Question 2 (max 60)Shown below is activity for one of the products of Denver Office Equipment:January 1 balance, 540 units @ $50 per unit $27,000Purchases:January 10: 540 units @ $55 per unitJanuary 20: 1,020 units @ $56 per unitSales:January 12: 910 unitsJanuary 28: 790 unitsRequired:Compute the January 31 ending inventory and cost of goods sold for January, assuming Denver uses LIFO and a periodic inventorysystem.

The objective of the question is to calculate the ending inventory and cost of goods sold (COGS) for…

Answered: Question 2 (max 60) Shown below is…

Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter5: Inventories And Cost Of Goods Sold

Section: Chapter Questions

Problem 5.11E: Inventory Costing Methods VanderMeer Inc. reported the following information for the month of...

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Comparison of Inventory Costing Methodsâ€”Periodic System Bitten Companys inventory records show 600 units on hand on October 1 with a unit cost of $5 each. The following transactions occurred during the month of October: All expenses other than cost of goods sold amount to $3,000 for the month. The company uses an estimated tax rate of 30% to accrue monthly income taxes. Required Prepare a chart comparing cost of goods sold and ending inventory using the periodic system and the following costing methods: What does the Total column represent? Prepare income statements for each of the three methods. Will the company pay more or less tax if it uses FIFO rather than LIFO? How much more or less?
Inventory Costing Methods VanderMeer Inc. reported the following information for the month of February: During February, VanderMeer sold 140 units. The company uses a periodic inventory system. Required What is the value of ending inventory and cost of goods sold for February under the following assumptions: Of the 140 units sold, 55 cost $20, 35 cost $22, 45 cost $23, and 5 cost $24. FIFO LIFO Weighted average
The following three identical units of Item A are purchased during April: Assume that one unit is sold on April 30 for 118. Determine the gross profit for April and ending inventory on April 30 using the (a) first-in, first-out (FIFO); (b) last-in, first-out (LIFO); and (c) weighted average cost methods.
Akira Company had the following transactions for the month. Calculate the gross margin for the period for each of the following cost allocation methods, using periodic inventory updating. Assume that all units were sold for $25 each. Provide your calculations. A. first-in, first-out (FIFO) B. last-in, first-out (LIFO) C. weighted average (AVG)
Shown below is activity for one of the products of Denver Office Equipment: January 1 balance, 610 units @ $55 per unit $33,550 Purchases: January 10: 610 units @ $60 per unit January 20: 1,030 units @ $65 per unit Sales: January 12: 1,000 units January 28: 750 units Required: Compute the January 31 ending inventory and cost of goods sold for January, assuming Denver uses FIFO.
Shown below is activity for one of the products of Denver Office Equipment: January 1 balance, 650 units @ $60 per unit $39,000 Purchases: January 10: 650 units @ $65 per unit January 20: 1,200 units @ $70 per unit Sales: January 12: 1,000 units January 28: 790 units Required: Compute the January 31 ending inventory and cost of goods sold for January, assuming Denver uses average cost and a perpetual inventory system. Note: Do not round intermediate calculations. Round your final answers to nearest whole dollar amount. Ending inventory Cost of goods sold
1 Shown below is activity for one of the products of Denver Office Equipment: January 1 balance, 590 units @ $50 per unit $29,500 Purchases: January 10: 590 units @ $50 per unit January 20: 1,020 units @ $60 per unit 4 Sales: January 12: 840 units January 28: 790 units Required: Compute the January 31 ending inventory and cost of goods sold for January, assuming Denver uses FIFO. Ending inventory Cost of goods sold
Shown below is activity for one of the products of Denver Office Equipment: January 1 balance, 550 units @ $60 per unit $33,000 Purchases: January 10: January 20: Sales: January 12: January 28: 550 units @ $65 per unit 1,100 units @ $57 per unit 950 units 800 units Required: Compute the January 31 ending inventory and cost of goods sold for January, assuming Denver uses average cost and a perpetual inventory system. (Do not round intermediate calculations. Round your final answers to nearest whole dollar amount.) Ending inventory Cost of goods sold
Shown below is activity for one of the products of Denver Office Equipment: January 1 balance, 500 units @ $55 per unit $27,500 Purchases: January 10: 500 units @ $60 per unit January 20: 1,000 units @ $63 per unit Sales: January 12: 800 units January 28: 750 units Required:Compute the January 31 ending inventory and cost of goods sold for January, assuming Denver uses FIFO. Ending Inventory Cost of Goods Sold
Shown below is activity for one of the products of Denver Office Equipment: January 1 balance, 700 units @ $55 per unit $38,500 Purchases: January 10: 700 units @ $60 per unit January 20: 1,100 units @ $62 per unit Sales: January 12: 1,000 units January 28: 840 units Required: Compute the January 31 ending inventory for January, assuming Denver uses FIFO.
Shown below is activity for one of the products of Denver Office Equipment: January 1 balance, 690 units @ $60 per unit $41,400 Purchases: January 10: 690 units @ $64 per unit January 20: 1,220 units @ $66 per unit Sales: January 12: 1,000 units January 28: 800 units Required: Compute the January 31 ending inventory for January, assuming Denver uses LIFO and a perpetual inventory system.
Shown below is activity for one of the products of Denver Office Equipment: January 1 balance, 500 units @ $55 Purchases: January 10: 500 units @ $60 January 20: 800 units @ $63 Sales: January 12: 750 units January 28: 650 units 4) Compute the cost of goods sold for January, assuming Denver uses average cost and perpetual inventory system. Cost of goods sold: $ Your computations: (no credit if not shown)

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