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.

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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 2PSB

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 2PSB

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 the 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 2PSB

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 2PSB

Cost assigned to ending inventory using FIFO is $24,000, using LIFO is $15,000, using weighted average is $ 20000 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:

FINANCIAL ACCT-CONNECT, Chapter 5, Problem 2PSB , additional homework tip 1

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

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

FINANCIAL ACCT-CONNECT, Chapter 5, Problem 2PSB , additional homework tip 2

Using the LIFO method closing inventory of 5 units will consist

Thus, the 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:

Date	Particular	No of unit	Price	Total	Balance inventory
Date	Particular	No of unit	Price	Total	No of units	Price	Total
1^s^t April	Opening inventory	20	3,000	60,000	20	3,000	60,000
6^t^h April	Purchase	30	3,500	105,000	50	3,300	165,000
9^t^h April	Sales	(35)	3,300	(115,500)	15	3,300	49,500
17^t^h April	Purchase	5	4,500	22,500	20	3,600	72,000
25^t^h April	Purchase	10	4,800	48,000	30	4,000	120,000
30^t^h April	Sales	(25)	4,000	(100,000)	5	4,000	20,000

Thus, cost assigned to ending inventory of $ 20,000

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, the 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 2PSB

Gross using FIFO methods is $558,500, using LIFO method is $549,500, using weighted average method is $55,4500, 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	200,000	22500
Cost of goods sold	211,500	220,500	215,500	213,000

Gross profit earned 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	215,500	213,000
Total	$558,500	$549,500	$554,500	557,000

Thus, gross using FIFO methods is $558,500, using the LIFO method is $549,500, using the weighted average method is $554500, and the specific identification method is $557,000.

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Please make a trial balance, adjusted trial balance, Income statement. end balance ,owners equity statement, Balance sheet , Cash flow statement ,Cash end balance

Activity Based Costing - practice problem Fontillas Instrument, Inc. manufactures two products: missile range instruments and space pressure gauges. During April, 50 range instruments and 300 pressure gauges were produced, and overhead costs of $89,500 were estimated. An analysis of estimated overhead costs reveals the following activities. Activities 1. Materials handling 2. Machine setups Cost Drivers Number of requisitions Number of setups Total cost $35,000 27,500 3. Quality inspections Number of inspections 27,000 $89.500 The cost driver volume for each product was as follows: Cost Drivers Instruments Gauge Total Number of requisitions 400 600 1,000 Number of setups 200 300 500 Number of inspections 200 400 600 Insructions (a) Determine the overhead rate for each activity. (b) Assign the manufacturing overhead costs for April to the two products using activity-based costing.

Bodhi Company has three cost pools and two doggie products (leashes and collars). The activity cost pool of ordering has the cost drive of purchase orders. The activity cost pool of assembly has a cost driver of parts. The activity cost pool of supervising has the cost driver of labor hours. The accumulated data relative to those cost drivers is as follows: Expected Use of Estimated Cost Drivers by Product Cost Drivers Overhead Leashes Collars Purchase orders $260,000 70,000 60,000 Parts 400,000 300,000 500,000 Labor hours 300,000 15,000 10,000 $960,000 Instructions: (a) Compute the activity-based overhead rates. (b) Compute the costs assigned to leashes and collars for each activity cost pool. (c) Compute the total costs assigned to each product.

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 2PSB

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 2PSB

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 the 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 2PSB

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 2PSB

Cost assigned to ending inventory using FIFO is $24,000, using LIFO is $15,000, using weighted average is $ 20000 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:

FINANCIAL ACCT-CONNECT, Chapter 5, Problem 2PSB , additional homework tip 1

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

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

FINANCIAL ACCT-CONNECT, Chapter 5, Problem 2PSB , additional homework tip 2

Using the LIFO method closing inventory of 5 units will consist

Thus, the 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:

Date	Particular	No of unit	Price	Total	Balance inventory
Date	Particular	No of unit	Price	Total	No of units	Price	Total
1^s^t April	Opening inventory	20	3,000	60,000	20	3,000	60,000
6^t^h April	Purchase	30	3,500	105,000	50	3,300	165,000
9^t^h April	Sales	(35)	3,300	(115,500)	15	3,300	49,500
17^t^h April	Purchase	5	4,500	22,500	20	3,600	72,000
25^t^h April	Purchase	10	4,800	48,000	30	4,000	120,000
30^t^h April	Sales	(25)	4,000	(100,000)	5	4,000	20,000

Thus, cost assigned to ending inventory of $ 20,000

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, the 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 2PSB

Gross using FIFO methods is $558,500, using LIFO method is $549,500, using weighted average method is $55,4500, 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	200,000	22500
Cost of goods sold	211,500	220,500	215,500	213,000

Gross profit earned 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	215,500	213,000
Total	$558,500	$549,500	$554,500	557,000

Thus, gross using FIFO methods is $558,500, using the LIFO method is $549,500, using the weighted average method is $554500, 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 2PSB

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 2PSB

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 the 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 2PSB

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 2PSB

Cost assigned to ending inventory using FIFO is $24,000, using LIFO is $15,000, using weighted average is $ 20000 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:

FINANCIAL ACCT-CONNECT, Chapter 5, Problem 2PSB , additional homework tip 1

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

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

FINANCIAL ACCT-CONNECT, Chapter 5, Problem 2PSB , additional homework tip 2

Using the LIFO method closing inventory of 5 units will consist

Thus, the 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:

Date	Particular	No of unit	Price	Total	Balance inventory
Date	Particular	No of unit	Price	Total	No of units	Price	Total
1^s^t April	Opening inventory	20	3,000	60,000	20	3,000	60,000
6^t^h April	Purchase	30	3,500	105,000	50	3,300	165,000
9^t^h April	Sales	(35)	3,300	(115,500)	15	3,300	49,500
17^t^h April	Purchase	5	4,500	22,500	20	3,600	72,000
25^t^h April	Purchase	10	4,800	48,000	30	4,000	120,000
30^t^h April	Sales	(25)	4,000	(100,000)	5	4,000	20,000

Thus, cost assigned to ending inventory of $ 20,000

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, the 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 2PSB

Gross using FIFO methods is $558,500, using LIFO method is $549,500, using weighted average method is $55,4500, 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	200,000	22500
Cost of goods sold	211,500	220,500	215,500	213,000

Gross profit earned 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	215,500	213,000
Total	$558,500	$549,500	$554,500	557,000

Thus, gross using FIFO methods is $558,500, using the LIFO method is $549,500, using the weighted average method is $554500, 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 2PSB

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 2PSB

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 the 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 2PSB

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 2PSB

Cost assigned to ending inventory using FIFO is $24,000, using LIFO is $15,000, using weighted average is $ 20000 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:

FINANCIAL ACCT-CONNECT, Chapter 5, Problem 2PSB , additional homework tip 1

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

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

FINANCIAL ACCT-CONNECT, Chapter 5, Problem 2PSB , additional homework tip 2

Using the LIFO method closing inventory of 5 units will consist

Thus, the 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:

Date	Particular	No of unit	Price	Total	Balance inventory
Date	Particular	No of unit	Price	Total	No of units	Price	Total
1^s^t April	Opening inventory	20	3,000	60,000	20	3,000	60,000
6^t^h April	Purchase	30	3,500	105,000	50	3,300	165,000
9^t^h April	Sales	(35)	3,300	(115,500)	15	3,300	49,500
17^t^h April	Purchase	5	4,500	22,500	20	3,600	72,000
25^t^h April	Purchase	10	4,800	48,000	30	4,000	120,000
30^t^h April	Sales	(25)	4,000	(100,000)	5	4,000	20,000

Thus, cost assigned to ending inventory of $ 20,000

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, the 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 2PSB

Gross using FIFO methods is $558,500, using LIFO method is $549,500, using weighted average method is $55,4500, 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	200,000	22500
Cost of goods sold	211,500	220,500	215,500	213,000

Gross profit earned 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	215,500	213,000
Total	$558,500	$549,500	$554,500	557,000

Thus, gross using FIFO methods is $558,500, using the LIFO method is $549,500, using the weighted average method is $554500, and the specific identification method is $557,000.

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Answer 5

Chapter 5, Problem 2PSB

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 2PSB

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 the 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 2PSB

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 2PSB

Cost assigned to ending inventory using FIFO is $24,000, using LIFO is $15,000, using weighted average is $ 20000 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:

FINANCIAL ACCT-CONNECT, Chapter 5, Problem 2PSB , additional homework tip 1

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

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

FINANCIAL ACCT-CONNECT, Chapter 5, Problem 2PSB , additional homework tip 2

Using the LIFO method closing inventory of 5 units will consist

Thus, the 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:

Date	Particular	No of unit	Price	Total	Balance inventory
Date	Particular	No of unit	Price	Total	No of units	Price	Total
1^s^t April	Opening inventory	20	3,000	60,000	20	3,000	60,000
6^t^h April	Purchase	30	3,500	105,000	50	3,300	165,000
9^t^h April	Sales	(35)	3,300	(115,500)	15	3,300	49,500
17^t^h April	Purchase	5	4,500	22,500	20	3,600	72,000
25^t^h April	Purchase	10	4,800	48,000	30	4,000	120,000
30^t^h April	Sales	(25)	4,000	(100,000)	5	4,000	20,000

Thus, cost assigned to ending inventory of $ 20,000

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, the 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 2PSB

Gross using FIFO methods is $558,500, using LIFO method is $549,500, using weighted average method is $55,4500, 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	200,000	22500
Cost of goods sold	211,500	220,500	215,500	213,000

Gross profit earned 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	215,500	213,000
Total	$558,500	$549,500	$554,500	557,000

Thus, gross using FIFO methods is $558,500, using the LIFO method is $549,500, using the weighted average method is $554500, and the specific identification method is $557,000.

Answer 6

Chapter 5, Problem 2PSB

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 2PSB

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 the 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 2PSB

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 2PSB

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 the 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 2PSB

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 2PSB

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 2PSB

Cost assigned to ending inventory using FIFO is $24,000, using LIFO is $15,000, using weighted average is $ 20000 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:

FINANCIAL ACCT-CONNECT, Chapter 5, Problem 2PSB , additional homework tip 1

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

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

FINANCIAL ACCT-CONNECT, Chapter 5, Problem 2PSB , additional homework tip 2

Using the LIFO method closing inventory of 5 units will consist

Thus, the 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:

Date	Particular	No of unit	Price	Total	Balance inventory
Date	Particular	No of unit	Price	Total	No of units	Price	Total
1^s^t April	Opening inventory	20	3,000	60,000	20	3,000	60,000
6^t^h April	Purchase	30	3,500	105,000	50	3,300	165,000
9^t^h April	Sales	(35)	3,300	(115,500)	15	3,300	49,500
17^t^h April	Purchase	5	4,500	22,500	20	3,600	72,000
25^t^h April	Purchase	10	4,800	48,000	30	4,000	120,000
30^t^h April	Sales	(25)	4,000	(100,000)	5	4,000	20,000

Thus, cost assigned to ending inventory of $ 20,000

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, the 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 2PSB

Cost assigned to ending inventory using FIFO is $24,000, using LIFO is $15,000, using weighted average is $ 20000 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:

FINANCIAL ACCT-CONNECT, Chapter 5, Problem 2PSB , additional homework tip 1

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

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

FINANCIAL ACCT-CONNECT, Chapter 5, Problem 2PSB , additional homework tip 2

Using the LIFO method closing inventory of 5 units will consist

Thus, the 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:

Date	Particular	No of unit	Price	Total	Balance inventory
Date	Particular	No of unit	Price	Total	No of units	Price	Total
1^s^t April	Opening inventory	20	3,000	60,000	20	3,000	60,000
6^t^h April	Purchase	30	3,500	105,000	50	3,300	165,000
9^t^h April	Sales	(35)	3,300	(115,500)	15	3,300	49,500
17^t^h April	Purchase	5	4,500	22,500	20	3,600	72,000
25^t^h April	Purchase	10	4,800	48,000	30	4,000	120,000
30^t^h April	Sales	(25)	4,000	(100,000)	5	4,000	20,000

Thus, cost assigned to ending inventory of $ 20,000

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, the 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 2PSB

Gross using FIFO methods is $558,500, using LIFO method is $549,500, using weighted average method is $55,4500, 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	200,000	22500
Cost of goods sold	211,500	220,500	215,500	213,000

Gross profit earned 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	215,500	213,000
Total	$558,500	$549,500	$554,500	557,000

Thus, gross using FIFO methods is $558,500, using the LIFO method is $549,500, using the weighted average method is $554500, 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 2PSB

Gross using FIFO methods is $558,500, using LIFO method is $549,500, using weighted average method is $55,4500, 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	200,000	22500
Cost of goods sold	211,500	220,500	215,500	213,000

Gross profit earned 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	215,500	213,000
Total	$558,500	$549,500	$554,500	557,000

Thus, gross using FIFO methods is $558,500, using the LIFO method is $549,500, using the weighted average method is $554500, and the specific identification method is $557,000.