Douglas Company's beginning inventory and purchases during the fiscal year ended December 31, 20--, were as shown. Units Unit Price Total Cost January 1, 20-- Beginning inventory 1,120 $ 8.20 $ 9,184 March 5 1st purchase 910 9.20 8,372 April 16 2nd purchase 400 9.70 3,880 June 3 3rd purchase 700 10.40 7,280 August 18 4th purchase 580 11.10 6,438 September 13 5th purchase 780 12.10 9,438 November 14 6th purchase 390 13.90 5,421 December 3 7th purchase 520 13.95 7,254 5,400 $ 57,267 There are 1,000 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 Sold Cost of Ending 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 Douglas's inventory on December 31 was $13. Calculate the total amount to be assigned to the ending inventory on December 31 under each of the following methods: a. FIFO lower-of-cost-or-market 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. b.
Douglas Company's beginning inventory and purchases during the fiscal year ended December 31, 20--, were as shown. Units Unit Price Total Cost January 1, 20-- Beginning inventory 1,120 $ 8.20 $ 9,184 March 5 1st purchase 910 9.20 8,372 April 16 2nd purchase 400 9.70 3,880 June 3 3rd purchase 700 10.40 7,280 August 18 4th purchase 580 11.10 6,438 September 13 5th purchase 780 12.10 9,438 November 14 6th purchase 390 13.90 5,421 December 3 7th purchase 520 13.95 7,254 5,400 $ 57,267 There are 1,000 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 Sold Cost of Ending 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 Douglas's inventory on December 31 was $13. Calculate the total amount to be assigned to the ending inventory on December 31 under each of the following methods: a. FIFO lower-of-cost-or-market 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. b.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Douglas Company's beginning inventory and purchases during the fiscal year ended December 31, 20--, were as shown.
| Units | Unit Price | Total Cost | ||||
| January 1, 20-- | Beginning inventory | 1,120 | $ | 8.20 | $ | 9,184 |
| March 5 | 1st purchase | 910 | 9.20 | 8,372 | ||
| April 16 | 2nd purchase | 400 | 9.70 | 3,880 | ||
| June 3 | 3rd purchase | 700 | 10.40 | 7,280 | ||
| August 18 | 4th purchase | 580 | 11.10 | 6,438 | ||
| September 13 | 5th purchase | 780 | 12.10 | 9,438 | ||
| November 14 | 6th purchase | 390 | 13.90 | 5,421 | ||
| December 3 | 7th purchase | 520 | 13.95 | 7,254 | ||
| 5,400 | $ | 57,267 |
There are 1,000 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 Sold | Cost of Ending 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 Douglas's inventory on December 31 was $13. Calculate the total amount to be assigned to the ending inventory on December 31 under each of the following methods:
| a. FIFO lower-of-cost-or-market | |
| 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. |
|
||
|
|
|||
| b. |
|
||
|
|
AI-Generated Solution
AI-generated content may present inaccurate or offensive content that does not represent bartleby’s views.
Unlock instant AI solutions
Tap the button
to generate a solution
Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education