Topanga Group began operations early in 2016. Inventory purchase information for the quarter ended March31, 2016, for Topanga's only product is provided below. The unit costs include the cost of freight. The companyuses a periodic inventory system.Date of PurchaseUnitsTotal CostUnit Cost$ 20,0005,00012,00017,000$4.00Jan. 7Feb. 16March 224.5054,00085,0005.00Totals$159,00034,000Sales for the quarter, all at $7.00 per unit, totaled 20,000 units leaving 14,000 units on hand at the end of the quarter.Required:1. Calculate the Topanga's gross profit ratio for the first quarter using:a. FIFOb. LIFOc. Average cost2. Comment on the relative effect of each of the three inventory methods on the gross profit ratio.

1a. Compute Topanga’s gross profit ratio for the first quarter using FIFO as shown below:

Answered: Topanga Group began operations early in…

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 trial balance of Sheridan Company at the end of its fiscal year, August 31, 2017, includes these accounts: Beginning Inventory $19,620; Purchases $190,350; Sales Revenue $188,100; Freight-In $8,490; Sales Returns and Allowances $3,450; Freight-Out $2,820; and Purchase Returns and Allowances $5,400. The ending inventory is $22,100. Prepare a cost of goods sold section (periodic system) for the year ending August 31, 2017. SHERIDAN COMPANY Income Statement choose the accounting period select an income statement item $enter a dollar amount enter an opening name for subsection one $enter a dollar amount select between addition and deduction : enter an income statement item enter a dollar amount select a closing name for subsection one enter a total amount for subsection one select between addition and deduction : enter an income statement item enter a dollar amount select an income statement item enter a total of the two previous amounts select a summarizing…
Gillam Ltd uses a perpetual inventory system. The unit cost of inventory is assigned using the First-In, First-Out method. During June 2010 the company had the following transactions for an item of material: June 1 Balance 240 units @ $6.00 $ 1,440 5 Purchased on credit 160 units @ $5.50 880 10 Issued 40 units to Job 60 15 Issued 220 units to Job 61 20 Purchased on credit 260 units @ $6.00 1,560 22 Issued 100 units to Job 62 25 Issued 200 units to Job 63 29 Returned 10 units to the supplier purchased on the 22 June REQUIRED: ( a ) Prepare an inventory ledger card (stock card) to record the above. ( b ) Prepare a general journal entry to record the total issues for June. ( c ) Prepare a general journal entry to record the return to the supplier of 10 units purchased on 22 June.
Planet Enterprises sells its product for $22.06 per unit and uses the Average Cost, perpetual method for tracking inventory costs. The following sequence of events has occurred during the month of September. Date Event Sep 1 Beginning Inventory: 80 units @ $12.37/unit Sep 3 Purchase 115 units @ $11.2/unit Sep 7 Sell 90 units Sep 11 Purchase 70 units @ $10.53/unit Sep 17 Sell 115 units Sep 23 Purchase 80 units @ $10.73/unit How much is total Cost of Goods Sold for the entire month of September? (round all calculations to the hundredths place; enter your answer rounded to the hundredths place) Answer:
ABC Company employs a periodic inventory system and sells its inventory to customers for $20 per unit. ABC Company had the following inventory information available for May: May 1 May 3 May 8 May 13 May 18 May 20 May 24 May 30 Beginning inventory 1,900 units @ $10.20 cost per unit Purchased 2,100 units @ $11.60 cost per unit Sold 1,400 units Purchased 3,700 units $8.10 cost per unit Sold 2,600 units Purchase 4,100 units @ $14.70 cost per unit Sold 2,900 units Purchased 2,200 units @ $12.60 cost per unit During May, ABC Company reported operating expenses of $14,000 and had an income tax rate of 36%. Calculate the dollar amount of ending inventory shown on ABC Company's May 31 balance sheet using the FIFO method.
Wildhorse Company uses a periodic inventory system and reports the following for the month of June. Date Explanation Units Unit Cost Total Cost June 1 Inventory 130 $4 $520 12 Purchase 520 6 3,120 23 Purchase 325 8 2,600 30 Inventory 305 (a) Compute the cost of the ending inventory and the cost of goods sold under (1) FIFO, (2) LIFO, and (3) average-cost. (For calculation purposes, round average cost per unit to 2 decimal places, e.g. 5.25. Round answers to O decimal places, eg. 125.) FIFO Cost of the ending inventory $ Cost of goods sold $ $ $ LIFO Average-Cost $ $
Vaughn Company uses a periodic inventory system. For April, when the company sold 540 units, the following information is available. April 1 inventory April 15 purchase April 23 purchase Ending inventory Units Cost of goods sold 220 380 400 1,000 Unit Cost $25 $ 30 33 Total Cost $5,500 Compute the April 30 inventory and the April cost of goods sold using the FIFO method. 11,400 13,200 $30,100
ABC Company employs a periodic inventory system and sells its inventory to customers for $20 per unit. ABC Company had the following inventory information available for May: May 1 May 3 May 8 May 13 May 18 May 20 May 24 May 30 Beginning inventory 1,900 units @ $10.20 cost per unit Purchased 2,100 units @ $11.60 cost per unit Sold 1,400 units Purchased 3,700 units @ $8.10 cost per unit Sold 2,600 units Purchase 4,100 units @ $14.70 cost per unit Sold 2,900 units Purchased 2,200 units @ $12.60 cost per unit During May, ABC Company reported operating expenses of $14,000 and had an income tax rate of 36%. Calculate the amount of net income shown on ABC Company's income statement for May using the LIFO method.
Marietta Company began operations early in 2017. The below information relates to inventory it purchased for its only product for the quarter ended March 31, 2017. The units costs provided include the cost of freight. The unit costs include the freight-in expenses. Marietta uses a periodic inventory system Date of Purchases Units Unit Cost Total Cost January 6 15,000 $6.00 $ 90,000 February 15 36,000 6.75 243,000 March 21 51,000 7.5 382,500 Totals 102,000 $ 715,500 Marietta sold 60,000 units at $14.00 per unit during the period. Ending inventory on hand amounted to 42,000 units. REQUIRED: Calculate Asman’s gross profit ratio for the first quarter using: FIFO LIFO
Calculate the cost of goods sold dollar value for A67 Company for the month, considering the following transactions under three different cost allocation methods and using perpetual inventory updating. Provide calculations for weighted average (AVG). Round your intermediate calculations to 2 decimal places and final answers to the nearest dollar amount. Number of Units Unit Cost Sales Beginning inventory 860 $60 Purchased 650 62 Sold 400 $100 Sold 350 110 Ending inventory 760 AVG (perpetual) Inventory Cost of Goods Sold Cost of Inventory Remaining Cost of Goods Purchased Number Number Number of Units Unit Cost Total Cost of Units Unit Cost Total Cost of Units Unit Cost Total Cost Beginning Purchase Sale Sale Total COGS Total Purchases
Amsterdam Company uses a periodic inventory system. For April, when the company sold 600 units, the following information is available Unit Cost Units Total Cost 250 10 $2,500 April 1 Inventory April 15 Purchase 400 12 4,800 13 4,550 April 23 Purchase Compute the April 30 Cost of goods sold Balance utilizing the average cost method. 350
During the year, TRC Corporation has the following inventory transactions. Date Jan. 1 Beginning inventory Apr. 7 Purchase Jul.16 Purchase Oct. 6 Purchase Weighted Average Cost Total Beginning Inventory Purchases: Apr 07 Jul 16 Oct 06 Transaction Sales revenue Gross profit For the entire year, the company sells 450 units of inventory for $70 each. 3. Using weighted-average cost, calculate ending inventory, cost of goods sold, sales revenue, and gross profit. (Round "Average Cost per unit" to 2 decimal places and all other answers to the nearest whole number.) Number of Units 60 140 210 120 530 Cost of Goods Available for Sale # of units 60 140 210 120 530 Average Cost per unit Cost of Goods Available for Sale $ $ Unit Cost 3,120 $ 52 54 57 58 7,560 11,970 6.960 29,610 Total Cost $ 3,120 7,560 11,970 6,960 $29,610 Cost of Goods Sold - Weighted Average Cost of units Sold Average Cost of Cost per Unit Goods Sold Ending Inventory - Weighted Average Cost # of units in Ending Inventory…
3. Calculate January's ending inventory and cost of goods sold for the month using FIFO, perpetual system.

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