Mower-Blower Sales Co. started business on January 20, 2016.Products sold were snow blowers and lawn mowers.Each product sold for $1,400.Purchases during 2016 were as follows:BlowersMowersJanuary 2120@$800February 340 @780February 2830760March 1320 @ 760April 620@$840May 2240860June 340 @880June 2060920August 1520860September 2020840November 720@800The December 31, 2016 inventory included 10 blowers and 25 mowers.Assume the company uses a periodic inventory system.Required:Compute ending inventory valuation at December 31, 2016 under:a) FIFOb) LIFO(Hint: Compute ending inventory under each method, and then compareresults.)

LIFO (Last-In, First-Out)LIFO assumes that the most recent inventory items are sold first.…

Answered: Mower-Blower Sales Co. started business…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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[The following information applies to the questions displayed below.] The Shirt Shop had the following transactions for T-shirts for 2018, its first year of operations: Jan. 20 Purchased 400 units @ $ 8 = $ 3,200 Apr. 21 Purchased 200 units @ $ 10 = 2,000 July 25 Purchased 280 units @ $ 13 = 3,640 Sept. 19 Purchased 90 units @ $ 15 = 1,350 During the year, The Shirt Shop sold 810 T-shirts for $20 each. Requireda. Compute the amount of ending inventory The Shirt Shop would report on the balance sheet, assuming the following cost flow assumptions: (1) FIFO, (2) LIFO, and (3) weighted average. (Round intermediate calculations to 2 decimal places and final answers to nearest whole dollar amount.) b. Compute the difference in gross margin between the FIFO and LIFO cost flow assumptions.
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One Stop Electrical Shop are merchandisers of household fixtures & fittings. The business began thelast quarter of 2020 (October to December) with 25 Starburst Wall Clocks at a total cost of $153,000.The following transactions took place during the quarter.October 10 100 clocks were purchased on account at a cost of $6,225 each. In addition,One Stop paid $120 cash on each clock to have the inventory shipped fromthe vendor’s warehouse to their warehouseOctober 31 During the month 90 clocks were sold at a price of $8,300 each. (20 of theseclocks sold were on account to a long-standing customer of the business)November 1 A new batch of 60 clocks was purchased at a total cost of $406,500November 10 5 of the clocks purchased on November 1 were returned to the supplier, asthey were damagedNovember 30 The sales for November were 58 clocks which yielded total sales revenue of$498,800December 2 Owing to increased demand, a further 110 clocks were purchased at a cost of$7,400 each and these…
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Miramax bookshop buys and sells textbooks and other stationery. The company uses a perpetual inventory system. You have been provided with the following information for May 2016:DateDescriptionMAY 1stOpening balance was 2 000 textbooks with a total value of R300 0006thIssued 800 textbooks10thPurchased 1 000 textbooks @ R160 each14thIssued 900 textbooks16thReturned 100 textbooks purchased on the 10th of May to the supplier19thCustomers returned 150 textbooks issued on the 14th of May20th1000 textbooks were ordered @ R170 each22ndIssued 1 000 textbooks26thReceived the textbooks ordered on the 20th31stStocktakingRequired:Calculate the value of closing inventory for May 2016 for Miramax bookshop using the weighted average method of inventory valuation.
Marr Trading purchases and sells a single product called ALGA. Opening inventories of ALGA 1 March 2019 was 400 units at a total cost of RM1,200. The sale price of ALGA per unit is RM7. T transactions during the month are as follows: 1 Date Purchase Sale Unit Total (RM) (Unit) 2 March 5,500 24,500 7 March 7,000 20,000 13 March 2,200 19 March 4,000 12,000 22 March 2,600 28 March 2,000 Required: (a) Prepare a store ledger card of ALGA for March 2019 using the first-in, first-out (FIFO) method of pricing issues. (b) Calculate the value of inventory for the financial year ended 31 March 2019. (c) Prepare extracts from the Statement of Profit and Loss for the year ended 31 March 2019.
Linden Inc. purchased 10 merchandise inventory items at a total cost of $4,000 to add to its inventory on February 21, 2015. It started the month with 10 items at a total cost of $3,000. If the company used FIFO, what is the cost of goods sold if it sold 11 items in February. a. $3,850 b. $3,400 c. $3,500 d. $4,000

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