Concord Corp. had 1,900 units of part T on hand April 1, 2017, costing $8 each. During April, Concord made the following purchases of part 1. Units April 4 2,700 4.800 10 19 1.200 29 3,000 Unit Cost $8.25 8.40 9. 9.90 A physical count at April 30, 2017 showed 4,300 units of Part T on hand Using the FIFO method, what is the cost of part T inventory at April 30, 2017? Using the LIFO method, what is the inventory cost? Using the average-cost method, what is the inventory cost? (Round average cost per unit to 2 decimal places, eg 15.25 ond final answers to O decimal places, eg 1,620) FIFO LIFO Average Cost

Concord Corp. had 1,900 units of part T on hand April 1, 2017, costing $8 each. During April, Concord made the following purchases of part 1. Units April 4 2,700 4.800 10 19 1.200 29 3,000 Unit Cost $8.25 8.40 9. 9.90 A physical count at April 30, 2017 showed 4,300 units of Part T on hand Using the FIFO method, what is the cost of part T inventory at April 30, 2017? Using the LIFO method, what is the inventory cost? Using the average-cost method, what is the inventory cost? (Round average cost per unit to 2 decimal places, eg 15.25 ond final answers to O decimal places, eg 1,620) FIFO LIFO Average Cost

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter10: Inventory

Section: Chapter Questions

Problem 10EA: Calculate the cost of goods sold dollar value for A67 Company for the month, considering the...

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Habicht Company was formed in 2018 to produce a single product. The production and sales for the next 4 years were as follows: Required: 1. Determine the gross profit for each year under each of the following periodic inventory methods: a. FIFO b. LIFO c. Average cost (Round unit costs to 3 decimal places.) 2. Next Level Explain whether the companys return on assets (net income divided by average total assets) would be higher under FIFO or LIFO.
Calculate the cost of goods sold dollar value for A67 Company for the month, considering the following transactions under three different cost allocation methods and using perpetual inventory updating. Provide calculations for weighted average (AVG).
Reid Company uses the periodic inventory system. On January 1, it had an inventory balance of 250,000. During the year, it made 613,000 of net purchases. At the end of the year, a physical inventory showed it had ending inventory of 140,000. Calculate Reid Companys cost of goods sold for the year.
Hurst Companys beginning inventory and purchases during the fiscal year ended December 31, 20-2, were as follows: There are 1,200 units of inventory on hand on December 31, 20-2. REQUIRED 1. Calculate the total amount to be assigned to the cost of goods sold for 20-2 and ending inventory on December 31 under each of the following periodic inventory methods: (a) FIFO (b) LIFO (c) Weighted-average (round calculations to two decimal places) 2. Assume that the market price per unit (cost to replace) of Hursts inventory on December 31 was 18. Calculate the total amount to be assigned to the ending inventory on December 31 under each of the following methods: (a) FIFO lower-of-cost-or-market (b) Weighted-average lower-of-cost-or-market 3. In addition to taking a physical inventory on December 31, Hurst decides to estimate the ending inventory and cost of goods sold. During the fiscal year ended December 31, 20-2, net sales of 100,000 were made at a normal gross profit rate of 35%. Use the gross profit method to estimate the cost of goods sold for the fiscal year ended December 31 and the inventory on December 31.
Dollar-Value LIFO Kwestel Company adopted the dollar-value LIFO method for inventory valuation at the beginning of 2015. The following information about the inventory at the end of each year is available from Kwestels records: Required: Calculate the dollar-value LIFO inventory at the end of each year. Round to the nearest dollar.
Hogan Industries had the following inventory transactions occur during 2017: Units Cost/unit Feb. 1, 2017 Purchase 95 $40 Mar. 14, 2017 Purchase 164 $41 May 1, 2017 Purchase 116 $43 The company sold 269 units at $55 each and has a tax rate of 30%. Assuming that a periodic inventory system is used, what is the company's gross profit using FIFO? (rounded to whole dollars)
Shirley, Inc. had the following information regarding 2016 inventories: Units Price Amount January 1 2016 Inventory 1,000 $6.00 $ 6,000 March 8, 2016 purchase 2,000 $7.00 14,000 August 17, 2016 purchase 3,000 $8.00 24,000 Total 6,000 $44,000 During 2016, Shirley sold 2,000 units for $10.00 each. Shirley adopted the LIFO method with a periodic inventory system. Determine cost of ending inventory.
Esquire Inc. uses the LIFO method to value its inventory. Inventory at January 1, 2016, was $500,000 (20,000 units at $25 each). During 2016, 80,000 units were purchased, all at the same price of $30 per unit. 85,000 units were sold during 2016. Esquire uses a periodic inventory system. Calculate the December 31, 2016, ending inventory and cost of goods sold for 2016.
Topanga Group began operations early in 2016. Inventory purchase information for the quarter ended March 31, 2016, for Topanga's only product is provided below. The unit costs include the cost of freight. The company uses a periodic inventory system. Date of Purchase Units Total Cost Unit Cost $ 20,000 5,000 12,000 17,000 $4.00 Jan. 7 Feb. 16 March 22 4.50 54,000 85,000 5.00 Totals $159,000 34,000 Sales for the quarter, all at $7.00 per unit, totaled 20,000 units leaving 14,000 units on hand at the end of the quarter. Required: 1. Calculate the Topanga's gross profit ratio for the first quarter using: a. FIFO b. LIFO c. Average cost 2. Comment on the relative effect of each of the three inventory methods on the gross profit ratio.
Aiello Inc. had the following inventory in fiscal 2016. The company uses the LIFO method of accounting for inventory. Beginning Inventory, January 1, 2016: 130 units @ $15.00 Purchase 200 units @ $18.00 Purchase 50 units @ $13.50 Purchase 110 units @ $15.75 Ending Inventory, December 31, 2016: 120 units The company’s cost of goods sold for fiscal 2016 is: Group of answer choices $6,090.00 $1,800.00 $5,305.75 $6,157.50
A lquist Company uses the retail method to estimate its ending inventory. Selected information about its year 2016 operations is as follows: a. January 1, 2016, beginning inventory had a cost of $100,000 and a retail value of $150,000. b. Purchases during 2016 cost $1,387,500 with an original retail value of $2,000,000. c. Freight costs were $10,000 for incoming merchandise. d. Net additional markups were $300,000 and net markdowns were $150,000. e. Based on prior experience, shrinkage due to shoplifting was estimated to be $15,000 of retail value. f. Merchandise is sold to employees at a 20% of selling price discount. Employee sales are recorded in a separate account at the net selling price. The balance in this account at the end of 2016 is $250,000. g. Sales to customers totaled $1,750,000 for the year. Required: 1. Estimate ending inventory and cost of goods sold using the conventional retail method. 2. Estimate ending inventory and cost of goods sold using the LIFO retail method.…
The Reuschel Company began 2016 with inventory of 10,000 units at a cost of $7 per unit. During 2016, 50,000 units were purchased for $8.50 each. Sales for the year totaled 54,000 units leaving 6,000 units on hand at the end of 2016. Reuschel uses a periodic inventory system and the LIFO inventory cost method. Required: 1. Calculate cost of goods sold for 2016. 2. From a financial reporting perspective, what problem is created by the use of LIFO in this situation? Describe the disclosure required to report the effects of this problem.