Adler Inc. has the following information for four inventory items, reported using the retail method, on July 31. The normal profitmargin is 20% of selling price.Cost to Sell Cost per Replacement CostItemSellingPriceperNo. Quantity Unitper UnitUnitper Unit#10180$20$5$15$12#102502241415#211303553028#212404082835RequiredDetermine the inventory cost to report on the balance sheet on July 31 assuming that the company applies the lower of cost or marketvalue rule to each individual inventory item.Note Do not use any negative signs with your answers.Per UnitTotalTotalCostCostto Cost Replacement TotalSell perReplacementCeilingFloorMarketCostLower ofSellingPriceItemper perNo. QuantityUnit Unit Unitper UnitCost#10180$20 $5 $15$12 $0 $#1025022#2113035451415030280#2124040828350000 O0ос00Cost or Market0 $0 $0 $0 $0000000000$0 $0 $0

To determine the inventory cost to report on the balance sheet on July 31 using the lower of cost or…

Answered: Adler Inc. has the following…

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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Akira Company had the following transactions for the month. Numberof Units TotalCost Beginning inventory 130 $1,300 Purchased Mar. 31 190 2,280 Purchased Oct. 15 160 2,400 Total goods available for sale 480 5,980 Ending inventory 70 ? Calculate the gross margin for the period for each of the following cost allocation methods, using periodic inventory updating. Assume that all units were sold for $29 each. Round your intermediate calculations to 2 decimal places and final answers to the nearest dollar amount. Gross Margin A. First-in, First-out (FIFO) $fill in the blank 1 B. Last-in, First-out (LIFO) $fill in the blank 2 C. Weighted Average (AVG) $fill in the blank 3
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The Sonny Company sells blankets for P30 each. The following was take from the inventory records during July. Date Product T Units Cost July 3 July 10 July 17 July 20 July 23 July 30 500 P15 Purchase Sale Purchase Sale 300 1,000 600 300 P17 Sale Purchase 1,000 P20 Required: Determine the cost of sales and cost of ending inventory under each of the following independent assumptions: 1. First-in-first-out (FIFO) Method 2. Weighted-Average Method (Periodic) 3. Weighted-Average (Moving Average)
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Laker Company reported the following January purchases and sales data for its only product. The Company uses a perpetual inventory system. Required: 2. Determine the cost assigned to ending inventory and to cost of goods sold using weighted average. Date Activities Units Acquired at Cost Units Cost per unit Total cost Units Units Sold at Retail Selling price per Total Sales January 01 Beginning inventory 205 $13.00 $2,665.00 January 10 January 20 January 25 Sales Purchase Sales 165 $22 $3,630.00 140 $12.00 $1,680.00 145 $22 $3,190.00 January 30 310 $11.50 655 Purchase Totals Notice that cost of goods sold, $3,917.22, plus ending inventory, $3,992.78, equals cost of goods available for sale, $7,910.00. Weighted Average Cost of Goods Sold $3,565.00 $7,910.00 310 $6,820.00 Inventory Balance Units Date Activities Cost per unit Cost of goods sold Units Cost per Total Cost January 01 Beginning inventory 205 unit $13.00 $2,665.00 January 10 Sales 165 $13.000 $2,145.00 40 $13.00 $520.00…
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A company reports the following beginning inventory and two purchases for the month of January. On January 26, the company sells 330 units. Ending inventory at January 31 totals 140 units. Units Unit Cost Beginning inventory on January 1 300 $ 2.80 Purchase on January 9 70 3.00 Purchase on January 25 100 3.14 Required: Assume the perpetual inventory system is used. Determine the costs assigned to ending inventory when costs are assigned based on the FIFO method.
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Coronado Company uses a periodic inventory system. For April, when the company sold 450 units, the following information is available. Units Unit Cost Total Cost April 1 inventory 330 $22 $ 7,260 April 15 purchase 380 26 9,880 April 23 purchase 290 29 8,410 1,000 $25,550 Compute the April 30 inventory and the April cost of goods sold using the FIFO method. Ending inventory Cost of goods sold %24 %24
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Aztec Corporation uses a periodic inventory system and the retail inventory method to estimate ending inventory and cost of goods sold. The following data are available for the month of September: Cost Retail Beginning inventory $ 29,000 $ 46,000 Net purchases 14,500 ? question mark Net markups 10,700 Net markdowns 2,700 Net sales ? question mark The company used the average cost flow method and estimated inventory at the end of September to be $24,998.00. If the company had used the LIFO cost flow method, the cost-to- retail percentage would have been 50%. Required: Compute net purchases at retail and net sales for the month of September using the information provided.

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