Problem 2 Cortez Corporation sells Item A as part of its product line. Information as to balances on hand, purchases, and sales of Item A are given in the following table for the first six months of 2020. January 1 balance, 400 units @ $2.00 Purchases: January 24: 1,600 units @ $3.00 June 11: 1,000 units @ $4.00 Sales: February 8: 800 units March 16: 700 units June 28: 1,200 units Required: Compute the ending inventory and cost of goods sold under each of the following inventory methods: (a) Perpetual FIFO (first-in, first-out). (b) Perpetual LIFO (last-in, first-out). (c) Perpetual moving average.

Problem 2 Cortez Corporation sells Item A as part of its product line. Information as to balances on hand, purchases, and sales of Item A are given in the following table for the first six months of 2020. January 1 balance, 400 units @ $2.00 Purchases: January 24: 1,600 units @ $3.00 June 11: 1,000 units @ $4.00 Sales: February 8: 800 units March 16: 700 units June 28: 1,200 units Required: Compute the ending inventory and cost of goods sold under each of the following inventory methods: (a) Perpetual FIFO (first-in, first-out). (b) Perpetual LIFO (last-in, first-out). (c) Perpetual moving average.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter7: Inventories: Cost Measurement And Flow Assumptions

Section: Chapter Questions

Problem 8P: Comprehensive The following information for 2019 is available for Marino Company: 1. The beginning...

See similar textbooks

Similar questions

QUESTION & 6 The following are estimated the estimated sales of a company for eight month Navember 30.2020 Escimated Sales (Units) Manth 12,000 April 13,000 May 9,000 June 8,000 July 10,000 August September 12,000 October 14,000 November 12,000 As a matter of policy, the company maintains the closing balance of finished goods and raw materials as follows Inventory Items Finished goods Ending Balance -50% of estimated sales of next month Raw materials --Estimated consumption for next month Every unit of production requires 2 kgs of raw materials costing Br, 5 per kg Prepare: Production budget company for the half year ending September 30,2020 (units) and raw material budget in (units and cost) of the QUESTION #-7 Financial ratios are the symptoms like the blood pressure, the pulse or the temperature of an individual. Explain. also name and explain in brief the common types of ratios used by business companies.
Crane Corporation sells item A as part of its product line. Information as to balances on hand, purchases, and sales of item A are given in the following table for the first six months of 2025. Date January 11 January 24 February 8 March 16 June 11 (a) Purchased 1,320 Ending inventory Quantities 700 Sold 340 560 Balance 440 1.760 1,420 860 1,560 Unit Price of Purchase $4.70 $4.80 $5.20 Compute the ending inventory at June 30 under the perpetual LIFO inventory pricing method.
QUESTION 28 A company using perpetual FIFO has the following data for August: Beginning inventory: 150 units purchased on July 15 for $11 each, and 200 units purchased on July 25 for $12 each. August 2: Sale of 80 units for $25 each August 5: Purchase of 100 units for $13 each What is the company's gross profit for the sale on August 2?
sssssssssssssss
QUESTIONS FOURThe following information was provided by Dzemkple Limited for the two weeks month ofAugust, 2018 for material ZorklaleyStock on 01/08/2018 100 units @ GHc 5 per unitDATE PURCHASES DATE ISSUES05/08/2018 300 units @ GHc 6 per unit 06/08/2018 250 units08/08/2018 500 units @ GHc 7 per unit 10/08/2018 400 units12/08/2018 600 units @ GHc 8 per unit 14/08/2018 500 unitsYou are required to calculate using FIFO and Weighted Average methods of pricing issues:(a) The value of materials consumed during the period(b) The value of stock of materials on the 31/08/2018
Answer ALL FOUR Questions Question 12 Total Pop's data show the following information of January, February, March, April, May 2022 (respectively): ♦ + Additional information Finished goods inventory is required to be 20% of the next month's . Jan. Feb. Mar. Apr. May Estimated sales (units) 15,000 14,500 16,000 15,500 15,800 Sales price per unit $ 45 $ 45 $ 45 S 45 $ 45 Direct labor per unit $ 3 $ 3 $2.25 S 2 $ Labor rate per hour $ 18 $ 18 S 21 $ 21 S 2 21 requirements. The ending inventory required for direct materials is 15% of the next month's needs. Direct material requires 2 pounds per unit at a cost of $3 per pound. In January, the beginning inventory is 3,000 units of finished goods and 4,470 pounds of material. Required: Prepare the below budgets for the company: (a) a production budget for the first quarter of the year. (b) direct materials budget for the first quarter of the year. X
Desiccate purchases direct materials each month. Its payment history shows that 70% is paid in the month of purchase with the remaining balance pad the month after purchase. Prepare a cash payment schedule for March if in January through March, it purchased $35,000, $37,000, and $39,000, respectively.
Comprehensive The following information for 2019 is available for Marino Company: 1. The beginning inventory is 100,000. 2. Purchases returns of 4,000 were made. 3. Purchases of 300,000 were made on terms of 2/10, n/30. Eighty percent of the discounts were taken. 4. At December 31, purchases of 20,000 were in transit, FOB destination, on terms of 2/10, n/30. 5. The company made sales of 640,000. The gross selling price per unit is twice the net cost of each unit sold. 6. Sales allowances of 6,000 were made. 7. The company uses the LIFO periodic method and the gross method for purchase discounts. Required: 1. Compute the cost of the ending inventory before the physical inventory is taken. 2. Compute the amount of the cost of goods sold that came from the purchases of the period and the amount that came from the beginning inventory.
Refer to RE22-2. Assume Heller Company had sales revenue of 510,000 in 2019 and 650,000 in 2020. Prepare Hellers partial income statements (through gross profit) for 2019 and 2020. RE22-2 Heller Company began operations in 2019 and used the LIFO method to compute its 300,000 cost of goods sold for that year. At the beginning of 2020, Heller changed to the FIFO method. Heller determined that its cost of goods sold under FIFO would have been 250,000 in 2019. For 2020, Hellers cost of goods sold under FIFO was 360,000, while it would have been 410,000 under LIFO. Heller is subject to a 21% income tax rate. Compute the cumulative effect of the retrospective adjustment on prior years income (net of taxes) that Heller would report on its retained earnings statement for 2020.
SALES RETURNS AND ALLOWANCES ADJUSTMENT At the end of year 1, JCs estimates that 2,000 of the current years sales will be returned in year 2. Prepare the adjusting entry at the end of year 1 to record the estimated sales returns and allowances and customer refunds payable for this 2,000. Use accounts as illustrated in the chapter.
Activities/Assessments: Activity 9 Solve the following EOQ model problems: 1. Each year, Y Company purchases 20,000 units of an item that costs P 640 per unit. The cost of placing an order is P 480, and the cost to hold the item in inventory for one year is P 150. a. Determine the EOQ. b. What is the average inventory level, assuming that the minimum inventory level is zero? c. Determine the total annual ordering cost and the total annual holding cost for the item if the EOQ is used. 2. A toy manufacturer uses approximately 32,000 silicon chips annually. The chips are used at a steady rate during the 240 days the plant operates. Annual holding cost is P27 per chip and ordering cost is P1,080. Lead time = 1 week. a. Find the EOQ. b. Find the reorder point. c. What would be your ordering policy for this item? d. Find the total annual cost of ordering and carrying silicon chips. 3. A large bakery buys sugar in 50-kg bags. The bakery uses an average of 1,344 bags a year. Preparing an order…
Question 2. Required information Skip to question [The following information applies to the questions displayed below.]Ferris Company began January with 4,000 units of its principal product. The cost of each unit is $8. Merchandise transactions for the month of January are as follows: Purchases Date of Purchase Units Unit Cost* Total Cost Jan. 10 3,000 $ 9 $ 27,000 Jan. 18 4,000 10 40,000 Totals 7,000 67,000 * Includes purchase price and cost of freight. Sales Date of Sale Units Jan. 5 2,000 Jan. 12 1,000 Jan. 20 3,000 Total 6,000 5,000 units were on hand at the end of the month.