The following information is provided for the sales of merchandise item PQ for the first week of December 2020: December 1st, Bought 1,200 units @ $11 December 2nd, Bought 1,800 units @ $12 December 2nd, issued 1,000 units December 3rd, Bought 800 units @ $13 December 4th issued 1,500 units December 5th, issued 1,000 units Required: A record for the above purchases and issues using the LIFO method.

The following information is provided for the sales of merchandise item PQ for the first week of December 2020: December 1st, Bought 1,200 units @ $11 December 2nd, Bought 1,800 units @ $12 December 2nd, issued 1,000 units December 3rd, Bought 800 units @ $13 December 4th issued 1,500 units December 5th, issued 1,000 units Required: A record for the above purchases and issues using the LIFO method.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Stitch Ships Inc. has the following inventory purchases during the fiscal year ended December 31, 2020. Jan 14 Purchased $30,000 of inventory on credit. Feb 19 Sold merchandise for cash $14,000. Original cost was $9,500. Aug 4 Sold merchandise for cash $22,000. Original cost was $14,500. Sep 20 Purchased $10,000 of inventory for cash. Required: a). Prepare all the journal entries assuming Stitch Ships Inc. uses the perpetual inventory system. b) What is the dollar value of Stitch Ships Inc. ending inventory if its beginning inventory was $7500.
Easton Company uses the periodic inventory system and had the following inventory & sales activity for the month of May 2019: Date Activity Quantity Unit Price 5/1 Beginning Inventory 140 $11 5/5 Purchase 120 $13 5/15 Purchase 270 $15 5/25 Purchase 420 $17 Sales were 430 units at $25. Using the Weighted Average method, determine the dollar value of Ending Inventory for the month of May.
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…
The units of an item available for sale during the year were as follows: Date Line Item Description Value Jan. 1 Inventory 2,900 units at $5 Feb. 17 Purchase 2,800 units at $7 Jul. 21 Purchase 3,200 units at $9 Nov. 23 Purchase 1,100 units at $11 There are 1,400 units of the item in the physical inventory at December 31. The periodic inventory system is used. This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the questions below. a. Determine the inventory cost by the first-in, first-out method. b. Determine the inventory cost by the last-in, first-out method. c. Determine the inventory cost by the weighted average cost method. Round your answer to the nearest dollar
A company has the following purchases and sales during July. Using the LIFO perpetual inventory method, what is the cost assigned to ending inventory at the end of July? Date July 1 July 8 July 11 July 17- July 22 O A. $3,060 OB. $5,720 OC. $3,180 OD. $2,540 OE. $2,670 Beginning inventory Purchase Sales Activities Purchase Sales Units Acquired at Cost 158 units @ $10 = $1,580 228 units @ $12 - $2,736 108 units @ $13= $1,404 Units Sold at Retail 148 units @ $20 98 units @ $21
A company reports the following beginning inventory and two purchases for the month of January. On January 26, the company sells 280 units. Ending inventory at January 31 totals 130 units. Beginning inventory on January 1 Purchase on January 9 Purchase on January 25 Perpetual FIFO: Required: Assume the perpetual inventory system is used. Determine the costs assigned to ending inventory when costs are assigned based on the FIFO method. Date January 1 January 9 January 25 January 26 Totals Goods purchased # of units Cost per unit Units Unit Cost 250 60 100 # of units sold $2.30 2.50 2.64 Cost of Goods Sold Cost per Cost of Goods unit Sold Inventory Balance Cost per unit # of units Inventory Balance
The following data was obtained from the records of ABC Inc., for the current year. Sales during the year were 201 units. (SHOW YOUR WORK) Jan 1, 2021 Jan 11, 2021 Jan 23, 2021 January 31 Beginning Inventory Purchases Purchases 80 units at $8 65 units at $10 55 units at $12 53 units at $14 Purchases Required: Calculate the cost of the ENDING INVENTORY and the COST OF GOODS SOLD using: a) FIFO b) LIFO c) Prepare an income statement using the FIFO method for inventory valuation. Sales were $5000 and operating expenses were $2,000. The income tax rate is 25%.
The units of an item available for sale during the year were as follows: Jan. 1 Inventory 850 units at $ 43 Mar. 10 Purchase 1090 units at $ 46 Aug. 30 Purchase 902 units at $ 49 Dec. 12 Purchase 870 units at $ 55 There are 950 units of the item in the physical inventory at December 31. The periodic inventory system is used. Determine the inventory cost and the cost of merchandise sold by the following three methods, presenting your answers in the following form: Cost of Merchandise Merchandise Inventory method Inventory Sold a. First-in, first-out $ $ b. Last-in, first-out c. Weighted average cost Show your calculations
Please make a LIFO chart
Bins Incorporated uses the periodic inventory system. The following table shows beginning inventory and inventory purchases for 2020: Month Beginning Inventory January February March Totals Sales Units Units 2,240 2,880 1,960 3,000 2,080 2,800 2,720 8,680 9,000 Purchases Cost per unit $5.00 $7.00 $5.00 $7.00 Totals $11,200 $13,720 $10,400 $19,040 $54,360 Relative to March, the company projects a 5 percent increase in cost of goods sold during April. The desired ending inventory balance for April is $2,400. Romaguera Inc pays cash to settle 60 percent of its purchases on account during the month of purchase and pays the remaining 40 percent in the month following the purchase. The accounts payable balance as of March 31 was $6,800. Required: Based on the FIFO inventory valuation methods answer the following questions. You may round your final answer to the nearest dollar. What is the ending inventory balance at the end of March? $ What is the total cost of goods sold at the end of…