ItemCostRetailBeginning inventory, Jan. 1 $352,800 $490,000PurchasesMarkups, netSalesMarkdowns, net1,999,200 3,307,500343,0003,381,000245,000What is ending inventory at cost on December 31 using the average cost retail method?Select one:a. $258,230b. $514,500c. $310,642d. $292,260

Step 1:Statement showing computation of the ending inventory at cost using the average cost retail…

Answered: Item Cost Retail Beginning inventory,…

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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QUESTION 1 Addison, Inc. uses a perpetual inventory system. The following is information about one inventory item for the month of September: Sep. 1 4 10 17 30 Inventory Sold Purchased Sold Purchased 20 units at $20 10 units 30 units at $25 20 units 10 units at $30 If Addison uses LIFO, the cost of the ending merchandise inventory on September 30 is a. $800 b. $700 c. $650 d. $750
PROBLEM G (AVERAGE COST RETAIL INVENTORY METHOD) Fainthearted Company provided the following information for the current year : COST RETAIL Beginning inventory Purchases Additional markup Available for sale 750,000 4,150,000 1,000,000 5,800,000 200,000 4,900,000 7,000,000 Sales for the year totaled P5,500,000. Markdown amounted to P100,000. Under the average cost approach in applying the retail method, what is the estimated cost of inventory?
Inventory, January 1 Purchases Markups (net) Markdowns (net) Sales Required: Purchases ✓ Add: Markups (net) ✓ ✓ Less: Markdowns (net) Retail $35,000 $70,000 140,000 240,379 Cost-to-retail ratio: Beginning inventory Goods available for sale Less: Sales Ending inventory - ✓ Cost ✓ 1. Compute the ending inventory by the retail inventory method for the following cost flow assumption: FIFO. Round the cost-to-retail ratio to three decimal places. HARMES COMPANY Calculation of ending inventory by retail inventory method FIFO - ✔ - - 3,000 2,000 180,000 Cost 140,000 Retail $240,379 3,000 2,000 X COO 180,000
April 1 Beginning Inventory 100 units @ $4 April 2 Sales 50 units April 3 Purchases 300 units @ $6 April 10 Sales 250 units April 21 Purchases 400 units @ $8 April 28 Sales 200 units Assuming a periodic inventory system is used, what is cost of goods sold under FIFO? Select one: a. $2,400 b. $2,100 c. $3,000 d. $3,300
Inventory Valuation Methods Inventory Data – June 1-30 June 1 Inventory 10 units @ $4.00 June 6 Purchase 10 units @ $6.00 June 13 Sale 12 units @ selling price of $10.00 June 20 Purchase 2 units @ $7.50 June 25 Sale 5 units @ selling price of $11.00 Required: Calculate ending inventory, cost of goods sold and gross profit for each inventory method below (assuming a perpetual inventory system): FIFO LIFO Which inventory method provides the highest profit? Which method provides the best income statement matching? Which method provides the better balance sheet valuation? Is a LIFO liquidation occurring?
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Chapter 5 Quiz Using the following information for a periodic inventory system, what is the amount of net income? Purchases $32,000 Selling expense $960 2. Inventory, September 1 5,700 Inventory, September 30 6,370 3. Administrative expense 910 Sales 63,000 Rent revenue 1,200 Interest expense 1,040 4. Oa. $28,310 5. Ob. $29,510 Oc. $29,350 6. Od. $29,960 7. 8. 9. 10. 11. 12. 13. V
Question Content Area Based on the following data for the current year, what is the inventory turnover (rounded to one decimal place)? Sales on account during year $586,967 Cost of merchandise sold during year 176,594 Accounts receivable, beginning of year 46,824 Accounts receivable, end of year 52,382 Merchandise inventory, beginning of year 31,526 Merchandise inventory, end of year 40,442 a.21.2 b.4.9 c.16.3 d.3.9
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Perpetual inventory using FIFO Beginning inventory, purchases, Nov. 1 Inventory 10 Sale 15 Purchase 20 Sale 20 units 24 Sale 9 units 30 Purchase 33 units at $56 The business maintains a perpetual inventory system, costing by the first-in, first-out method. a. Determine the cost of goods sold for each sale and the inventory balance after each sale, presenting the data in the form illustrated in Exhibit 3. Under FIFO, if units are in inventory at two different costs, enter the units with the LOWER unit cost first in the Cost of Goods Sold Unit Cost column and in the Inventory Unit Cost column. Date Nov. 1 Nov. 10 Nov. 15 Nov. 20 Nov. 24 Nov. 30 Quantity Purchases Purchases Purchased Unit Cost Total Cost 21 and sales data for DVD players are as follows: 50 units at $50 37 units 21 units at $53 Nov. 30 Balances 53 1,113 0 0 First-in, First-out Method DVD Players Quantity Sold 37 Cost of Goods Sold Unit Cost 50 000 000 Cost of Goods Sold Total Cost 1,850 1180000 000 100000 000 160000 0000…

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Item Cost Retail Beginning inventory, Jan. 1 $352,800 $490,000 Purchases Markups, net Sales Markdowns, net 1,999,200 3,307,500 343,000 3,381,000 245,000 What is ending inventory at cost on December 31 using the average cost retail method? Select one: a. $258,230 b. $514,500 c. $310,642 d. $292,260