Guitars and more had a large inventory of guitars and other musical instruments. Using theFIFO method and the Perpetual Inventory System, the company recorded initial inventory,purchases, and sales. Determines the cost of the merchandise sold and the value of theinventory.DateDetailAmountUnit cost (unit cost)May 1Initial inventory$75Sale8.Purchase118513Sale1515Sale19Purchase2010521Sale8.22Sale27Purchase109030Sale3.

Following is a perpetual inventory record, using the FIFO inventory costing method and company’s…

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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 is the detail of the purchase and sale of inventory of a product of Simco Co. May 1 Beg. Inventory 60 units @ $220 May 2 Purchase 100 units @ $216 May 14 Purchase 50 units @ $224 May 22 Purchase 60 units @ $234 May 30 Sale 200 units Required: 1. Compute the cost of goods sold and cost of ending inventory for Simco Co. for May under the FIFO, LIFO, and weighted average cost assumptions. 2. Which method results in Simco Co. paying the least tax?
The following are the transactions for the month of July. Units Unit Cost Unit Selling Price July 1 Beginning Inventory 55 $ 10 July 13 Purchase 275 11 July 25 Sold (100 ) $ 14 July 31 Ending Inventory 230 Calculate cost of goods available for sale and ending inventory, then sales, cost of goods sold, and gross profit, under FIFO. Assume a periodic inventory system is used. How would i creat a FIFO periodic table?
Segura Ltd. operates a small retail store that sells guitars and other musical accessories. During the month of May, the following transactions occurred: Opening inventory, May 1 Purchase, May 5 Purchase, May 8 Sale, May 15 Purchase, May 22 Sale, May 25 Closing inventory, May 31 Number of Units 8 50 10 15 12 23 42 Cost per unit P 550 560 575 572 Required: Segura Ltd. uses a perpetual inventory system. Using the FIFO cost flow method, calculate the cost of goods sold for the month of May and inventory balance on May 31.
Beginning inventory, purchases, and sales data for tennis rackets are as follows
Guitars and more had a large inventory of guitars and other musical instruments. Using the Average method and the Perpetual Inventory System, the company recorded initial inventory, purchases, and sales. Determines the cost of the merchandise sold and the value of the inventory. Date Detail Amount Unit cost (unit cost) May 1 Initial inventory $75 Sale 4 8. Purchase 11 85 13 Sale 15 Sale 3 19 Purchase 20 105 21 Sale 22 Sale 27 Purchase 90 30 Sale 2.
Assume that J R Toys store purchased and sold a line of dolls during December as follows: (Click the icon to view the transactions.) JR Toys uses the perpetual inventory system. More info Dec. 1 Beginning merchandise inventory 8 Sale 14 Purchase 21 Sale 13 7 14 13 units @ $ 8 each units @ $18 each units @ $ 16 each units @ $ 18 each. - X Requirements 1. Compute the cost of goods sold, cost of ending merchandise inventory, and gross profit using the FIFO inventory costing method. 2. Compute the cost of goods sold, cost of ending merchandise inventory, and gross profit using the LIFO inventory costing method. 3. Which method results in a higher cost of goods sold? 4. Which method results in a higher cost of ending merchandise inventory? 5. Which method results in a higher gross profit?
The following data is given for Co. A., a merchandising company. Assume the company uses the Periodic Inventory system and that the cost of goods sold is $ 300,000, $14.000 40.000 60.000 2 4.000 6.000 Freight-In Merchandise Inventory, January 1, 2020 Merchandise Inventory, January 31, 2020 Purchases Purchase Returns Purchase Discounts Required: a. Calculate the missing amount for "Purchases" b. Calculate the "Cost of Goods Sold"
Guitars and more had a large inventory of guitars and other musical instruments. Using the UFO method and the Perpetual Inventory System, the company recorded initial inventory, purchases, and sales. Determines the cost of the merchandise sold and the value of the inventory. Date Detail Amount Unit cost (unit cost) May 1 Initial inventory $75 6. Sale Purchase 11 85 13 Sale 15 15 Sale 19 Purchase 20 105 21 Sale Sale 27 Purchase 10 90 30 Sale 3. 2. 22
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The following information is taken from the records of Wildlife Florist. The company usesthe perpetual inventory system.Date Description Units Unit Cost (RM)Dec1 Opening inventory 200 20Dec 5 Sale 108Dec 6 Purchase 200 18Dec 12 Purchase 125 17Dec 13 Sale 300Dec 19 Purchase 350 21Dec 29 Purchase 150 18Dec 30 Sale 4005Required:-a. Calculate cost of goods sold and the cost of ending inventory under each of thefollowing inventory cost flow assumptions:i. FIFO.ii. Weighted average. b. Assume each unit was sold for RM25. Complete the following partial income statements: FIFO Weighted Average Sales Less: Cost of Sales Gross Profit
Beginning inventory, purchases, and sales data for portable game players are as follows: Apr. 1 Inventory 35 units @ $72 10 Sale 25 units 15 Purchase 46 units @ $75 20 Sale 26 units 24 Sale 8 units 30 Purchase 28 units @ $80 The business maintains a perpetual inventory system, costing by the last-in, first-out method. Determine the cost of merchandise sold for each sale and the inventory balance after each sale, presenting the data in the form illustrated in Exhibit 4. Under LIFO, if units are in inventory at two different costs, enter the units with the HIGHER unit cost first in the Cost of Merchandise Sold Unit Cost column and LOWER unit cost first in the Inventory Unit Cost column. Schedule of Cost of Merchandise Sold LIFO Method Portable Game Players Date Quantity Purchased Purchases Unit Cost Purchases Total Cost Quantity Sold Cost of Merchandise Sold Unit Cost Cost of Merchandise Sold Total Cost Inventory Quantity Inventory Unit Cost…
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