Required a. Convert the ending FIFO inventory to a LIFO basis for Year 5 Year 6, and Year 7, assuming the dollar-value LIFO method and using the internal price indices Inding Layers 100 1.10 0 01.00 0 1.15 0100 01.10 ° 1.15 0 1.30 ° 01.00 1.10 01.30 b. Prepare the December 31 year-end journal entry for Year 5 Year 6 and Year 7, to convert inventory from FIFO to LIFO Dec. 31 SLAQUILLED PAINO Dec. 31, Year 6 Dec. 31 Year

Required a. Convert the ending FIFO inventory to a LIFO basis for Year 5 Year 6, and Year 7, assuming the dollar-value LIFO method and using the internal price indices Inding Layers 100 1.10 0 01.00 0 1.15 0100 01.10 ° 1.15 0 1.30 ° 01.00 1.10 01.30 b. Prepare the December 31 year-end journal entry for Year 5 Year 6 and Year 7, to convert inventory from FIFO to LIFO Dec. 31 SLAQUILLED PAINO Dec. 31, Year 6 Dec. 31 Year

Name: Converting FIFO Inventory to Dollar-Value LIFO and Preparing Year-End
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Description: Converting FIFO Inventory to Dollar-Value LIFO and Preparing Year-End Adjustments to the LIFO ReserveStetson Industries has been using FIFO for all internal and external reporting purposes. At the start of Year 5, the company adopted dollar-value LI

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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Periodic Inventory Using FIFO, LIFO, and Weighted Average Cost Methods The units of an item available for sale during the year were as follows: $36,000 62,400 48,000 $146,400 There are 20 units of the item in the physical inventory at December 31. The periodic inventory system is used. Determine the inventory cost using (a) the first-in, first-out (Firo) method; (b) the last-in, first-out (LIFO) method; and (c) the weighted average cost method (Round per unit cost to two decimal places and your final answer to the neares whole dollar). Jan. 1 Aug. 7 Dec, 11 Inventory 10 units at $3,600 Purchase 16 units at $3,900 Purchase 12 units at $4,000 38 units A. First-in, first out (riro)) b. Last-in, first-out (LIFO) Weighted average cost G
The following lots of Commodity Z were available for sale during the year. Beginning inventory 7 units at $48 First purchase 19 units at $53 Second purchase 53 units at $59 Third purchase 18 units at $61 The firm uses the periodic system, and there are 24 units of the commodity on hand at the end of the year. What is the ending inventory balance at the end of the year according to the LIFO method? a.$1,452 b.$1,237 c.$5,568 d.$1,152
4. Periodic Inventory by Three Methods The units of an item available for sale during the year were as follows: Date Line Item Description Units and Cost Jan. 1 Inventory 5 units at $42 Feb. 17 Purchase 19 units at $43 Jul. 21 Purchase 20 units at $45 Nov. 23 Purchase 8 units at $45 There are 5 units of the item in the physical inventory at December 31. The periodic inventory system is used. Round average unit cost to the nearest cent and final answers to the nearest whole dollar, if required. 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 two decimal places, and round your final answer to the nearest dollar.
Perpetual Inventory Using Weighted Average Beginning inventory, purchases, and sales for WCS12 are as follows: Oct. 1 Inventory 300 units at $8 13 Sale 175 units 22 Purchase 375 units at $10 29 Sale 280 units a. Assuming a perpetual inventory system and using the weighted average method, determine the weighted average unit cost after the October 22 purchase. Round your answer to two decimal places. per unit b. Assuming a perpetual inventory system and using the weighted average method, determine the cost of the merchandise sold on October 29. Round your "average unit cost" to two decimal places. c. Assuming a perpetual inventory system and using the weighted average method, determine the inventory on October 31. Round your "average unit cost" to two decimal places.
Perpetual Inventory Using Weighted Average Beginning inventory, purchases, and sales for WCS12 are as follows: Oct. 1 Inventory 350 units at $11 13 Sale 180 units 22 Purchase 330 units at $14 29 Sale 400 units a. Assuming a perpetual inventory system and using the weighted average method, determine the weighted average unit cost after the October 22 purchase. Round your answer to two decimal places. per unit b. Assuming a perpetual inventory system and using the weighted average method, determine the cost of goods sold on October 29. Round your "average unit cost" to two decimal places. C. Assuming a perpetual inventory system and using the weighted average method, determine the inventory on October 31. Round your "average unit cost" to two decimal plates.
Periodic inventory using FIFO, LIFO, and weighted average cost methods The units of an item available for sale during the year were as follows: Jan. 1 10 units at $46 Aug. 13 8 units at $49 Nov. 30 4 units at $51 22 units Inventory Purchase Purchase Available for sale $1,056 There are 13 units of the item in the physical inventory at December 31. The periodic inventory system is used. Determine the inventory cost using the (a) first-in, first- out (FIFO) method; (b) last-in, first-out (LIFO) method; and (c) weighted average cost method (round per-unit cost to two decimal places and your final answer to the nearest whole dollar). a. First-in, first-out (FIFO) method b. Last-in, first-out (LIFO) method c. Weighted average cost method $460 392 204 000
Exercise 2. Periodic Inventory Using the periodic inventory method, compute the cost of goods sold for the following fiscal year: Date Detail Quantity (unit cost) May 1 Initial inventory 12 $112 6 Sale 6 8 Purchase 18 103 13 Sale 8 30 Sale 4
Periodic Inventory by Three Methods The units of an item available for sale during the year were as follows: Date Line Item Description Units and Cost Jan. 1 Inventory 8 units at $24 Feb. 17 Purchase 11 units at $25 Jul. 21 Purchase 10 units at $26 Nov. 23 Purchase 19 units at $26 There are 8 units of the item in the physical inventory at December 31. The periodic inventory system is used. Round average unit cost to the nearest cent and final answers to the nearest whole dollar, if required. a. Determine the inventory cost by the first-in, first-out method.fill in the blank 1 of 3$ b. Determine the inventory cost by the last-in, first-out method.fill in the blank 2 of 3$ c. Determine the inventory cost by the weighted average cost method. Round average unit cost to the two decimal places, and round your final answer to the nearest dollar.fill in the blank 3 of 3$
Computing and Recording Ending Inventory using Dollar-Value LIFO On January 1, 2020, Crow Company changed from FIFO to LIFO for income tax and external reporting purposes. On that same date, the beginning FIFO inventory (the base inventory for LIFO purposes) was $95,000. The following information is available from Crow's records for years 2020 through 2023. Ending Inventory Ending Inventory on a FIFO Basis at Base Year Costs Year 2020 $125,000 $113,600 2021 110,000 84,600 2022 115,000 85,200 2023 130,000 92,900 a. Compute the price indices used to calculate ending inventory at base year costs. Hint: Divide ending inventory on a FIFO basis by ending inventory at base year for each year. Note: Enter each price index rounded to two digits after the decimal; for example, enter an index of 1.42 for 1.424 or enter an index of 1.43 for 1.425. Price Year Index 2019 2020 1.11 v 2021 1.3 V 2022 1.35 V 2023 1.4 v b. Compute the ending inventory on a dollar-value LIFO basis for each year, 2020…
5.The following data pertain to Cross Company (assume a perpetual inventory system) for the month ended January 31, 2019: Date Description Units Unit Cost Unit Selling Price Jan.1 Beg. Inventory 10 $50 5 Purchase 25 52 10 Sale (6) $80 16 Sale (10) 82 20 Purchase 12 55 25 Sale (20) 85 Required: 1. Compute the cost of goods sold and ending inventory under FIFO. 2. Compute Gross Margin under FIFO
A. How do I record the adjustment for entry? B. For what amount would MU inventory be reported in the December 31, 2022, balance sheet? C. Prepare an updated gross profit section of a partial income statement accounting for this additional information.