**Grays Company Inventory Analysis using FIFO Method**Grays Company has the following purchases and sales during the month of August. Using the FIFO perpetual inventory method, what amount will be reported as cost of goods sold for the 12 units that were sold?| Date | Activities | Units Acquired at Cost | Units Sold at Retail ||----------|----------------------|-------------------------------|-----------------------|| August 1 | Beginning inventory | 10 units @ $26 = $260 | || August 3 | Purchase | 20 units @ $28 = $560 | || August 6 | Sales | | 12 units sold |*Multiple Choice*- $304.- $316.- $280.### Explanation of the FIFO Method**FIFO (First-In, First-Out) Method:**Under the FIFO method, the first units purchased are the first ones to be sold. **Calculation:**1. **First 10 units from beginning inventory:** - Cost per unit: $26 - Total cost for 10 units: 10 units * $26 = $2602. **Next 2 units from August 3 purchase:** - Cost per unit: $28 - Total cost for 2 units: 2 units * $28 = $56**Total Cost of Goods Sold (COGS):** - $260 (for the first 10 units) + $56 (for the next 2 units) = $316Thus, the cost of goods sold (COGS) for the 12 units sold is **$316**.Therefore, the correct option is:- $316.

Name: **Grays Company Inventory Analysis using FIFO Method**Grays Company h
Uploaded: 2024-03-20T06:32:37.000Z
Channel: Bartleby
Description: **Grays Company Inventory Analysis using FIFO Method**Grays Company has the following purchases and sales during the month of August. Using the FIFO perpetual inventory method, what amount will be reported as cost of goods sold for the 12 units that

Inventory valuation method includes: First in first out Last in first out Weighted average method…

Business

Accounting

Grays Company has the following purchases and sales during the month of August. Using the FIFO perpetual inventory method, what amount will be reported as cost of goods sold for the 12 units that were sold? Date Activities Units Sold at Retail August 1 August 3 Beginning inventory Purchase Units Acquired at Cost 10 units @ $26 = $260 20 units @ $28 = $560 August 6 Sales 12 units sold Multiple Choice O O $304. $316. $280.

Grays Company has the following purchases and sales during the month of August. Using the FIFO perpetual inventory method, what amount will be reported as cost of goods sold for the 12 units that were sold? Date Activities Units Sold at Retail August 1 August 3 Beginning inventory Purchase Units Acquired at Cost 10 units @ $26 = $260 20 units @ $28 = $560 August 6 Sales 12 units sold Multiple Choice O O $304. $316. $280.

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

The Luann Company uses the periodic inventory system. The following July data are for an item in Luann's inventory: July 1 Beginning inventory 30 units @ 10 Purchased $9 per unit 50 units @ $11 per unit 15 Sold 60 units 26 Purchased 25 units @ $13 per unit Calculate the cost of goods sold for July and ending inventory at July 31 using (a) first-in, first-out, (b) last-in, first-out, and (c) the weighted-average cost methods. Note: Round your cost per unit to three decimal places, if needed. Then round your final answers to the nearest dollar. A. First-in, First-out: Ending Inventory Cost of Goods Sold: B. Last-in, first-out: Ending Inventory Cost of Goods Sold: C. Weighted-average cost: Ending Inventory Cost of Goods Sold
Norris Co. purchase and sales data is as follows: Units Cost per Unit Aug. 1 Inventory 50 $25 7 Sale 38 18 Purchase 25 $30 24 Sale ? 29 Purchase 60 $32 The August 24th sale is provided as a slider to vary the quantity sold as follows: 1. If 10 units are sold on August 24th, what is the total Cost of Merchandise Sold for the month under LIFO? $ _________ 2. If 30 units are sold on August 24th, what is the Merchandise Inventory balance on August 31 under FIFO? $ ___________ 3. Under either FIFO or LIFO, as the number of units sold increases, the number of units in the Merchandise Inventory ending balance ________(DECREASE/INCREASE/REMAIS UNCHANGED/VARIES RANDOMLY) . 4. If 30 units are sold on August 24th under LIFO, what is the total cost of this sale? $ _________ 5. If 20 units are sold on August 24th under FIFO, what is the total cost of this sale? $ ____________ 6. The…
The units of Manganese Plus available for sale during the year were as follows: Mar. 1 25 units @ $29 $725 Inventory Purchase June 16 29 units @ $32 928 Nov. 28 Purchase 41 units @ $37 1,517 95 units $3,170 There are 12 units of the product in the physical inventory at November 30. The periodic inventory system is used. a. Determine the inventory cost by the FIFO method. b. Determine the inventory cost by the LIFO method. c. Determine the inventory cost by the weighted average cost methods. Round intermediate calculations and final answer to two decimal places.
The units of Manganese Plus available for sale during the year were as follows: Mar. 1 Inventory 25 units @ $32 $800 June 16 Purchase 29 units @ $31 899 Nov. 28 Purchase 43 units @ $39 1,677 97 units $3,376 There are 15 units of the product in the physical inventory at November 30. The periodic inventory system is use a. Determine the inventory cost by the FIFO method. %24 b. Determine the inventory cost by the LIFO method. %2$ c. Determine the inventory cost by the average cost methods. Round answer to two decimal places. %24
Grays Company has the following purchases and sales during the month of August. Using the FIFO perpetual inventory method, what amount will be reported as cost of goods sold for the 12 units that were sold? Activities Date August 1 August 3 August 6 Beginning inventory Purchase. Sales Multiple Choice $570 $568 $604 $620. $520 Units Acquired at Cost 10 units @ $50= $500 20 units @ $52 = $1,040 Units Sold at Retail 12 units sold
Use the following information (M) from Marvel Company for the month of July to answer the question: Perpetual: Assume that Marvel uses a perpetual FIFO inventory system. What is the dollar value of its ending inventory?
CAISCO Sales Inc. had a beginning inventory of May comprising of 700 units that had a cost of $80/unit. A summary of purchases and sales during the month of May are as follows: Date May 2 May 6 May 10 May 19 May 23 May 30 Units Unit Cost Purchased Units sold $83 $85 $88 Multiple Choice $102,700 $105,600 1,200 $99,600 800 Assume that CAISCO Sales Inc. uses a periodic inventory system. What is the value of ending inventory using FIFO? $97,500 300 400 900 500 None of the other alternatives are correct
Marquis Company uses a weighted-average perpetual inventory system and has the following purchases and sales: Date August 2 August 18 August 29 Activities Purchase Purchase Sales What is the amount of the cost of goods sold for this sale? (Round average cost per unit to 2 decimal places.) Multiple Choice $510.00 $398.40 $830.00 $150.50 $388.00 Units Acquired at Cost 10 units@ $32 $320 15 units@ $34- $510 Units Sold at Retail 12 units sold
Jammer Company uses a weighted average perpetual inventory system and reports the following: 12 units at $12.50 per unit. 14 units at $18.00 per unit. August 2 Purchase August 18 Purchase August 29 Sale 24 units. August 31 Purchase 17 units at $15.50 per unit. What is the per-unit value of ending inventory on August 31? (Round your per unit answers to 2 decimal places.) Multiple Choice $12.50 $15.90 $16.64 $15.46 $15.50
es Warnerwoods Company uses a periodic inventory system. It entered into the following purchases and sales transactions for March. Date March 1 Activities March 5 Beginning inventory Purchase March 9 Sales March 18 March 25 Purchase Purchase March 29 Sales Totals Units Acquired at Cost 115 units @ $50 per unit 415 units @ $55 per unit 150 units @$60 per unit 230 units @ $62 per unit 910 units. Units Sold at Retail 435 units @ $85 per unit 190 units @ $95 per unit 625 units For specific identification, units sold include 50 units from beginning inventory, 385 units from the March 5 purchase, 55 units from the March 18 purchase, and 135 units from the March 25 purchase. 4. Compute gross profit earned by the company for each of the four costing methods. Note: Round your average cost per unit to 2 decimal places and final answers to nearest whole dollar. FIFO LIFO Weighted Average Specific Identification Sales Less: Cost of goods sold Gross profit $ 0 $ 0 $ 0 $ 0
Warnerwoods Company uses a perpetual inventory system. It entered into the following purchases and sales transactions for March. Date Activities Units Acquired at Cost 80 units @ $50.60 per unit 215 units @ $55.60 per unit Units Sold at Retail March 1 March 5 March 9 March 18 Beginning inventory Purchase Sales Purchase 240 units @ s85.60 per unit 75 units @ $60.60 per unit 130 units @ $62.60 per unit March 25 Purchase March 29 Sales 110 units @ $95.60 per unit Totals 500 units 350 units ok Problem 5-1A (Algo) Part 4 it 4. Compute gross profit earned by the company for each of the four costing methods. For specific identification, units sold include 55 units from beginning inventory, 185 units from the March 5 purchase, 35 units from the March 18 purchase, and 75 units from the March 25 purchase. (Round weighted average cost per unit to two decimals and final answers to nearest whole dollar.) nces Weighted Average Gross Margin FIFO LIFO Specific ID Sales Less: Cost of goods sold Gross…
a. Novak Inc. uses a perpetual inventory system. Its records show the following for the month of May. Date Explanation Units UnitCost TotalCost May 1 Inventory 27 $ 7 $ 189 May 15 Purchase 26 8 208 May 18 Sale ( 46 ) May 24 Purchase 40 9 360 Total 47 $ 757 Calculate the cost of goods sold for May and the ending inventory at May 31 using the average cost formula. (For average, use 3 decimal places, e.g. 15.235 in your calculations and round final answers to 2 decimal places, e.g 5.25.) Cost of goods sold $ Ending Inventory $ b. Ayayai Inc. uses a periodic inventory system. Its records show the following for the month of May, in which 79 units were sold. Date Explanation Units Unit Cost Total Cost May 1 Inventory 31 $ 10 $ 310 May 15 Purchase 26 11 286 May 24 Purchase 42 12 504 Total 99…