Required information [The following information applies to the questions displayed below.] The following information pertains to the inventory of Parvin Company during Year 2. January 1 April 1 October 1 Beginning Inventory Purchased Purchased 400 units @ $30 2,000 units @ $35 600 units @ $38 During Year 2, Parvin sold 2,700 units of inventory at $90 per unit and incurred $41,500 of operating expenses. Parvin currently uses the FIFO method but is considering a change to LIFO. All transactions are cash transactions. Assume a 30 percent income tax rate. Parvin started the period with cash of $75,000, inventory of $12,000, common stock of $50,000, and retained earnings of $37,000: .Determine the cash flow from operating activities under FIFO and LIFO. (Amounts to be deducted should be indicated with minus ign.) PARVIN Company Cash Flows from Operating Activities Cash flows from operating activities: Cash inflow from customers Cash outflow for inventory Cash outflow for operating expenses Cash outflow for income tax expense Net cash flow from operating activities FIFO LIFO $ 0 $ 0

Required information [The following information applies to the questions displayed below.] The following information pertains to the inventory of Parvin Company during Year 2. January 1 April 1 October 1 Beginning Inventory Purchased Purchased 400 units @ $30 2,000 units @ $35 600 units @ $38 During Year 2, Parvin sold 2,700 units of inventory at $90 per unit and incurred $41,500 of operating expenses. Parvin currently uses the FIFO method but is considering a change to LIFO. All transactions are cash transactions. Assume a 30 percent income tax rate. Parvin started the period with cash of $75,000, inventory of $12,000, common stock of $50,000, and retained earnings of $37,000: .Determine the cash flow from operating activities under FIFO and LIFO. (Amounts to be deducted should be indicated with minus ign.) PARVIN Company Cash Flows from Operating Activities Cash flows from operating activities: Cash inflow from customers Cash outflow for inventory Cash outflow for operating expenses Cash outflow for income tax expense Net cash flow from operating activities FIFO LIFO $ 0 $ 0

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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A company purchased 100 units for $30 each on January 31. It purchased 300 units for $20 each on February 28. It sold a total of 370 units for $110 each from March 1 through December 31. If the company uses the last – in, first – out inventory costing method, calculate the cost of ending inventory on December 31. (Assume that the company uses a perpetual inventory system.) A. $900 B. $600 C. $2,400 D. $30
Gladstone Company tracks the number of units purchased and sold throughout each accounting period but applies its inventory costing method at the end of each period 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 Beginning inventory, January 1 3,200 $ 45 Transactions during the year: a. Purchase, January 30 4,550 55 b. Sale, March 14 ($100 each) (2,850 ) c. Purchase, May 1 3,250 75 d. Sale, August 31 ($100 each) (3,300 ) Assuming that for the Specific identification method (item 1d) the March 14 sale was selected two-fifths from the beginning inventory and three-fifths from the purchase of January 30. Assume that the sale of August 31 was selected from the remainder of the beginning inventory, with the balance from the purchase of May 1.
Taraz Company started a business at the beginning of Year 1. Inventory purchases and sales during the first four years of the company's business are as follows: Year 1 Year 2 Year 3 Year 4 Units Purchased 100 50 200 200 Cost per Unit $1.00 1.50 2.50 5.00 Units Sold 30 100 150 160 Taraz Company uses LIFO inventory valuation. 13. Compute Taraz Company's ending inventory as of the end of Year 4. [Note: Your answer should be in dollars, NOT in units.]
The following inventory transactions apply to Green Company for Year 2. January 1 Purchased 240 units @ $10 April 1 Sold 120 units @ $19 August 1 Purchased 420 units @ $11 December 1 Sold 525 units @ $20 The beginning inventory consisted of 165 units at $11 per unit. All transactions are cash transactions. Required Record these transactions in general journal format assuming Green uses the FIFO cost flow assumption and keeps perpetual records. Compute cost of goods sold for Year 2.
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[The following information applies to the questions displayed below.] Lewis Incorporated and Clark Enterprises report the following amounts for the year. Lewis Clark Inventory (beginning) $ 14,000 $ 40,000 Inventory (ending) 8,000 50,000 Purchases 120,000 150,000 Purchase returns 5,000 50,000 4. Which company appears to be managing its inventory more efficiently? multiple choice Lewis Incorporated Clark Enterprises
Coney Island Inc. had the following operating transactions during January 2020, its first month of operations. Date Transaction 1/1 Purchased 2 units of inventory costing $4 each on credit 1/3 Purchased 3 units of inventory costing $5 each on credit 1/10 Purchased 4 units of inventory costing $6 each on credit 1/21 Paid for the January 1 purchase 1/23 Paid for the January 3 purchase 1/30 Sold 7 units of inventory at $10 each on credit 1/30 Matched the inventory cost to January 30 on a FIFO basis 1/31 Estimated that 10% of credit sales will not be realized in cash Record the above transactions in Coney Island’s journal Present Coney’s income statement through gross profit for January 2020
Sanchez Company was formed on January 1 of the current year and is preparing the annual financial statements dated December 31, current year. Ending inventory information about the four major items stocked for regular sale follows: Item ABUD A ENDING INVENTORY, CURRENT YEAR Quantity Unit Cost When on Hand Acquired (FIF0) Required: 1. Compute the valuation that should be used for the current year ending inventory using lower of cost or net realizable value applied on an item-by-item basis. 2. What will be the effect of the write-down of inventory to lower of cost or net realizable value on cost of goods sold for the year ended December 31, current year? Complete this question by entering your answers in the tabs below. Total Net tem Quantity Total Cost Realizable Value D Required 1 Required 2 Compute the valuation that should be used for the current year ending inventory using lower of cost or net realizable value applied on an item-by-item basis. C D 31 31 66 46 21 $16 45 56 33 66 DE $…
Sunland Company had 140 units in beginning inventory at a total cost of $11,200. The company purchased 280 units at a total cost of $30,800. At the end of the year, Sunland had 75 units in ending inventory. (a) Partially correct answer icon Your answer is partially correct. Compute the cost of the ending inventory and the cost of goods sold under FIFO, LIFO, and average-cost. (Round average-cost per unit and final answers to 0 decimal places, e.g. 1,250.) FIFO LIFO Average-cost The cost of the ending inventory $ $ $ The cost of goods sold $ $ $