Drago Company has a fiscal year end on December 31. The company has only one product in inventory, and all units of that product are identical (homogenous). The opening balance unit price is $13 per unit. Complete the following schedule to calculate the value of ending inventory using the weighted-average cost method under the perpetual inventory system. Then calculate the cost of goods sold for the year 2022. Do not enter dollar signs or commas in the input boxes. Round all answers to 2 decimal places. Date Purchases Jan 29 Feb 8 Mar 14 Apr 1 Jul 20 Sep 24 Nov 20 Quantity Cost Quantity tequired 17 $14.00 12 $16.00 40 $18.00 Sales Calculate the cost of goods sold. Cost 12 $13.41 10 $14.58 16 $14.58 Balance Quantity 100 $ 117 S 129 $ 117 S 157 $ 147 $ 131 $ Value

Drago Company has a fiscal year end on December 31. The company has only one product in inventory, and all units of that product are identical (homogenous). The opening balance unit price is $13 per unit. Complete the following schedule to calculate the value of ending inventory using the weighted-average cost method under the perpetual inventory system. Then calculate the cost of goods sold for the year 2022. Do not enter dollar signs or commas in the input boxes. Round all answers to 2 decimal places. Date Purchases Jan 29 Feb 8 Mar 14 Apr 1 Jul 20 Sep 24 Nov 20 Quantity Cost Quantity tequired 17 $14.00 12 $16.00 40 $18.00 Sales Calculate the cost of goods sold. Cost 12 $13.41 10 $14.58 16 $14.58 Balance Quantity 100 $ 117 S 129 $ 117 S 157 $ 147 $ 131 $ Value

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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Kumar Inc. uses LIFO inventory costing. At January 1, 2020, inventory was $214,000 at both cost and market value. At December 31, 2020, the inventory was $286,000 at cost and $265,000 at market value. Prepare the necessary December 31 entry under (a) the cost-of-goods-sold method and (b) the loss method.
Sandhill Company uses a periodic inventory system and the average cost method. At December 31, 2025, the following information has been compiled for its finished goods inventory: Replacement value $13800 Cost $14700 Expected selling price $15200 Normal profit margin 15% Selling costs 5% of expected selling price After applying LCNRV, Sandhill, which uses the cost of goods sold method to record inventory write-downs, will make an entry Select answer from the options below debiting Inventory Loss for $500. crediting Inventory for $500. debiting Cost of Goods Sold for $260. crediting Cost of Goods Sold for $900.
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Metlock Company's record of transactions concerning part X for the month of April was as follows. Purchases April 1 (balance on hand) 4 11 18 26 30 290 (@ $6.00 590 @ 6.10 490 @ 6.40 6.40 6.70 7.00 390 @ 790 @ 390 @ Sales April 5 12 27 28 490 390 1,180 150
Nutritional Foods reports merchandise inventory at the lower-of-cost-or-market. Prior to releasing its financial statements for the year ended January 31, 2025, Nutritional's preliminary income statement, before the year-end adjustments, appears as follows: (Click the icon to view the preliminary income statement.) Nutritional has determined that the current replacement cost of ending merchandise inventory is $18,000. Cost is $20,000. Read the requirements. Requirement 1. Journalize the adjusting entry for merchandise inventory, if any is required. (Record debits first, then credits. Select the explanation on the last line of the journal entry. For situations that do not require an entry, make sure to select "No entry required" in the first cell in the "Accounts" column and leave all other cells blank.) Date Accounts and Explanation Debit Credit Jan. 31 Requirements 1. Journalize the adjusting entry for merchandise inventory, if any is required. 2. Prepare a revised partial income…
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