Inventory is a record of finished goods of a company which they can sell to the customer, work in progress which can be transformed into finish goods and raw material which is a means of production. Inventory is also classified as a current asset in the balance sheet and it is valued by FIFO LIFO and weighted average method. To calculate: The total cost of goods available for sale and the number of units available for sales.

Question

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Answer 1

Question

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

Chapter 5, Problem 1PSB

1.

Summary Introduction

Introduction:

Inventory is a record of finished goods of a company which they can sell to the customer, work in progress which can be transformed into finish goods and raw material which is a means of production. Inventory is also classified as a current asset in the balance sheet and it is valued by FIFO LIFO and weighted average method.

To calculate: The total cost of goods available for sale and the number of units available for sales.

1.

Expert Solution

Answer to Problem 1PSB

The total cost of goods available for sale is 235,500 and the total number of goods available for sale is 65 units

Explanation of Solution

Cost of goods available for sales and number of goods available for sales:

Date	Particular	Unit	Rate ($)	Total Cost ($)
1^s^t April	Opening inventory	20	3000	60000
6^t^h April	Purchases	30	3500	105,000
17^t^h April	Purchases	5	4500	22,500
25^s^t April	Purchases	10	4800	48,000
Total		65		235,500

So, the total cost of goods available for sale is $23,500 and the total number of goods available for sale is 65 units

2.

Summary Introduction

Introduction:

Inventory is a record of finished goods of a company which they can sell to the customer, work in progress which can be transformed into finish goods and raw material which is a means of production. Inventory is also classified as a current asset in the balance sheet and it is valued by FIFO LIFO and weighted average method.

To compute: The number of unit in ending inventory for the company M.

2.

Expert Solution

Answer to Problem 1PSB

The number of units in ending inventory is 5 units.

Explanation of Solution

The number of units in closing inventory is as follows:

Closing Units= Opening Units+ Units purchased - units sold=20+30+5+10-(35-25)=20+45-60=5 units

The number of units in ending inventory is 5 units

3.

Summary Introduction

Introduction:

Inventory is a record of finished goods of a company which they can sell to the customer, work in progress which can be transformed into finish goods and raw material which is a means of production. Inventory is also classified as a current asset in the balance sheet and it is valued by FIFO LIFO and weighted average method.

To compute: The cost assigned to ending inventory for the company M using FIFO,LIFO and weighted average and specific identification.

3.

Expert Solution

Answer to Problem 1PSB

Cost assigned to ending inventory using FIFO is $24,000, using LIFO is $15,000, using weighted average is $ 18115.40 and specific Identification is $22,500.

Explanation of Solution

Cost assigned to ending inventory for the company A using FIFO :

Using FIFO method closing inventory of 5 units will consist:

Ending inventory= 5×4,800=24,000

Thus, cost assigned to ending inventory using FIFO is $24,000.

Calculating the assigned amount of ending inventory according to LIFO method:

Using the LIFO method closing inventory of 5 units will consist

Ending inventory= 5×$3,000=$15,000

Thus, cost of assigned to ending inventory using LIFO is $15,000

Calculating the assigned amount of ending inventory according to the weighted-average method:

The weighted average cost is calculated as:

weighted average cost= Total cost of goods available for saleTotal number of units available for sale=$235,50065=$3623.8

Ending inventory= 5×$3,623.08=$18115.40

Thus, cost assigned to ending inventory $ 18115.40

The cost assigned to total inventory using the specific identification method:

Using specific identification method closing inventory of 5 units will consist

Ending inventory= 5×$4,500=$22,500

Thus, cost assigned to ending inventory is $22,500.

4.

Summary Introduction

Introduction:

Inventory is a record of finished goods of a company which they can sell to the customer, work in progress which can be transformed into finish goods and raw material which is a means of production. Inventory is also classified as a current asset in the balance sheet and it is valued by FIFO LIFO and weighted average method.

To compute: The gross profit earn by the company is cost assigned to ending inventory for the company A using FIFO,LIFO and weighted average and specific identification.

4.

Expert Solution

Answer to Problem 1PSB

Gross using FIFO methods is $558,500, using LIFO method is $549,500, using weighted average method is $552,615, and specific identification method is $557,000.

Explanation of Solution

Particular	FIFO	LIFO	weighted average	Specific identification
Cost of goods available for sale	235500	235500	235500	235500
Less: closing stock 5 units	24000	15000	18115.40	22500
Cost of goods sold	211,500	220,500	217,385	213,000

Gross profit earn by the company:

Particular	FIFO method	LIFO method	Weighted average method	Specific identification method
Total Sales	$770,000	$770,000	$770,000	$770,000
Less: Cost of goods sold	211,500	220,500	217,385	213,000
Total	$558,500	$549,500	$552,615	557,000

Thus, gross using FIFO methods is $558,500, using the LIFO method is $549,500, using the weighted average method is $552,615, and the specific identification method is $557,000.

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Answer 2

Question

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

Chapter 5, Problem 1PSB

1.

Summary Introduction

Introduction:

Inventory is a record of finished goods of a company which they can sell to the customer, work in progress which can be transformed into finish goods and raw material which is a means of production. Inventory is also classified as a current asset in the balance sheet and it is valued by FIFO LIFO and weighted average method.

To calculate: The total cost of goods available for sale and the number of units available for sales.

1.

Expert Solution

Answer to Problem 1PSB

The total cost of goods available for sale is 235,500 and the total number of goods available for sale is 65 units

Explanation of Solution

Cost of goods available for sales and number of goods available for sales:

Date	Particular	Unit	Rate ($)	Total Cost ($)
1^s^t April	Opening inventory	20	3000	60000
6^t^h April	Purchases	30	3500	105,000
17^t^h April	Purchases	5	4500	22,500
25^s^t April	Purchases	10	4800	48,000
Total		65		235,500

So, the total cost of goods available for sale is $23,500 and the total number of goods available for sale is 65 units

2.

Summary Introduction

Introduction:

Inventory is a record of finished goods of a company which they can sell to the customer, work in progress which can be transformed into finish goods and raw material which is a means of production. Inventory is also classified as a current asset in the balance sheet and it is valued by FIFO LIFO and weighted average method.

To compute: The number of unit in ending inventory for the company M.

2.

Expert Solution

Answer to Problem 1PSB

The number of units in ending inventory is 5 units.

Explanation of Solution

The number of units in closing inventory is as follows:

Closing Units= Opening Units+ Units purchased - units sold=20+30+5+10-(35-25)=20+45-60=5 units

The number of units in ending inventory is 5 units

3.

Summary Introduction

Introduction:

Inventory is a record of finished goods of a company which they can sell to the customer, work in progress which can be transformed into finish goods and raw material which is a means of production. Inventory is also classified as a current asset in the balance sheet and it is valued by FIFO LIFO and weighted average method.

To compute: The cost assigned to ending inventory for the company M using FIFO,LIFO and weighted average and specific identification.

3.

Expert Solution

Answer to Problem 1PSB

Cost assigned to ending inventory using FIFO is $24,000, using LIFO is $15,000, using weighted average is $ 18115.40 and specific Identification is $22,500.

Explanation of Solution

Cost assigned to ending inventory for the company A using FIFO :

Using FIFO method closing inventory of 5 units will consist:

Ending inventory= 5×4,800=24,000

Thus, cost assigned to ending inventory using FIFO is $24,000.

Calculating the assigned amount of ending inventory according to LIFO method:

Using the LIFO method closing inventory of 5 units will consist

Ending inventory= 5×$3,000=$15,000

Thus, cost of assigned to ending inventory using LIFO is $15,000

Calculating the assigned amount of ending inventory according to the weighted-average method:

The weighted average cost is calculated as:

weighted average cost= Total cost of goods available for saleTotal number of units available for sale=$235,50065=$3623.8

Ending inventory= 5×$3,623.08=$18115.40

Thus, cost assigned to ending inventory $ 18115.40

The cost assigned to total inventory using the specific identification method:

Using specific identification method closing inventory of 5 units will consist

Ending inventory= 5×$4,500=$22,500

Thus, cost assigned to ending inventory is $22,500.

4.

Summary Introduction

Introduction:

Inventory is a record of finished goods of a company which they can sell to the customer, work in progress which can be transformed into finish goods and raw material which is a means of production. Inventory is also classified as a current asset in the balance sheet and it is valued by FIFO LIFO and weighted average method.

To compute: The gross profit earn by the company is cost assigned to ending inventory for the company A using FIFO,LIFO and weighted average and specific identification.

4.

Expert Solution

Answer to Problem 1PSB

Gross using FIFO methods is $558,500, using LIFO method is $549,500, using weighted average method is $552,615, and specific identification method is $557,000.

Explanation of Solution

Particular	FIFO	LIFO	weighted average	Specific identification
Cost of goods available for sale	235500	235500	235500	235500
Less: closing stock 5 units	24000	15000	18115.40	22500
Cost of goods sold	211,500	220,500	217,385	213,000

Gross profit earn by the company:

Particular	FIFO method	LIFO method	Weighted average method	Specific identification method
Total Sales	$770,000	$770,000	$770,000	$770,000
Less: Cost of goods sold	211,500	220,500	217,385	213,000
Total	$558,500	$549,500	$552,615	557,000

Thus, gross using FIFO methods is $558,500, using the LIFO method is $549,500, using the weighted average method is $552,615, and the specific identification method is $557,000.

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Answer 3

Question

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

Chapter 5, Problem 1PSB

1.

Summary Introduction

Introduction:

Inventory is a record of finished goods of a company which they can sell to the customer, work in progress which can be transformed into finish goods and raw material which is a means of production. Inventory is also classified as a current asset in the balance sheet and it is valued by FIFO LIFO and weighted average method.

To calculate: The total cost of goods available for sale and the number of units available for sales.

1.

Expert Solution

Answer to Problem 1PSB

The total cost of goods available for sale is 235,500 and the total number of goods available for sale is 65 units

Explanation of Solution

Cost of goods available for sales and number of goods available for sales:

Date	Particular	Unit	Rate ($)	Total Cost ($)
1^s^t April	Opening inventory	20	3000	60000
6^t^h April	Purchases	30	3500	105,000
17^t^h April	Purchases	5	4500	22,500
25^s^t April	Purchases	10	4800	48,000
Total		65		235,500

So, the total cost of goods available for sale is $23,500 and the total number of goods available for sale is 65 units

2.

Summary Introduction

Introduction:

Inventory is a record of finished goods of a company which they can sell to the customer, work in progress which can be transformed into finish goods and raw material which is a means of production. Inventory is also classified as a current asset in the balance sheet and it is valued by FIFO LIFO and weighted average method.

To compute: The number of unit in ending inventory for the company M.

2.

Expert Solution

Answer to Problem 1PSB

The number of units in ending inventory is 5 units.

Explanation of Solution

The number of units in closing inventory is as follows:

Closing Units= Opening Units+ Units purchased - units sold=20+30+5+10-(35-25)=20+45-60=5 units

The number of units in ending inventory is 5 units

3.

Summary Introduction

Introduction:

Inventory is a record of finished goods of a company which they can sell to the customer, work in progress which can be transformed into finish goods and raw material which is a means of production. Inventory is also classified as a current asset in the balance sheet and it is valued by FIFO LIFO and weighted average method.

To compute: The cost assigned to ending inventory for the company M using FIFO,LIFO and weighted average and specific identification.

3.

Expert Solution

Answer to Problem 1PSB

Cost assigned to ending inventory using FIFO is $24,000, using LIFO is $15,000, using weighted average is $ 18115.40 and specific Identification is $22,500.

Explanation of Solution

Cost assigned to ending inventory for the company A using FIFO :

Using FIFO method closing inventory of 5 units will consist:

Ending inventory= 5×4,800=24,000

Thus, cost assigned to ending inventory using FIFO is $24,000.

Calculating the assigned amount of ending inventory according to LIFO method:

Using the LIFO method closing inventory of 5 units will consist

Ending inventory= 5×$3,000=$15,000

Thus, cost of assigned to ending inventory using LIFO is $15,000

Calculating the assigned amount of ending inventory according to the weighted-average method:

The weighted average cost is calculated as:

weighted average cost= Total cost of goods available for saleTotal number of units available for sale=$235,50065=$3623.8

Ending inventory= 5×$3,623.08=$18115.40

Thus, cost assigned to ending inventory $ 18115.40

The cost assigned to total inventory using the specific identification method:

Using specific identification method closing inventory of 5 units will consist

Ending inventory= 5×$4,500=$22,500

Thus, cost assigned to ending inventory is $22,500.

4.

Summary Introduction

Introduction:

Inventory is a record of finished goods of a company which they can sell to the customer, work in progress which can be transformed into finish goods and raw material which is a means of production. Inventory is also classified as a current asset in the balance sheet and it is valued by FIFO LIFO and weighted average method.

To compute: The gross profit earn by the company is cost assigned to ending inventory for the company A using FIFO,LIFO and weighted average and specific identification.

4.

Expert Solution

Answer to Problem 1PSB

Gross using FIFO methods is $558,500, using LIFO method is $549,500, using weighted average method is $552,615, and specific identification method is $557,000.

Explanation of Solution

Particular	FIFO	LIFO	weighted average	Specific identification
Cost of goods available for sale	235500	235500	235500	235500
Less: closing stock 5 units	24000	15000	18115.40	22500
Cost of goods sold	211,500	220,500	217,385	213,000

Gross profit earn by the company:

Particular	FIFO method	LIFO method	Weighted average method	Specific identification method
Total Sales	$770,000	$770,000	$770,000	$770,000
Less: Cost of goods sold	211,500	220,500	217,385	213,000
Total	$558,500	$549,500	$552,615	557,000

Thus, gross using FIFO methods is $558,500, using the LIFO method is $549,500, using the weighted average method is $552,615, and the specific identification method is $557,000.

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Answer 4

Question

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

Chapter 5, Problem 1PSB

1.

Summary Introduction

Introduction:

Inventory is a record of finished goods of a company which they can sell to the customer, work in progress which can be transformed into finish goods and raw material which is a means of production. Inventory is also classified as a current asset in the balance sheet and it is valued by FIFO LIFO and weighted average method.

To calculate: The total cost of goods available for sale and the number of units available for sales.

1.

Expert Solution

Answer to Problem 1PSB

The total cost of goods available for sale is 235,500 and the total number of goods available for sale is 65 units

Explanation of Solution

Cost of goods available for sales and number of goods available for sales:

Date	Particular	Unit	Rate ($)	Total Cost ($)
1^s^t April	Opening inventory	20	3000	60000
6^t^h April	Purchases	30	3500	105,000
17^t^h April	Purchases	5	4500	22,500
25^s^t April	Purchases	10	4800	48,000
Total		65		235,500

So, the total cost of goods available for sale is $23,500 and the total number of goods available for sale is 65 units

2.

Summary Introduction

Introduction:

Inventory is a record of finished goods of a company which they can sell to the customer, work in progress which can be transformed into finish goods and raw material which is a means of production. Inventory is also classified as a current asset in the balance sheet and it is valued by FIFO LIFO and weighted average method.

To compute: The number of unit in ending inventory for the company M.

2.

Expert Solution

Answer to Problem 1PSB

The number of units in ending inventory is 5 units.

Explanation of Solution

The number of units in closing inventory is as follows:

Closing Units= Opening Units+ Units purchased - units sold=20+30+5+10-(35-25)=20+45-60=5 units

The number of units in ending inventory is 5 units

3.

Summary Introduction

Introduction:

Inventory is a record of finished goods of a company which they can sell to the customer, work in progress which can be transformed into finish goods and raw material which is a means of production. Inventory is also classified as a current asset in the balance sheet and it is valued by FIFO LIFO and weighted average method.

To compute: The cost assigned to ending inventory for the company M using FIFO,LIFO and weighted average and specific identification.

3.

Expert Solution

Answer to Problem 1PSB

Cost assigned to ending inventory using FIFO is $24,000, using LIFO is $15,000, using weighted average is $ 18115.40 and specific Identification is $22,500.

Explanation of Solution

Cost assigned to ending inventory for the company A using FIFO :

Using FIFO method closing inventory of 5 units will consist:

Ending inventory= 5×4,800=24,000

Thus, cost assigned to ending inventory using FIFO is $24,000.

Calculating the assigned amount of ending inventory according to LIFO method:

Using the LIFO method closing inventory of 5 units will consist

Ending inventory= 5×$3,000=$15,000

Thus, cost of assigned to ending inventory using LIFO is $15,000

Calculating the assigned amount of ending inventory according to the weighted-average method:

The weighted average cost is calculated as:

weighted average cost= Total cost of goods available for saleTotal number of units available for sale=$235,50065=$3623.8

Ending inventory= 5×$3,623.08=$18115.40

Thus, cost assigned to ending inventory $ 18115.40

The cost assigned to total inventory using the specific identification method:

Using specific identification method closing inventory of 5 units will consist

Ending inventory= 5×$4,500=$22,500

Thus, cost assigned to ending inventory is $22,500.

4.

Summary Introduction

Introduction:

Inventory is a record of finished goods of a company which they can sell to the customer, work in progress which can be transformed into finish goods and raw material which is a means of production. Inventory is also classified as a current asset in the balance sheet and it is valued by FIFO LIFO and weighted average method.

To compute: The gross profit earn by the company is cost assigned to ending inventory for the company A using FIFO,LIFO and weighted average and specific identification.

4.

Expert Solution

Answer to Problem 1PSB

Gross using FIFO methods is $558,500, using LIFO method is $549,500, using weighted average method is $552,615, and specific identification method is $557,000.

Explanation of Solution

Particular	FIFO	LIFO	weighted average	Specific identification
Cost of goods available for sale	235500	235500	235500	235500
Less: closing stock 5 units	24000	15000	18115.40	22500
Cost of goods sold	211,500	220,500	217,385	213,000

Gross profit earn by the company:

Particular	FIFO method	LIFO method	Weighted average method	Specific identification method
Total Sales	$770,000	$770,000	$770,000	$770,000
Less: Cost of goods sold	211,500	220,500	217,385	213,000
Total	$558,500	$549,500	$552,615	557,000

Thus, gross using FIFO methods is $558,500, using the LIFO method is $549,500, using the weighted average method is $552,615, and the specific identification method is $557,000.

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Answer 5

Chapter 5, Problem 1PSB

1.

Summary Introduction

Introduction:

Inventory is a record of finished goods of a company which they can sell to the customer, work in progress which can be transformed into finish goods and raw material which is a means of production. Inventory is also classified as a current asset in the balance sheet and it is valued by FIFO LIFO and weighted average method.

To calculate: The total cost of goods available for sale and the number of units available for sales.

1.

Expert Solution

Answer to Problem 1PSB

The total cost of goods available for sale is 235,500 and the total number of goods available for sale is 65 units

Explanation of Solution

Cost of goods available for sales and number of goods available for sales:

Date	Particular	Unit	Rate ($)	Total Cost ($)
1^s^t April	Opening inventory	20	3000	60000
6^t^h April	Purchases	30	3500	105,000
17^t^h April	Purchases	5	4500	22,500
25^s^t April	Purchases	10	4800	48,000
Total		65		235,500

So, the total cost of goods available for sale is $23,500 and the total number of goods available for sale is 65 units

2.

Summary Introduction

Introduction:

Inventory is a record of finished goods of a company which they can sell to the customer, work in progress which can be transformed into finish goods and raw material which is a means of production. Inventory is also classified as a current asset in the balance sheet and it is valued by FIFO LIFO and weighted average method.

To compute: The number of unit in ending inventory for the company M.

2.

Expert Solution

Answer to Problem 1PSB

The number of units in ending inventory is 5 units.

Explanation of Solution

The number of units in closing inventory is as follows:

Closing Units= Opening Units+ Units purchased - units sold=20+30+5+10-(35-25)=20+45-60=5 units

The number of units in ending inventory is 5 units

3.

Summary Introduction

Introduction:

Inventory is a record of finished goods of a company which they can sell to the customer, work in progress which can be transformed into finish goods and raw material which is a means of production. Inventory is also classified as a current asset in the balance sheet and it is valued by FIFO LIFO and weighted average method.

To compute: The cost assigned to ending inventory for the company M using FIFO,LIFO and weighted average and specific identification.

3.

Expert Solution

Answer to Problem 1PSB

Cost assigned to ending inventory using FIFO is $24,000, using LIFO is $15,000, using weighted average is $ 18115.40 and specific Identification is $22,500.

Explanation of Solution

Cost assigned to ending inventory for the company A using FIFO :

Using FIFO method closing inventory of 5 units will consist:

Ending inventory= 5×4,800=24,000

Thus, cost assigned to ending inventory using FIFO is $24,000.

Calculating the assigned amount of ending inventory according to LIFO method:

Using the LIFO method closing inventory of 5 units will consist

Ending inventory= 5×$3,000=$15,000

Thus, cost of assigned to ending inventory using LIFO is $15,000

Calculating the assigned amount of ending inventory according to the weighted-average method:

The weighted average cost is calculated as:

weighted average cost= Total cost of goods available for saleTotal number of units available for sale=$235,50065=$3623.8

Ending inventory= 5×$3,623.08=$18115.40

Thus, cost assigned to ending inventory $ 18115.40

The cost assigned to total inventory using the specific identification method:

Using specific identification method closing inventory of 5 units will consist

Ending inventory= 5×$4,500=$22,500

Thus, cost assigned to ending inventory is $22,500.

4.

Summary Introduction

Introduction:

Inventory is a record of finished goods of a company which they can sell to the customer, work in progress which can be transformed into finish goods and raw material which is a means of production. Inventory is also classified as a current asset in the balance sheet and it is valued by FIFO LIFO and weighted average method.

To compute: The gross profit earn by the company is cost assigned to ending inventory for the company A using FIFO,LIFO and weighted average and specific identification.

4.

Expert Solution

Answer to Problem 1PSB

Gross using FIFO methods is $558,500, using LIFO method is $549,500, using weighted average method is $552,615, and specific identification method is $557,000.

Explanation of Solution

Particular	FIFO	LIFO	weighted average	Specific identification
Cost of goods available for sale	235500	235500	235500	235500
Less: closing stock 5 units	24000	15000	18115.40	22500
Cost of goods sold	211,500	220,500	217,385	213,000

Gross profit earn by the company:

Particular	FIFO method	LIFO method	Weighted average method	Specific identification method
Total Sales	$770,000	$770,000	$770,000	$770,000
Less: Cost of goods sold	211,500	220,500	217,385	213,000
Total	$558,500	$549,500	$552,615	557,000

Thus, gross using FIFO methods is $558,500, using the LIFO method is $549,500, using the weighted average method is $552,615, and the specific identification method is $557,000.

Answer 6

Chapter 5, Problem 1PSB

1.

Summary Introduction

Introduction:

Inventory is a record of finished goods of a company which they can sell to the customer, work in progress which can be transformed into finish goods and raw material which is a means of production. Inventory is also classified as a current asset in the balance sheet and it is valued by FIFO LIFO and weighted average method.

To calculate: The total cost of goods available for sale and the number of units available for sales.

1.

Expert Solution

Answer to Problem 1PSB

The total cost of goods available for sale is 235,500 and the total number of goods available for sale is 65 units

Explanation of Solution

Cost of goods available for sales and number of goods available for sales:

Date	Particular	Unit	Rate ($)	Total Cost ($)
1^s^t April	Opening inventory	20	3000	60000
6^t^h April	Purchases	30	3500	105,000
17^t^h April	Purchases	5	4500	22,500
25^s^t April	Purchases	10	4800	48,000
Total		65		235,500

So, the total cost of goods available for sale is $23,500 and the total number of goods available for sale is 65 units

Answer 7

Chapter 5, Problem 1PSB

1.

Summary Introduction

Introduction:

Inventory is a record of finished goods of a company which they can sell to the customer, work in progress which can be transformed into finish goods and raw material which is a means of production. Inventory is also classified as a current asset in the balance sheet and it is valued by FIFO LIFO and weighted average method.

To calculate: The total cost of goods available for sale and the number of units available for sales.

Answer 8

1.

Expert Solution

Answer to Problem 1PSB

The total cost of goods available for sale is 235,500 and the total number of goods available for sale is 65 units

Answer 9

1.

Expert Solution

Answer 10

1.

Expert Solution

Answer 11

Expert Solution

Answer 12

Explanation of Solution

Cost of goods available for sales and number of goods available for sales:

Date	Particular	Unit	Rate ($)	Total Cost ($)
1^s^t April	Opening inventory	20	3000	60000
6^t^h April	Purchases	30	3500	105,000
17^t^h April	Purchases	5	4500	22,500
25^s^t April	Purchases	10	4800	48,000
Total		65		235,500

So, the total cost of goods available for sale is $23,500 and the total number of goods available for sale is 65 units

Answer 13

2.

Summary Introduction

Introduction:

Inventory is a record of finished goods of a company which they can sell to the customer, work in progress which can be transformed into finish goods and raw material which is a means of production. Inventory is also classified as a current asset in the balance sheet and it is valued by FIFO LIFO and weighted average method.

To compute: The number of unit in ending inventory for the company M.

2.

Expert Solution

Answer to Problem 1PSB

The number of units in ending inventory is 5 units.

Explanation of Solution

The number of units in closing inventory is as follows:

Closing Units= Opening Units+ Units purchased - units sold=20+30+5+10-(35-25)=20+45-60=5 units

The number of units in ending inventory is 5 units

Answer 14

2.

Summary Introduction

Introduction:

Inventory is a record of finished goods of a company which they can sell to the customer, work in progress which can be transformed into finish goods and raw material which is a means of production. Inventory is also classified as a current asset in the balance sheet and it is valued by FIFO LIFO and weighted average method.

To compute: The number of unit in ending inventory for the company M.

Answer 15

2.

Expert Solution

Answer to Problem 1PSB

The number of units in ending inventory is 5 units.

Answer 16

2.

Expert Solution

Answer 17

2.

Expert Solution

Answer 18

Expert Solution

Answer 19

Explanation of Solution

The number of units in closing inventory is as follows:

Closing Units= Opening Units+ Units purchased - units sold=20+30+5+10-(35-25)=20+45-60=5 units

The number of units in ending inventory is 5 units

Answer 20

3.

Summary Introduction

Introduction:

Inventory is a record of finished goods of a company which they can sell to the customer, work in progress which can be transformed into finish goods and raw material which is a means of production. Inventory is also classified as a current asset in the balance sheet and it is valued by FIFO LIFO and weighted average method.

To compute: The cost assigned to ending inventory for the company M using FIFO,LIFO and weighted average and specific identification.

3.

Expert Solution

Answer to Problem 1PSB

Cost assigned to ending inventory using FIFO is $24,000, using LIFO is $15,000, using weighted average is $ 18115.40 and specific Identification is $22,500.

Explanation of Solution

Cost assigned to ending inventory for the company A using FIFO :

Using FIFO method closing inventory of 5 units will consist:

Ending inventory= 5×4,800=24,000

Thus, cost assigned to ending inventory using FIFO is $24,000.

Calculating the assigned amount of ending inventory according to LIFO method:

Using the LIFO method closing inventory of 5 units will consist

Ending inventory= 5×$3,000=$15,000

Thus, cost of assigned to ending inventory using LIFO is $15,000

Calculating the assigned amount of ending inventory according to the weighted-average method:

The weighted average cost is calculated as:

weighted average cost= Total cost of goods available for saleTotal number of units available for sale=$235,50065=$3623.8

Ending inventory= 5×$3,623.08=$18115.40

Thus, cost assigned to ending inventory $ 18115.40

The cost assigned to total inventory using the specific identification method:

Using specific identification method closing inventory of 5 units will consist

Ending inventory= 5×$4,500=$22,500

Thus, cost assigned to ending inventory is $22,500.

Answer 21

3.

Summary Introduction

Introduction:

Inventory is a record of finished goods of a company which they can sell to the customer, work in progress which can be transformed into finish goods and raw material which is a means of production. Inventory is also classified as a current asset in the balance sheet and it is valued by FIFO LIFO and weighted average method.

To compute: The cost assigned to ending inventory for the company M using FIFO,LIFO and weighted average and specific identification.

Answer 22

3.

Expert Solution

Answer to Problem 1PSB

Cost assigned to ending inventory using FIFO is $24,000, using LIFO is $15,000, using weighted average is $ 18115.40 and specific Identification is $22,500.

Answer 23

3.

Expert Solution

Answer 24

3.

Expert Solution

Answer 25

Expert Solution

Answer 26

Explanation of Solution

Cost assigned to ending inventory for the company A using FIFO :

Using FIFO method closing inventory of 5 units will consist:

Ending inventory= 5×4,800=24,000

Thus, cost assigned to ending inventory using FIFO is $24,000.

Calculating the assigned amount of ending inventory according to LIFO method:

Using the LIFO method closing inventory of 5 units will consist

Ending inventory= 5×$3,000=$15,000

Thus, cost of assigned to ending inventory using LIFO is $15,000

Calculating the assigned amount of ending inventory according to the weighted-average method:

The weighted average cost is calculated as:

weighted average cost= Total cost of goods available for saleTotal number of units available for sale=$235,50065=$3623.8

Ending inventory= 5×$3,623.08=$18115.40

Thus, cost assigned to ending inventory $ 18115.40

The cost assigned to total inventory using the specific identification method:

Using specific identification method closing inventory of 5 units will consist

Ending inventory= 5×$4,500=$22,500

Thus, cost assigned to ending inventory is $22,500.

Answer 27

4.

Summary Introduction

Introduction:

Inventory is a record of finished goods of a company which they can sell to the customer, work in progress which can be transformed into finish goods and raw material which is a means of production. Inventory is also classified as a current asset in the balance sheet and it is valued by FIFO LIFO and weighted average method.

To compute: The gross profit earn by the company is cost assigned to ending inventory for the company A using FIFO,LIFO and weighted average and specific identification.

4.

Expert Solution

Answer to Problem 1PSB

Gross using FIFO methods is $558,500, using LIFO method is $549,500, using weighted average method is $552,615, and specific identification method is $557,000.

Explanation of Solution

Particular	FIFO	LIFO	weighted average	Specific identification
Cost of goods available for sale	235500	235500	235500	235500
Less: closing stock 5 units	24000	15000	18115.40	22500
Cost of goods sold	211,500	220,500	217,385	213,000

Gross profit earn by the company:

Particular	FIFO method	LIFO method	Weighted average method	Specific identification method
Total Sales	$770,000	$770,000	$770,000	$770,000
Less: Cost of goods sold	211,500	220,500	217,385	213,000
Total	$558,500	$549,500	$552,615	557,000

Thus, gross using FIFO methods is $558,500, using the LIFO method is $549,500, using the weighted average method is $552,615, and the specific identification method is $557,000.

Answer 28

4.

Summary Introduction

Introduction:

Inventory is a record of finished goods of a company which they can sell to the customer, work in progress which can be transformed into finish goods and raw material which is a means of production. Inventory is also classified as a current asset in the balance sheet and it is valued by FIFO LIFO and weighted average method.

To compute: The gross profit earn by the company is cost assigned to ending inventory for the company A using FIFO,LIFO and weighted average and specific identification.

Answer 29

4.

Expert Solution

Answer to Problem 1PSB

Gross using FIFO methods is $558,500, using LIFO method is $549,500, using weighted average method is $552,615, and specific identification method is $557,000.

Answer 30

4.

Expert Solution

Answer 31

4.

Expert Solution

Answer 32

Expert Solution

Answer 33

Explanation of Solution

Particular	FIFO	LIFO	weighted average	Specific identification
Cost of goods available for sale	235500	235500	235500	235500
Less: closing stock 5 units	24000	15000	18115.40	22500
Cost of goods sold	211,500	220,500	217,385	213,000

Gross profit earn by the company:

Particular	FIFO method	LIFO method	Weighted average method	Specific identification method
Total Sales	$770,000	$770,000	$770,000	$770,000
Less: Cost of goods sold	211,500	220,500	217,385	213,000
Total	$558,500	$549,500	$552,615	557,000

Thus, gross using FIFO methods is $558,500, using the LIFO method is $549,500, using the weighted average method is $552,615, and the specific identification method is $557,000.