The Wine Hut of Napa Valley, provided you with the following inventory record showingthe inventory details during the month of March 2022 for a private reserve Francis FordCoppola Merlot Wine:Inventory,Purchases:Inventory Detail - Coppola MerlotFor Month of March 2022March 1March 12March 23Bottles540110200Bottle Cost$20.0021.0022.00A physical inventory on March 31st indicates there are 450 units on hand.Calculate the value of ending inventory as of March 31st and the cost of goods sold forthe month of March assuming the company uses the LIFO inventory system.Important: You must show your detailed calculations, do NOT just provide an answer.

LIFO method is one of the methods of inventory valuation in which it is assumed that recent or new…

Answered: The Wine Hut of Napa Valley, provided…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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You have been working with the Humber Room Restaurant to determine the best method to value physical inventory. The following information is taken from the Humber Room Restaurant from the inventory records for the month of January: 1/1 Opening inventory 12 units @ $2.05 each 1/5 Purchased 22 units @ $2.75 1/12 Purchased 16 units @$1.75 1/19 Purchased 10 units @ $2.10 On January 31, the physical inventory indicated that 12 units remained on the shelf. The value on the shelf was 6 cans priced at $2.10 and 6 cans priced at $1.75 a.Determine the value of the closing inventory using the following methods 1.Actual purchase price method 2.FIFO 3.Last purchase price method 4.Weighted-average purchase price methodLast purchase price method 5.LIFO b.After analyzing the physical inventory based on the five methods in part a, what method would be "best suited" for the Humber Room Restaurant? Explain your answer in full sentences
Please answer in 30 mins. You have been working with the Humber Room Restaurant to determine the best method to value physical inventory. The following information is taken from the Humber Room Restaurant from the inventory records for the month of January: 1/1 Opening inventory 12 units @ $2.05 each 1/5 Purchased 22 units @ $2.75 1/12 Purchased 16 units @$1.75 1/19 Purchased 10 units @ $2.10 On January 31, the physical inventory indicated that 12 units remained on the shelf. The value on the shelf was 6 cans priced at $2.10 and 6 cans priced at $1.75 a.Determine the value of the closing inventory using the following methods : 1.Actual purchase price method 2.FIFO 3.Last purchase price method 4.Weighted-average purchase price methodLast purchase price method 5.LIFO b.After analyzing the physical inventory based on the five methods in part a, what method would be "best suited" for the Humber Room Restaurant? Explain your answer in full sentences.
Mario's Nursery uses a perpetual inventory system. At December 31, the perpetual inventory records indicate the following quantities of a particular blue spruce tree: Quantity Unit Cost Total Cost First purchase (oldest) 130 $25.00 $3,250 Second purchase... 120 28.50 3,420 Third purchase.. 100 39.00 3,900 Total ........ 350 $10,570 A year-end physical inventory, however, shows only 310 of these trees on hand. In its financial statements, Mario's values its inventories at the lower-of-cost-or-market. At year-end, the per-unit replacement cost of this tree is $40. (Use $3,500 as the "level of materiality" in deciding whether to debit losses to Cost of Goods Sold or to a separate loss account.) Instructions Prepare the journal entries required to adjust the inventory records at year-end, assuming that: a. Mario's uses: 1. Average cost. 2. Last-in, first-out. b. Mario's uses the first-in, first-out method. However, the replacement cost of the trees at year- end is $20 apiece, rather than…
Rogers Products uses a periodic inventory system. The company's records show the beginning inventory of PH4 oil filters on January 1 and the purchases of this item during the current year to be as follows. Jan. 1 Feb. 23 Apr. 20 May 4 Nov. 30 Beginning inventory Purchase Purchase Purchase Purchase Totals a. Average cost b. FIFO C. LIFO 13 units @ $3.00 16 units @ $3.50 31 units @ $3.80 42 units @ $4.00 19 units @ $5.00 121 units A physical count indicates 23 units in inventory at year-end. Determine the cost of the ending inventory on the basis of each of the following methods of inventory valuation. (Remember to use periodic inventory costing procedures.) (Round your intermediate and final answers to 2 decimal places.) Ending Inventory $ 39.00 56.00 117.80 168.00 95.00 $475.80
Rogers Products uses a periodic inventory system. The company's records show the beginning inventory of PH4 oil filters on January 1 and the purchases of this item during the current year to be as follows. Jan. 1 Feb. 23. Apr. 20 May 4 Nov. 30 Beginning inventory Purchase Purchase Purchase Purchase Totals a. Average cost b. FIFO c. LIFO 15 units @ $3.00 $ 45.00 14 units @ $3.50 26 units @ $3.80 41 units @ $4.00 19 units @ $5.00 115 units Ending Inventory 49.00 98.80 A physical count indicates 23 units in inventory at year-end. Determine the cost of the ending inventory on the basis of each of the following methods of inventory valuation. (Remember to use periodic inventory costing procedures.) (Round your intermediate and final answers to 2 decimal places.) 164.00 95.00 $451.80
Use the following information to calculate the value of inventory on hand on April 30 and issue price to production during April using FIFO inventory system. 01-April Beginning Inventory50 units @ R15 per unit 5 April Purchase 135 units @ 20 per unit 9 april: Issue to production 95 units 11 april : Purchase 30 units @ R16 per unit 16 April Purchase: 78 units @ R17per unit20 20 April Issue to production :125 units 30 April Issue to production 65 units
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Required information [The following information applies to the questions displayed below.] Cody's Fishing Hole has the following transactions related to its top-selling Shimano fishing reel for the month of June. Cody's Fishing Hole uses a periodic inventory system. Date June 1 Transactions Beginning inventory June 7 Sale June 12 June 15 June 24 Purchase Sale Purchase June 27 Sale June 29 Purchase Units 16 Unit Cost Total Cost $280 $4,480 11 10 270 2,700 12 10 260 2,600 8 10 250 2,500 $12,280 2. Using FIFO, calculate ending inventory and cost of goods sold at June 30. Answer is complete but not entirely correct. Ending inventory $ 3,020 × Cost of goods $ 5,400x sold
Sunshine Electronics Ltd records its inventory of Smile Luminous backpacks by using a perpetual inventory system on a FIFO basis. The following details are supplied for one particular popular make and model for the month of November. Complete the worksheet using FIFO, LIFO and Moving Average. 1 may Balance of 20 backpacks costed at $155 6 May Purchased 20 backpacks at $160 each 10 May Sold 15 backpacks at $300 each 15 May Purchased 10 backpacks at $180 each 18 May Sold 30 backpacks at $320 22 May Purchased 20 backpacks at $170 each 30 May Sold 12 backpacks at $310 each
Perpetual inventory using LIFO The following units of a particular item were available for sale during the calendar year: Jan. 1 Inventory 4,300 units at $42 Apr. 19 Sale 2,000 units June 30 Purchase 4,800 units at $47 Sept. 2 Sale 6,600 units Nov. 15 Purchase 2,400 units at $49 This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the question below. The firm maintains a perpetual inventory system. Determine the cost of goods sold for each sale and the inventory balance after each sale, assuming the last-in, first-out method. Present the data in the form illustrated in Exhibit 4. Under LIFO, if units are in inventory at two or more different costs, enter the units with the LOWER unit cost first in the Inventory Unit Cost column. Round your answers for quantity values to the nearest whole number, for unit cost values to the nearest cent, and for total cost values to…
Rogers Products uses a periodic inventory system. The company's records show the beginning inventory of PH4 oil filters on January 1 and the purchases of this item during the current year to be as follows. Jan. 1 Feb. 23 Apr. 20 May 4 Nov. 30 Beginning inventory. Purchase Purchase Purchase Purchase Totals a. b. FIFO C. LIFO Average cost A physical count indicates 200 units in inventory at year-end. Determine the cost of the ending inventory on the basis of each of the following methods of inventory valuation. (Remember to use periodic inventory costing procedures.) (Round intermediate calculations to 2 decimal places. Round your final answers to the nearest whole dollar.) 90 units @ $3.00 120 units @ $3.50 300 units @ $3.80 400 units @ $4.00 190 units @ $5.00 1,100 units Ending Inventory $ 270.00 420.00 1,140.00 1,600.00 950.00 $4,380.00
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