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The following pertains to the cost of H’s only inventory item: Inventory on hand, January 1                                        290 units @ $52 per unit Purchases, January 8                                        200 units @ $85 per unit Purchases, January 12                                                         950 units @ $88 per unit Purchases, January 20                                        400 units @ $91 per unit Purchases, January 26                                        600 units @ $92 per unit 2,440   Sales, January 5      50 units @ $200 per unit Sales, January 7      60 units @ $200 per unit Sales, January 13    200 units @ $200 per unit Sales, January 17    600 units @ $200 per unit Sales, January 22    450 units @ $200 per unit Sales, January 30    540 units @ $200 per unit 1,900                                          (1,900 x $200 = $380,000)   Calculate COGS AND GP for January AND EI as of 01-31 under the following assumption:   H uses perpetual LIFO EI:                                                                                   COGS:                                                                           Gross profit:                                                                  Make sure that the sum of your COGS AND EI answers add up to 100% of your COGAS.

The following pertains to the cost of H’s only inventory item: Inventory on hand, January 1                                        290 units @ $52 per unit Purchases, January 8                                        200 units @ $85 per unit Purchases, January 12                                                         950 units @ $88 per unit Purchases, January 20                                        400 units @ $91 per unit Purchases, January 26                                        600 units @ $92 per unit 2,440   Sales, January 5      50 units @ $200 per unit Sales, January 7      60 units @ $200 per unit Sales, January 13    200 units @ $200 per unit Sales, January 17    600 units @ $200 per unit Sales, January 22    450 units @ $200 per unit Sales, January 30    540 units @ $200 per unit 1,900                                          (1,900 x $200 = $380,000)   Calculate COGS AND GP for January AND EI as of 01-31 under the following assumption:   H uses perpetual LIFO EI:                                                                                   COGS:                                                                           Gross profit:                                                                  Make sure that the sum of your COGS AND EI answers add up to 100% of your COGAS.

FINANCIAL ACCOUNTING
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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The following pertains to the cost of H’s only inventory item:

  • Inventory on hand, January 1                                        290 units @ $52 per unit
  • Purchases, January 8                                        200 units @ $85 per unit
  • Purchases, January 12                                                         950 units @ $88 per unit
  • Purchases, January 20                                        400 units @ $91 per unit
  • Purchases, January 26                                        600 units @ $92 per unit

2,440

 

  • Sales, January 5      50 units @ $200 per unit
  • Sales, January 7      60 units @ $200 per unit
  • Sales, January 13    200 units @ $200 per unit
  • Sales, January 17    600 units @ $200 per unit
  • Sales, January 22    450 units @ $200 per unit
  • Sales, January 30    540 units @ $200 per unit

1,900                                          (1,900 x $200 = $380,000)

 

Calculate COGS AND GP for January AND EI as of 01-31 under the following assumption:

 

  • H uses perpetual LIFO

EI:                                                                                  

COGS:                                                                          

Gross profit:                                                                 

Make sure that the sum of your COGS AND EI answers add up to 100% of your COGAS.

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