Problem 14-8 (IAA), Glamor Company provided the following data: Beginning inventory Cost Selling price. Purchases: Cost Selling price Transportation in Purchase discount Purchase return: Cost Selling price Sales return Sales discount Markup Markdown Cancelation of markup Cancelation of markdown 500,000 770,000 3,070,000 4,300,000 70,000 45,000 25,000 40,000 80,000 20,000 100,000 350,000 30,000 10,000 4,000,000 1 What is the estimated cost of ending inventory using the lower of average cost and net realizable value approach? Sales a. 596,400 b. 588,000 c. 582,200 d. 574,000 2 What is the estimated cost of ending inventory using the average cost approach? a. 615,000 b. 570,000 c. 630,000 d. 539,600

Problem 14-8 (IAA), Glamor Company provided the following data: Beginning inventory Cost Selling price. Purchases: Cost Selling price Transportation in Purchase discount Purchase return: Cost Selling price Sales return Sales discount Markup Markdown Cancelation of markup Cancelation of markdown 500,000 770,000 3,070,000 4,300,000 70,000 45,000 25,000 40,000 80,000 20,000 100,000 350,000 30,000 10,000 4,000,000 1 What is the estimated cost of ending inventory using the lower of average cost and net realizable value approach? Sales a. 596,400 b. 588,000 c. 582,200 d. 574,000 2 What is the estimated cost of ending inventory using the average cost approach? a. 615,000 b. 570,000 c. 630,000 d. 539,600

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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Paragraph 151 Styles Assume an outlet of The Runner's Store has the following data: Date Item Quantity Unit Costs Sale Price Aug 1 Beginning balance 40 $40 Sale 16 $70 8 Purchase 80 41 11 Sale 34 70 19 Sale 72 24 Sale 30 72 30 Purchase 18 42 Requirements: a) Calculate the Cost of Goods Sold and Ending Inventory using FIFO method. b) Calculate the Cost of Goods Sold and Ending Inventory using Weighted Average method. c) Calculate the gross profit under FIFO and Weighted Average method. d) Prepare the journal entries for August 3 and August 8 based on FIFO method. a) FIFO Opening and Purchases Cost of Goods Sold Balance Date Unit Unit Amount Unit Unit Amount Unit Unit Amount Cost Cost Cost Total
es W Required information [The following information applies to the questions displayed below.] (a Warnerwoods Company uses a perpetual inventory system. It entered into the following purchases and sales transactions for March. Date March 1 March 5 March 9 March 18 here to search 2 March 25 March 29 Sales Less: Cost of goods sold Gross profit Gross Margin 13 # Activities Beginning inventory Purchase Sales Purchase Purchase Sales Totals 4. Compute gross profit earned by the company for each of the four costing methods. For specific identification, units sold include 140 units from beginning inventory, 270 units from the March 5 purchase, 120 units from the March 18 purchase, and 160 units, from the March 25 purchase. Note: Round weighted average cost per unit to two decimals and final answers to nearest whole dollar. 3 Ri $ FIFO $ 64,210 $ IDI 4 LIFO 99+ 15 % Units Acquired at Cost 250 units. @ $54.00 per unit 300 units @ $59.00 per unit 160 units 300 units 5 1,010 units 64,210 $ @…
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Required information [The following information applies to the questions displayed below.] Hemming Company reported the following current-year purchases and sales for its only product. Activities Beginning inventory Sales. Purchase Sales Purchase Sales Purchase Totals Date January 1 January 10 March 14 March 15 July 30 October 5 October 26 a) Cost of Goods Sold using Specific Identification Available for Sale Date January 1 March 14 July 30 October 26 Less: Equals: Activity Beginning Inventory Purchase Purchase Purchase b) Gross Margin using Specific Identification # of units 260 420 460 160 1,300 Units Acquired at Cost @$12.40 = @$17.40 = 260 units. 420 units 460 units 160 units 1,300 units Cost Per Unit $ 12.40 $17.40 $22.40 $ 27.40 3 @ $22.40 # of units sold @$27.40 Ending inventory consists of 45 units from the March 14 purchase, 75 units from the July 30 purchase, and all 160 units from the October 26 purchase. Using the specific identification method, calculate the following. = 0…
Presented below is information related to Novak Inc. Inventory, 12/31/25 Purchases Purchase returns Purchase discounts Gross sales revenue Sales returns Markups Markup cancellations Markdowns Markdown cancellations Freight-in Employee discounts granted Loss from breakage (normal) Show Transcribed Text S Cost $253,500 $390,700 1,009,210 1,468,300 59,300 18,100 41,300 C Retail Ending inventory using the conventional retail inventory method $ 79,500 1,434,100 99,100 118,600 39,600 44,200 20,400 8,000 4,700 Assuming that Novak Inc. uses the conventional retail inventory method, compute the cost of its ending inventory at December 31, 2026.
Pomona Co. uses the conventional retail method to estimate ending inventories. The following data has been summarized for year ended December 31, 2023: Beg Inv Purchases Net Markups Net Markdowns Normal Spoilage Employee Discounts Net Sales Beg Inv Estimated the ending inventory and cost of goods sold applying the conventional retail method. Assume that sales are recorded net of employee discounts. 1. Round ratio calculation to 2 decimal places (i.e., 0.1234 should be entered as 12.34%.). For all others, round up to a whole number. 2. Enter amounts to be deducted with a minus sign. 3. Do not put "$" in your answers. 4. When nothing needs to be added/subtracted, please put 0 in the blank. Cost Pu ases Net Markups Cost $80,000 $166,000 Goods AFS Retail $126,000 $300,000 $9,100 $8,200 $13,200 $15,600 $238,000 Retail
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Calculate Inventory Carrying Cost (ICC) using the information below. annual demand ordering cost per order inventory carrying cost percentage leadtime unit value #days in the period. EOQ 1000 $75 20% 3 days $30 360 158
3. 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). Number of Units Unit Cost Beginning inventory Mar. 1 Purchased Mar. 8 Sold Mar. 11 for $120 per unit 110 $87 140 89 95