Question 3 Assume Orion Iron applies its inventory costing method perpetually at the time of each sale. At the end of the annual accounting period, December 31, the accounting records provided the following information: a. Inventory, Beginning For the year: b. Purchase, April 11 Transactions Units Unit Cost 3,000 $12 9,000 10 c. Purchase, June 1 d. Sale, May 1 (sold for $40 per unit) e. Sale, July 3 (sold for $40 per unit) 8,000 13 13 3,000 6,000 f. Operating expenses (excluding income tax expense), $195,000 Requirement 1 Calculate the cost of ending inventory and the cost of goods sold using the FIFO method.

Question 3 Assume Orion Iron applies its inventory costing method perpetually at the time of each sale. At the end of the annual accounting period, December 31, the accounting records provided the following information: a. Inventory, Beginning For the year: b. Purchase, April 11 Transactions Units Unit Cost 3,000 $12 9,000 10 c. Purchase, June 1 d. Sale, May 1 (sold for $40 per unit) e. Sale, July 3 (sold for $40 per unit) 8,000 13 13 3,000 6,000 f. Operating expenses (excluding income tax expense), $195,000 Requirement 1 Calculate the cost of ending inventory and the cost of goods sold using the FIFO method.

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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Orion Iron Corporation tracks the number of units purchased and sold throughout each year but applies its inventory costing method at the end of the year, as if it uses a periodic inventory system. Assume its accounting records provided the following information at the end of the annual accounting period, December 31. Transactions Units Unit Cost a. Inventory, Beginning 300 $ 13 For the year: b. Purchase, April 11 900 11 c. Purchase, June 1 800 14 d. Sale, May 1 (sold for $41 per unit) 300 e. Sale, July 3 (sold for $41 per unit) 620 f. Operating expenses (excluding income tax expense), $18,100 Required: 1. Calculate the number and cost of goods available for sale. 2. Calculate the number of units in ending inventory. 3. Compute the cost of ending inventory and cost of goods sold under (a) FIFO, (b) LIFO, and (c) weighted average cost. 4. Prepare an income statement that shows under the FIFO method, LIFO method and weighted average method. 6. Which…
Periodic Inventory by Three Methods The units of an item available for sale during the year were as follows: Jan. 1 Inventory 14 units @ $24 Feb. 17 Purchase 6 units @ $25 July 21 Purchase 13 units @ $28 Nov. 23 Purchase 18 units @ $28 There are 14 units of the item in the physical inventory at December 31. The periodic inventory system is used. a. Determine the inventory cost by the first-in, first-out method. b. Determine the inventory cost by the last-in, first-out method. c. Determine the inventory cost by the weighted average cost method. Round average unit cost to the nearest cent and final answers to the nearest whole dollar, if required.
Question Content Area Based on the following data for the current year, what is the number of days' sales in inventory? Assume 365 days a year. Sales on account during year $575,757 Cost of merchandise sold during year 193,428 Accounts receivable, beginning of year 43,481 Accounts receivable, end of year 51,054 Merchandise inventory, beginning of year 32,544 Merchandise inventory, end of year 43,018 Round your intermediate calculations to the nearest dollar. When required, round your answer to the whole number.
Required information [The following information applies to the questions displayed below.] A company reports the following beginning inventory and two purchases for the month of January. On January 26, the company sells 350 units. Ending inventory at January 31 totals 150 units. Beginning inventory on January 1 Purchase on January 9 Purchase on January 25 Date Assume the perpetual inventory system is used. Determine the costs assigned to ending inventory when costs are assigned based or the LIFO method. January 1 January 9 Total January 9 January 25 Total January 25 January 26 Total January 26 Goods purchased # of units Units 320 80 100 Cost per # of units unit sold Unit Cost $ 4.10 4.30 4.44 Perpetual LIFO; Cost of Goods Sold Cost per unit Cost of Goods Sold # of units Inventory Balance Cost per unit Inventory Balance H N $ 0
Computing Cost of Goods Sold and Ending Inventory Bartov Corporation reports the following beginning inventory and purchases for the year: Beginning inventory Inventory purchased 600 1,050 $10 each $6,000 $12 each 12,600 $18,600 Cost of goods available 1,650 units Bartov sells 900 of these units in the year. Compute its cost of goods sold for the year and the ending inventory reported on its year-end balance sheet under each of the following inventory costing methods: (Do not round until your final answer. Round to the nearest whole number.) FIFO LIFO Average cost Cost of goods sold $ 0 $ 0 $ 0 Ending inventory 0 0 0 Check
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Orion Iron Corporation tracks the number of units purchased and sold throughout each year but applies its inventory costing method perpetually at the time of each sale, as if it uses perpetual inventory system. Assume its accounting records provided the following information at the end of the annual accounting period, December 31. Transactions Units Unit Cost a. Inventory, Beginning 300 $ 10 For the year: b. Purchase, April 11 700 8 c. Purchase, June 1 600 11 d. Sale, May 1 (sold for $38 per unit) 300 e. Sale, July 3 (sold for $38 per unit) 550 f. Operating expenses (excluding income tax expense), $19,300 Required: Calculate the cost of ending inventory and the cost of goods sold using the FIFO and LIFO methods.
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