HORNGREN'S FINANCIAL & MANGERIAL ACCOUNT
7th Edition
ISBN: 9780136505273
Author: MILLER-NOBLES
Publisher: PEARSON
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Students have asked these similar questions
Car Armour sells car wash cleaners. Car Armour uses a perpetual Inventory system and made purchases and sales of a particular
product in 2023 as follows:
Jan. 1 Beginning inventory
Jan. 10 Sold
Mar. 7 Purchased
Mar. 15 Sold
July 28 Purchased
oct. 3 Purchased
Oct. 5 sold
Total goods available for sale
Required:
1. Calculate the total goods available for sale (in units and cost).
130 units @s 7.20 - $
60 units @$15.70-
320 units es 6.50 =
120 units @ $15.70 =
570 units @s 6.30-
520 units @s 6.20
710 units @ $15.70-
Units
Number of units sold
Number units remaining in ending inventory
4 FIFO
b Moving weighted average
2. Calculate the number of units sold and units remaining in ending inventory.
936.00
942.00
2,080.00
1,884.00
3,591.00
3,224.00
11,147.00
Cost
3. Determine the share of the cost of goods available for sale calculated in Part 1 that should be assigned to ending Inventory and to
goods sold under: (Do not round the Intermediate calculations and round the final answers to…
Question: Assume a Watercrest Sports outlet store began October 2020 with 47 pairs of water skis that cost the store $38 each. The sale price of these water skis was $67. During October, the store completed these inventory transactions:
1. The preceding data are taken from the store’s perpetual inventory records. Which cost method does the store use? Explain how you arrived at your answer.
2. Determine the store’s cost of goods sold for August under the periodic inventory system. Assume the FIFO method.
The Answer: Cost of goods sold: (image)
For the part, Sales [(47 units x $67)+(44 units x $68)] I don't understand what is in bolded, please explain where you get the numbers incuding the ones in dollars please.
3. What is the cost of the store’s October 31 inventory of water skis?
The Answer: Cost of October 31 inventory (39 × $40) + (24 × $42)
Please explain what is in bolded, how you get those numbers including the ones in dollars, because I don't understand.
Car Armour sells car wash cleaners. Car Armour uses a perpetual inventory system and made purchases and sales of a particular
product in 2023 as follows:
Jan. 1 Beginning inventory
Jan. 10 Sold
Mar. 7 Purchased
Mar. 15 Sold
July 28 Purchased
Oct. 3 Purchased
Oct. 5 Sold
Total goods available for sale
Required:
1. Calculate the total goods available for sale (in units and cost).
Number of units sold
Number units remaining in ending inventory
130 units @ $ 6.90
60 units @ $15.40 =
290 units @ $ 6.20 =
120 units @ $15.40 =
540 units @ $ 6.00 =
490 units @ $ 5.90 =
660 units @ $15.40 =
a FIFO
b. Moving weighted average
Units
$
1,450 $
2. Calculate the number of units sold and units remaining in ending inventory.
Cost
Ending
Inventory
897.00
924.00
1,798.00
1,848.00
3,240.00
2,891.00
10,164.00
840
610
3. Determine the share of the cost of goods available for sale calculated in Part 1 that should be assigned to ending inventory and to
goods sold under: (Do not round the intermediate…
Chapter 6 Solutions
HORNGREN'S FINANCIAL & MANGERIAL ACCOUNT
Ch. 6 - Which principle or concept states that businesses...Ch. 6 - Which inventory costing method assigns to ending...Ch. 6 - Assume Nile.com began April with 14 units of...Ch. 6 - Suppose Nile.com used the weighted-average...Ch. 6 - Which inventory costing method results in the...Ch. 6 - Prob. 6QCCh. 6 - At December 31, 2016, Stevenson Company overstated...Ch. 6 - Suppose Maestros had cost of goods sold during the...Ch. 6 - Suppose Nile.com used the LIFO inventory costing...Ch. 6 - Prob. 1RQ
Ch. 6 - Prob. 2RQCh. 6 - Prob. 3RQCh. 6 - What is the goal of conservatism?Ch. 6 - Prob. 5RQCh. 6 - Under a perpetual inventory system, what are the...Ch. 6 - Prob. 7RQCh. 6 - Prob. 8RQCh. 6 - What does the lower-of-cost-or-market (LCM) rule...Ch. 6 - What account is debited when recording the...Ch. 6 - What is the effect on cost of goods sold, gross...Ch. 6 - When does an inventory error cancel out, and why?Ch. 6 - Prob. 13RQCh. 6 - Prob. 14RQCh. 6 - Prob. 15ARQCh. 6 - Prob. 16ARQCh. 6 - Determining inventory accounting principles Ward...Ch. 6 - Prob. 6.2SECh. 6 - Prob. 6.3SECh. 6 - Use the following information to answer Short...Ch. 6 - Use the following information to answer Short...Ch. 6 - Use the following information to answer Short...Ch. 6 - Comparing Cost of Goods Sold under FIFO, UFO, and...Ch. 6 - Prob. 6.8SECh. 6 - Prob. 6.9SECh. 6 - Prob. 6.10SECh. 6 - Prob. 6.11SECh. 6 - Prob. 6.12SECh. 6 - Prob. 6.13SECh. 6 - Using accounting vocabulary Match the accounting...Ch. 6 - Prob. 6.15ECh. 6 - Prob. 6.16ECh. 6 - Use the following information to answer Exercises...Ch. 6 - Prob. 6.19ECh. 6 - Prob. 6.20ECh. 6 - Prob. 6.21ECh. 6 - Prob. 6.22ECh. 6 - Prob. 6.23ECh. 6 - Prob. 6.24ECh. 6 - Prob. 6.25ECh. 6 - Prob. 6.26ECh. 6 - Prob. 6.27ECh. 6 - Prob. 6.28APCh. 6 - Prob. 6.29APCh. 6 - Prob. 6.30APCh. 6 - Prob. 6.31APCh. 6 - Prob. 6.32APCh. 6 - Prob. 6.33BPCh. 6 - Prob. 6.34BPCh. 6 - Prob. 6.35BPCh. 6 - Prob. 6.36BPCh. 6 - Prob. 6.37BPCh. 6 - Prob. 6.38CPCh. 6 - Prob. 6.39PSCh. 6 - Prob. 6.1COPCh. 6 - Prob. 6.1CTDC
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- Required information [The following information applies to the questions displayed below.] Trey Monson starts a merchandising business on December 1 and enters into the following three inventory purchases. Monson uses a perpetual inventory system. Also, on December 15, Monson sells 15 units for $20 each. Purchases on December 7 Purchases on December 14 Purchases on December 21 Determine the costs assigned to ending inventory when costs are assigned based on the LIFO method. Date December 7 December 14 Total December 14 Totals December 15 Total December 15 December 21 Goods purchased # of units Cost of Goods Available for Sale 10 at $ 6.00 = $ 60.00 $ 240.00 10 units @ $ 6 cost 20 units @ $12 cost 15 units @ $14 cost Cost per unit 20 at $ 12.00 = 15 at $ 14.00 = $ 210.00 Perpetual LIFO: # of units sold 8 at Cost of Goods Sold Cost per Cost of Goods unit Sold $ 6.00 = $ 48.00 48.00 Inventory Balance # of units 10 at 10 at 20 at 2 at 2 at 2 at 13 at 15 at Cost per unit $ 6.00 = $6.00 =…arrow_forwardRequired information Trey Monson starts a merchandising business on December 1 and enters into the following three inventory purchases. Also, on December 15, Monson sells 25 units for $25 each. Purchases on December 7 Purchases on December 14 Purchases on December 21 15 units @ $1.00 cost 30 units ē $15.00 cost 25 units @ $18.00 cost Required: Monson uses a perpetual inventory system. Determine the costs assigned to the December 31 ending inventory based on the FIFO method. Perpetual FIFO: Goods Purchased Cost of Goods Sold # of Units Sold Inventory Balance # of Units Cost Per Unit Goods Purchased Cost Per Cost of Goods Unit # of Units Cost Per Unit Inventory Balance Date Sold December 7 December 14arrow_forward! Required information [The following information applies to the questions displayed below.] 14 Trey Monson starts a merchandising business on December 1 and enters into the following three inventory purchases. Monson uses a periodic inventory system. Also, on December 15, Monson sells 15 units for $20 each. Purchases on December 7 Purchases on December 14 Purchases on December 21 Determine the costs assigned to ending inventory when costs are assigned based on the LIFO method. Purchases: 21 Total December 7 December December Cost of Goods Available for Sale Cost of Goods Available for Sale # of units 10 $6.00 12.00 20 Cost per unit 15 45 14.00 10 units @ $6 cost 20 units @ $12 cost 15 units @ $14 cost $ $ 60 240 210 510 Periodic LIFO: Cost of Goods Sold # of units sold X Answer is not complete. 15 15 Cost per unit 14.00 Cost of Goods Sold $ 210 210 GA GA $ Inventory Balance # of units in ending inventory 0 Cost per unit $6.00 12.00 Ending Inventory $ $ 0 0 0arrow_forward
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