross Profit Ending Inventory a. First-in, first-out (FIFO) b. Last-in, first-out (LIFO) c. Weighted average cost 37.33 X
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Required information [The following information applies to the questions displayed below.] Tree Seedlings has the following current-year purchases and sales for its only product. Date January 1 January 3 Activities Beginning inventory Sales February 14 February 15 June 30 November 6 November 19 Purchase Sales Purchase Sales Purchase Totals Units Acquired at Cost 40 units Units Sold at Retail @ $2 = $ 80 30 units @ $8 70 units @ $3 = $ 210 60 units @ $8 90 units @ $4 = $ 360 86 units @ $8 20 units 220 units @ $5 = $ 100 $ 750 176 units The company uses a periodic inventory system. 1. Determine the costs assigned to ending inventory and to cost of goods sold using FIFO. 2. Determine the costs assigned to ending inventory and to cost of goods sold using LIFO. 3. Compute the gross profit for each method. Complete this question by entering your answers in the tabs below. Required A Required B Required C Determine the costs assigned to ending inventory and to cost of goods sold using FIFO.…
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Cost Flow Methods The following three identical units of Item Alpha are purchased during April: Item Alpha Units Cost Apr. 2 Purchase 1 $145 14 Purchase 1 149 28 Purchase 153 Total 3 $447 Average cost per unit $149 ($4473 units) Assume that one unit is sold on April 30 for $215. Determine the gross profit for April and ending inventory on April 30 using the (a) first-in, first-out (FIFO); (b) last-in, first-out (LIFO); and (c) weighted average cost methods. Gross Profit Ending Inventory a. First-in, first-out (FIFO) b. Last-in, first-out (LIFO) c. Weighted average cost X
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