Sarasota Inc. has provided you with the following information. This company purchases its inventory from a supplier for cash and has only cash sales. Sarasota uses the average cost formula in a perpetual inventory system. Increased competition has recently reduced the price of the product. Date Apr. 1 6 8 15 20 27 Explanation Beginning inventory Purchases Sales Purchases Sales Purchases Units 50 110 (130) 120 (120) 20 Unit Cost $83 92 72 58 Unit Price $126 96

Sarasota Inc. has provided you with the following information. This company purchases its inventory from a supplier for cash and has only cash sales. Sarasota uses the average cost formula in a perpetual inventory system. Increased competition has recently reduced the price of the product. Date Apr. 1 6 8 15 20 27 Explanation Beginning inventory Purchases Sales Purchases Sales Purchases Units 50 110 (130) 120 (120) 20 Unit Cost $83 92 72 58 Unit Price $126 96

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter10: Inventory

Section: Chapter Questions

Problem 6PA: Use the last-in, first-out (LIFO) cost allocation method, with perpetual inventory updating, to...

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Use the last-in, first-out (LIFO) cost allocation method, with perpetual inventory updating, to calculate (a) sales revenue, (b) cost of goods sold, and c) gross margin for A75 Company, considering the following transactions.
Use the first-in, first-out (FIFO) cost allocation method, with perpetual inventory updating, to calculate (a) sales revenue, (b) cost of goods sold, and c) gross margin for A75 Company, considering the following transactions.
Calculate a) cost of goods sold, b) ending inventory, and c) gross margin for A76 Company, considering the following transactions under three different cost allocation methods and using perpetual inventory updating. Provide calculations for last-in, first-out (LIFO).
Kulsrud Company would like to estimate the current inventory level. Using the gross profit method and the following information, estimate the current inventory level for Kulsrud Company. Goods available for sale 100,000 Net sales 150,000 Normal gross profit as a percent of sales 40%
Calculate the cost of goods sold dollar value for A74 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 (LIFO); and (c) weighted average (AVG).
You are provided with the following information for Geo Inc., which purchases its inventory from a supplier on account. All sales are also on account. Geo uses the FIFO cost formula in a perpetual inventory system. Increased competition has recently decreased the price of the product. Date Explanation Oct. 1 Beginning inventory 5 Purchases 8 Sales Purchases 15 20 Sales 26 Purchases Units 60 100 (120) 35 (60) 15 Unit Cost Price $140 130 200 120 160 110 Instructions (a) Prepare all journal entries for the month of October for Geo, the buyer. (b) Determine the cost of goods sold and ending inventory amount for Geo. (c) On October 31, Geo learns that the product has a net realizable value of $108 per unit. What amount should ending inventory be valued at on the October 31 statement of financial position? (d) Now assume that Geo uses the average cost formula in a perpetual inventory system. Determine the cost of goods sold and ending inventory amount for Geo, ignoring the effect of (c). (e)…
Flint Inc. has provided you with the following information. This company purchases Its Inventory from a supplier for cash and has only cash sales. Fint uses the average cost formula in a perpetual Inventory system. Increased competition has recently reduced the price of the product Date Apr. 1 6 8 15 20 27 Explanation Beginning inventory Purchases Sales Purchases Sales Purchases Units 50 Date 110 (130) 120 (120) 20 To record als Unit Cost $82 [To record coat of good old [To record sales) 90 To record the Inventory sold 71 Prepare all joumal entries for the month of April for Filint. (List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. Do not round intermediate calculations. Round answers to 2 decimal places, eg. 5,275.25. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Record journal entries in the order presented in the problem. Account Titles…
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