Inventories425Purchase of inventory on January 3, 20x1:Details:ITEM DESCRIPTION: BrokenTOTAL PURCHASE PRICE: P7,00Sale of inventory on January 4, 20x1:ITEM SOLD: BrokenRequirements: Compute for the ending inventory and cost of goodssold under each of the following cost formulas: (1) Specificidentification; (2) FIFO; and (3) Weighted average cost. fertilized duck eggs. Your company had the followingGooACTIVITY 2: APPLYING THE COST FLOW FORMULASYou are the accountant of ABC Co., a company engaged in sellifertilized duck1.eggs.transactions during the period.Your companyhad thefollowingInventory as of January 1, 20x1:Details:RecITEM DESCRIPTION: Happy20TOTAL PURCHASE PRICE: P5.75unpraFrPurchase of inventory on January 2, 20x1:Details:ITEM DESCRIPTION: Sad2.TOTAL PURCHASE PRICE: P6.00a

Specific identification method - Under the specific identification method each inventory item is…

Answered: Requirements: Compute for the ending…

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.) determine the cost assigned to ending inventory and to the cost of goods sold using FIFO. b.) determine the cost assigned to ending inventory and to cost of good solc using LIFO. c.) compute the gross margin for each method
How do I find the FIFO, LIFO: costs of ending inventory and cost of goods sold so I can figure out the weighted average cost?
Which of the following summarizes the weighted average cost flow assumption? Weighted average assumes that costs flow in the reverse order incurred. O Weighted average assumes that cost flow is allocated by the physical weight of items purchased. O Weighted average assumes that costs flow at an average of the costs available. O Weighted average assumes that costs flow in the order incurred.
The purpose of costing are as follows EXCEPT: a) Value inventory b) Record costs c) Price products d) Make decisions e) Formulate a balance sheet Make decision Price products Value inventory Record cost All of the above
Acceptable methods of assigning specific costs to inventory and cost of goods sold include all of the following except: Multiple Choice LIFO method. FIFO method. Specific identification method. Weighted average method. Retail method.
Which one of the following inventory management approaches determines the finished goods inventory level and then works backward until the raw material needs are determined? A. Just-in-time B. Extended EOQ C. Materials requirements planning D. Economic order quantity
Identify the inventory costing method (SI, FIFO, LIFO, or WA) best described by each of the following separate statements. Assume a period of increasing costs. 1. Results in the highest cost of goods sold. 2. Yields the highest net income. 3. Has the lowest tax expense because of reporting the lowest net income. 4. Better matches current costs with revenues. 5. Precisely matches the costs of items with the revenues they generate.
The unadjusted cost of goods sold is calculated using which of the following equations? Multiple Choice O Beginning finished goods inventory + Cost of goods manufactured + Ending finished goods inventory Beginning finished goods inventory + Cost of goods manufactured - Ending finished goods inventory Beginning finished goods inventory - Cost of goods manufactured - Ending finished goods inventory Beginning finished goods inventory - Cost of goods manufactured + Ending finished goods inventory
1) Compute cost of goods sold and gross profit using the FIFO inventory costing method and using the LIFO inventory costing method. 2)Compute cost of goods sold and gross profit using the weighted-average inventory costing method. (Round weighted-average cost per unit to the nearest cent and all other amounts to the nearest dollar.) 3)Which method results in the largest gross profit, and why?
You have the following information for Wildhorse Gems. Wildhorse uses the periodic system of accounting for its inventory transactions. Wildhorse only carries one brand and size of diamonds-all are identical. Each batch of diamonds purchased is carefully coded and marked with its purchase cost. March 1 March 31 March 5: March 10- March 25 Beginning inventory 150 diamonds at a cost of $320 per diamond. Purchased 200 diamonds at a cost of $360 each. Sold 180 diamonds for $630 each. Purchased 350 diamonds at a cost of $385 each. Sold 395 diamonds for $680 each.
Identify each item as describing the FIFO method, LIFO method, or average cost method of inventory valuation. A. Involves calculating the total number of units in the warehouse FIFO LIFO Average cost B. To determine cost of goods sold, begin with the earliest goods acquired FIFO LIFO Average cost C. To determine merchandise inventory balance, begin with the earliest goods acquired FIFO LIFO Average cost
A-Compute cost of goods manufactured. B- Compute cost of goods Sold. Complete both A and B

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Requirements: Compute for the ending inventory and cost of goods sold under each of the following cost formulas: (1) Specific identification; (2) FIFO; and (3) Weighted average cost.