Crane has the following inventory information.July 1 Beginning Inventory 20 units at $1860 units at $2020 units at $257Purchases22 Purchases$3601200O $1340.O $1305.O $1335.O $1260.500$2060A physical count of merchandise inventory on July 31 reveals that there are 35 units on hand. Using the FIFO inventory method, theamount allocated to cost of goods sold for July is

FIFO Method is an inventory accounting method.It is first in first out method. Under this method…

Answered: amount allocated to cost of goods sold…

Business

Accounting

amount allocated to cost of goods sold for July is

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter7: Inventories: Cost Measurement And Flow Assumptions

Section: Chapter Questions

Problem 11RE: Jessie Stores uses the periodic system of calculating inventory. The following information is...

See similar textbooks

Related questions

Q: Required information [The following information applies to the questions displayed below.] O'Brien…

A: The income statement can be prepared using various methods as variable costing, absorption costing,…

Q: Required information [The following information applies to the questions displayed below.] Penny…

A: Income statement is one of the financial statements that shows profitability, total revenue and…

Q: ad a The Black Limo Company (BLC) purchased a limo on January 1 of Year 1 at a cost of $48,000. The…

A: Depreciation per mile = Depreciation Expense = Actual miles driven in a year x Depreciation per mile

Q: Deliberate Speed Corporation (DSC) was incorporated as a private company. The company's accounts…

A: Lets understand the basics.The accounting equation is a mathematical representation of financial…

Q: A. Compute WIP inventory at June 30 B. Compute finished goods inventory June 30 C. Compute cost of…

A: The cost of goods sold includes the cost of goods that are sold during the period. The work in…

Q: 7294 15223 3026 288 3314 11909 1281 1580 369 245 614 966 12 80 23 1 24

A: To know the company that collects its recievable the slowest , accounts recievable turnover in days…

Q: On December 31, 2023, Berclair Incorporated had 300 million shares of common stock and 9 million…

A: EPS is the ratio between the net profit and outstanding shares of the company. It is used by the…

Q: Solution 4

A: Trial Balance is a statement containing all the debit and credit balances from the T-accounts.Trial…

Q: Crane Corporation issued 360 shares of $10 par value common stock and 120 shares of $50 par value…

A: The shares issued in lump sum amount are allocated the cost on the basis of the market value of…

Q: E 15-9 Lessor calculation of annual lease payments; lessee calculation of asset and liability LO15-2…

A: A lease is a legal agreement between a lessor (the owner of an asset) and a lessee (the user of the…

Q: Davidson was transferred from Chicago to Atlanta. In connection with the transfer, Davidson incurred…

A: The moving expenses deduction is a tax benefit that allows eligible individuals to deduct certain…

Q: The selected financial data for A, B and C companies for the year ended 31-12-2014 are as follows:…

A: Income statement is a financial statement which shows the financial performance of a firm for the…

Q: Income: Joe's salary Jessie's craft sales Interest from certificate of deposit Interest from…

A: The definition of adjusted gross income (AGI) is gross income less adjustments to income. Earnings…

Q: price

A: Fixed Overhead Rate6.35Variable Overhead Rate1.8Total Overhead Rate8.15

Q: Prepare a multiple-step income statement. (List Other revenue and gains before Other expenses and…

A: Income Statement :— It is one of the financial statements that shows profitability or loss of the…

Q: United Snack Company sells 50-pound bags of peanuts to university dormitories for $44 a bag. The…

A: Hi studentSince there are multiple subparts asked, we will answer only first three…

Q: Product Profitability Analysis Galaxy Sports Inc. manufactures and sells two styles of All Terrain…

A: MARGINAL COSTING INCOME STATEMENTMarginal Costing Income Statement is one of the Important Cost…

Q: Ethel Company manufactures and sells desk lamps for hotel and motel rooms. Last year, it sold…

A: Budget means the expected value in coming future. Budgeted sales revenue means the amount of sale…

Q: Taxable income and pretax financial income would be identical for Splish Co.except for its…

A: Deferred tax asset: The deferred tax asset is created when the taxes to be paid as per income tax…

Q: Annin Laboratories uses the weighted-average method to account for its work-in-process inventories.…

A: Direct material cost is the cost of raw material produced or purchased to produce the final…

Q: Given the following case, calculate the independent effects of a 1 percent increase in Gross Margin,…

A: In order to get the effects of the independent scenarios the change of the items are to be taken…

Q: The following transactions of Berain Manufacturers, that uses the perpetual inventory system, took…

A: Closing inventory is the amount of inventory that an entity has in hand at the end of the period. It…

Q: 2. Calculate January's ending inventory and cost of goods sold for the month using LIFO, periodic…

A: Lets understand the basics.There are various method followed for calculating ending inventory and…

Q: The following data are given for Taylor Company: Budgeted production Actual production Materials:…

A: Direct labor variance is the difference between standard direct labor cost for actual production…

Q: What type of analysis is indicated by the following? Current assets Fixed assets Select one: O…

A: Horizontal analysisHorizontal analysis is a financial analysis technique used to evaluate…

Q: The following information is available for two different types of businesses for the Year 1…

A: The income statement, balance sheet and cash flow statement are the important financial statements…

Q: Accrual versus cash basis of accounting PepsiCo, Inc. (PEP) is a food and beverage company with a…

A: Cash and accrual basis of accounting are two type of bases that are used in business. Under cash…

Q: sted trial balance?

A: Adjusted trial balance is the balance of the general ledgers after recording the adjustment entries…

Q: Hoi Chong Transport, Limited, operates a fleet of delivery trucks in Singapore. The company has…

A: The high-low method is the method used to separate the fixed and variable costs from the mixed costs…

Q: Ike issues $180,000 of 11%, three-year bonds dated January 1, 2021, that pay interest semiannually…

A: “Hey, since there are multiple requirements posted, we will answer first three requirements. If you…

Q: At the beginning of Year 2, Oak Consulting had the following normal balances in its accounts.…

A: Trial balance :— It is the statement that shows list of final ending balances of all ledger accounts…

Q: Jeannie's Apples opened for business on January 1, 2024, and paid for two insurance policies…

A: Prepaid insurance means the amount of insurance for which the money is paid in advance but the…

Q: Selling price Direct labor costs Other variable costs D $181.00 $283.20 28.60 E 90 83.60 78 F…

A: Direct labor expenses are a substantial component of overall production costs since they include…

Q: Jan 1. Balances from 2021 – Cash $400,000; Accounts Receivable $250,000; Supplies $205,000;…

A: The entries passed at the end of the accounting period to nullify the temporary accounts. The…

Q: Financial Statements of a Manufacturing Firm The following events took place for Rushmore Biking…

A: An income statement, also known as a profit and loss statement (P&L), is a financial statement…

Q: You are scheduled to receive $45,000 in two years. When you receive it, you will invest it for 5…

A: Amount Received = $45,000Investment Period (n) = 5 yearsInterest Rate (r) = 5% or 0.05

Q: The ledger of Blossom Company at the end of the current year shows Accounts Receivable $138,000,…

A: Accounting journal entries are employed in the accounting system to record financial transactions,…

Q: Discuss whether the chartered accountants/registered auditors identified in each of the situations…

A: Ethical principles, in the context of the SAICA (South African Institute of Chartered Accountants)…

Q: Waterway Company purchased equipment on January 1 at a list price of $121500, with credit terms…

A: Total cost is the amount of money incurred by the entity on the making and selling of the goods or…

Q: Solomon Information Services, Incorporated, has two service departments: human resources and…

A: Cost allocation is the process of relieving the cost centers of common service organizations that…

Q: Which of the following would most likely use a job order costing system? O a. swimming pool…

A: Job Order Costing is a method of cost accounting, which is adopted by the business organizations…

Q: Prepare closing journal entries on December 31. (If no entry is required for a transaction/event,…

A: CLOSING JOURNAL ENTRIES The closing journal entries are made at the end of the year to shift the…

Q: Problem #4: Gitano Products operates a job-order costing system and applies overhead cost to jobs on…

A: Predetermined Overhead Rate is the rate used to allocate manufacturing overhead cost to cost object…

Q: If a company's accounts receivable turnover cycle is 4.3 times and the accounts receivable balance…

A: Accounts receivables are those customer accounts to whom credit sales has been made, but amount has…

Q: Archana transfers three assets to newly formed Global Corporation in a transaction qualifying under…

A: This section provides rules regarding the tax treatment of transfers of property to a corporation in…

Q: Current Attempt in Progress Culver Inc. reports under IFRS and has adopted the policy of classifying…

A: CASH FLOW STATEMENTCash flow statement provides additional information to user of financial…

Q: Sunland Hardware Store completed the following merchandising transactions in the month of May. At…

A: Journal Entries - Journal Entries are the recording of transactions of the organization. It is…

Q: Platzer Instruments Inc. makes three musical instruments: flutes, clarinets, and oboes. The budgeted…

A: Predetermined Overhead Rate :— It is the rate which is used to apply overhead to production. It is…

Q: Exercise 4-16 (Algo) Impacts of inventory error on key accounts LO P3 A retailer completed a…

A: Inventory is one of useful current asset being held in business. FOB shipping point means seller has…

Q: My salary moved from $30,000 to $42,600. What was the percentage change in my salary.?

A: HORIZONTAL ANALYSISHorizontal Analysis is one of the important analysis techniques for financial…

Question

Crane has the following inventory information.
July 1 Beginning Inventory 20 units at $18
60 units at $20
20 units at $25
7
Purchases
22 Purchases
$360
1200
O $1340.
O $1305.
O $1335.
O $1260.
500
$2060
A physical count of merchandise inventory on July 31 reveals that there are 35 units on hand. Using the FIFO inventory method, the
amount allocated to cost of goods sold for July is

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1: Introduction

VIEW

Step 2: Calculate the cost of goods sold using FIFO Method

VIEW

Solution

VIEW

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Financial Reporting in Hyperinflationary Economies

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Carla Company uses the perpetual inventory system. The following information is available for January of the current year when Carla sold 1,600 units of inventory on January 14. Using the FIFO method, calculate Carlas cost of goods sold for January and its January 31 inventory.
Calculate the cost of goods sold dollar value for A65 Company for the month, considering the following transactions under three different cost allocation methods and using perpetual inventory updating. Provide calculations for first-in, first-out (FIFO).
Calculate the cost of goods sold dollar value for A66 Company for the month, considering the following transactions under three different cost allocation methods and using perpetual inventory updating. Provide calculations for last-in, first-out (LIFO).
Hurst Companys beginning inventory and purchases during the fiscal year ended December 31, 20-2, were as follows: There are 1,200 units of inventory on hand on December 31, 20-2. REQUIRED 1. Calculate the total amount to be assigned to the cost of goods sold for 20-2 and ending inventory on December 31 under each of the following periodic inventory methods: (a) FIFO (b) LIFO (c) Weighted-average (round calculations to two decimal places) 2. Assume that the market price per unit (cost to replace) of Hursts inventory on December 31 was 18. Calculate the total amount to be assigned to the ending inventory on December 31 under each of the following methods: (a) FIFO lower-of-cost-or-market (b) Weighted-average lower-of-cost-or-market 3. In addition to taking a physical inventory on December 31, Hurst decides to estimate the ending inventory and cost of goods sold. During the fiscal year ended December 31, 20-2, net sales of 100,000 were made at a normal gross profit rate of 35%. Use the gross profit method to estimate the cost of goods sold for the fiscal year ended December 31 and the inventory on December 31.
Beginning inventory, purchases, and sales for Item Zebra 9x are as follows: Assuming a perpetual inventory system and using the last-in, first-out (LIFO) method, determine (a) the cost of merchandise sold on April 27 and (b) the inventory on April 30.
Beginning inventory, purchases, and sales for 30xT are as follows: Assuming a perpetual inventory system and using the weighted average method, determine (a) the weighted average unit cost after the May 23 purchase, (b) the cost of the merchandise sold on May 26, and (c) the inventory on May 31.
Jessie Stores uses the periodic system of calculating inventory. The following information is available for December of the current year when Jessie sold 500 units of inventory. Using the FIFO method, calculate Jessies inventory on December 31 and its cost of goods sold for December. RE7-11 Using the information from RE7-10, calculate Jessie Storess inventory on December 31 and its cost of goods sold for December using the LIFO method.
Beginning inventory, purchases, and sales for WCS12 are as follows: Assuming a perpetual inventory system and using the weighted average method, determine (a) the weighted average unit cost after the October 22 purchase, (b) the cost of the merchandise sold on October 29, and (c) the inventory on October 31.
Akira Company had the following transactions for the month. 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 $25 each. Provide your calculations. A. first-in, first-out (FIFO) B. last-in, first-out (LIFO) C. weighted average (AVG)
Jessie Stores uses the periodic system of calculating inventory. The following information is available for December of the current year when Jessie sold 500 units of inventory. Using the FIFO method, calculate Jessies inventory on December 31 and its cost of goods sold for December.
The beginning inventory for Dunne Co. and data on purchases and sales for a three-month period are shown in Problem 7-1B. Instructions 1. Determine the inventory on June 30 and the cost of merchandise sold for the three-month period, using the first-in, first-out method and the periodic inventory system. 2. Determine the inventory on June 30 and the cost of merchandise sold for the three-month period, using the last-in, first-out method and the periodic inventory system. 3. Determine the inventory on June 30 and the cost of merchandise sold for the three-month period, using the weighted average cost method and the periodic inventory system. Round the weighted average unit cost to the dollar. 4. Compare the gross profit and June 30 inventories using the following column headings:
Beginning inventory, purchases, and sales for Item ProX2 are as follows: Assuming a perpetual inventory system and using the first-in, first-out (FIFO) method, determine (a) the cost of merchandise sold on January 25 and (b) the inventory on January 31.