The following is a record of Ensberg Company's transactions for Colt Products for the month of May 2017. May 1 Balance 12 28 600 units@ $10.00 May 10 Purchase 900 units@ $12.00 20 Purchase 600 units@ $15.00 Sale 450 units @ $19 Sale 810 units @ $19 (a) Assuming that perpetual inventories are not maintained and that a physical count at the end of the month shows 840 units on hand, what is the cost of the ending inventory using (1) FIFO and (2) LIFO? (b) Assuming that perpetual records are maintained and they tie into the general ledger, calculate the ending inventory using (1) FIFO and (2) LIFO. Tom Terry manufactures an intricately detailed plastic and metal toy airplane. The following unit cost data pertain to the unit cost of an airplane: Direct materials Direct labor $ 5.00 12.00 Manufacturing overhead (50% fixed) 10.00 Total manufacturing costs $27.00 Assume that the airplane can be purchased from an outside supplier. What is the relevant unit cost for this make-or-buy decision? a. $5. b. $17. c. $27. d. $22. e. None of the above.
The following is a record of Ensberg Company's transactions for Colt Products for the month of May 2017. May 1 Balance 12 28 600 units@ $10.00 May 10 Purchase 900 units@ $12.00 20 Purchase 600 units@ $15.00 Sale 450 units @ $19 Sale 810 units @ $19 (a) Assuming that perpetual inventories are not maintained and that a physical count at the end of the month shows 840 units on hand, what is the cost of the ending inventory using (1) FIFO and (2) LIFO? (b) Assuming that perpetual records are maintained and they tie into the general ledger, calculate the ending inventory using (1) FIFO and (2) LIFO. Tom Terry manufactures an intricately detailed plastic and metal toy airplane. The following unit cost data pertain to the unit cost of an airplane: Direct materials Direct labor $ 5.00 12.00 Manufacturing overhead (50% fixed) 10.00 Total manufacturing costs $27.00 Assume that the airplane can be purchased from an outside supplier. What is the relevant unit cost for this make-or-buy decision? a. $5. b. $17. c. $27. d. $22. e. None of the above.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Transcribed Image Text:The following is a record of Ensberg Company's transactions for Colt Products for the
month of May 2017.
May 1 Balance
12
28
600 units@ $10.00 May 10
Purchase 900 units@ $12.00 20
Purchase 600 units@ $15.00
Sale 450 units @ $19
Sale 810 units @ $19
(a) Assuming that perpetual inventories are not maintained and that a physical count at
the end of the month shows 840 units on hand, what is the cost of the ending inventory
using (1) FIFO and (2) LIFO?
(b) Assuming that perpetual records are maintained and they tie into the general ledger,
calculate the ending inventory using (1) FIFO and (2) LIFO.
Tom Terry manufactures an intricately detailed plastic and
metal toy airplane. The following unit cost data pertain to
the unit cost of an airplane:
Direct materials
Direct labor
$ 5.00
12.00
Manufacturing overhead (50% fixed) 10.00
Total manufacturing costs
$27.00
Assume that the airplane can be purchased from an
outside supplier. What is the relevant unit cost for this
make-or-buy decision?
a. $5.
b. $17.
c. $27.
d. $22.
e. None of the above.
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