Question #3 (LIFO Reserves)The Company uses FIFO for internal reporting but uses LIFO for external reporting.Information related to inventory during the year follows:Beginning InventoryPurchases40 units @ $500 each = $ 20,000500 units @ $550 each = $275,000Sales during the year were 470 units(a) What is the value of the ending inventory on the LIFO basis?(b) What is the value of the ending inventory on the FIFO basis?(c) Assuming there was a zero balance in the LIFO Reserve account at thebeginning of the year, prepare the entry required at December 31 to adjust thebalances to report using LIFO.(d) Assuming there was a $400 balance in the LIFO reserve at the beginning of theyear, prepare the entry required at December 31 to adjust the balances toreport using LIFO

Name: Question #3 (LIFO Reserves)The Company uses FIFO for internal reporti
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Description: Question #3 (LIFO Reserves)The Company uses FIFO for internal reporting but uses LIFO for external reporting.Information related to inventory during the year follows:Beginning InventoryPurchases40 units @ $500 each = $ 20,000500 units @ $550 each =

LIFO Qty Rate Total Beg inventory 40 $ 500 $ 20,000Add Purchase…

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y uses FIFO for internal reporting but uses LIF elated to inventory during the year follows: ventory = 40 units @ $500 each $ 20 500 units @ $550 each the year were 470 units $27 = is the value of the ending inventory on the LIF is the value of the ending inventory on the FIF ning there was a zero balance in the LIFO Res hing of the year, prepare the entry required at l

y uses FIFO for internal reporting but uses LIF elated to inventory during the year follows: ventory = 40 units @ $500 each $ 20 500 units @ $550 each the year were 470 units $27 = is the value of the ending inventory on the LIF is the value of the ending inventory on the FIF ning there was a zero balance in the LIFO Res hing of the year, prepare the entry required at l

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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If the perpetual inventory record is kept in dollars, and costs are computed at the time of each withdrawal, what amount would be shown as ending inventory under (1) FIFO. (2) LIFO and (3) Average-cost? (Round average cost per unit to 4 decimal places, e.g. 2.7621 and final answers to 0 decimal places, e.g. 6,548.) Ending Inventory $ (1) FIFO S (2) LIFO $ (3) Average-cost
S At the end of the year, Randy's Parts Company had the following items in inventory: Item P1 Quantity 60 P2 40 P3 80 P4 70 Required Unit Cost Unit Market Value $ 85 70 130 125 $ 90 72 a. Determine the amount of ending inventory using the lower-of-cost-or-market rule applied to each individual inventory item. b. Provide the adjustment necessary to write down the inventory based on Requirement a. Assume that Randy's Parts Co. uses the perpetual inventory system. c. Determine the amount of ending inventory, assuming that the lower-of-cost-or-market rule is applied to the total inventory in aggregate. 120 130 d. Provide the adjustment necessary to write down the inventory based on Requirement c. Assume that Randy's Parts Co. uses the perpetual inventory system. Required A Required B Required C Ending inventory Complete this question by entering your answers in the tabs below. Required D Determine the amount of ending inventory using the lower-of-cost-or-market rule applied to each…
Sherman Electric uses a pericdic inventory system. The beginning nventory of a particular product, and the purchases during the curent year, were as follows: $105 = $ 6.300 Beginning inventory Purchase..n Purchase 60 units @ 30 units @ 90 units @ 20 units @ 200 units Jan. 3115- 3125 S135 = 3,450 11,250 2.700 $23.700 Mar. Aug. 11 Oet. 23 Purchase Total available for sale At December 31. the ending inventory of this product consisted of 65 units. Using periodic costing procedures, determine (1) cost of the year-end inventory and. (2) cost of goods sold relating to this product under each of the following flow assumptions: (1) Inventory at Dec. 31 (2) Cast of Goods Sold Average cost First-in. first-out Last-in, first-out
Long Answer Problem - Inventory Triangular Scone Inc. sells just one product and had the following transactions during the month: Units Unit Cost/Price Мay: inventory Beginning 280 4.00 11 Purchase 150 2$ 6.00 16 Sale 125 $4 25.00 18 Purchase 130 2$ 15.00 20 Sale 150 2$ 25.00 23 Purchase 75 24 6.00
Oriole Company's record of transactions concerning part WA6 for the month of September was as follows. Purchases September 1 (balance on hand) 3 (a1) نا 12 292 2 16 300 200 @ 300 @ 300 @ 500 @ 300 @ $13.00 Average-cost per unit $ @ 13.10 13.25 13.30 13.30 13.40 Sales September 4 17 27 30 400 600 300 200 Calculate average-cost per unit. Assume that perpetual inventory records are kept in units only. (Round answer to 2 decimal places, eg. 2.76.)
E7-8A. Inventory Costing Methods The following information is for the Bloom Company for the cur- rent year; the company sells just one product: Units Unit Cost Beginning inventory .. Purchases: 200 $10 Feb. 11 500 14 16 Маy 18 . October 23 400 100 20 At Decemnber 31 there was an ending inventory of 360 units. Assume the use of the periodic inven- tory method. Calculate the value of ending inventory and the cost of goods sold for the year using (a) first-in, first-out, (b) last-in, first-out, and (c) the weighted-average cost method.
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Po.0014. The units of an item available for sale during the year were as follows: Jan 1 Inventory 27 units at $120 Feb 17 Purchase 54 units at $138 July 21 Purchase 63 units at $156 Nov 23 Purchase 36 units at $165 There are 50 units of the item in the physical inventory at December 31. The periodic inventory system is used. Determine the inventory cost by (a) FIFO, (b) LIFO and (c) the Average cost method.