12. Chimwasu Ltd sells pure olive oil to wholesale shops in the Kitwe Business District. During the month of January 2020, the following inventory was received and issued: Date Receipts Cost Date Issues Price 3 January 150 units K220 5 January 300 units K250 10 January 200 units K230 25 January 230 units K250 On 31 December 2019, there were 200 units valued at K200 per unit in stock. Calculate the gross profit using LIFO and AVCO methods of inventory valuation.
Q: The following lots of a particular commodity were available for sale during the year Beginning…
A: The stock of items in which firm deals are recorded as inventory in the books of the firm. The…
Q: June Corp. sells one product and uses a perpetual inventory system. The beginning inventory…
A: There are various methods of inventory valuation like FIFO, LIFO, Weighted Average methods etc.
Q: Euphorbia Company produces and sells a single item of product. Inventory at the beginning of…
A: Lets start with basic understanding of FIFO method. In First In First Out (FIFO) method, company…
Q: The records of Rami co. show the following data in June 30, 2020 Date Explanation Unit Unit Cost…
A: Inventory valuation is a method used by the organisation to evaluate the total value of goods held…
Q: June Corp. sells one product and uses perpetual inventory system. The beginning inventort consisted…
A: FIFO, first in first out is one of method which is used for inventory valuation under this method…
Q: November 15- 5,000 units @ P13. If Seolleongtang Company has 9,000 units on hand on December 31, the…
A: Ans. In FIFO method of valuation of inventory, the units which is purchased at first is sold at…
Q: The following hammers were available for sale during the year for Wilkins Tools: Beginning…
A: FIFO (First-in First Out): Under FIFO inventory accounting, units prurchased first are sold first.…
Q: Macdo had 150,000 units of product A on hand at January 1, 2020, costing P21 each. Purchases of…
A: Here in this question we are required to calculate cost of inventory in FIFO basis. Under FIFO…
Q: Betty Go Company has the following: Inventory, January 1- 8,000 units @ P11; Purchases, June 19-…
A:
Q: Georgio Corporation has the following data as of December 31, 2021. Product C Product D Units…
A: Inventory refers to all the goods and material sold by the market to earn a profit.
Q: The following were the information provided by UNIKELO retail: Purchases and Beginning Inventory •…
A: (1) The cost per unit that is derived by dividing the Total cost of the Inventory on hand with the…
Q: Green Company has beginning inventory of 20 units at a cost of $12.00 each on May 1. On May 5, it…
A: FIFO: FIFO stands for First-In, First-Out. In this method inventory purchased first will be sell…
Q: At May 1, 2022, Ayayai Corp. had beginning inventory consisting of 280 units with a unit cost of $7.…
A:
Q: Sigfusson Supplies reported beginning inventory of 100 units, for a total cost of $2,000. The…
A:
Q: following transactions for Product B during the fiscal year ended on December 31, 2020. Date…
A: The inventory can be valued using various methods as LIFO, FIFO and weighted average method.
Q: 16. Macdo had 150,000 units of product A on hand at January 1, 2020, costing P21 each. Purchases of…
A: Under the LIFO inventory method, the latest purchases are sold first (last in first out). So the…
Q: The following is a record of Tamarisk Company’s transactions for Boston Teapots for the month of May…
A: In FIFO method, the goods received first are dispatched first. In LIFO method,the goods received…
Q: Seolleongtang Company has the following: Inventory, January 1- 8,000 units @ P11; Purchases, June…
A: As per the FIFO method, those units are issued first which is purchased first, which means ending…
Q: Horan Ltd has the following inventory transactions for the month of December 2020. All inventory…
A: The acronym FIFO stands for First in first out method of valuation. With reference to the cost of…
Q: Seven Sea Corporation sells Ovens for an average of OMR 50, and which cost OMR 25. This is a…
A: This method is generally used by retailers to estimate ending inventory. Under this method…
Q: 3. Zimmerman Corp. had 1,500 units of part M.O. on hand May 1, 2020, costing $21 each. Purchases…
A: FIFO stands for First in, first out, which means that the item of inventory that is oldest will be…
Q: On June 1, Dollar Hardware, Inc. had an inventory of 300 gas grills costing $100 each. Purchases and…
A: FIFO Method - Under FIFO Method of inventory valuation company used to sell those inventory first…
Q: MANGO store had the following purchases during its first year of operations. They purchased 1880…
A: Lets understand the basics. For calculating ending inventory, we will need to use below formula.…
Q: When Mercator Manufacturing Inc. checked its stores, it had the following inventory on hand as at…
A: Introduction:- The term inventory refers to both the raw materials utilised in production and the…
Q: The Holden Corp. company has the following purchases an during the year ended December 31, 2014.…
A: Valuation method : FIFO Calculation of Cost of Goods Sold. Feb 9 : 30 units sold = 30 units x Cost…
Q: The following amounts and costs of platters were available for sale by Sierra Pottery during the…
A: Under weighted average cost of inventory, weighted average cost per unit will be calculated for…
Q: .Choi Myung-hee Company had 180,000 units of Product A on hand at January 1, 2020 costing P20 each.…
A: FIFO stands for First-In, First-Out is the method of inventory which assumes that the oldest…
Q: A new firm, ABC, purchased 20,000 units of product X at PI0 per unit on January 5. It sold 15,000…
A: The ending inventory is calculated as difference between units available for sale and units sold.
Q: -S The Stilton Company has the following inventory and credit purchases during the fiscal year ended…
A: FIFO Method :— It is one of the method of inventory valuation in which beginning Inventory and first…
Q: Assume Ava Co. has the following purchases of inventory during the first month of operations…
A: LIFO is last in first out inventory valuation method in which goods purchased at last in the…
Q: An organizations stock records show the following transactions for a specific item during last…
A: The cost per unit is calculated as total cost divided by number of units produced.
Q: Assume Ava Co has the following purchases of inventory during the first month of operations…
A: The calculation of Ending inventory is given below. You may kindly note the following All amounts…
Q: Atlis Company sells on product which it purchases from various suppliers. The trial balance on…
A: Inventory on Jan 1 20,000 Inventory on March 31 30,000…
Q: The records of Rami co. show the following data on June 30, 2020, During the month inventory on hand…
A: Definition: First-in-First-Out (FIFO): In the First-in-First-Out method, the first purchased items…
Q: When a Mercator manufacturing Inc. checked its stores, it had the following inventory on hand as at…
A: a) Table Showing Closing Inventory Value as on date December 31: Inventory Quantity Price…
Q: Seolleongtang Company has the following: Inventory, January 1- 8,000 units @ P11; Purchases, June…
A: FIFO: First-In First Out:- As per FIFO method, units purchased first are sold first. Hence,…
Q: Stalberg Company's beginning inventory and purchases during the fiscal year ended December 31, 20--,…
A: Given: Inventory in hand =10 units Under the FIFO method, those units are sold first which are…
Q: 13 Tulsa Company, (a merchandising co.) has the following data pertaining to the year ended…
A: Cost of goods sold: Cost of goods sold (COGS) is the cost of manufacturing the products that a…
Q: What was the unit average cost of the January 1 inventory? * The following are the sales and…
A: Inventory valuation is the most commonly used technique to identify the value of the ending…
Q: Cocomelon company's inventory records report the following in November of the current year:…
A: LIFO: LIFO stands for Last-In, First-Out. In this method inventory purchased at last will be sell…
Q: At May 1, 2016, Bramble Company had beginning inventory consisting of 220 units with a unit cost of…
A: LIFO means last in first out where as FIFO means first in first out. Inventory and cost of goods…
Q: Current Attempt in Progress Marigold Corp. had 290 units of product A on hand at January 1, 2020,…
A: Total Number of units available for sale = 290 + 380 + 540 + 180 = 1390 units Inventory in hand on…
Q: The following amounts and costs of platters were available for sale by Sierra Pottery during the…
A: Given that, Beginning inventory = 10 units @ $41 Purchases = 15 units @ $55 Second purchase = 30…
Step by step
Solved in 2 steps
- What should Cake report as cost of goods sold for 2022? * Cake Company sells one product which it purchases from various suppliers. The trial balance on December 31, 2022 included the following accounts: Sales (100,000 units at P150) Sales discount Purchase Purchase discount The inventory purchases during 2022 were as follows: Beginning inventory, January 1 Purchases, quarter ended March 31 Purchases, quarter ended June 30 Purchases, quarter ended Sept. 30 Purchases, quarter ended Dec. 31 Units 20,000 30,000 40,000 50,000 10,000 150,000 Unit cost 60 65 70 75 15,000,000 1,000,000 9,300,000 400,000 80 Total cost 1,200,000 1,950,000 2,800,000 3,750,000 800,000 10,500,000 Cake's accounting policy is to report inventory in its financial statements at the lower of cost or net realizable value. Cost is determined under the first-out method. Cake has determined that, on December 31, 2022, the replacement cost of its inventory was P70 per unit and the net realizable value was P72 per unit. The…15. Macdo had 150,000 units of product A on hand at January 1, 2020, costing P21 each. Purchases of Product A during the month were as follows: Units Unit Cost January 5 January 18 January 30 P22 200,000 250,000 100,000 23 24 A physical count on January 31, 2020 shows 250,000 units of Product A on hand. What is the cost of the inventory at January 31, 2020 under FIFO method?15. Macdo had 150,000 units of product A on hand at January 1, 2020, costing P21 each. Purchases of Product A during the month were as follows: January 5 January 18 January 30 Units 200.000 250,000 100.000 Unit Cost P22 23 24 A physical count on January 31, 2020 shows 250,000 units of Product A on hand What is the cost of the inventory at January 31, 2020 under FIFO method?
- You work for a wholesale firm which distributes a single product. $57, 600 is the value for opening inventory (1 Oct 2020). Closing inventory valuation conducted on 31 October 2020, $80 640. Purchases during the month were: 9th October, 1, 140 units at 145 each, 15th October 1,310 units at 150 each and 24th October, 620 units at 155 each. Sales during the month were 12th October, 1, 040 units at 205 and 21st October, 1, 840 units at 220. The other cost besides the purchases were: Wages of staff $44, 700, Premises purchased $42, 750, Administrative expenses $13, 620, Selling and marketing costs $17,890, Cost and freight for purchased inventory $ 3,750, Carriage outwards $4, 120 and Depreciation charges $11, 250 What is sum of the operating expenditure or period cost for the month of October 2020?ANC reported the following data: Beginning inventory, 500 units at P2.40 each. Purchased on January 7, 2020: 1,000 units at P3.00 each. Sold 1,200 units. Using FIFO, what is the amount of inventory on January 31?Record the following transactions of Pal Tos Sales for the month of May under the Perpetual Inventory System. Assume that terms for all purchases are 2/20, n/30 and terms for all sales are 1/15, n/30. Cost for each sales and returns is 80% of the sales or return price. 2020 May 5Cash sales, P210,000 6 Purchased P550,000 merchandise from Hoo Enterprise on account 8 Sold P30,000 goods to Lucky Trading 11Purchased PP150,000 merchandise from Vee Cut Sales 15Cash purchases, P221,000 17Received P3,000 returns of defective merchandise from Lucky Trading 19Returned P50,000 defective goods to Hoo Enterprises 22Lucky Trading settled its amount in full 25Paid Hoo Enterprises in full 30Settled account with Vee Cut sales in full
- The DJ company uses a periodic inventory system. The beginning balance of inventory and purchases made by the company during December 2020 are given below. December 01: Beginning inventory, 50 units @ Rs40 per unit. December 18: Inventory purchased, 60 units @ Rs48 per unit. December 20: Inventory purchased, 20 units @ Rs 52 per unit. December 25: Inventory purchased, 70 units @ Rs56 per unit. The DJ company sold 160 units during December 2020. Required: Compute inventory on December 31, 2020, and cost of goods sold for December using the following inventory costing method: Last in, first-out (LIFO) method. Average cost method.Sunshine Store manages its inventory on a "First in, First out" basis. On 1 February 2020, there were 20 units of stock costing $3 600. bought (up) Sold (CP) The business had the following credit transactions in February 2020: (a) (b) (c) 2020₁ (d) Feb 5 7 9 20 X Bought 10 units Bought 20 unitsx Sold 30 units X REQUIRED 14 20 22 Sold 20 units Bought 10 units Bought 10 units $ 1 400 2-700 6 400 (JP) 2 000 7400 3800 1 800 4 600 (sr) 30 (3600+ 1400.5000) 20 (2700) SP-saver revenue Explain what is meant by "cost of sales". Calculate the cost of sales for the month ended 29 February 2020. Prepare the trading portion of the Statement of Financial Performance for the month ended 29 February 2020. VsriExpenses, [3] State how ending inventory is valued. Income, cost of salesThe business had 400 units in inventory at 1st March 2019 valued at RO 40. On 10th March Purchase made 800 units at RO 60 each. On 31st March Sales made 600 units at RO 80 each. What will be the cost of goods sold value at the end of March 2019 assuming that the business uses FIFO method? a. OMR 64,000 b. OMR 32,000 c. OMR 36,000 d. OMR 28,000
- 5. Makati Co. bills its Valenzuela branch for merchandise at 140% of cost. At the end of January 2020, the branch reported the following information: Merchandise from Home Office (at billed price) Inventory, January 1 7,560 Shipments received 28,280 Inventory, January 31 8,400 What should be the balance of the allowance account for overvaluation of the branch inventory at January 31?The inventory records of Mod Oil Company for January 2020 showed the following data for an item of its merchandise for sale (assume that the six transactions occurred in the order shown). Date Units Unit Cost Total Beginning inventory (Jan. 1) 900 $6.00 $5,400 Jan. 3 Purchases 1,080 6.10 6,588 Jan. 5 Sales (1,620 units) Jan. 10 Purchases 1,080 6.20 6,696 Jan. 20 Sales (900 units) Jan. 25 Purchases 720 6.30 4,536 Jan. 28 Sales (540 units) Total available for sale 3,780 $23,220 Its ending inventory of 720 units can be specifically identified as follows: 180 units from the January 3 purchase, 90 units from the January 10 purchase, and 450 units from the January 25 purchase. Compute ending inventory and cost of goods sold for the month ended January 31 using the methods indicated below. Round your final answer to the nearest whole dollar. Do not round per unit costs in your calculations. e. Moving average (perpetual) Answer Answer…When a Mercator manufacturing Inc. checked its stores, it had the following inventory on hand as at December 31, 2020: I) 5,000 litres of lubricating oil that had cost $2.50 per litre: As at December 31, the selling price was $3.0 per litre. II) 50,000 kg of steel that had cost $0.50 per kg: As at December 31, the market price was $0.48 per kg III) spare parts that had cost $25,000: Mostly for production machinery that was no longer in use, so it was unlikely they could be used. They have no resale value IV) A replacement control unit for a customer's milling machine, which has a resale value of $10,000: The control unit was bought by the customer so that the Mercator could use it to repair their milling machine V) $20,000 of electronic parts that were in good working order but had gone beyond their "sell by" dates on the packages Required a) Show how the inventory would appear in the balance sheet as at December 31, 2020 b) If Mercator manufacturing sales for 2020 totalled $500,000,…