QUESTION ONEThe following transactions of Berain Manufacturers, that uses the perpetual inventory system, took place during February2024 in respect of a part used in production:Feb010815161726600 units @ R34 per unit420 units1800 units @ R35.50 per unit700 units120 units800 unitsStock on handIssued to productionPurchased from supplierIssued to productionReturned to supplier (purchased on 15 February 2024)Issued to productionUsing the first-in-first-out (FIFO) method, calculate the value of closing inventory as at 28 February 2024.ded SontemberF11D

Name: QUESTION ONEThe following transactions of Berain Manufacturers, that
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Description: QUESTION ONEThe following transactions of Berain Manufacturers, that uses the perpetual inventory system, took place during February2024 in respect of a part used in production:Feb010815161726600 units @ R34 per unit420 units1800 units @ R35.50 per

Closing inventory is the amount of inventory that an entity has in hand at the end of the period. It…

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QUESTION ONE The following transactions of Berain Manufacturers, that uses the perpetual inventory system, took place during February 2024 in respect of a part used in production: Feb 01 08 15 16 17 600 units @ R34 per unit 420 units Stock on hand Issued to production Purchased from supplier Issued to production Returned to supplier (purchased on 15 February 2024) Issued to production Using the first-in-first-out (FIFO) method, calculate the value of closing inventory as at 28 February 2024. 26 1800 units @ R35.50 per unit 700 units 120 units 800 units

QUESTION ONE The following transactions of Berain Manufacturers, that uses the perpetual inventory system, took place during February 2024 in respect of a part used in production: Feb 01 08 15 16 17 600 units @ R34 per unit 420 units Stock on hand Issued to production Purchased from supplier Issued to production Returned to supplier (purchased on 15 February 2024) Issued to production Using the first-in-first-out (FIFO) method, calculate the value of closing inventory as at 28 February 2024. 26 1800 units @ R35.50 per unit 700 units 120 units 800 units

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Inventory Valuation

Before discussing the topic inventory valuation let’s discuss the meaning of inventory. In accounting, inventory is also known as stock. Inventory means all the finished goods, materials, merchandise that a business holds for the purpose of selling it in the market with the motive of earning profit.

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Problem 1A physical count of inventory on December 31, 2019 revealed that Grapes Company had inventory on hand at that date with a cost of P5,900,000. The annual examination identified that the following items were excluded from this amount: ➢Merchandise of P390,000 is held by Grapes on consignment.➢Merchandise costing P330,000 was shipped by Grapes FOB Destination to a customer on December 31, 2019. The customer was expected to receive the goods on January 5, 2020. ➢Merchandise costing P460,000 was shipped by Grapes FOB Shipping Point to a customer on December 29, 2019. The customer was expected to receive the goods on January 5, 2020. ➢Merchandise costing P930,000 shipped by a vendor Grapes Destination on December 31, 2019 was received by Grapes on Jan. 5, 2020 .➢Merchandise costing P410,000 purchased FOB Shipping Point was shipped by the supplier on December 31, 2019 and received by Grapes on January 5, 2020. What amount should appear for inventory on December 31, 2019?
Weighted Average Cost Flow Method Under Perpetual Inventory System The following units of a particular item were available for sale during the calendar year: Jan. 1 Inventory 4,000 units at $20 Apr. 19 Sale 2,500 units June 30 Purchase 6,000 units at $24 Sept. 2 Sale 4,500 units Nov. 15 Purchase 1,000 units at $25 The firm uses the weighted average cost method with a perpetual inventory system. Determine the cost of goods sold for each sale and the inventory balance after each sale. Present the data in the form illustrated in Exhibit 5. Round unit cost to two decimal places, if necessary. Schedule of Cost of Goods SoldWeighted Average Cost Flow Method Purchases Cost of Goods Sold Inventory Date Quantity Unit Cost Total Cost Quantity Unit Cost Total Cost Quantity Unit Cost Total Cost Jan. 1 fill in the blank 1 $fill in the blank 2 $fill in the blank 3 Apr. 19 fill in the blank 4 $fill in the blank 5 $fill in the blank 6 fill in the blank 7…
Determining Merchandise to Be Included or Excluded from Ending Inventory The unadjusted inventory balance of Ann Corp. is $600,000 on December 31 based on a physical inventory count. The following items must be considered before the inventory valuation is finalized. a. On December 31, the physical inventory excluded $600 of merchandise inventory shipped to Ann Corp. from a vendor f.o.b. destination that arrived on January 1 of the following year. b. On December 31, the physical inventory included $21,600 of merchandise inventory held on consignment by a customer. Ann Corp. is the consignor. c. On December 31, the physical inventory included $960 of merchandise held on consignment. The consignor is Ann's largest vendor. d. $21,600 of in-transit merchandise was shipped f.o.b. shipping point to a customer and was excluded from the physical inventory count. The merchandise was shipped on December 28 and is expected to arrive at the customer on December 31. e. Goods are in transit from a…
Problem 1 of 2 (note additional problem below): Calculate the cost of goods sold dollar value and the value of ending inventory for En Cee Yo0 Company for the sale on March 11, considering the following transactions under three different cost allocation methods and using perpetual inventory updating. Provide calculations for (a) first-in, first-out (FIFO); (b) last-in, first-out (LIF0); and (c) weighted average (AVG). You must show your work and calculations--answers that are correct but do not show calculations are graded as a zero grade. Place your answers in the shaded cells. Number of Units Unit Cost 110 $ Beginning inventory, March 1 Purchased inventory, March 8 86 140 $ 90 Sold inventory for $110 per unit, March 11 95 If you use the FIFO method, the dollar value of COGS is → and the dollar value of ending inventory is- If you use the LIFO method, the dollar value of COGS is - and the dollar value of ending inventory is- If you use the Weighted Average method, the dollar value of…
Weighted average cost flow method under perpetual inventory system The following units of a particular item were available for sale during the calendar year: Date Line Item Description Units and Cost Jan. 1 Inventory 9,000 units at $50.00 Mar. 18 Sale 7,000 units May 2 Purchase 8,000 units at $56.50 Aug. 9 Sale 8,000 units Oct. 20 Purchase 4,000 units at $60.00 The firm uses the weighted average cost method with a perpetual inventory system. Determine the cost of goods sold for each sale and the inventory balance after each sale. Present the data in the form illustrated in Exhibit 5. Round your "Unit Cost" answers to two decimal places. Weighted Average Cost Flow Method Date PurchasesQuantity PurchasesUnit Cost PurchasesTotal Cost Cost of Goods SoldQuantity Cost of Goods SoldUnit Cost Cost of Goods SoldTotal Cost InventoryQuantity InventoryUnit Cost InventoryTotal Cost Jan. 1 fill in the blank 1 fill in the blank 2 fill in the blank 3 Mar. 18…
Perpetual inventory using LIFO Beginning inventory, purchases, and sales for Item 88-HX are as follows: 86 units @ $33 July 1 Inventory July 8 Sale 69 units July 15 Purchase 95 units @ $36 July 27 Sale 80 units Assuming a perpetual inventory system and using the last-in, first-out (LIFO) method, determine (a) the cost of goods sold on July 27 and (b) the inventory on July 31. a. Cost of goods sold on July 27 b. Inventory on July 31
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.