Widget Tek Inc.'s original accountant accepted a position with another firm and left in earlyMarch. You have been asked to review the subsidiary inventory ledger record for Widget TekInc.'s main product for March. Inventory Date Quantity Unit Cost Total Cost Mar. 1 850 $98 $83,300 1,275 $95 $121, 125 Mar. 8 650 $98 $63, 700 Mar. 11 325 $98 $31, 850 Mar. 14 325 $98 $31,850 780 $103 $80, 340 Mar. 22 260 $98 $25, 480 Mar. 25 260 $98 $25, 480 1,900 $102$193,800 Study the inventory record for March and answer the questions that follow. 1.Assuming that the product sells for $150 and that 90% of sales are on account, determine thegross profit from sales for March. $fill in the blank 2. Making the same assumptions as in (1),determine the ending inventory cost for March. $fill in the blank 3. Which inventory method isbeing used?

Name: Widget Tek Inc.'s original accountant accepted a position with anothe
Uploaded: 2024-03-20T06:32:37.000Z
Channel: Bartleby
Description: Widget Tek Inc.'s original accountant accepted a position with another firm and left in earlyMarch. You have been asked to review the subsidiary inventory ledger record for Widget TekInc.'s main product for March. Inventory Date Quantity Unit Cost T

It is the stock held for sale to customers. The inventory comprises of raw materials, work in…

Business

Accounting

Widget Tek Inc.'s original accountant accepted a position with another firm and left in early March. You have been asked to review the subsidiary inventory ledger record for Widget Tek Inc.'s main product for March. Inventory Date Quantity Unit Cost Total Cost Mar. 1 850 $98 $ 83,300 1, 275 $95 $121, 125 Mar. 8 650 $98 $63, 700 Mar. 11 325 $98 $31, 850 Mar. 14 325 $ 98 $31, 850 780 $103 $80, 340 Mar. 22 260 $98 $25, 480 Mar. 25 260 $98 $25, 480 1,900 $102

Widget Tek Inc.'s original accountant accepted a position with another firm and left in early March. You have been asked to review the subsidiary inventory ledger record for Widget Tek Inc.'s main product for March. Inventory Date Quantity Unit Cost Total Cost Mar. 1 850 $98 $ 83,300 1, 275 $95 $121, 125 Mar. 8 650 $98 $63, 700 Mar. 11 325 $98 $31, 850 Mar. 14 325 $ 98 $31, 850 780 $103 $80, 340 Mar. 22 260 $98 $25, 480 Mar. 25 260 $98 $25, 480 1,900 $102

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: Laker Company reported the following January purchases and sales data for its only product. For…

A: A company may monitor stock levels, spot out-of-date or slow-moving commodities, and maximize…

Q: i need the answer quickly

A: First-in First-Out Method - Under the First-in First-Out Method, the company uses inventory in the…

Q: "Laker Company reported the following January purchases and sales data for its only product. The…

A: Ending inventory is the amount of inventory that an entity has on hand, at the end of the period. It…

Q: The following information relates to the inventory of Margaret’s Megamart Ltd during December.…

A: Inventory, is a part of current assets which forms a part of total assets, is key component of the…

Q: Required information [The following information applies to the questions displayed below.] A company…

A: LIFO stands for last In First out.Using LIFO method, the newer inventory is sold out first.

Q: Required Information [The following information applies to the questions displayed below]…

A: The perpetual inventory system is one of the inventory systems where the inventory is updated after…

Q: Lisa Company reports the following for the month of June. Date Explanation Units Unit Cost Total…

A: Perpetual FIFO: Goods Purchased Cost of Goods Sold Ending Inventory Date…

Q: A company just starting its business made the following four inventory purchases in June: Date…

A: Gross profit is defined as the excess of the selling price of the goods over the cost of goods sold.…

Q: 4. Compute gross profit earned by the company for each of the four costing methods. Note: Round your…

A: 1. FIFO Method : Under this method, closing inventory is valued assuming that the old units were…

Q: [The following information applies to the questions displayed below.] Hemming Company reported the…

A: Inventory valuation is based on the method of flow used by the organization. It can be the first in…

Q: Coronado Company uses a periodic inventory system. For April, when the company sold 450 units, the…

A: Lets understand the basics.Ending inventory and cost of goods sold can be calculated using,(1)…

Q: Required Information [The following Information applies to the questions displayed below.] Laker…

A: Journal Entry :— It is an act of recording transactions in books of account when transaction…

Q: Laker Company reported the following January purchases and sales data for its only product. For…

A: Inventory means the detailed list or stock of items, goods, or materials held by a business or…

Q: The following information applies to the questions displayed below.] Hemming Co. reported the…

Q: Hess Company's inventory records show the following data for the month of September: Units…

A: Cost of goods sold=Cost of goods available-Ending inventory

Q: Laker Company reported the following January purchases and sales data for its only product. The…

A: Under Specific Identification Method, Cost of goods sold and value of ending inventory is calculated…

Q: Haynes Company uses the perpetual inventory system. The following information is available for the…

A: The inventory valuation method is used to evaluate the closing inventory and cost of goods sold…

Q: Ending inventory consists of 65 units from the March 14 purchase, 95 units from the July 30…

A: The Specific Identification Method is an inventory valuation method used to value the cost of goods…

Q: Hemming Company reported the following current-year purchases and sales for its only product. Date…

A: FIFO is first in first out which means inventory bought first is sold first.LIFO is last in first…

Q: A company began January with 8,000 units of its principal product. The cost of each unit is $7.…

A: Ending inventory is the amount of inventory that an entity has on hand, at the end of the period. It…

Q: The following information relates to inventory for Happy Eddie Incorporated: Transaction Quantity…

A: LIFO (Last-In, First-Out) is an inventory accounting method where the most recently acquired items…

Q: The following information was available from the inventory records of Vaughn Manufacturing for…

A: Inventory means the detailed list or stock of items, goods, or materials held by a business or…

Q: The following information was available from the inventory records of Sheffield Corp. for January:…

A: Weighted Average Method is one of the methods of inventory valuation in which it is assumed that…

Q: Hess Company's inventory records show the following data for the month of September: Units…

A: Last-In, First-out (LIFO): LIFO is an acronym that refers to a system of inventory accounting called…

Q: Denger

A: The objective of the question is to calculate the gross profit for the company using four different…

Q: Carrington Inc. reported the following information for the month of August: Inventory, August 1 64…

A: The specific identification method relates to inventory valuation, specifically keeping track of…

Q: Oahu Kiki tracks the number of units purchased and sold throughout each accounting perlod but…

A: Lets understand some basics Inventory is the accounting of items, component parts and raw materials…

Q: Oahu Kiki tracks the number of units purchased and sold throughout each accounting period but…

A: Inventory includes all the items, merchandise, and raw materials that are used by the business…

Q: Laker Company reported the following January purchases and sales data for its only product. For…

A: "Since you have asked a question with sub-parts more than three, as per guidelines, the first three…

Concept explainers

Inventory Valuation

Before discussing the topic inventory valuation let’s discuss the meaning of inventory. In accounting, inventory is also known as stock. Inventory means all the finished goods, materials, merchandise that a business holds for the purpose of selling it in the market with the motive of earning profit.

Topic Video

Question

Widget Tek Inc.'s original accountant accepted a position with another firm and left in early
March. You have been asked to review the subsidiary inventory ledger record for Widget Tek
Inc.'s main product for March. Inventory Date Quantity Unit Cost Total Cost Mar. 1 850 $98 $
83,300 1,275 $95 $121, 125 Mar. 8 650 $98 $63, 700 Mar. 11 325 $98 $31, 850 Mar. 14 325 $
98 $31,850 780 $103 $80, 340 Mar. 22 260 $98 $25, 480 Mar. 25 260 $98 $25, 480 1,900 $102
$193,800 Study the inventory record for March and answer the questions that follow. 1.
Assuming that the product sells for $150 and that 90% of sales are on account, determine the
gross profit from sales for March. $fill in the blank 2. Making the same assumptions as in (1),
determine the ending inventory cost for March. $fill in the blank 3. Which inventory method is
being used?

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1: Define 'Inventory':

VIEW

Step 2: Working Note:- Prepare the inventory record:

VIEW

Step 3: Determine the gross profit from sales for March:

VIEW

Step 4: Determine the ending inventory cost for March:

VIEW

Step 5: Determine the inventory method that is used:

VIEW

Solution

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 6 steps with 2 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

The board of directors of Windsor Corporation is considering whether or not it should instruct the accounting department to shift from a first-in, first-out (FIFO) basis of pricing inventories to a last-in, first-out (LIFO) basis. The following information is available. Sales Inventory, January 1 Purchases Inventory, December 31 Operating expenses 19,500 units @ 5,800 units @ 5,800 units @ 9,500 units @ 6,900 units @ 8,500 units @ $54 22 24 27 32 ? $216,000 Prepare a condensed income statement for the year on both bases for comparative purposes.
Laker Company reported the following January purchases and sales data for its only product. Date Activities Units Acquired at Cost Units sold at Retail Jan. 1 Beginning inventory 150 units @ $ 7.50 = $ 1,125 Jan. 10 Sales 110 units @ $ 16.50 Jan. 20 Purchase 80 units @ $ 6.50 = 520 Jan. 25 Sales 90 units @ $ 16.50 Jan. 30 Purchase 200 units @ $ 6.00 = 1,200 Totals 430 units $ 2,845 200 units The Company uses a perpetual inventory system. For specific identification, ending inventory consists of 230 units, where 200 are from the January 30 purchase, 5 are from the January 20 purchase, and 25 are from beginning inventory. Required:1. Complete the table to determine the cost assigned to ending inventory and cost of goods sold using specific identification.2. Determine the cost assigned to ending inventory and to cost of goods sold using…
Jasper & Williams made purchases of a particular product In the current year as follows: 1 Beginning inventory 7 Purchased Jan. 120 units e $2.10 @$2.20 @ $2.30 252 Mar. 250 units 55e July 28 Purchased 500 units 1,150 Oct. Purchased 69 units e$2.45 147 Totals 930 units $ 2,099 Assume that the specific Identification method is used to assign costs to cost of goods sold ending inventory. The units in ending Inventory were specifically identified as follows. • 80 units from beginning Inventory • 27 units from the March 7 purchase, and • 48 units from the July 28 purchase. Required: Determine the cost to be assigned to ending Inventory and cost of goods sold. (Round the final answers to 2 decimal places.) Ending inventory Cost of goods sold
need detailed answers
20
The following information applies to the questions displayed below; Hemming Company reported the following current-year purchases and sales for its only product. Date Activities January 1 Beginning inventory January 10 Sales March 14 Purchase March 15 Sales- July 30 Purchase October S October 26 Sales Purchase Totals 275 units 450 units 475 units Units Acquired at Cost $13.00- $18.00 $23.00- Units Sold at Retail $3,575 230 units $43.00 8,100 10,925 408 units 455 units $43.00 $43.00 175 units 1,375 units @$28.90 4,900 $ 27,500 1,885 units Hemming uses a periodic inventory system. (a) Determine the costs assigned to ending inventory and to cost of goods sold using FIFO. (b) Determine the costs assigned to ending inventory and to cost of goods sold using LIFO. (c) Compute the gross profit for each method. a) Periodic FIFO Beginning inventory Purchases March 14 July 30 October 28 Total b) Periodio LIFO Beginning inventory Purchases: Cost of Goods Available for Sale Cost of Goods Sold…
Hemming Company reported the following current-year purchases and sales for its only product. Date Activities March 14 January 1 Beginning inventory January 10 Sales Purchase Sales Purchase Sales Purchase March 15 July 30 October 5 October 26 Totals Units Acquired at Cost @$10 200 units 350 units 450 units 100 units 1,100 units Goods Purchased @ $15 @ $20 $25 Complete this question by entering your answers in the tabs below. $ 2,000 5,250 9,000 1. Determine the costs assigned to ending inventory and to cost of goods sold using FIFO. 2. Determine the costs assigned to ending inventory and to cost of goods sold using LIFO. 3. Compute the gross profit for FIFO method and LIFO method. Required 1 Required 2 Required 3 Determine the costs assigned to ending inventory and to cost of goods sold using FIFO. Perpetual FIFO: Cost of Goods Sold 2,500 $ 18,750 Exercise 5-8 (Static) Perpetual: Inventory costing methods-FIFO and LIFO LO P1 Required: Hemming uses a perpetual inventory system. Units…
[The following information applies to the questions displayed below.] Hemming Co. reported the following current-year purchases and sales for its only product. Date Activities Units Acquired at Cost Units Sold at Retail Jan. 1 Beginning inventory 195 units @ $13.80 = $ 2,691 Jan. 10 Sales 185 units @ $43.80 Mar. 14 Purchase 345 units @ $18.80 = 6,486 Mar. 15 Sales 235 units @ $43.80 July 30 Purchase 495 units @ $23.80 = 11,781 Oct. 5 Sales 205 units @ $43.80 Oct. 26 Purchase 695 units @ $28.80 = 20,016 Totals 1,730 units $ 40,974 625 units Required: Hemming uses a perpetual inventory system. Compute the gross margin for FIFO method. Sales revenue Less: cost of goods sold Gross Margin…
Required information [The following information applies to the questions displayed below.] A company began January with 7,000 units of its principal product. The cost of each unit is $6. Inventory transactions for the month of January are as follows: Date of Purchase January 10 January 18 Totals Total * Includes purchase price and cost of freight. Date of Sale January 5 January 12 January 20 Total Sales LIFO Beginning Inventory Purchases: Units 6,000 7,000 13,000 January 10 January 18 Units 10,000 units were on hand at the end of the month. 3,000 3,000 4,000 10,000 2. Calculate January's ending inventory and cost of goods sold for the month using LIFO, periodic system. Cost of Goods Available for Sale Cost of Goods Available for Sale Number Cost per of units unit Purchases Unit Cost* $7 8 7,000 $ 6.00 6,000 $ 7.00 7,000 $ 8.00 20,000 $ $ 42,000 Total Cost $ 42,000 56,000 $ 98,000 42,000 56,000 140,000 Cost of Goods Sold - Periodic LIFO Cost of Goods Sold Number of units sold Cost per…
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
Presented below is information related to lamarisk Enterprises. Jan. 31 Feb. 28 Mar. 31 Apr. 30 Inventory at cost $17,400 $17,516 $19,720 $16,240 Inventory at LCNRV 16,820 14,616 18,096 15,428 Purchases for the month 19,720 27,840 30,740 Sales for the month 33,640 40,600 46,400 (a) From the information, prepare (as far as the data permit) monthly income statements in columnar form for February, March, and April. The inventory is to be shown in the statement at cost; the gain or loss due to market fluctuations is to be shown separately (using a valuation account). (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) February March April > > > $ $ $
Haresh