Duke Company stocks a particular item for which the following information is available:Duke Company stocks a particular item for which the following information is available:Minimum usageMaximum usageNormal usageProcurement timeEconomic order quantity280 units per day840 units per day550 units per day16-20 days10,000 unitsCalculate the re-order level, minimum stock level and maximum stock level.MinimumStock LevelReorderLevel5,60016,80016,80012,600MaximumStock Level(II)(II)(IV)6.7206,9006,7204,20022,32022,32026,80010,560O a. IVO b lO .IIO d. II

The maximum level, minimum level and order point are determined to avoid over stocking and under…

Duke Company stocks a particular item for which the following information is available: Duke Company stocks a particular item for which the following information is available: Minimum usage Maximum usage Normal usage Procurement time Economic order quantity 280 units per day 840 units per đay 550 units per day 16-20 days 10,000 units Calculate the re-order level, minimum stock level and maximum stock level. Minimum Stock Level Reorder Level Maximum Stock Level (10 (II (I) (IV) 5,600 16,800 16,800 12,600 6,720 6,900 6,720 4,200 22,320 22,320 26,800 10,560 O a. IV O b.I O c.II O d. II

Duke Company stocks a particular item for which the following information is available: Duke Company stocks a particular item for which the following information is available: Minimum usage Maximum usage Normal usage Procurement time Economic order quantity 280 units per day 840 units per đay 550 units per day 16-20 days 10,000 units Calculate the re-order level, minimum stock level and maximum stock level. Minimum Stock Level Reorder Level Maximum Stock Level (10 (II (I) (IV) 5,600 16,800 16,800 12,600 6,720 6,900 6,720 4,200 22,320 22,320 26,800 10,560 O a. IV O b.I O c.II O d. II

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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The following lots of a Commodity P were available for sale during the year. Beginning inventory 5 units at $61 First purchase 15 units at $63 Second purchase 10 units at $74 Third purchase 10 units at $77 The firm uses the periodic system, and there are 20 units of the commodity on hand at the end of the year. What is the year-end inventory balance using the LIFO method? a.$1,380 b.$1,375 c.$1,250 d.$1,510
Specific Identification, FIFO, LIFO, and Weighted-Average Boyce Company's beginning inventory and purchases during the fiscal year ended September 30, 20-2, are shown. Units Unit Price Total Cost October 1, 20-1 Beginning inventory 400 $15.00 $6,000 October 18 1st purchase 300 16.50 4,950 November 25 2nd purchase 600 17.00 10,200 January 12, 20-2 3rd purchase 700 17.25 12,075 March 17 4th purchase 800 18.00 14,400 June 2 5th purchase 400 19.00 7,600 August 21 6th purchase 300 21.00 6,300 September 27 7th purchase 500 21.75 10,875 4,000 $72,400 Use the following information for the specific identification method. There are 900 units of inventory on hand on September 30, 20-2. Of these 900 units: 50 are from October 18, 20-1 1st purchase 300 are from January 12, 20-2 3rd purchase 100 are from March 17 4th purchase 200 are from June 2 5th purchase 50 are from August 21 6th purchase 200 are from September 27 7th purchase
The following lots of Commodity Z were available for sale during the year. Beginning inventory 9 units at $50 First purchase 18 units at $53 Second purchase 55 units at $56 Third purchase 14 units at $61 The firm uses the periodic system, and there are 25 units of the commodity on hand at the end of the year. What is the ending inventory balance at the end of the year according to the LIFO method?
The inventory records of TC show the following purchases:Month Units CostJanuary 15,000 190,500February 20,000 240,000March 12,500 165,00A physical count on March 31 shows 22,500 units on hand. What amount of inventory should be reported as of March 31, using FIFO method of costing?a. 120,000 b. 225,000 c. 280,500 d. 285,000
The following lots of a particular commodity were available for sale during the year Beginning inventory 7 units at $48.00 First purchase 19 units at $51.00 Second purchase 55 units at $55.00 Third purchase 19 units at $63.00 The firm uses the periodic system, and there are 24 units of the commodity on hand at the end of the year. What is the amount of inventory at the end of the year according to the LIFO method? Select the correct answer. $1,152.00 $5,527.00 $1,472.00 $1,203.00
7. Taylor Corporation reports inventory and cost of goods sold based on calculations from a LIFO periodic inventory system. The company’s records under this system reveal the following inventory layers at the beginning of 2021 (listed in chronological order of acquisition): 17,500 units @ $15 $ 262,500 22,500 units @ $20 450,000 Beginning inventory $ 712,500 During 2021, 45,000 units were purchased for $25 per unit. Due to unexpected demand for the company's product, 2021 sales totaled 55,000 units at various prices, leaving 30,000 units in ending inventory. Required:1. Calculate the amount to report for cost of goods sold for 2021.2. Determine the amount of LIFO liquidation profit that the company must report in a disclosure note to its 2021 financial statements. Assume an income tax rate of 25%.3. If the company decided to purchase an additional 10,000 units at $25 per unit at the end of the year, how much income tax currently payable would be saved?