Inventory Costing Methods and the Periodic Method Lambeth Company experienced the following events in January: Date Events Units Unit Cost Total Cost Jan. 10 Purchased inventory 100 @ $12 $1,200 Jan. 20 Purchased inventory 200 @ $14 2,800 Jan. 30 Sold inventory 150 If the Lambeth Company uses the FIFO inventory costing method, calculate the company's cost of goods sold and its ending inventory as of January 31 assuming the periodic method. Cost of goods sold $ Ending inventory 2$

Inventory Costing Methods and the Periodic Method Lambeth Company experienced the following events in January: Date Events Units Unit Cost Total Cost Jan. 10 Purchased inventory 100 @ $12 $1,200 Jan. 20 Purchased inventory 200 @ $14 2,800 Jan. 30 Sold inventory 150 If the Lambeth Company uses the FIFO inventory costing method, calculate the company's cost of goods sold and its ending inventory as of January 31 assuming the periodic method. Cost of goods sold $ Ending inventory 2$

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter2: Accounting For Materials

Section: Chapter Questions

Problem 6P: Inventory costing methods The following transactions affecting materials occurred in February:...

See similar textbooks

Similar questions

Inventory costing methods The following transactions affecting materials occurred in February: Required: Record the transactions in materials ledger accounts similar to Figure 2-10. (The On Order columns should be omitted.) Use the following inventory methods, assuming the use of a perpetual inventory system. Carry unit prices to four decimal places. 1. FIFO 2. LIFO 3. Weighted average
Summit Company has provided the following inventory balances and manufacturing cost data for the month of January: Inventories: January 1 January 31 Direct materials ....... P30,000 P40,000 Work in process ........ P15,000 P20,000 Finished goods ......... P65,000 P50,000 Month of January Cost of goods manufactured ........ P515,000 Manufacturing overhead applied .... P150,000 Direct materials used ............. P190,000 Actual manufacturing overhead ..... P144,000 Under Summit's job-order costing system, any over or underapplied overhead is closed to the Cost of Goods Sold account at the end of the calendar year (i.e., December 31). 84. What was the total amount of direct material purchases during January? a. P180,000 b. P190,000 c. P195,000 d. P200,000 85. How much direct labor cost was incurred during January? a. P170,000 b. P175,000 c. P180,000 d.…
XOUT Inc.manufactures stone counter top cleaner in a continuous process and uses a process cost system. During the month the company started 500,000 gallons of raw material into process at a cost of $450,000. It takes 1.25 gallons of raw material to produce 1 gallon of cleaner. In addition the company spent $1,200,000 in direct labor cost and $2,000,000 in manufacturing OH. During the month 350,000 gallons of cleaner were complete and transferred to finished goods. 300,000 gallons of cleaner were sold for a total price of $3,100,000. At the end of the month the stone cleaner still in WIP inventory was 100% complete as to raw matl. and 35% complete as to direct labor and factory OH.
LIFO costing Using last-in, first-out perpetual inventory costing and the information presented in E2-7, compute the cost of materials used and the cost of the July 31 inventory.
Inventory Valuation under Absorption Costing Refer to the data for Judson Company above. Required: 1. How many units are in ending inventory? 2. Using absorption costing, calculate the per-unit product cost. 3. What is the value of ending inventory under absorption costing? Use the following information for Brief Exercises 3-21 and 3-22: During the most recent year, Judson Company had the following data associated with the product it makes:
Weighted Average Method, Unit Costs, Valuing Inventories Byford Inc. produces a product that passes through two processes. During November, equivalent units were calculated using the weighted average method: The costs that Byford had to account for during the month of November were as follows: Required: 1. Using the weighted average method, determine unit cost. 2. Under the weighted average method, what is the total cost of units transferred out? What is the cost assigned to units in ending inventory? 3. CONCEPTUAL CONNECTION Bill Johnson, the manager of Byford, is considering switching from weighted average to FIFO. Explain the key differences between the two approaches and make a recommendation to Bill about which method should be used.
Akira Company had the following transactions for the month. Calculate the ending inventory dollar value for the period for each of the following cost allocation methods, using periodic inventory updating. Provide your calculations. A. first-in, first-out (FIFO) B. last-in, first-out (LIFO) C. weighted average (AVG)
Akira Company had the following transactions for the month. Calculate the gross margin for the period for each of the following cost allocation methods, using periodic inventory updating. Assume that all units were sold for $25 each. Provide your calculations. A. first-in, first-out (FIFO) B. last-in, first-out (LIFO) C. weighted average (AVG)
Custom Cabinets Inc. (CCI) uses a job-order costing system. During February and March only 3 jobs were worked on. Job 1602 was completed on March 15th. The other two jobs were still in process at March 31st, CCl's year end. Here is a summary of the data from the job cost sheets for the 3 jobs: Job 1602 Job 1603 Job 1604 February costs incurred: Direct materials 16,000 $ 9,000 $ Direct labour 13,500 7,300 Manufacturing overhead 21,600 11,680 March costs incurred: Direct materials 8,400 21,000 Direct Labour 4,000 5,800 10,300 Manufacturing overhead ? ? Manufacturing overhead is applied to jobs on asis of direct lab cost. Ba ces in the inventory accounts at the end of February were as follows: Raw Materials 24 40,000 Work in Process Finished goods 85,000 Required (where possible complete your work in the space immediately below each question. If you need more space insert additional rows): 1 What is the February 28th work in process balance? Assume no over/under applied manufacturing…
Problem 8-59 (Static) Prepare a Production Cost Report: Weighted-Average Method (LO 8-3, 4) Mercier Manufacturing produces a plastic part in three sequential departments: Extruding, Fabricating, and Packaging. Mercier uses the weighted-average process costing method to account for costs of production in all three departments. The following information was obtained for the Fabricating Department for the month of September. Work in process on September 1 had 15,000 units made up of the following: Direct materials Direct labor Prior department costs transferred in from the Extruding Department Costs added by the Fabricating Department Direct materials. Direct labor Manufacturing overhead. Work in process, September 1 During September, 75,000 units were transferred in from the Extruding Department at a cost of $356,250. The Fabricating Department added the following costs: Manufacturing overhead Total costs added $ 214, 200 64,800 33,480 $ 312,480 Direct materials Direct labor…
Use the following data to calculate the cost of goods sold for the period: Beginning Raw Materials Inventory Ending Raw Materials Inventory Beginning Work in Process Inventory Ending Work in Process Inventory Beginning Finished Goods Inventory Ending Finished Goods Inventory Cost of Goods Manufactured for the period Multiple Choice O $258,900. O $242,900 $290,900. $250,900. $246,900. $ 30,900 70,900 40,900 46,900 72,900 68,900 246,900
Lean Mfg: Westgate Inc