Craig Company buys and sells one product. Its beginning inventory, purchases, and sales during calendar-year 2018 follow.ProblemDate Activity Units Acquired at Cost Total Units Sold at Retail Unit InventoryJan. 1 Beg. Inventory 400 units @ $14 =Jan. 15 SaleMar. 10 PurchaseApr. 1 SaleMay 9 PurchaseSep. 22 PurchaseNov. 1 SaleNov. 28 PurchaseTotals200 units @ $15 =300 units @ $16 =250 units @ $20=100 units @ $21 =$5,600 -$3,000 -200 units @ $30 200 units400 units$5,000200 units @ $30$4,800 -400 units$2,100 -200 units500 units750 units300 units @ $35 450 units550 units1,250 units$20,500 700 units550 unitsAdditional tracking data for specific identification: (1) January 15 sale-200 units @ $14, (2) April 1 sale-200 units @ $15, and (3) November 1sale-200 units @ $14 and 100 units @ $20.1. What is the Cost of Good Available for Sale? How many units available for sale?2. Using the Periodic System, determine Cost of Goods Sold (COGS) and Ending Inventory using one of the methods: Specific Identification,Weighted Average, FIFO or LIFO. Show your work.3. Explain how the calculation might be different if you used Perpetual System instead.

Perpetual and periodic inventory system Businesses utilize the accounting process of inventory…

Craig Company buys and sells one product. Its beginning inventory, purchases, and sales during calendar-year 2018 follow. Problem Date Activity Units Acquired at Cost Total Units Sold at Retail Unit Inventory Jan. 1 Beg. Inventory 400 units @ $14 = $5,600 - Jan. 15 Sale Mar. 10 Purchase Apr. 1 Sale May 9 Purchase Sep. 22 Purchase Nov. 1 Sale Nov. 28 Purchase 200 units @ $15= Totals 300 units @ $16= 250 units @ $20= 200 units @ $30 100 units @ $21= $3,000 - $4,800 - $5,000 - 400 units 200 units @ $30 200 units 300 units @ $35 200 units 400 units 500 units $2,100 - 1,250 units $20,500 700 units 550 units Additional tracking data for specific identification: (1) January 15 sale-200 units @ $14, (2) April 1 sale-200 units @ $15, and (3) November 1 sale-200 units @ $14 and 100 units @ $20. 750 units 450 units 550 units 1. What is the Cost of Good Available for Sale? How many units available for sale? 2. Using the Periodic System, determine Cost of Goods Sold (COGS) and Ending Inventory using one of the methods: Specific Identification, Weighted Average, FIFO or LIFO. Show your work. 3. Explain how the calculation might be different if you used Perpetual System instead.

Craig Company buys and sells one product. Its beginning inventory, purchases, and sales during calendar-year 2018 follow. Problem Date Activity Units Acquired at Cost Total Units Sold at Retail Unit Inventory Jan. 1 Beg. Inventory 400 units @ $14 = $5,600 - Jan. 15 Sale Mar. 10 Purchase Apr. 1 Sale May 9 Purchase Sep. 22 Purchase Nov. 1 Sale Nov. 28 Purchase 200 units @ $15= Totals 300 units @ $16= 250 units @ $20= 200 units @ $30 100 units @ $21= $3,000 - $4,800 - $5,000 - 400 units 200 units @ $30 200 units 300 units @ $35 200 units 400 units 500 units $2,100 - 1,250 units $20,500 700 units 550 units Additional tracking data for specific identification: (1) January 15 sale-200 units @ $14, (2) April 1 sale-200 units @ $15, and (3) November 1 sale-200 units @ $14 and 100 units @ $20. 750 units 450 units 550 units 1. What is the Cost of Good Available for Sale? How many units available for sale? 2. Using the Periodic System, determine Cost of Goods Sold (COGS) and Ending Inventory using one of the methods: Specific Identification, Weighted Average, FIFO or LIFO. Show your work. 3. Explain how the calculation might be different if you used Perpetual System instead.

Financial Accounting

15th Edition

ISBN:9781337272124

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter7: Inventories

Section: Chapter Questions

Problem 5PA: Dymac Appliances uses the periodic inventory system. Details regarding the inventory of appliances...

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