Spear Corporation's inventory records for its retail division show the following at May 31: (Click the icon to view the accounting records.) At May 31, 11 of these units are on hand. Read the requirements. Requirement 1. Compute cost of goods sold and ending inventory, using each of the following four inventory methods: Begin by entering the number of units sold and number of units in ending inventory. Then calculate cost of goods sold and ending inventory using (a) specific identification, then (b) average cost, then (c) FIFO, and finally (d) LIFO. (Round the average cost per unit to the nearest cent. Round all final answers to the nearest whole dollar.) Number (a) (b) (c) (d) of units Specific identification Average cost FIFO LIFO Cost of goods sold Ending inventory

Spear Corporation's inventory records for its retail division show the following at May 31: (Click the icon to view the accounting records.) At May 31, 11 of these units are on hand. Read the requirements. Requirement 1. Compute cost of goods sold and ending inventory, using each of the following four inventory methods: Begin by entering the number of units sold and number of units in ending inventory. Then calculate cost of goods sold and ending inventory using (a) specific identification, then (b) average cost, then (c) FIFO, and finally (d) LIFO. (Round the average cost per unit to the nearest cent. Round all final answers to the nearest whole dollar.) Number (a) (b) (c) (d) of units Specific identification Average cost FIFO LIFO Cost of goods sold Ending inventory

Name: Spear Corporation's inventory records for its retail division show th
Uploaded: 2024-03-20T06:32:37.000Z
Channel: Bartleby
Description: Spear Corporation's inventory records for its retail division show the following at May 31:(Click the icon to view the accounting records.)At May 31, 11 of these units are on hand.Read the requirementsRequirement 1. Compute cost of goods sold and en

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter10: Inventory

Section: Chapter Questions

Problem 7PA: Use the weighted-average (AVG) cost allocation method, with perpetual inventory updating, to...

See similar textbooks

Related questions

Q: Warnerwoods Company uses a perpetual inventory system. It entered into the following purchases and…

A: Inventory can be valued using various methods -First-in First-Out Method - Under the First-in…

Q: A company reports the following beginning inventory and two purchases for the month of January. On…

A: LIFO means last in first out that is the goods acquired at the end are to be sold first under this…

Q: Nittany Company uses a periodic inventory system. At the end of the annual accounting period,…

A: INVENTORY VALUATIONInventory Valuation is a Method of Calculation of Value of Inventory at the End…

Q: Required information [The following information applies to the questions displayed below]…

A: There are some methods to calculate the value of closing inventory and cost of goods sold in…

Q: The following information was available from the inventory records of Tony Company for January.…

A: The inventory can be valued using various methods as FIFO, LIFO and average method. Using FIFO, the…

Q: Maxell Company uses the FIFO method to assign costs to inventory and cost of goods sold. The company…

A: Periodic inventory is a system of inventory valuation where the business’s inventory and cost of…

Q: Ross Company's record of transactions for the month of April was as follows. Purchases Sales April 1…

A: 1. First In First Out (FIFO): Under this method, inventory is valued assuming that the units…

Q: A firm’s accounting record showed that the firm had a beginning balance in inventory of 2,000 units…

A: FIFO Method :— It is one of the method of inventory valuation in which it is assumed that old…

Q: [The following Information applies to the questions displayed below.] A company reports the…

A: Under the LIFO method, inventory purchased last is sold first. Under this method of inventory…

Q: Instructions 1. Determine the cost of the inventory on December 31 by the first-in, first-out…

A: Dymac Appliances Cost of inventory - FIFO method Model Qty Unit Cost Total Cost A10 4 $ 76 $…

Q: Wittmann Co. began operations on July 1. It uses a perpetual inventory system. During July, the…

A: Inventory is made up of three parts: raw materials, work-in-process items, and finished goods, and…

Q: Mojo Industries tracks the number of units purchased and sold throughout each accounting period but…

A: FIFO (First In First Out) is the inventory valuation method that determines the cost of goods sold…

Q: E6-4 Mather sells a snowboard, EZslide. that is popular with snowboard enthusiasts. Below is…

A: Computation of ending inventory at September 30 and the cost of goods sold under FIFO method.

Q: Mojo Industries tracks the number of units purchased and sold throughout each accounting period but…

A: Ending inventory is the amount of inventory that an entity has on hand, at the end of the period. It…

Q: Nittany Company uses a periodic inventory system. At the end of the annual accounting period,…

A: Ending inventory is the amount of inventory that an entity has on hand, at the end of the period. It…

Q: Top Purse Company applies the periodic inventory system using the specific identification method.…

A: Inventory, often known as stock, refers to the goods and supplies that a business keeps on hand with…

Q: You are given the following information for Sandhill Company for the month ended November 30, 2024…

A: Average cost per unit is calculated at each transaction date as Cost of Goods Available for Sale /…

Q: The Company uses a periodic inventory system. For specific identification, ending inventory consists…

A: Periodic inventory system: The method or system of recording the transactions related to inventory…

Q: 1. Record the inventory, purchases, and cost of merchandise sold data in a perpetual inventory…

A: Inventory is the stock that the company held for resale purposes or the goods that are not sold yet…

Concept explainers

Inventory Valuation

Before discussing the topic inventory valuation let’s discuss the meaning of inventory. In accounting, inventory is also known as stock. Inventory means all the finished goods, materials, merchandise that a business holds for the purpose of selling it in the market with the motive of earning profit.

Topic Video

Question

Spear Corporation's inventory records for its retail division show the following at May 31:
(Click the icon to view the accounting records.)
At May 31, 11 of these units are on hand.
Read the requirements
Requirement 1. Compute cost of goods sold and ending inventory, using each of the following four inventory methods:
Begin by entering the number of units sold and number of units in ending inventory. Then calculate cost of goods sold and ending inventory using (a) specific identification, then (b) average cost,
then (c) FIFO, and finally (d) LIFO. (Round the average cost per unit to the nearest cent. Round all final answers to the nearest whole dollar.)
Number
(a)
(b)
(c)
(d)
of units
Specific identification
Average cost
FIFO
LIFO
Cost of goods sold
Ending inventory

on show the following at May 31:
Data Table
g in
of u
y using
ar.)
May 1
Beginning inventory 10 units @ $160 = $1,600
Cos
May 15
Purchase
5 units @ $161 = $805
%3D
May 26
Purchase
14 units @ $170 = $2,380
Print
Done
ost of goods sold? Which method produces the lowest cost of goods sold?
e to the next question.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Calculate Inventory Carrying Cost (ICC) using the information below. annual demand ordering cost per order inventory carrying cost percentage leadtime unit value #days in the period. EOQ 1000 $75 20% 3 days $30 360 158
Using the LIFO method, calculate the cost of ending inventory and cost of goods sold for Campini Corporation.
On the basis of the following data: Product InventoryQuantity Cost perUnit Market Value per Unit(Net Realizable Value) Model A 42 $74 $90 Model B 45 181 202 Model C 29 166 171 Model D 12 130 112 Model E 24 159 158 Determine the value of the inventory at the lower of cost or market. Assemble the data in the form illustrated in Exhibit 9. Inventory at the Lower of Cost or Market Product Total Cost Total Market Lower of Total Cost or Total Market A $ $ $ B C D E Total $ $ $
Can you assist me with FIFO, LIFO, and the Waited Average Cost? I would love to see how you did the math when getting the cost of goods sold and the ending inventory. I am most confused about the waited average cost method. Thank you
Lower-of-Cost-or-Market Inventory On the basis of the following data: Inventory Quantity 40 37 35 30 26 Product Model A Model B Model C Model D $279 286 195 200 210 232 181 169 Determine the value of the inventory at the lower of cost or market. Assemble the data in the form illustrated in Exhibit 9. Model E Cost per Unit A B C D E Market Value per Unit (Net Realizable Value) Total Inventory at the Lower of Cost or Market Product Total Cost Total Market Lower of Total Cost or Total Market $269 261
On the basis of the data shown below: Inventory Cost per Market Value per Unit Item Quantity Unit (Net Realizable Value) МX62 80 $42 $40 05T4 155 20 23 Determine the value of the inventory at the lower of cost or market by applying lower of cost or market to each inventory item, as shown in Exhibit 9. $ 6,925 x
i need the answer quickly
For each of the following cost flow assumptions, calculate cost of goods sold, ending inventory, and gross profit. (1) LIFO. (2) FIFO. (3) Moving-average cost. (Round average-cost per unit to 3 decimal places, e.g. 12.502 and final answer to 0 decimal places, e.g. 1,250.) LIFO FIFO Moving-average 4852 $ 4590 SA $ 2748 $ 3090 Cost of goods sold 4852 $ Ending inventory $ 2828 Gross profit $ 2746 GA $ 2746 $ 3008
Please refer to the picture below for the information. Kindly use a TABLE in showing the complete solution. Thank you so much. Question: Using weighted average costing method, what is the amount of inventory as of December 31? and Using moving average costing method, what is the amount of inventory as of December 31, respectively? Choices for weighted average costing method: a. P59,000 b. P57,000 c. P61,600 d. P60,210 Choices for moving average costing method: a. P59,010 b. P60,210 c. P60,900 d. P57,000
Explain the step by step instructions given the following data for the questions below. Units Price Beginning Inventory 200 $1.20 First Purchase 400 $1.30 Second Purchase 250 $1.40 Sales 550 $2.00 Assuming a FIFO cost flow, the amount of cost of goods sold reported on the income statement would be what? Assuming a LIFO cost flow, the amount of ending inventory reported on the balance sheet would be what? Assuming a weighted average cost flow, the amount of ending inventory reported on the balance sheet would be (round the final answer to the nearest dollar) would be what? In a period of rising prices, which inventory cost flow method results in the lowest balance sheet figure for inventory? In a period of rising prices, which inventory cost flow method results in the lowest income tax liability, all other things being equal?
↑ Given the following data, calculate the cost of goods sold using the average-cost method. Round average cost per unit calculations to two decimal places. Round final answer to the nearest dollar. Item Date Unit Beginning inventory Purchase of inventory Purchase of inventory Ending inventory 30 units at $30 per unit 10 units at $10 per unit 10 units at $22 per unit 48 units 1/1 5/10 10/9 1231 OA $1,903 OB. $49 EE OC. $51 OD. $1,220
Using the average-cost method, calculate the cost of ending inventory and cost of goods sold for Chesney Corporation. (Round the average cost per unit to the nearest cent.) (Click the icon to view the data.) The cost of ending inventory is The cost of goods sold is Data table Beginning inventory Purchases Goods available for sale Ending inventory Cost of goods sold Quantity Unit Cost 170 $ 130 300 60 240 11.00 $ 14.00 $ Total - X 1,870 1,820