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USE THE FOLLOWING INFORMATION TO ANSWER QUESTIONS 34-37 The Hester Corporation, a diversified distribution company, purchases cartons of canned golf balls from the Long Distance Company and markets the balls under the Hester brand name. Hester started operations on January 1, 2023. In the table below, Quarter 1 represents the time period from January 1, 2023 to March 31, 2023 and Quarter 2 represents the time period from April 1, 2023 to June 30, 2023. Hester began operations on January 1, 2023 with no inventory. Purchases and sales data for Hester's first two quarters of business are shown below: Quarter 1 Sales Purchases Quarter 2 Sales January February March 80,000 cartons at $8.00 per carton 20,000 cartons at $5.00 35,000 cartons at $5.20 40,000 cartons at $5.40 167,000 cartons at $9.00 per carton

USE THE FOLLOWING INFORMATION TO ANSWER QUESTIONS 34-37 The Hester Corporation, a diversified distribution company, purchases cartons of canned golf balls from the Long Distance Company and markets the balls under the Hester brand name. Hester started operations on January 1, 2023. In the table below, Quarter 1 represents the time period from January 1, 2023 to March 31, 2023 and Quarter 2 represents the time period from April 1, 2023 to June 30, 2023. Hester began operations on January 1, 2023 with no inventory. Purchases and sales data for Hester's first two quarters of business are shown below: Quarter 1 Sales Purchases Quarter 2 Sales January February March 80,000 cartons at $8.00 per carton 20,000 cartons at $5.00 35,000 cartons at $5.20 40,000 cartons at $5.40 167,000 cartons at $9.00 per carton

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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USE THE FOLLOWING INFORMATION TO ANSWER QUESTIONS 34-37 The Hester Corporation, a diversified distribution company, purchases cartons of canned golf balls from the Long Distance Company and markets the balls under the Hester brand name. Hester started operations on January 1, 2023. In the table below, Quarter 1 represents the time period from January 1, 2023 to March 31, 2023 and Quarter 2 represents the time period from April 1, 2023 to June 30, 2023. Hester began operations on January 1, 2023 with no inventory. Purchases and sales data for Hester's first two quarters of business are shown below: Quarter 1 Sales Purchases Quarter 2 Sales Purchases January February March April May June 80,000 cartons at $8.00 per carton 20,000 cartons at $5.00 35,000 cartons at $5.20 40,000 cartons at $5.40 167,000 cartons at $9.00 per carton 47,000 cartons at $5.60 50,000 cartons at $5.80 60,000 cartons at $6.00 35. Calculate the Quarter 2 ending inventories (in dollars) using the LIFO inventory valuation method. 36. Calculate Quarter 2 GROSS PROFIT using the LIFO inventory valuation method. 37. Calculate the Quarter 2 ending inventories (in dollars) using the FIFO inventory valuation method. 38. Calculate Quarter 2 GROSS PROFIT using the FIFO inventory valuation method.
Transcribed Image Text:USE THE FOLLOWING INFORMATION TO ANSWER QUESTIONS 34-37 The Hester Corporation, a diversified distribution company, purchases cartons of canned golf balls from the Long Distance Company and markets the balls under the Hester brand name. Hester started operations on January 1, 2023. In the table below, Quarter 1 represents the time period from January 1, 2023 to March 31, 2023 and Quarter 2 represents the time period from April 1, 2023 to June 30, 2023. Hester began operations on January 1, 2023 with no inventory. Purchases and sales data for Hester's first two quarters of business are shown below: Quarter 1 Sales Purchases Quarter 2 Sales Purchases January February March April May June 80,000 cartons at $8.00 per carton 20,000 cartons at $5.00 35,000 cartons at $5.20 40,000 cartons at $5.40 167,000 cartons at $9.00 per carton 47,000 cartons at $5.60 50,000 cartons at $5.80 60,000 cartons at $6.00 35. Calculate the Quarter 2 ending inventories (in dollars) using the LIFO inventory valuation method. 36. Calculate Quarter 2 GROSS PROFIT using the LIFO inventory valuation method. 37. Calculate the Quarter 2 ending inventories (in dollars) using the FIFO inventory valuation method. 38. Calculate Quarter 2 GROSS PROFIT using the FIFO inventory valuation method.
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