Help Answer Question 4A - 4B (Indicate each soultuion with 4A and 4B) Question 4Chems Trading Ltd reports the following purchases and sales data for its product X forthe month of September.Units purchased atDateActivitiescostUnits sold atretailSep. 1Beginninginventory300 units @ $50.00Sep. 8Purchase280 units @ $65.00Sep. 19Purchase350 units @ $70.00Sep. 24Sales600 units @$75.00Sep. 28Sales200 units @$90.00Chems Trading Ltd uses a perpetual inventory system.Question 4aDetermine the cost assigned to ending inventory and to the cost of goods sold using:(i) FIFO.(ii) Weighted average cost.(iii) Specific identification if the ending inventory consists of 40 units from September19 purchase, 70 units from September 8 purchase and the balance from beginninginventory.Workings must show the inventory movements and balance for each transaction. Roundper unit cost to three decimal points and total cost to the nearest $ for the weightedaverage method.Question 4bIn order to show a higher profit, the CEO of Chems Trading Ltd has instructed that theinventory costing method be changed. Comment your view on this.

QUESTION 4A(i) FIFO (First-In, First-Out)FIFO, or First-In, First-Out, is a method where we assume…

Answered: Question 4 Chems Trading Ltd reports…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

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Chapter10: Inventory

Section: Chapter Questions

Problem 6EA: Akira Company had the following transactions for the month. Calculate the gross margin for the...

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Joe's Products Co. had the following purchase transaction during the first quarter of its fiscal year: Date Transaction Numberof Units PerUnit Jan. 1 Beg. Inv. 50 $15 Jan. 15 Purchase 100 $18 Feb. 15 Purchase 120 $21 March 15 Purhcase 80 $25 Joe's Products sold 170 units at $30/unit during the quarter. Of the untis sold, 20 came from beginning inventory, 30 came from the Feb. 15 purchase, and 50 came form the March 15 purchase with the remaining units coming from Jan. 15. Fill out the table below with the COGS, Ending Inventory, and Gross Margin under the four different inventory flow assumptions: SpecificIdentification First-In,First-Out Last-In,First-Out WeightedAverage Cost Cost of Goods Sold fill in the blank fill in the blank fill in the blank fill in the blank Ending Inventory fill in the blank fill in the blank fill in the blank fill in the blank Gross Margin fill in the blank fill in the blank fill in the blank fill in the blank
Table 1. The First Set of Data - Purchases 1st June 6th June 11th June 19th June 28th June The following data relates to the sales: I 1185 units @9 711 units @ 10 474 units @ 12 1185 units @11 158 units @ 13 Table 2. The Second Set of Data-Sales 9th June 237 units @ 13 14th June 1422 units @ 13 24th June 553 units @ 15 Required: Based on the above information, calculate the following for the month of June 20X0: a) Cost of goods sold (COGS)
Joe's Products Co. had the following purchase transaction during the first quarter of its fiscal year: Number : Per of Units Unit Date Transaction Jan. 1 Beg. Inv. 50 $15 | Jan. 15 Purchase 100 $18 Feb. 15 Purchase 120 $21 March 15 Purhcase 80 $25 Joe's Products sold 170 units at $30/unit during the quarter. Of the untis sold, 20 came from beginning inventory, 30 came from the Feb. 15 purchase, and 50 came form the March 15 purchase with the remaining units coming from Jan. 15. Fill out the table below with the COGS, Ending Inventory, and Gross Margin under the four different inventory flow assumptions: Specific First-In, Last-In, Weighted Identification First-Out First-Out Average Cost Cost of Goods Sold 3,640 2,970 3,890 3,434 Ending Inventory 3,430 4,100 3,180 3,636 Gross Margin 1,460 2,130 1,210 1,666
Norris Co. purchase and sales data is as follows: Units Cost per Unit Aug. 1 Inventory 50 $25 7 Sale 38 18 Purchase 25 $30 24 Sale ? 29 Purchase 60 $32 The August 24th sale is provided as a slider to vary the quantity sold as follows: 4. If 30 units are sold on August 24th under LIFO, what is the total cost of this sale? $ _________ 5. If 20 units are sold on August 24th under FIFO, what is the total cost of this sale? $ ____________ 6. The Cost of Merchandise Sold under FIFO is the Cost of Merchandise Sold under LIFO for all of the unit amounts on the first slider_______(GREATER THAN/LESS THAN/EQUAL TO). 7. The Merchandise Inventory under FIFO is the Merchandise Inventory under LIFO for all of the unit amounts on the first slider_______(GREATER/LESS/EQUAL). 8. The sum of Cost of Merchandise Sold and Merchandise Inventory for FIFO is ______(GREATER/LESS/EQUAL) the sum of Cost of…
Assume Ava Co. has the following purchases of inventory during the first month of operations Number of Units Cost per unit First Purchase 140 2.4 Second Purchase 105 4.7 Assuming Ava Co sells 120 units at $14 each, what is the cost of goods sold if they use LIFO?
Norris Co. purchase and sales data is as follows: Units Cost per Unit Aug. 1 Inventory 50 $25 7 Sale 38 18 Purchase 25 $30 24 Sale ? 29 Purchase 60 $32 The August 24th sale is provided as a slider to vary the quantity sold as follows: 1. If 10 units are sold on August 24th, what is the total Cost of Merchandise Sold for the month under LIFO? $ _________ 2. If 30 units are sold on August 24th, what is the Merchandise Inventory balance on August 31 under FIFO? $ ___________ 3. Under either FIFO or LIFO, as the number of units sold increases, the number of units in the Merchandise Inventory ending balance ________(DECREASE/INCREASE/REMAIS UNCHANGED/VARIES RANDOMLY) . 4. If 30 units are sold on August 24th under LIFO, what is the total cost of this sale? $ _________ 5. If 20 units are sold on August 24th under FIFO, what is the total cost of this sale? $ ____________ 6. The…
[The following information applies to the questions displayed below.] Tree Seedlings has the following current-year purchases and sales for its only product. Activities Units Acquired at Cost Units Sold at Retail units Date January 1 Beginning inventory 40 January 3 February 14 February 15 June 30 November 6 November 19 Sales Purchase Sales Purchase Sales Purchase Totals 70 90 20 220 units units units units @ $2 @ $3 @ $4 = $ 80 = = @ $5 = $ 210 $360 $ 100 30 60 86 units @ $8 $750 176 units Record journal entries for Tree Seedlings' sales and purchases transactions. Assume for this assignment that the company uses a perpetual inventory system and LIFO. All sales and purchases are made on account, and no discounts are offered. units @ $8 units @ $8
97) A company had the following purchases and sales during its first month of operations: Date January 1 January 9 January 17 January 27 A) $84.00. B) $60.71. Activities C) $23.35. D) $46.70. E) $37.36. Purchase Sales Purchase Sales Units Acquired at Cost 10 units @ $4.00 = $40.00 8 units @ $5.50 = $44.00 Units Sold at Retail 6 units @ $12.00 Using the Periodic weighted average method, what is the value of cost of goods sold? (Round weighted average cost per unit to 2 decimal places.) 7 units @ $12.00
2. Use the information below to determine the sales revenue, cost of goods sold and gross profit that would be reported for the company related to the March 16 sale Date January 1 February 5 March 16 Activities Purchase Purchase Sale Units Acquired at Cost 100 units @ $10 = $1,000 60 units @ $12= $720 Units Sold at Retail 40 units @ $16
Tree Seedlings has the following current-year purchases and sales for its only product. Units Sold at Retail Date Activities Units Acquired at Cost Jan. 1 Beginning inventory Jan. 3 Sales 180 units @ $2 = $ 360 Feb. 14 Feb. 15 Sales Purchase 282 units @ $3 = $ 846 118 units @ $8 200 units @ $8 June 30 Purchase 230 units @ $4 = $ 920 Nov. 6 Sales Nov. 19 Purchase Totals 170 units @ $8 76 units @ $5 768 units = $ 380 $2,506 488 units Required: The company uses a perpetual inventory system. a. Determine the costs assigned to ending inventory and to cost of goods sold using FIFO. b. Determine the costs assigned to ending inventory and to cost of goods sold using LIFO. c. Compute the gross margin for each method.
A company had the following purchases during its first year of operations: Purchases Sales January 6 units at $10 May 12 units at $9 September 26 units at $12 October 24 units at $20 What is the cost of goods available for sale before the sale of October? $322 $802 $378 $480

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