FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
expand_more
expand_more
format_list_bulleted
Related questions
Question
Garrett Company has the following transactions during the months of April and May:
| Date | Transaction | Units | Cost/Unit |
| April 1 | Balance | 300 | |
| 17 | Purchase | 200 | $5.30 |
| 25 | Sale | 150 | |
| 28 | Purchase | 100 | 5.80 |
| May 5 | Purchase | 250 | 5.30 |
| 18 | Sale | 300 | |
| 22 | Sale | 50 |
The cost of the inventory on April 1 is $5, $4, and $2 per unit, respectively, under the FIFO, average, and LIFO cost flow assumptions.
Required:
1. Compute the inventories at the end of each month and the cost of goods sold for each month for the following alternatives:
- FIFO periodic
Cost of Goods Sold Ending Inventory April $ fill in the blank 1 $ fill in the blank 2 May $ fill in the blank 3 $ fill in the blank 4 - FIFO perpetual
Cost of Goods Sold Ending Inventory April $ fill in the blank 5 $ fill in the blank 6 May $ fill in the blank 7 $ fill in the blank 8 - LIFO periodic
Cost of Goods Sold Ending Inventory April $ fill in the blank 9 $ fill in the blank 10 May $ fill in the blank 11 $ fill in the blank 12 - LIFO perpetual (Round your intermediate calculations to the nearest cent.)
Cost of Goods Sold Ending Inventory April $ fill in the blank 13 $ fill in the blank 14 May $ fill in the blank 15 $ fill in the blank 16 - Weighted average (Round unit costs to 4 decimal places and final answers to the nearest dollar.)
Cost of Goods Sold Ending Inventory April $ fill in the blank 17 $ fill in the blank 18 May $ fill in the blank 19 $ fill in the blank 20 - Moving average (Round unit costs to 2 decimal places and final answers to nearest dollar.)
Cost of Goods Sold Ending Inventory April $ fill in the blank 21 $ fill in the blank 22 May $ fill in the blank 23 $ fill in the blank 24
2. Reconcile the difference between the LIFO periodic and the LIFO perpetual results. If an amount is zero, enter "0".
| April | Cost of Goods Sold | Ending Inventory |
| Difference | $ fill in the blank 25 | $ fill in the blank 26 |
| May | Cost of Goods Sold | Ending Inventory |
| Difference | $ fill in the blank 27 | $ fill in the blank 28 |
3. If Garrett uses IFRS, which of the previous alternatives would be acceptable, and why?
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution
Trending nowThis is a popular solution!
Step by stepSolved in 3 steps
Knowledge Booster
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
- A company reports the following beginning inventory and two purchases for the month of January. On January 26, the company sells 430 units. Ending inventory on January 31 totals 170 units. Units Unit cost Beginning inventory on January 1 390 $3.80 Purchase on January 9 90 4.00 Purchase on January 25 120 4.10 Required::::Assume the perpetual inventory system is used. Determine the costs assigned to ending inventory when costs are assigned based on the FIFO method.arrow_forwardHow do I solve this?arrow_forwardAssume Shopping.com began July with 10 units of inventory that cost a total of $180. During July, Shopping.com purchased and sold goods as follows: View the purchases and sales. Suppose Shopping.com used the LIFO inventory costing method and the periodic inventory system. Using the information above, determine Shopping.com's cost of goods sold at the end of the month. A. $1,065 B. $1,080 C. $105 ○ D. $90 Purchases and sales Jul. 8 Purchase 30 units @ $19 Jul. 14 Sale 25 units @ $38 Jul. 22 Purchase Jul. 27 Sale 20 units @ $21 30 units @ $38 - ☑arrow_forward
- Hanshabenarrow_forwardFLCL Company had the following transactions for the month: Calculate the ending inventory dollar value for the period for each of the following cost allocation methods, using periodic inventory updating. Provide your calculations. first-in, first-out (FIFO) last-in, first-out (LIFO) weighted averagearrow_forwardCost Allocation and Lower-of-Cost-or-Market Douglas Company's beginning inventory and purchases during the fiscal year ended December 31, 20--, were as follows: Units Unit Price Total Cost January 1, 20-- Beginning inventory 1,100 $ 8.00 $ 8,800 March 5 1st purchase 900 9.00 8,100 April 16 2nd purchase 400 9.50 3,800 June 3 3rd purchase 700 10.25 7,175 August 18 4th purchase 600 11.00 6,600 September 13 5th purchase 800 12.00 9,600 November 14 6th purchase 400 14.00 5,600 December 3 7th purchase 500 14.05 7,025 5,400 $ 56,700 There are 1,000 units of inventory on hand on December 31. Required: For the weighted-average method, round calculations to two decimal places. Round all final answers to the nearest dollar. 1. Calculate the total amount to be assigned to the ending inventory and cost of goods sold on December 31 under each of the following…arrow_forward
- Calculate the cost of goods sold dollar value for B65 Company for the month, considering the following transactions under last-in, first-out (LIFO) cost allocation methods and using perpetual inventory. Beginning inventory Purchased Sold Sold Ending inventory $6,000 $6,975 $0 $5,625 Number of Units 100 80 50 25 105 Unit Cost $66 75 Sales $120 125arrow_forwardDeForest Company had the following transactions for the month. Sales for the month are $85 per unit. Number of Units Cost per Unit Total Beginning inventory Purchased Apr. 30 Purchased Aug. 15 500 $40 $20,000 27,000 26,000 24,500 97,500 600 45 650 40 Purchased Dec. 10 700 35 Totals (goods available) Ending inventory 2,450 550 In the table below, calculate the dollar value for the period for each of the following items using the listed cost allocation methods and using periodic inventory updating. PLEASE NOTE: All dollar amounts will be rounded to whole dollars using "$" with commas as needed (i.e. $12,345), except for the Weighted Average cost per unit, which will be rounded to two decimal places and include "$" (i.e. $12,345.67).arrow_forwardUsing the same problem as above, how much is the total cost of the July 31 Salearrow_forward
- In chronological order, the inventory, purchases, and sales of a single product for a recent month are as follows (see attached). 1.Using the periodic inventory system, compute the cost of ending inventory, cost of goods sold, and gross margin. Use the average-cost, FIFO, and LIFO inventory costing methods. (Round unit costs to cents and totals to dollar.) 2.Explain the differences in gross margin produced by the three methods.arrow_forwardAnders Company used the moving average method to determine the cost of the inventory. During January of the current year, the entity recorded the following information pertaining to its inventory: Unit Total Units cost cost 2,000,000 40,000 35,000 20,000 50 Balance on January 1 Sold on January 17 Purchased on January 28 80 1,600,000 What amount of inventory should be reported on January 31?arrow_forwardAircard Corporation tracks the number of units purchased and sold throughout each accounting period but applies its inventory costing method at the end of each period as if it uses a periodic inventory system. The following are the transactions for the month of July. Units Unit Cost $ 30 July 1 July 5 July 13 July 17 July 25 July 27 Beginning Inventory Sold 2,000 1,000 6,000 3,000 8,000 5,000 Purchased 34 Sold Purchased 36 Sold Calculate the cost of goods available for sale, ending inventory, and cost of goods sold if Aircard uses (a) FIFO, (b) LIFO, or (c) weighted average cost. (Round "Cost per Unit" to 2 decimal places.) Weighted Average Cost FIFO LIFO Cost of Goods Available for Sale 552,000 $ 552,000 $ 552,000 Ending Inventory Cost of Goods Soldarrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
AccountingAccountingISBN:9781337272094Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.Publisher:Cengage Learning,
Accounting Information SystemsAccountingISBN:9781337619202Author:Hall, James A.Publisher:Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis...AccountingISBN:9780134475585Author:Srikant M. Datar, Madhav V. RajanPublisher:PEARSON
Intermediate AccountingAccountingISBN:9781259722660Author:J. David Spiceland, Mark W. Nelson, Wayne M ThomasPublisher:McGraw-Hill Education
Financial and Managerial AccountingAccountingISBN:9781259726705Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting PrinciplesPublisher:McGraw-Hill Education
Accounting
Accounting
ISBN:9781337272094
Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:Cengage Learning,
Accounting Information Systems
Accounting
ISBN:9781337619202
Author:Hall, James A.
Publisher:Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis...
Accounting
ISBN:9780134475585
Author:Srikant M. Datar, Madhav V. Rajan
Publisher:PEARSON
Intermediate Accounting
Accounting
ISBN:9781259722660
Author:J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:9781259726705
Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:McGraw-Hill Education