Question: Ferris Company began 2016 with 9,000 units of its principal product. The cost of each unit is $8. Merchandise transactions for the month of January 2016 are as follows: Purchases Purchase Unit Total Date Units Cost⭑ Cost Jan. 10 6,000 $9 Jan. 18 9,000 $10 $ 54,000 $90,000 Totals 15,000 $ 144,000 . Includes purchase price and cost of freight. Sales Date Sale Units Jan. 5 5,000 Jan. 12 3,000 Jan. 20 6,000 Total 14,000 10,000 units were on hand at the end of the month. Calculate January's ending inventory and cost of goods sold for the month using each of the following alternatives: a.) FIFO b.) LIFO c.) Weighted Average method

Question: Ferris Company began 2016 with 9,000 units of its principal product. The cost of each unit is $8. Merchandise transactions for the month of January 2016 are as follows: Purchases Purchase Unit Total Date Units Cost⭑ Cost Jan. 10 6,000 $9 Jan. 18 9,000 $10 $ 54,000 $90,000 Totals 15,000 $ 144,000 . Includes purchase price and cost of freight. Sales Date Sale Units Jan. 5 5,000 Jan. 12 3,000 Jan. 20 6,000 Total 14,000 10,000 units were on hand at the end of the month. Calculate January's ending inventory and cost of goods sold for the month using each of the following alternatives: a.) FIFO b.) LIFO c.) Weighted Average method

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

Chapter8: Inventories: Special Valuation Issues

Section: Chapter Questions

Problem 11RE: Johnson Corporation had beginning inventory of 20,000 at cost and 35,000 at retail. During the year,...

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Tudors Inc. purchases and resells a single item of product. Inventory at the beginning of September 2017 was 400 units, valued at P1.80 each unit. Further receipts and sales during the month were as follows: Units Pesos Per Unit P2.10 Receipts 600 Sept. 14 Receipts 500 Sales Sept. 8 Sept. 25 1,250 P4.00 The company uses the FIFO. Gross margin for September was P2,500. What was the cost per unit of the 500 units received on September 14?
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6. Tudors, Inc. purchases and resells a single item of product. Inventory at the beginning of September 2017 was 400 units, values at P1.80 each. Further receipts and sales during the month were as follows: Units Pesos Per Unit Sept. 8 Sept. 14 Sept. 25 Receipts Receipts 600 P2.10 500 ? Sales 1,250 4.00 The company uses the FIFO. Gross margin for September was P2,500. What was the cost per unit of the 500 units received on Sept. 14? P2.08 а. b. P2.00 С. P1.94 d. P1.04
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?
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The Holden Corp. company has the following purchases and sales during the year ended December 31, 2014. Inventory and Purchases Beginning: 130 units@ $51/unit March 28: 150 units @ $54/unit June 28: 150 units @ $50/unit The units have a selling price of $65.00 per unit. a) Please fill in the table by calculating the dollar value of cost of goods sold and ending inventory, as well as the gross profit earned by Holden Corp. using the FIFO system. Cost of Goods Sold Ending Inventory Gross Profit Date b) Prepare journal entries to record the following (assuming all sales and purchases are for cash): (a) The purchase on June 28, (b) The sale on July 17. Enter the transaction letter as the description when preparing a journal entry. When a transaction requires two separate journal entries, use the same letter for both descriptions. Dates must be entered in the format dd/mmm (ie. 15/Jan). 14 F Sales February 9:30 units July 17: 200 units FIFO E General Journal Account/Explanation Page GJB F…
Required: Calculate January’s ending inventory and cost of goods sold for the month using each of the following alternatives: 1. FIFO, periodic system 2. LIFO, periodic system 3. LIFO, perpetual system 4. Average cost, periodic system 5. Average cost, perpetual system
Question: You are the vice president of finance of Sandhill Corporation, a retail company that prepared two different schedules of gross margin for the first quarter ended March 31, 2017. These schedules appear below: Sales ($5 per unit) Cost of Goods Sold Gross Margin Schedule 1 $149,800 $135,492 $14,308 Schedule 2 149,800 140,640 9,160 The computation of cost of goods sold in each schedule is based on the following data: Units Cost per Unit Total Cost Beginning inventory, January 1 10,200 $4.40 Purchase, January 10 8,200 4.50 Purchase, January 30 6,200 4.60 Purchase, February 11 9,200 4.70 Purchase, March 17 11,200 4.80 $44,880 36,900 28,520 43,240 53,760 Jane Torville, the president of the corporation, cannot understand how two different gross margins can be computed from the same set of data. As the vice president of finance, you have explained to Ms. Torville that the two schedules are based on different assumptions concerning the flow of inventory costs, i.e., FIFO and LIFO.…