Erie Jewelers sells gold earrings. Its beginning inventory Model 407 gold earrings consisted of 150 pairs of earrings at $50 per pair. Erie purchased two batches of Model 407 earrings during the year. The first batch purchased consisted of 125 pairs at $53 per pair; the second batch consisted of 195 pairs at $56 per pair. During the year, Erie sold 365 pairs of Model 407 earrings. Required Determine the amount of product cost Erie would allocate to cost of goods sold and ending inventory assuming that Erie uses (a) FIFO, (b) LIFO, and (c) weighted average.

Erie Jewelers sells gold earrings. Its beginning inventory Model 407 gold earrings consisted of 150 pairs of earrings at $50 per pair. Erie purchased two batches of Model 407 earrings during the year. The first batch purchased consisted of 125 pairs at $53 per pair; the second batch consisted of 195 pairs at $56 per pair. During the year, Erie sold 365 pairs of Model 407 earrings. Required Determine the amount of product cost Erie would allocate to cost of goods sold and ending inventory assuming that Erie uses (a) FIFO, (b) LIFO, and (c) weighted average.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

During the year, Wright Company sells 510 remote-control airplanes for $100 each. The company has the following inventory purchase transactions for the year. Number of Unit Total Date January 1 Transaction, Beginning inventory Units Cost Cost 50 $64 $3,200 May 5 Purchase 290 67 19,430 240 580 72 17,280 $39,910 November 3 Purchase Calculate ending inventory and cost of goods sold for the year, assuming the company uses FIFO. Cost of Goods Available for Sale Number Cost per FIFO Cost of Goods Number of units unit Available for Sale of units Cost of Goods Sold Cost per unit Cost of Goods Number Sold of units Ending Inventory Cost per unit Ending Inventory Beginning Inventory 50 $ 64 $ 3,200 $ 이 Purchases May 5 290 67 19,430 0 November 3 240 72 17.280 0 Total 580 $ 39,910 ° $ о $ 0
Armed Forces Surplus began March 2021 with 100 stoves that cost $10 each. During the month, the company made the following purchases at cost: (Click the icon to view the purchases.) The company sold 312 stoves, and at March 31, the ending inventory consisted of 68 stoves. The sales price of each stove was $45. Read the requirements. Requirement 1. Determine the cost of goods sold and ending inventory amounts for October under the average-cost, FIFO, and LIFO costing methods. Round the average cost per unit to two decimal places, and round all other amounts to the nearest dollar. Average cost Cost of goods sold Ending inventory Number of units $ $ Requirements FIFO Requirement 2. Explain why cost of goods sold is highest under LIFO. Be specific. Under LIFO the cost of goods sold is the highest because costs are rising and LIFO assigns the most recent units purchased to cost of goods sold. 1. Determine the cost of goods sold and ending inventory amounts for March under the average-cost,…
During the year, Wright Company sells 490 remote-control airplanes for $120 each. The company has the following inventory purchase transactions for the year. Number of Units 40 270 220 Unit Cost $68 71 76 Total Cost $2,720 19,170 16,720 Date Transaction Beginning inventory Purchase Jan. 1 May. 5 Nov. 3 Purchase 530 $38,610 Calculate ending inventory and cost of goods sold for the year, assuming the company uses FIFO. FIFO Cost of Goods Available for Sale Cost of Goods Sold Ending Inventory Cost of Goods Available for Sale 2.720 Cost of Goods Sold Ending Inventory # of units Cost per unit # of units Cost per unit #of units Cost per unit Beginning Inventory 40 68 40 $4 68 2.720 Purchases: May 5 270 $ 71 19,170 270 71 19.170 Nov. 3 220 76 16,720 220 76 16,720 Total 530 38,610 530 38.610 $4 %24 %24 %24 9. %24
Sheffield's Used Cars uses the specific identification method of costing inventory. During March, Sheffield purchased three cars for $13400, $14300, and $19700, respectively. During March, two cars are sold for a total of $35100. Sheffield determines that at March 31, the $14300 car is still on hand. What is Sheffield's gross profit for March? O $1100. O $7400. O $2200. O $2000.
PIOLO produces a main product TEDDY BEAR together with a by-product WIRE. There was no beginning inventoryduring the current month. The following information were available: Produced Sold TEDDY BEAR 1,000 800 WIRE 250 75 Joint cost amounted to P125,000 during the month. One unit of TEDDY BEAR can be sold for P200, and one unit of WIRE can be sold for P100 after incurring P20 disposal cost. Operating expenses amounted to P10,000. How much is the net income if the by-product is recognized when produced using the netrealizable value method?
At the beginning of the current period, Chen carried 1,000 units of its product with a unit cost of $32. A summary of purchases during the current period follows. Units Unit Cost Cost Beginning Inventory 1,000 $32 $32,000 Purchase #1 1,800 34 61,200 Purchase #2 800 38 30,400 Purchase #3 1,200 41 49,200 During the current period, Chen sold 2,800 units. (a) Assume that Chen uses the first-in, first-out method. Compute both cost of good sold for the current period and the ending inventory balance. Use the financial statement effects template to record cost of goods sold for the period.
Gervos Inc. uses 2,352 units of a component cach year. The cost of placing one order is $16 and the cost of carrying one unit in inventory for a year is $6. Currently, the company orders 147 units at a time. Required (A) What is the annual ordering ost of the company's current inventory policy? (B) What is the annual carrying cost of the company's current inventory policy? (C)What is the total annual cost of the company's current inventory policy? (D) What is the company's EOQ? (E) What is the total inventory-related cost at the EOQ
Monroe Company had a beginning inventory of 350 cans of paint at $12 each on January 1 at a cost of $4,200. During the year, the following purchases were made: February 15 : 280 cans at $14.00 April 30 : 110 cans at $14.50 July 1 : 100 cans at $15.00 Monroe marks up its goods at 40% on cost. At the end of the year, ending inventory showed 105 units remaining. Calculate the amount of sales assuming a FIFO flow of inventory.
During the year, Wright Company sells 435 remote-control airplanes for $120 each. The cc any has the following inventory purchase transactions for the year. Date January 1 May 5 Transaction Beginning inventory Purchase ed November 3 Purchase Number of Unit Units Total Cost $80 240 180 83 88 460 Cost $3,200 19,920 15,840 $38,960 710 Calculate ending inventory and cost of goods sold for the year, assuming the company uses weighted-average cost. (Round your average cost per unit to 4 decimal places.) Weighted Average Cost Beginning Inventory Cost of Goods Available for Sale Cost of Goods Sold - Weighted Average Cost Ending Inventory - Weighted Average Cost Number Average Cost Cost of Goods of units per unit Available for Sale Number of units sold Number of Average Cost per Unit Cost of Goods Sold units in Average Cost ending inventory per unit Ending Inventory 40 $ 3,200 Purchases: May 5 240 19,920 November 3 180 15,840 Total 460 $ 38,960 $ 0.00 $ 0.00
Based on a physical inventory at year-end, Cherry Company determined the chocolate inventory on a FIFO basis at P2,600,000 with a replacement cost of P2,500,000. Cherry Company estimated that, after further processing costs of P 1,200,000, the chocolate could be sold as finished candy bars for P4,000,000. The normal profit margin is 10% of sales. What amount should be reported as chocolate inventory at year-end?
Jones Corporation had a beginning inventory of 300 units which it bought for $5 each. Jones bought 500 more units at $4 each on February 1st and 200 units more for $6 each on February 5th. On February 8th Jones sold 150 units. What is Jones' cost of goods sold under the FIFO method? -$600 -$934 -$900 -$750
Tyler Toys has beginning inventory for the year of $19,600. During the year, Tyler purchases inventory for $235,000 and has cost of goods sold equal to $238,000. Tyler's ending inventory equals: Multiple Choice $19,600. $19,900. $22,600. $16,600.