Required:15. If the FIFO cost flow method is used, the sale return shall be costed back into inventory at what unit cost?16. If the average cost flow method is used, the sale return shall be costed back into inventory at what unit cost? PROBLEM 12: DDD Company uses the perpetual inventory system. The inventory transactions forAugust of the current year were as follows:NumberUnitCostDate8/1Transactionof UnitsBeginning balance20,000P 4.008/78/108/128/16Purchase10,00020,0004.20Purchase4.30Sale15,00020,000Purchase4.608/208/28Sale40,0003,000Sale returnThe sale return on August 28 relates to the sale made on August 20.15. If the FIFO cost flow method is used, the sale return shall be costed back into inventory atwhat unit cost?16. If the average cost flow method is used, the sale return shall be costed back intoinventory at what unit cost?

Name: Required:15. If the FIFO cost flow method is used, the sale return sha
Uploaded: 2024-03-20T06:32:37.000Z
Channel: Bartleby
Description: Required:15. If the FIFO cost flow method is used, the sale return shall be costed back into inventory at what unit cost?16. If the average cost flow method is used, the sale return shall be costed back into inventory at what unit cost? PROBLEM 12: D

15) Explanation - Sales return are shown as negative figure because they lead to a decrease in…

Business

Accounting

PROBLEM 12: DDD Company uses the perpetual inventory system. The inventory transactions for August of the current year were as follows: Number of Units 20,000 Unit Date Transaction Cost P 4.00 8/1 8/7 8/10 8/12 8/16 8/20 8/28 Beginning balance Purchase 10,000 20,000 4.20 Purchase 4.30 15,000 20,000 Sale Purchase 4.60 Sale 40,000 3,000 Sale return The sale return on August 28 relates to the sale made on August 20. 15. If the FIFO cost flow method is used, the sale return shall be costed back into inventory at what unit cost? 16. If the average cost flow method is used, the sale return shall be costed back into inventory at what unit cost?

PROBLEM 12: DDD Company uses the perpetual inventory system. The inventory transactions for August of the current year were as follows: Number of Units 20,000 Unit Date Transaction Cost P 4.00 8/1 8/7 8/10 8/12 8/16 8/20 8/28 Beginning balance Purchase 10,000 20,000 4.20 Purchase 4.30 15,000 20,000 Sale Purchase 4.60 Sale 40,000 3,000 Sale return The sale return on August 28 relates to the sale made on August 20. 15. If the FIFO cost flow method is used, the sale return shall be costed back into inventory at what unit cost? 16. If the average cost flow method is used, the sale return shall be costed back into inventory at what unit cost?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

When using the periodic inventory system and weighted-average inventory costing method, when is the weighted-average cost per unit computed?
The original cost of an item of inventory is above its replacement cost. The item s replacement cost is below its net realizable value but is higher than its net realizable value minus a normal profit. Under the lower of cost or market method, the inventory item should be valued at: a. Net realizable value. b. Original cost. c. Replacement cost. d. Net realizable value less normal profit margin.
Which inventory cost flow assumption does IFRS not allow? a. Specific identification. b. FIFO. c. LIFO. d. Average cost.
Based on the fundamental principle of IAS2, identify two (2) circumstances where the NRV of inventory might be lower than its cost?
Which method would produce the same unit cost for Inventory and Cost of Good Sold in periods of rising prices? Select one: a. Weighted Average b. FIFO c. LIFO
H7. For the same transactions, why does the weighted-average cost method provide different value for ending inventory and COGS depending on whether the periodic or perpetual inventory system is used? Select one: a. Perpetual inventory calculates and assigns costs as items are sold, while periodic inventory calculates and assigns costs at the end of the period. b. Perpetual inventory calculates and assigns costs at the end of the period, while periodic inventory calculates and assigns costs as items are sold. c. Perpetual inventory counts all the purchases for the month first before calculating the average cost, while periodic calculates the average cost after every transaction. d. Perpetual inventory and periodic inventory will not provide different values using Explain also wrong options and explain with details
Under the weighted average cost, when a unit is sold, the average cost of each unit in inventory is assigned to cost of goods sold. True O False
acc1
Which cost flow assumption generally results in the highest reported amount for ending inventory when inventory costs are rising? Explain.
What is the ending inventory value?
What is the purpose of the lower of cost or net realizable value rule? What would happen if a company was to report their inventory at replacement cost?