Metlock Coffee Equipment sells European-style coffee makers and uses a periodic inventory system. Its inventory records show that at June 1, Metlock had 14 units on hand at a cost of $242 each. Transactions related to purchase and sale of coffee makers in June were as follows: Per Unit Date Transaction Units Cost Sales Price June 10 Sale 8 $548 15 Sale 5 $548 20 Purchase 6 $232 22 Purchase 4 $256 30 30 Sale 7 $516 For each of the following cost formulas, calculate the ending inventory at June 30 and the cost of goods sold for the month of June. (Round the weighted average cost per unit and final answers to 2 decimal places, e.g. 5,275.25.) Ending inventory $ Cost of goods sold $ H - L FIFO +A $ Weighted Average +A $

Metlock Coffee Equipment sells European-style coffee makers and uses a periodic inventory system. Its inventory records show that at June 1, Metlock had 14 units on hand at a cost of $242 each. Transactions related to purchase and sale of coffee makers in June were as follows: Per Unit Date Transaction Units Cost Sales Price June 10 Sale 8 $548 15 Sale 5 $548 20 Purchase 6 $232 22 Purchase 4 $256 30 30 Sale 7 $516 For each of the following cost formulas, calculate the ending inventory at June 30 and the cost of goods sold for the month of June. (Round the weighted average cost per unit and final answers to 2 decimal places, e.g. 5,275.25.) Ending inventory $ Cost of goods sold $ H - L FIFO +A $ Weighted Average +A $

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter7: Inventories: Cost Measurement And Flow Assumptions

Section: Chapter Questions

Problem 12RE: Carla Company uses the perpetual inventory system. The following information is available for...

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Starshine Coffee Equipment sells European style coffee makers and uses a perpetual inventory system. Its inventory records show that on June 1, Starshine had 12 units on hand at a cost of $220 each. Transactions related to purchase and sale of coffee makers in June were as follows: Per unit Date Transaction Units Cost Sales price June 10 Sale 3 $510 June 15 Sale 4 $510 June 20 Purchase 5 $230 June 22 Purchase 6 $240 June 30 Sale 10 $500 For each of the following cost formulas, calculate the ending inventory as at June 30 and the cost of goods sold for the month of June. Prove the cost of goods sold calculations (Use Average method)
Waterway Company's inventory records show the following data: Units Unit Cost Inventory, January 1 10200 $9.20 Purchases: June 18 8600 9.00 November 8 6200 6.00 A physical inventory on December 31 shows 4000 units on hand. Waterway sells the units for $13 each. The company has an effective tax rate of 20%. Waterway uses the periodic inventory method. What is the cost of goods available for sale?
The XZ Ltd. is a retailer and uses the Perpetual Inventory System. The below information is available regarding the purchases and sales activities: Purchase price: $4.20 Selling price: $5.70 Purchase discount (paid in 10 days): 6% Sales discount (received in 15 days): 10% Calculate the correct entries for its business activities. The XZ purchased 300 units on credit from AA on the 2nd of July. The XZ sold 200 units on credit to DSX on the 3rd of July. The XZ returned 50 defective units to AA on the 9th of July. The XZ paid cash to AA on the 11th of July. DSX paid its purchase on the 12th of July.
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Rogers Products uses a periodic inventory system. The company's records show the beginning inventory of PH4 oil filters on January 1 and the purchases of this item during the current year to be as follows. Jan. 1 Feb. 23 Apr. 20 May 4 Nov. 30 Beginning inventory. Purchase Purchase Purchase Purchase Totals a. b. FIFO C. LIFO Average cost A physical count indicates 200 units in inventory at year-end. Determine the cost of the ending inventory on the basis of each of the following methods of inventory valuation. (Remember to use periodic inventory costing procedures.) (Round intermediate calculations to 2 decimal places. Round your final answers to the nearest whole dollar.) 90 units @ $3.00 120 units @ $3.50 300 units @ $3.80 400 units @ $4.00 190 units @ $5.00 1,100 units Ending Inventory $ 270.00 420.00 1,140.00 1,600.00 950.00 $4,380.00
Chou Sales Corporation uses the periodic inventory system. On January 1, 2018, Chou had 1,000 units of product A with a unit cost of $20 per unit. A summary of purchases and sales during 2018 follows: Unit Units Units Cost Purchased Sold Feb.2 400 Apr.6 $22 1,800 July 10 1,600 Aug.9 25 800 Oct.23 800 Dec.30 28 1,400 Required a. Assume that Chou uses the first-in, first-out method. Compute the cost of goods sold for 2018 and the ending inventory balance at December 31, 2018, for product A. b. Assume that Chou uses the last-in, first-out method. Compute the cost of goods sold for 2018 and the ending inventory balance at December 31, 2018, for product A. c. Assume that Chou uses the weighted-average cost method. Compute the cost of goods sold for 2018 and the ending inventory balance at December 31, 2018, for product A. Do not round until your final answers. Round your answers to the nearest dollar. a. First-in, First-out: Ending Inventory Cost of Goods Sold $ b. Last-in, first-out:…
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[The following information applies to the questions displayed below.] Warnerwoods Company uses a perpetual inventory system. It entered into the following purchases and sales transactions for March. Units Sold at Retail Units Acquired at Cost 80 units @ $50.60 per unit 215 units @ $55.60 per unit Date Activities March 1 Beginning inventory Purchase Sales March 5 240 units @ $85.60 per unit March 9 March 18 Purchase Purchase 75 units @ s60.60 per unit |130 units @ S62.60 per unit March 25 March 29 Sales 110 units @ S95.60 per unit Totals 500 units 350 units Ces Problem 5-1A (Algo) Part 2 2. Compute the number of units in ending inventory. Ending inventory units
Simple Plan Enterprises uses a periodic inventory system. Its records showed the following:Inventory, December 31, using FIFO → 56 Units @ $23 = $1,288Inventory, December 31, using LIFO → 56 Units @ $19 = $1,064 Transactions in the Following Year Units Unit Cost Total Cost Purchase, January 9 68 24 $ 1,632 Purchase, January 20 118 25 2,950 Sale, January 11 (at $47 per unit) 98 Sale, January 27 (at $48 per unit) 74 Required: Compute the number and cost of goods available for sale, the cost of ending inventory, and the cost of goods sold under FIFO and LIFO. Compute the inventory turnover ratio under the FIFO and LIFO inventory costing methods. Does the inventory method used make a significant difference in the inventory turnover ratio?
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