Use the information below to answer the following question.The following units of an inventory item were available for sale during the year:Beginning inventory10 units at $55First purchase25 units at $60Second purchase30 units at $65Third purchase15 units at $70The firm uses the periodic inventory system. During the year, 60 units of the item were sold.The value of ending inventory rounded to the nearest dollar using average cost isOa. $1,375Ob. $1,353Oc. $1,263Od. s1,150

Weighted Average: Under the weighted average method, a weighted average cost is calculated and the…

Answered: Use the information below to answer the…

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 lots of Commodity Z were available for sale during the year. Beginning inventory 7 units at $47 First purchase 19 units at $55 Second purchase 51 units at $55 Third purchase 18 units at $59 The firm uses the periodic system, and there are 24 units of the commodity on hand at the end of the year. What is the ending inventory balance at the end of the year according to the LIFO method? a.$5,241 b.$1,264 c.$1,392 d.$1,128
The following is the information for ABC Corporation for the inventory transactions. The company sold 70 units on Jan 31 at $30/unit Date Units Unit Cost $10 $11 $12 $13 1-Jan 20 25-Jan 40 26-Jan 40 28-Jan 50 a. Calculate the cost of goods sold on January 31, 2020, using the FIFO method b. Calculate the ending inventory using the FIFO method c. Record journal entry for purchase on Jan 28 assuming thatit was a credit purchase d. Record journal entry for sale on Jan 31 assuming thatit was a credit sale
During the year, TRC Corporation has the following inventory transactions. Date Transaction Number of Units Unit Cost Total Cost January 1 Beginning inventory 45 $37 $1,665 April 7 Purchase 125 39 4,875 July 16 Purchase 195 42 8,190 October 6 Purchase 105 43 4,515 470 $19,245 For the entire year, the company sells 414 units of inventory for $55 each. Required:1-a & b. Using FIFO, calculate ending inventory and cost of goods sold.1-c & d. Using FIFO, calculate sales revenue and gross profit.2-a & b. Using LIFO, calculate ending inventory and cost of goods sold.2-c & d. Using LIFO, calculate sales revenue and gross profit.3-a & b. Using weighted-average cost, calculate ending inventory and cost of goods sold.3-c & d. Using weighted-average cost, calculate sales revenue and gross profit.4. Determine which method will result in higher profitability when inventory costs are rising.
The following units of an inventory item were available for sale during the year: Beginning inventory 8 units at $50 First purchase 16 units at $51 Second purchase 21 units at $52 Third purchase 15 units at $54 The firm uses the periodic inventory system. During the year, 22 units of the item were sold. The value of ending inventory rounded to the nearest dollar using average cost is (Round average cost per unit to three decimal places.) Oa. $1,174 Ob. $1,975 Oc. $1,100 Od. $1,114
The following data are available for Sellco for the fiscal year ended on January 31, 2020: Sales 830 units Beginning inventory 230 units @ $ 4 Purchases, in chronological order 290 units @ $ 5 450 units @ $ 7 250 units @ $ 7 Required:a. Calculate cost of goods sold and ending inventory under the cost flow assumptions, FIFO, LIFO and Weighted average (using a periodic inventory system): (Round unit cost to 2 decimal places.) b. Assume that net income using the weighted-average cost flow assumption is $15,300. Calculate net income under FIFO and LIFO. (Round unit cost to 2 decimal places.)
The company uses the perpetual inventory method. It began the month of March with 100 units of inventory, at a unit cost of $55. Purchases during March March 5, 60 units at $60 each. March 18, 200 units at $65 each March 29, 40 units at $75 each. Sales during March March 12, 60 units. March 25, 210 units. All units were sold to customer for $100 each. 1. Use the following format to set up this inventory costing problem, Inventory Date Units Cost per Total Cost Date Units Total Cost Unit Beg Balance Units Cost Beginning Balance + Purchases Goods Available for Sale - Sold Ending Balance 2. Use the moving weighted average method to calculate the cost of goods sold for each sale. the lutal cost ol goods sold for the month, and ending inventory. 3. Assuming that the March 12 sale came from beginning inventory, and the March 25 sale was comprised of 25 units from beginning inventory, all 60 units of the March 5 purchase, and the temainder from the March 18 purchase, use specific…
The following lots of Commodity Z were available for sale during the year. Beginning inventory 10 units at $48 First purchase 19 units at $51 Second purchase 55 units at $55 Third purchase 17 units at $62 The firm uses the periodic system, and there are 27 units of the commodity on hand at the end of the year. What is the ending inventory balance at the end of the year according to the LIFO method? Oa. $1,347 Ob. $1,604 Oc. 51,296 Od. $5,528
A company uses the periodic inventory system and had the following activity during the current monthly period. November 1: Beginning inventory 100 units @ $20 November 5: Purchased 100 units @ $22 November 8: Purchased 50 units @ $23 November 16: Sold 200 units @ $45 November 19: Purchased 50 units @ $25 Using the weighted-average inventory method, the company's ending inventory would be: Multiple Choice $2,000 $2,250 $2,400 $2,200 $4,400
What is the amount of the inventory at the end of the year using the LIFO method?
Co.’s purchases and sales of a particular product during the year are shown below:Jan. 1 Beginning Inventory 1,500 units @ $ 10Jan. 18 Purchase 1,250 units @ $ 12Jan 20 Sold 1,500 units @ $ 20Jan. 25 Purchase 1,750 units @ $ 14Jan. 27 Sold 1,750 units @ $ 25Jan. 29 Purchase 500 units @ $ 15 Assuming that company uses perpetual inventory system, determine thecost of goods sold and compute the ending inventory as of Jan. 31 and make the journal entry for Jan. 27 transaction by usinginventory subsidiary ledger for LIFO cost flow assumption.
The following lots of a particular commodity were available for sale during the year Beginning inventory 11 units at $52.00 First purchase 18 units at $53.00 Second purchase 21 units at $58.00 Third purchase 17 units at $61.00 The firm uses the periodic system, and there are 21 units of the commodity on hand at the end of the year. What is the amount of inventory at the end of the year according to the FIFO method? Select the correct answer. A. $1,092.00 B. $3,760.00 C. $3,781.00 D. $1,269.00
You have the following information for Swifty Inc. Swifty Inc. uses the periodic method of accounting for its inventory transactions. March March March 1 Beginning inventory 2,200 liters at a cost of 70¢ per liter. 3 Purchased 2,500 liters at a cost of 74¢ per liter. Sold 2,300 liters for $1.05 per liter. Purchased 4,000 liters at a cost of 81¢ per liter. Purchased 2,300 liters at a cost of 89¢ per liter. Sold 5,200 liters for $1.25 per liter. (a1) 5 March 10 March March 30 20 Calculate the value of ending inventory that would be reported on the balance sheet, under each of the following cost flow assumptions. (Round answers to 2 decimal places, e.g. 125.50.) (1) Specific identification method assuming: (i) The March 5 sale consisted of 1,000 liters from the March 1 beginning inventory and 1,300 liters from the March 3 purchase; and (ii) The March 30 sale consisted of the following number of units sold from beginning inventory and each purchase: 450 liters from March 1; 550 liters from…

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