Monty Corp. sells coffee beans, which are sensitive to pricefluctuations. The following inventory information is available for thisproduct at December 31, 2017:Coffee BeanUnitsUnit Cost MarketMarketCoffea arabica12,800 bags$ 5.40$ 5.373.403.50Coffea robusta 4,000 bagsCalculate Tascon's inventory by applying the lower-of-cost-or-marketbasis.Tascon's inventory $

Step 1: Identify the Cost and Market Value for Each Coffee Bean TypeCoffee Bean TypeUnitsUnit…

Answered: Monty Corp. sells coffee beans, which…

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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Home Stop sells two product categories, furniture and accessories. Information pertaining to its year-end inventory is as follows: Inventory, by Product Category Quantity Per Unit Cost Market Furniture: Chairs 60 $ 41 68 94 Desks Tables Accessories: Rugs Lamps Required: 1. Determine the carrying value of inventory at year-end, assuming the lower of cost or market (LCM) rule is applied to (a) individual products. (b) product categories, and (c) total inventory. 2 Assuming inventory write-downs are common for Home Stop, record any necessary year-end adjusting entry for each of the LCM applications in requirement 1. Es Complete this question by entering your answers in the tabs below. Required 1 Required 2 Assuming inventory write-downs are common for Home Stop, record any necessary year-end adjusting entry for each of the LCM applications in requirement 1. View transaction list View journal entry worksheet D Record the year-end adjustment for inventory assuming the lower of cost or net…
The following information is available for Goode Company: May 1 Beginning inventory 18 units @ $4 per unit May 7 Purchase 12 units @ $5 per unit May 10 Sale 14 units May 17 Purchase 10 units @ $6 per unit May 19 Sale 4 units Required:Answer the following questions for Goode Company: a. If perpetual FIFO is used, what is the total ending inventory in dollars?$ b. If perpetual LIFO is used, what is the cost of goods sold for the month?$ c. If weighted average is used, what is the ending inventory? Do not round intermediate calculations. Round your final answer to two decimal places.$ d. If moving average is used, what is the cost per unit sold for the May 10 sale? Round your answer to two decimal places.$
Wildhorse's Gift Shop uses a perpetual inventory system and the FIFO cost formula for valuing inventory. The company is now in the process of comparing the cost of its inventory with its net realizable value. The following data are available at Wildhorse's Gift Shop's year end, December 31: Clothing Units Unit Cost 91 $8 76 20 2017 Greeting cards 47 4 60 12 Jewellery Stuffed toys (a) Net Realizable Value per Unit Lower of cost and net realizable value $6 $ 27 5 Determine the lower of cost and net realizable value of the ending inventory assuming Wildhorse's Gift Shop applies LCNRV on individual items. 38
The Toy Emporium Inc. has compiled the following information for the year ended December 31, 2015. Item Puzzles Gameboys Dolls Cost $ 27,500 $16, 200 $57,600 The Toy Emporium Inc. reviews inventory on an item-by-item basis. What is the total write down of inventory for the year ended December 31, 2015? Multiple Choice We need to know the cost flow assumption to calculate if there is a write down $8,600 Market $28,500 $17,000 $65,200 There is no write down of inventory required $2,200 $6,400
The following information pertains to Julia & Company: March 1 Beginning inventory = 30 units @ $5.10 March 3 Purchased 15 units @ 3.60 March 9 Sold 26 units @ 8.90 What is the cost of goods sold for Julia & Company assuming it uses LIFO? (Do not round your intermediate calculations. Round your answer to the nearest dollar amount.) Multiple Choice $110. $94. $105. $133.
What will be total ending inventory balance?
You have the following information for Sheridan Inc. for the month ended October 31, 2025. Sheridan uses a periodic system for inventory. Date Description Units Unit Cost or Selling Price Oct. 1 Beginning inventory 55 $24 Oct. 9 Purchase 140 26 Oct. 11 Sale Oct. 17 Purchase Oct. 22 Sale Oct. 25 Purchase Oct. 29 Sale 100 888 90 45 90 27 55 50 65 29 50 (a1) ✔Your answer is correct. Calculate the weighted-average cost. (Round answer to 3 decimal places, eg. 5.125) Weighted-average cost per unit 26.50 Calculate ending inventory, cost of goods sold, and gross profit under each of the following methods. 1. LIFO. 2. FIFO. 3. Average cost. (Round answers to O decimal places, e.g. 125) LIFO FIFO AVERAGE-COST Ending inventory $ $ Cost of goods sold $ Gross profit
Sport Box sells a wide variety of sporting equipment. The following is information on the purchases and sales of their top selling hockey stick. The hockey stick sells for $130. Description Mar. 1 Beginning Inventory Mar. 3 Purchase Mar. 6 Purchase Mar. 17 Sale Mar. 23 Purchase Mar. 31 Sale 1. FIFO Units. 19 64 114 59 58 148 2. Moving weighted average Required: Calculate the cost of goods sold and ending inventory under the perpetual inventory system using the following methods. (Do not round your "Unit Cost" answers. Round all other intermediate and final answers to nearest whole dollar.) Unit Cost $44 $49 $54 Cost of Goods Sold $54 Ending Inventory < Prev www 2 of 8 --- Nex
Suppose a divison of Florida Instruments Incorporated that sells computer microchips has these inventory records for January 2018: Date Item Quantity Unit Cost Total Cost Jan 1 Beginning Inventory 140 units $ 8 $ 1,120 6 Purchase 50 units 14 700 21 Purchase 200 units 16 3,200 27 Purchase 70 units 17 1,190 Prepare the company's January, multistep income statement. Calculate income using the LIFO, average-cost, and FIFO methods. Label the bottom line "Operating income." Round the average cost per unit to three decimal places and all other figures to whole-dollar amounts. Show your computations. 2. Suppose you are the financial vice president of Florida Instruments. Which inventory method will you use if your motive is to a. minimize income taxes? b.…
Quick Stop Dairy had beginning inventory of Heavy Cream of 200 units at a cost of $2 each. During the month, they had the following purchases: 1st purchase: 500 units at $3 each 2nd purchase: 400 units at $4 each Quick Stop Dairy sold 1,000 units to a customer. Using a FIFO cost flow assumption, determine the cost of goods sold for this sale as well as the balance in ending inventory
Required information [The following information applies to the questions displayed below.] Pam's Creations had the following sales and purchase transactions during Year 2. Beginning inventory consisted of 210 items at $89 each. The company uses the FIFO cost flow assumption and keeps perpetual inventory records. Date March 5 April 10 June 19 September 16 November 28 Sales Cost of goods sold Gross margin wwwwwww Transaction Purchased Sold Sold Purchased Sold b. Calculate the gross margin Pam's Creations would report on the Year 2 income statement. $ Description 190 items@ $99 115 items @ $193 205 items @ $193 140 items @ $104 105 items @ $198 82,550

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