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:ENDING INVENTORY , CURRENT YEARQuantityon Hand3469Unit Cot WhenAcquired (FIFO)$ 1948Net RealizableValue (Market)at Year-End$ 1444492459366131Required:1. Compute the valuation that should be used for the current year ending Inventory using lower of cost or net realizable value appliedon 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 yearended December 31, current year?Complete this question by entering your answers in the tabs below.Required 1Required 2Compute the valuation that should be used for the current year ending Inventory using lower of cost or net realizable valueapplied on an item-by-item basis.Total NetRealizableValueLower ofCost orNRVItem Quantity Total Cost34B.694924Total

Lower of cost or market value is the method of recording ending inventory in financial statement,…

Answered: Sanchez Company was formed on January 1…

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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Inventory information for Part 311 of Bonds Corp. discloses the following information for the month of June. nstructions(a) Assuming that the periodic inventory method is used, compute the cost of goods sold and ending inventory under(1) LIFO(2) FIFO.(b) Assuming that the perpetual inventory method is used and costs are computed at the time of each withdrawal, what is the value of the ending inventory at LIFO?(c) Assuming that the perpetual inventory method is used and costs are computed at the time of each withdrawal, what is the gross profit if the inventory is valued at FIFO?
The beginning inventory and the purchases and sales of inventory for March for the Carolina Company are as presented below. Complete the inventory schedule assuming the FIFO Inventory valuation method is used. Date Transaction Number of Units Per Unit Total Mar 1 Inventory 10,500 1.5 $15,750 Mar 8 Purchase 12,000 1.6 $19,200 Mar 11 Sold 11,000 2.5 $27,500 Mar 12 Sold 9,500 2.5 $23,750 Mar 14 Purchase 8,000 1.65 $13,200 Mar 15 Sold 5,000 2.6 $13,000 Mar 19 Sold 4,000 2.6 $10,400 Mar 22 Purchase 7,000 1.7 $11,900 Mar 24 Sold 4,000 2.6 $10,400 Mar 25 Sold 2,500 2.6 $6,500 Mar 26 Purchase 10,000 1.72 $17,200 Mar 28 Sold 5,000 2.6 $13,000 FIFO Purchases Cost of Goods Sold Inventory Quantity UnitCost TotalCost…
9
Required information Use the following information for the Exercises 8-10 below. (Algo) [The following information applies to the questions displayed below.] Hemming Company reported the following current-year purchases and sales for its only product. Date January 1 January 10 March 14 March 15 July 30 October 5 October 26 Total Beginning inventory Purchases: March 14 July 30 October 26 b) Periodic LIFO Total Beginning inventory Purchases: March 14 July 30 October 26 Activities Beginning inventory Sales Purchase Sales c) Gross profit Purchase Sales Purchase Totals Exercise 6-10A (Algo) Periodic: Inventory costing LO P3 # of units Cost of Goods Available for Sale FIFO # of units 0 Hemming uses a periodic inventory system. (a) Determine the costs assigned to ending inventory and to cost of goods sold using FIFO. (b) Determine the costs assigned to ending inventory and to cost of goods sold using LIFO. (c) Compute the gross profit for each method. a) Periodic FIFO Cost per unit 0 Cost of…
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Fine Leather Ltd. had the following inventory at December 31 of the current year. Per Unit Item Quantity Cost Net Realizable Value Leather blazers Model 154 20 $ 100 $ 120 Model 160 15 180 168 Model 165 10 250 260 Handbags Model 11 60 30 32 Model 12 40 45 42 Model 13 25 65 63 Required: 1. Determine the value of ending inventory that should be reported on the statement of financial position by applying the LC&NRV rule to Each item of inventory Each major category of inventory Total inventory
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 $…

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