Pearson eText Intermediate Accounting -- Instant Access (Pearson+)

3rd Edition

ISBN: 9780136946649

Author: Elizabeth Gordon, Jana Raedy

Publisher: PEARSON+

See similar textbooks

Videos

Textbook Question

Chapter 10, Problem 10.1P

Moving Average, FIFO, LIFO. Morocco Imports provided the following information regarding its inventory for the current year, its second year of operations.

Transaction	Units	Sales in Units	Unit Cost	Total Cost
Beginning inventory January 1	35,000		$3.50	$ 122,500
Purchases
February 8	45,500		3.60	163.800
March 15	100.250		3.80	380.950
April 10	62.000		4.10	254.200
Subtotal	242.750			$ 921,450
Units sold April 22 at $12 May 9	81.000	155.000	4.35	352,350
June 19	28.000		4.56	127,680
Subtotal	351,750			$1,401,480
Units sold August 11 at $14 September 20	15,000	115.500	4.75	71,250
October 30	41..000		4.85	198,850
November 17	8.000		4.90	39,200
Subtotal	415.750			$1,710,780
Units sold December 21 at $16		21.500
Total available for sale	415,750
Total units sold	(292.0001
Ending inventory	123,750

Compute Morocco’s ending inventory and cost of goods sold under each of the following cost-flow assumptions assuming a perpetual inventory system. (Round your answer for cost per unit to two decimal places.)

Required

a. Moving Average
b. FIFO
c. LIFO

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Chapter 10, Problem 10.21E

Chapter 10, Problem 10.2P

Students have asked these similar questions

Brar Incorporated supplied the following financial information for analysis: Depreciable assets (purchased at the beginning of year 1) $ 4,500,000 Profits before depreciation (all in cash flows at end of year): Year 1 960,000 Year 2 1,400,000 Year 3 2,100,000 Replacement cost of depreciable assets at end of: Year 1 $ 5,000,000 Year 2 6,200,000 Year 3 7,600,000 The assets are depreciated at a rate of 12% per year and have no salvage value. What is the ROI for year 2 using historical cost, net book value? Multiple Choice 26.60% 24.72% 25.15% 22.64% None of these.

Bella Brands operates with two divisions, Aftershave and Deodorant. The Aftershave Division produces a chemical that the Deodorant Division also uses. The Aftershave Division also sells this chemical to other firms for $27 per ounce. The cost information for the Aftershave Division is as follows: Variable costs per ounce $ 6.00 Fixed costs per ounce $ 15.00 Monthly production capacity 30,000 ounces If the Aftershave Division is operating at full capacity and can sell all of the chemical that it can produce, what is the minimum transfer price that the Aftershave Division will accept? Multiple Choice None of the choices is correct. $6.00 per ounce $21.00 per ounce $15.00 per ounce $27.00 per ounce

Please provide the accurate answer to this financial accounting problem using appropriate methods.

Chapter 10 Solutions

Pearson eText Intermediate Accounting -- Instant Access (Pearson+)

Ch. 10 - How is inventory tracked under a perpetual...Ch. 10 - Barbara Wight is Chief Financial Officer at Taylor...Ch. 10 - What costs should be included in the unit cost of...Ch. 10 - When does the inventory allocation problem arise?Ch. 10 - Explain the difference between the FIFO method of...Ch. 10 - Which method of inventory results in an inventory...Ch. 10 - If unit costs are rising and inventory levels are...Ch. 10 - How can financial statements be converted from the...Ch. 10 - Explain the unit of measure under the dollar-value...Ch. 10 - What do firms use as the market value when...

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.

Solution Summary: The author calculates ending inventory and cost of goods sold as per the moving average method.

Videos

Want to see the full answer?

Chapter 10 Solutions