P6-5A You have the following information for Vincent Inc. for the month ended October31, 2014. Vincent uses a periodic method for inventory.Calculate ending inventory,cost of goods sold, grossprofit, and gross profit rateunder periodic method;Unit Cost orDateDescriptionUnitsSelling Pricecompare results.(LO 2, 3), APOct. 1Beginning inventoryPurchase60$24Oct. 9Oct. 11Oct. 17Oct. 22Oct. 25Oct. 2912026Sale10035Purchase10027Sale6040Purchase7029Sale11040Instructions(a) Calculate (i) ending inventory, (ii) cost of goods sold, (iii) gross profit, and (iv) grossprofit rate under each of the following methods.(1) LIFO.(2) FIFO.(3) Average-cost. (Round cost per unit to three decimal places.)(b) Compare results for the three cost flow assumptions.(a) Gross profit:LIFOFIFOAverage$2.970$3.310$3,133

Name: P6-5A You have the following information for Vincent Inc. for the mon
Uploaded: 2024-03-20T06:32:37.000Z
Channel: Bartleby
Description: P6-5A You have the following information for Vincent Inc. for the month ended October31, 2014. Vincent uses a periodic method for inventory.Calculate ending inventory,cost of goods sold, grossprofit, and gross profit rateunder periodic method;Unit C

Periodic Inventory System: It is a system in which the inventory is updated in the accounting…

Business

Accounting

P6-5A You have the following information for Vincent Inc. for the month ended October 31, 2014. Vincent uses a periodic method for inventory. Unit Cost or Date Description Units Selling Price Oct. 1 Oct. 9 Oct. 11 Beginning inventory Purchase Sale 60 $24 26 35 120 100 Oct. 17 Oct. 22 Oct. 25 Oct. 29 Purchase Sale Purchase 27 40 29 100 60 70 Sale 110 40 Instructions (a) Calculate (i) ending inventory, (ii) cost of goods sold, (iii) gross profit, and (iv) gross profit rate under each of the following methods. (1) LIFO. (2) FIFO. (3) Average-cost. (Round cost per unit to three decimal places.) (b) Compare results for the three cost flow assumptions.

P6-5A You have the following information for Vincent Inc. for the month ended October 31, 2014. Vincent uses a periodic method for inventory. Unit Cost or Date Description Units Selling Price Oct. 1 Oct. 9 Oct. 11 Beginning inventory Purchase Sale 60 $24 26 35 120 100 Oct. 17 Oct. 22 Oct. 25 Oct. 29 Purchase Sale Purchase 27 40 29 100 60 70 Sale 110 40 Instructions (a) Calculate (i) ending inventory, (ii) cost of goods sold, (iii) gross profit, and (iv) gross profit rate under each of the following methods. (1) LIFO. (2) FIFO. (3) Average-cost. (Round cost per unit to three decimal places.) (b) Compare results for the three cost flow assumptions.

Financial And Managerial Accounting

15th Edition

ISBN:9781337902663

Author:WARREN, Carl S.

Publisher:WARREN, Carl S.

Chapter6: Inventories

Section: Chapter Questions

Problem 4BE: Beginning inventory, purchases, and sales for WCS12 are as follows: Assuming a perpetual inventory...

See similar textbooks

Related questions

Q: Using the weighted average method, complete the steps below to calculate the ending inventory units,…

A: Cost of Goods Sold (COGS) is a fundamental accounting metric that represents the direct costs…

Q: ou are provided with the following information for Lily Inc. for the month ended June 30, 2020. Lily…

A: Ending Inventory It is the amount of inventory presented on the balance sheet by the business .It…

Q: Beginning inventory, purchases, and sales for Item CSW15 are as follows: August 1 Inventory 104 15…

A: FIFO: FIFO stands for First-In, First-Out. As its name suggest, this method assumes that the oldest…

Q: Q3. ADLG Company has two support departments, SS1 and SS2, and two operating departments, OD1 and…

A: Service departments are established to assist the operating department or production departments.…

Q: Required information [The following information applies to the questions displayed below]…

A: There are some methods to calculate the value of closing inventory and cost of goods sold in…

Q: Beginning inventory, purchases, and sales for Item XJ-56 are as follows: May 1 Beginning…

A: Inventory is one of the important current asset of the business, which includes inventory of raw…

Q: < 1. Determine the Inventory on March 31 and the cost of goods sold for the three-month period,…

A: The objective of the question is to determine the inventory on March 31 and the cost of goods sold…

Q: Given the following information, what journal entry does Lil Wayne's company make to COGS if they…

A: The inventory valuation method is used to calculate the cost of goods sold and ending inventory. It…

Q: You have the following information for Cullumber Inc. for the month ended October 31, 2025.…

A: The inventory valuation method includes:FIFO methodLIFO MethodWeighted average methodFIFO method -…

Q: You have the following information for Waterway Industries for the month ended October 31, 2022.…

A: "LIFO" stands for last-in, first-out, meaning that the recently purchased inventory items are…

Q: The following are the transactions for the month of July. July 1 July 13 Beginning Inventory…

A: Ending inventory is the amount of inventory that an entity has on hand, at the end of the period. It…

Q: Date Sept. 4 8 20 Item Beginning inventory Purchase Sale Purchase Units 5 8 6 15 Cost Total $10 $50…

A: FIFO means First In First Out.Under FIFO method materials received first in the stores are issued…

Q: You have the following information for Wildhorse Inc. for the month ended October 31, 2025.…

A: Weighted-average cost (WAC):Weighted Average Cost (WAC) method is a method of valuation of inventory…

Q: What amount should Makayla report as profit or loss from business? You may refer to her partially…

A: Profit and loss statement: A Profit and loss statement or income statement is one of the important…

Q: Compute the Cost of Goods Sold and ending inventory (units and value) after Sale 1. Cost of Goods…

A: A form of inventory accounting is called last in, first out. According to LIFO, expenses are…

Q: ABC Ltd. Uses the periodic inventory system and provided the following data: Cost Per Unit Date 1/2…

A: As per FIFO method, the inventory purchased first will be sold first. It is a method of pricing the…

Q: i. Determine the cost assigned to the ending inventory by using FIFO method of inventory valuation…

A: LIFO means last in first out where as FIFO means first in first out. Inventory and cost of goods…

Q: Tyler Company has the following information related to purchases and sales of one of its inventory…

A: Calculating the ending inventory and cost of goods sold using the FIFO is as follows:

Q: You have the following information for Sheridan Inc. for the month ended October 31, 2025. Sheridan…

A: The inventory valuation method includes:FIFO methodLIFO MethodWeighted average methodFIFO method -…

Q: Given the following data, calculate the cost of goods sold for the 04/15 sale using the…

A: The inventory can be valued using various methods as FIFO, LIFO and average method. Using average…

Q: Required Information [The following information applies to the questions displayed below.] The…

A: FIFO method is one of the methods of inventory valuation in which it is assumed that old purchases…

Q: You have the following information for Carla Vista Inc. for the month ended October 31, 2025. Carla…

A: Periodic inventory system:There are different types of inventory systems one of which is the period…

Q: You are provided with the following information for Concord Inc. for the month ended June 30, 2020.…

A: SOLUTION- COST OF GOODS AVAILABLE FOR SALE DATE…

Q: You have the following information for Sheridan Inc. for the month ended October 31, 2025. Sheridan…

A: DateQty Rate Total01-OctBeg…

Q: .The following data pertain to Cross Company (assume a perpetual inventory system) for the month…

A: FIFO stands for First in first out. Using FIFO method, older units are sold first and newer units…

Q: * Your answer is incorrect. Calculate the gross profit for the month of June using (1) FIFO and (2)…

A: Inventory is one of the important current asset of the business. Under FIFO method, inventories…

Q: You have the following information for Van Gogh Inc. for the month ended October 31, 2025. Van Gogh…

A: Inventory includes all the items, goods, and merchandise in the warehouse of the company to sell in…

Q: need answer

A: Perpetual Inventory MethodThe perpetual inventory method is an accounting system used to…

Q: Required information [The following information applies to the questions displayed below] The…

A: FIFO method is one of the methods of inventory valuation in which it is assumed that old purchases…

Q: Beginning inventory, purchases, Sept. 1 10 18 27 Inventory Sale Purchase Sale 115 L 100 L 110 L 105…

A: Inventory, based on its intended use and where it is in the manufacturing or distribution process.…

Q: Use data below to calculate the cost of ending inventory using the LIFO periodic inventory system…

A: In case of LIFO method, the latest purchased goods will be sold first. so the ending inventory will…

Q: Which inventory method will allow company to present the highest ending inventory on the January 31,…

A: LIFODateParticularsPurchaseSaleBalanceUnit Cost ($)Total ($)Unit Cost ($)Total ($)Unit Cost ($)Total…

Q: Compute the Cost of Goods Sold and ending inventory (units and value) after Sale 1. Cost of Goods…

A: The cost of your oldest inventory is calculated using FIFO (First-In, First-Out), which then…

Concept explainers

Inventory Valuation

Before discussing the topic inventory valuation let’s discuss the meaning of inventory. In accounting, inventory is also known as stock. Inventory means all the finished goods, materials, merchandise that a business holds for the purpose of selling it in the market with the motive of earning profit.

Topic Video

Question

P6-5A You have the following information for Vincent Inc. for the month ended October
31, 2014. Vincent uses a periodic method for inventory.
Calculate ending inventory,
cost of goods sold, gross
profit, and gross profit rate
under periodic method;
Unit Cost or
Date
Description
Units
Selling Price
compare results.
(LO 2, 3), AP
Oct. 1
Beginning inventory
Purchase
60
$24
Oct. 9
Oct. 11
Oct. 17
Oct. 22
Oct. 25
Oct. 29
120
26
Sale
100
35
Purchase
100
27
Sale
60
40
Purchase
70
29
Sale
110
40
Instructions
(a) Calculate (i) ending inventory, (ii) cost of goods sold, (iii) gross profit, and (iv) gross
profit rate under each of the following methods.
(1) LIFO.
(2) FIFO.
(3) Average-cost. (Round cost per unit to three decimal places.)
(b) Compare results for the three cost flow assumptions.
(a) Gross profit:
LIFO
FIFO
Average
$2.970
$3.310
$3,133

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

Step 2

Step 3

Step 4

Step 5

Step 6

Trending now

This is a popular solution!

Step by step

Solved in 6 steps with 21 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Calculate a) cost of goods sold, b) ending inventory, and c) gross margin for A76 Company, considering the following transactions under three different cost allocation methods and using perpetual inventory updating. Provide calculations for weighted average (AVG).
Calculate a) cost of goods sold, b) ending inventory, and c) gross margin for A76 Company, considering the following transactions under three different cost allocation methods and using perpetual inventory updating. Provide calculations for last-in, first-out (LIFO).
Calculate the cost of goods sold dollar value for A74 Company for the sale on March 11, considering the following transactions under three different cost allocation methods and using perpetual inventory updating. Provide calculations for (a) first-in, first-out (FIFO); (b) last-in, first-out (LIFO); and (c) weighted average (AVG).
Calculate the cost of goods sold dollar value for B74 Company for the sale on November 20, considering the following transactions under three different cost allocation methods and using perpetual inventory updating. Provide calculations for (a) first-in, first-out (FIFO); (b) last-in, first-out (LIFO); and (c) weighted average (AVG).
Compare the calculations for gross margin for B76 Company, based on the results of the perpetual inventory calculations using FIFO, LIFO, and AVG.
Calculate the cost of goods sold dollar value for A67 Company for the month, considering the following transactions under three different cost allocation methods and using perpetual inventory updating. Provide calculations for weighted average (AVG).
Refer to the information for Morgan Inc. above. If Morgan uses a perpetual inventory system, what is the cost of ending inventory under FIFO at April 30? a. $32,500 b. $38,400 c. $63,600 d. $69,500
Beginning inventory, purchases, and sales for Item Zebra 9x are as follows: Assuming a perpetual inventory system and using the last-in, first-out (LIFO) method, determine (a) the cost of merchandise sold on April 27 and (b) the inventory on April 30.
Beginning inventory, purchases, and sales for Item ProX2 are as follows: Assuming a perpetual inventory system and using the first-in, first-out (FIFO) method, determine (a) the cost of merchandise sold on January 25 and (b) the inventory on January 31.
Beginning inventory, purchases, and sales for 30xT are as follows: Assuming a perpetual inventory system and using the weighted average method, determine (a) the weighted average unit cost after the May 23 purchase, (b) the cost of the merchandise sold on May 26, and (c) the inventory on May 31.
Use the last-in, first-out method (LIFO) cost allocation method, with perpetual inventory updating, to calculate (a) sales revenue, (b) cost of goods sold, and c) gross margin for B75 Company, considering the following transactions.
Use the first-in, first-out (FIFO) cost allocation method, with perpetual inventory updating, to calculate (a) sales revenue, (b) cost of goods sold, and c) gross margin for A75 Company, considering the following transactions.