Question 2 of 3>9.9/ 33InventoriesPurchases and SalesBeginning (4,000 units)$8.000Total net sales (182,000 units)$755,300Ending (12,000 units)Total cost of goods purchased (190,000 units)466,000Purchases were made quarterly as follows.QuarterUnitsUnit CostTotal Cost150,000$2.20$110,000240,0002.3594,00040,0002.50100,000460,0002.70162.000190.000$466,000Operating expenses were $120,000, and the company's income tax rate is 40%.(a)Your AnswerCorrect AnswerYour answer is partially correct.Prepare comparative conderised income staternents for 2022 under FIFO and LIFO.CRANE INC.Condensed Income StatementsFor the Year Fnderd December 31, 2022FIFOLIFOSales Revenues755300755300Cost of Goods SoldBeginning Inventorya000 i8000 iCost of Goods Purchased466000466000Cast of Goods Avwailahıle for Sale v474000474000 iEnding inventoryCost of Goods SoldGross Profit / ILos)Operating ExpensesIncome before income TaxesIncne Tax ExpenseNet Income/(Loss)

FIFO Method assumed Inventory purchased at First shall be used first to make sales ; hence item in…

Answered: CRANE INC. Condensed Income Statements…

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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✔Total cost of goods sold, $791,600 SHOW ME HOW EX 6-8 Weighted average cost flow method under perpetual inventory system Obj. 3 The following units of a particular item were available for sale during the calendar year: Jan. 1 Mar. 18 May 2 Aug. 9 Oct. 20 Inventory Sale Purchase Sale Purchase 9,000 units at $50.00 7,000 units 8,000 units at $56.50 8,000 units 4,000 units at $60.00 The firm uses the weighted average cost method with a perpetual inventory system. Determine the cost of goods sold for each sale and the inventory balance after each sale. Present the data in the form illustrated in Exhibit 5.
Beginning inventory Cost of goods purchased Cost of goods available for sale Ending inventory Cost of goods sold Swifty made two errors: 2022 $28,700 191,400 220,100 37.600 $182,500 2021 $20,200 148,900 169,100 28,700 $140,400 1. 2021 ending inventory was overstated by $6,200. 2. 2022 ending inventory was understated by $2,900.
Sales Revenue Cost of Goods Sold Beginning Inventory Purchases Goods Available for Sale Ending Inventory (FIFO cost) Cost of Goods Sold Gross Profit Operating Expenses Income from Operations Income Tax Expense (30%) Net Income $ 22,500 121,000 $215,000 143,500 25,525 117,975 97,025 46,000 51,025 15,308 $ 35,718 Assume that you have been asked to restate the financial statements to incorporate the LC&NRV. You have developed the following data relating to the ending inventory: 1,650 Current Replacement Cost per Unit (Net Realizable Value) $4.25 Purchase Cost Item Quantity Per Unit Total $2.00 $ 3,300 900 3,640 4.50 4,050 2.50 2.50 9,100 2.00 1,650 5.50 9,075 4.50 $25,525 ABCD
Using Perpetual Inventory, identify cost of goods sold expense for Oct 2021 # Units Cost Sale price 01-Oct Opening Inventory 500 $10,000.00 04-Oct Sales 100 $4,000.00 07-Oct Purchase 300 $6,300.00 11-Oct Sales 225 $9,225.00 15-Oct Purchase 350 $6,650.00 17-Oct Sales 175 $6,650.00 18-Oct Sales 275 $10,725.00 Using Weighted Average, provide Closing Inventory Question 4 options: 7395.58 7433.44 7415.65 7415.65
Using the gross profit method with the following cost data, estimate the cost of ending inventory. Sales Estimated gross profit rate Beginning Inventory Purchases O a. $363,000 O b. $297,000 O c. $75,000 O d. $57,000 $660,000 45% $75,000 $345,000
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Computing Cost of Goods Sold and Ending Inventory Bartov Corporation reports the following beginning inventory and purchases for the year: Beginning inventory Inventory purchased 600 1,050 $10 each $6,000 $12 each 12,600 $18,600 Cost of goods available 1,650 units Bartov sells 900 of these units in the year. Compute its cost of goods sold for the year and the ending inventory reported on its year-end balance sheet under each of the following inventory costing methods: (Do not round until your final answer. Round to the nearest whole number.) FIFO LIFO Average cost Cost of goods sold $ 0 $ 0 $ 0 Ending inventory 0 0 0 Check
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Using Perpetual Inventory identify cost of goods sold expense for Oct 2021 # Units Cost Sale pric 01-Oct Opening Inventory 500 $10,000.00 04-Oct Sales 100 $4,000.0 07-Oct Purchase 300 $6,300.00 11-Oct Sales 225 $9,225.00 15-Oct 17-Oct 18-Oct Purchase 350 $6,650.00 $6,650.00 $10,725.0 Sales 175 Sales 275 Using FIFO, provide Closing Inventory
Perpetual Inventory Using Weighted Average Beginning inventory, purchases, and sales for J101 are as follows: Oct. 1 Inventory 480 units at $14 13 Sale 280 units 22 Purchase 600 units at $16 29 Sale 450 units a. Assuming a perpetual inventory system and using the weighted average method, determine the weighted average unit cost after the October 22 purchase. Round your answer to two decimal places. per unit b. Assuming a perpetual inventory system and using the weighted average method, determine the cost of the merchandise sold on October 29. Round your "average unit cost" to two decimal places. c. Assuming a perpetual inventory system and using the weighted average method, determine the inventory on October 31. Round your "average unit cost" to two decimal places.
d. Weighted average. Goods Purchased Cost of Goods Sold Balance in Inventory Date Units Unit Cost Total $ Units Unit Cost Total $ Units Unit Cost Total $ Jan. 1 200 $2.00 3 400 $3.00 8 400 $5.00 10 15 300 $7.00 20 27 400 $7.00 Northgate Products Corp. sells gadgets and uses the perpetual inventory system. During the month of January 2019, the number of gadgets purchased and sold was as follows: Purchased Sold Balance in inventory Date Units Unit cost Total $ Units Unit cost Total $ Units Unit cost Total $ Jan. 1 200 $2 3 400 $3 8 400 $5 10 700 * 15 300 $7 20 300 ** 27 400 $7…
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CRANE INC. Condensed Income Statements For the Year Fnded Decenber 31, 2022 FIFO LIFO Sales Revenues 755300 755300 Cost of Goods Sold Beginning Inventory 8000 Cost of Goods Purchased 466000 466000 Cast of Goods Available for Sale v 474000 474000 i Ending inventory Cost of Goods Sold