Waterway Company sells one product. Presented below is information for January for Waterway Company.Jan. 1Inventory119 units at $4 each4Sale98 units at $8 each11Purchase141 units at $6 each13Sale111 units at $9 each20Purchase160 units at $6 each27Sale95 units at $11 eachWaterway uses the FIFO cost flow assumption. All purchases and sales are on account. Compute gross profit using the periodic system.Gross profit

Name: Waterway Company sells one product. Presented below is information fo
Uploaded: 2024-03-20T06:32:37.000Z
Channel: Bartleby
Description: Waterway Company sells one product. Presented below is information for January for Waterway Company.Jan. 1Inventory119 units at $4 each4Sale98 units at $8 each11Purchase141 units at $6 each13Sale111 units at $9 each20Purchase160 units at $6 each27Sa

Gross profit is the amount of money earned by the entity after deducting the cost of goods sold from…

Business

Accounting

Waterway Company sells one product. Presented below is information for January for Waterway Company. Jan. 1 Inventory 119 units at $4 each 4 Sale 98 units at $8 each 11 Purchase 141 units at $6 each 222 13 Sale 111 units at $9 each 20 Purchase 160 units at $6 each 27 Sale 95 units at $11 each Waterway uses the FIFO cost flow assumption. All purchases and sales are on account.

Waterway Company sells one product. Presented below is information for January for Waterway Company. Jan. 1 Inventory 119 units at $4 each 4 Sale 98 units at $8 each 11 Purchase 141 units at $6 each 222 13 Sale 111 units at $9 each 20 Purchase 160 units at $6 each 27 Sale 95 units at $11 each Waterway uses the FIFO cost flow assumption. All purchases and sales are on account.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Bridgeport Corp. uses a periodic inventory system. Its records show the following for the month of May, in which 77 units were sold. Explanation Unit Cost Date Units Total Cost May 1 Inventory 32 $9 $288 15 Purchase 25 10 250 42 24 Purchase 11 462 Total 99 $1,000 Calculate the weighted-average unit cost. (Round answer to 3 decimal places, e.g. 5.125.) Weighted-average unit cost $ LINK TO TEXT VIDEO: APPLIED SKILLS VIDEO: SIMILAR EXERCISE Calculate the ending inventory at May 31 using the FIFO, LIFO and average-cost methods. (Round answers to 0 decimal places, e.g. 125.) FIFO LIFO AVERAGE-COST The ending inventory at May 31 $4 $ $4
Bramble Company sells one product. Presented below is information for January for Bramble Company. Jan. 1 Inventory 114 units at $5 each 4 Sale 89 units at $8 each 11 Purchase 156 units at $7 each 13 Sale 126 units at $9 each 20 Purchase 158 units at $7 each 27 Sale 103 units at $11 each Bramble uses the FIFO cost flow assumption. All purchases and sales are on account.
Norris Co. purchase and sales data is as follows: Units Cost per Unit Aug. 1 Inventory 50 $25 7 Sale 38 18 Purchase 25 $30 24 Sale ? 29 Purchase 60 $32 The August 24th sale is provided as a slider to vary the quantity sold as follows: 1. If 10 units are sold on August 24th, what is the total Cost of Merchandise Sold for the month under LIFO? $ _________ 2. If 30 units are sold on August 24th, what is the Merchandise Inventory balance on August 31 under FIFO? $ ___________ 3. Under either FIFO or LIFO, as the number of units sold increases, the number of units in the Merchandise Inventory ending balance ________(DECREASE/INCREASE/REMAIS UNCHANGED/VARIES RANDOMLY) . 4. If 30 units are sold on August 24th under LIFO, what is the total cost of this sale? $ _________ 5. If 20 units are sold on August 24th under FIFO, what is the total cost of this sale? $ ____________ 6. The…
A company reports the following beginning inventory and two purchases for the month of January. On January 26, the company sells 330 units. Ending inventory at January 31 totals 140 units. Units Unit Cost Beginning inventory on January 1 300 $ 2.80 Purchase on January 9 70 3.00 Purchase on January 25 100 3.14 Required: Assume the perpetual inventory system is used. Determine the costs assigned to ending inventory when costs are assigned based on the FIFO method.
Bramble Company sells one product. Presented below is information for January for Bramble Company. Jan. 1 Inventory 114 units at $5 each 4 Sale 89 units at $8 each 11 Purchase 156 units at $7 each 13 Sale 126 units at $9 each 20 Purchase 158 units at $7 each 27 Sale 103 units at $11 each Bramble uses the FIFO cost flow assumption. All purchases and sales are on account.
Axel Company and Rod Company completed the following merchandising transactions in the month of April. Axel Company follows periodic inventory system and Rod Company follows perpetual inventory system. Journalize for the month of April, Axel Company's transactions and Rod Company's transactions. April 9 April 12 April 18 Axel Company sold $52,000 of merchandise on account to Rod Company, terms FOB shipping point, 1/10, n/30. The cost of the merchandise sold was $28,500. The appropriate party also paid $100 for the freight charge. Axel Company granted Rod Company $4,600 credit for merchandise returned costing $2,700. Axel Company received the balance due from Rod Company. Instructions: a. Journalize the above transactions on the books of Axel Company. b. Journalize the above transactions on the books of Rod Company.
Assume Ava Co. has the following purchases of inventory during the first month of operations Number of Units Cost per unit First Purchase 140 2.4 Second Purchase 105 4.7 Assuming Ava Co sells 120 units at $14 each, what is the cost of goods sold if they use LIFO?
Shown below is activity for one of the products of Denver Office Equipment: January 1 balance, 500 units @ $55 Purchases: January 10: 500 units @ $60 January 20: 800 units @ $63 Sales: January 12: 750 units January 28: 650 units 4) Compute the cost of goods sold for January, assuming Denver uses average cost and perpetual inventory system. Cost of goods sold: $ Your computations: (no credit if not shown)
Concord Company sells one product. Presented below is information for January for Concord Company. Jan. 1 Inventory 103 units at $5 each 4 Sale 82 units at $8 each 11 Purchase 135 units at $7 each 13 Sale 102 units at $9 each 20 Purchase 167 units at $7 each 27 Sale 108 units at $11 each Concord uses the FIFO cost flow assumption. All purchases and sales are on account. 1. Assume Concord uses a perpetual system. Prepare all necessary journal entries. 2. Compute gross profit using the perpetual system. 3.Compute gross profit using the periodic system.
The following information is available for C Corp. for the month of March: Units Unit costs Selling price Beginning inventory 260 $6 Purchase 530 $6 Purchase 790 $7 Sold 1320 $11 signed in as cavijaynparmar. Assume that the corporation uses the average cost method. Determine the amount of gross profit for the month of March. $5,940 $1,690 $2,860 $4.250
A company reports the following beginning inventory and two purchases for the month of January. On January 26, the company sells 310 units. Ending inventory at January 31 totals 130 units. Units Unit Cost Beginning inventory on January 1 280 $ 2.60 Purchase on January 9 60 2.80 Purchase on January 25 100 2.94 Required:Assume the perpetual inventory system is used. Determine the costs assigned to ending inventory when costs are assigned based on LIFO.
Check my work Oahu Kiki tracks the number of units purchased and sold throughout each accounting period but applies its inventory costing method at the end of each month, as if it uses a periodic inventory system. Assume Oahu Kiki's records show the following for the month of January. Sales totaled 250 units. Beginning Inventory Date January 1 Units Unit Cost 100 $ 80 Total $ 8, Purchase January 15 450 90 40, Purchase January 24 200 110 22, Required: 1. Calculate the number and cost of goods available for sale. 2. Calculate the number of units in ending inventory. 3. Calculate the cost of ending inventory and cost of goods sold using the (a) FIFO, (b) LIFO, and (c) weighted average cost methods. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Calculate the cost of ending inventory and cost of goods sold using the (a) FIFO, (b) methods. FIFO LIFO Cost of Ending Inventory Cost of Goods Sold Weighted Average Cost