In its first month of operation, Wildhorse Company purchased 180 units of inventory for $7, then 280 units for $8, and finally 220 units for $9. At the end of the month, 260 units remained. Compute the amount of phantom profit that would result if the company used FIFO rather than LIFO. The company uses the periodic system. Phantom profit SA $
Q: In its first month of operation, Concord Corporation purchased 310 units of inventory for $11, then…
A: LIFO: LIFO stands for Last-In, First-Out. As its name suggest, this method assumes that the most…
Q: Sandals Company is preparing the annual financial statements dated December 31. Ending inventory is…
A: Lower of cost or market is an approach to valuation of inventory. The concept of lower of cost and…
Q: .the FIFO inventory costing method. 2.the LIFO method. 3.From the resulting data, what conclusions…
A: Requirement 1: FIFO method:
Q: Johnson Corporation began the year with inventory of 29,000 units of its only product. The units…
A: LIFO RESERVE ACCOUNT: It is the excess of FIFO over LIFO costs. LIFO : LAST IN FIRST OUT FIFO :…
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: In its first month of operation, Metlock Company purchased 108 units of inventory for $6, then 216…
A: A business does not continually update the inventory account to reflect each purchase and sale as…
Q: 9 Castle TV, Incorporated purchased 1,600 monitors on January 5 at a per-unit cost of $140, and…
A: The objective of the question is to determine the amount by which Castle TV should write down the…
Q: Pair Company sells one product and uses the last-in, first-out (LIFO) method to determine inventory…
A: LIFO method is one of the methods of inventory valuation in which it is assumed that recent or new…
Q: ne product and uses a pe
A: Option D is correct 204 units Calculation : Units in the ending inventory = ( units in beginning…
Q: man.2
A: The objective of the question is to prepare journal entries for the given transactions of Pina Ltd.…
Q: Eleanor Barker Company ended the month of March with inventory of $24,000. Eleanor Barker Company…
A: Purchase budget:- This budget is prepared to estimate the value of purchases made for desired sales…
Q: Mignon Company’s Number of Days’ Sales in Inventory is 30 days (assume 360 days in a year). The…
A: Inventory turnover ratio: This is a financial measure that is used to evaluate as to how many times…
Q: Kylah Enterprises began the current month with inventory costing $10,000, then purchased inventory…
A: Perpetual Inventory System is maintained on a continual basis or perpetual record is maintained for…
Q: In its first month of operation, Splish Brothers Company purchased 94 units of inventory for $6,…
A: First in, first out is referred to as FIFO. The oldest element is treated last and the first item is…
Q: Win Company, which uses the FIFO inventory method, had 300,000 units in inventory at the beginning…
A: The correct option is C. $5,000,000
Q: A company purchased 200 units for $40 each on January 31. It purchased 150 units for $35 each on…
A: Weighted average inventory costing method: - Weighted average inventory costing method is the method…
Q: Com plc bought 500 items of inventory at the price of $20 per item on 1 January 20X2, and another…
A: The objective of the question is to calculate the profit under replacement cost accounting. The…
Q: In its first month of operation, Metlock Company purchased 86 units of inventory for S6, then 172…
A: Inventory valuation is the process of calculating the value of the inventory. There are three…
Q: Mac's Hardware's gross profit on sales is 40%. At the beginning of January, the cost of inventory…
A:
Q: In its first month of operation, Blue Spruce Corp. purchased 320 units of inventory for $5, then 420…
A: In case of FIFO method, first purchased goods will be sold first and latter purchased goods will be…
Q: 1. Assume the company does not expect to replace the units of beginning inventory sold; it plans to…
A: LIFO: In Last-in-First-Out method, items purchased recently are sold first. So, the value of the…
Q: Sunland Company sells one product and uses a perpetual inventory system. The beginning inventory…
A: LIFO is the Last in first out method of inventory which says that inventory purchased last will be…
Q: 3-a. What is the dollar amount of shrinkage that you were able to determine in perlodic inventory…
A: In a periodic inventory system, inventory is physically counted at certain intervals. In a perpetual…
Q: Gladstone Company tracks the number of units purchased and sold throughout each accounting period…
A: The cash value attributed with the products in stock at the end of the financial period is known as…
Q: Guihua Company opened a new store in February this year. During the first year of operations, the…
A: Assume Guihua uses a moving average perpetual Method. Calculation of Cost of goods sold, Cost of…
Q: Required: 1. Prepare comparative year-end income statements for the three inventory costing methods…
A: Periodic Inventory System: Under this system,entire stock is verified at a time at periodic…
Q: During the year, Wright Company sells 370 remote-control airplanes for $100 each. The company has…
A: Under the weighted average model, the cost of the goods that are available for sale is divided by…
Q: Cranbrook Used Books experienced the following events during the current year: a. Incurred $12,000…
A: Cost of goods sold means the cost of goods which has been actually sold out during the year. When we…
Q: Johnson Corporation began the year with inventory of 15,000 units of its only product. The units…
A: What are inventories? It is also known as a stock which is the unsold units of the company at the…
Q: Assume that the replacement cost of this monitor at year-end is $240 per unit. Using the first-in,…
A: Inventory management that is effective aims to create a balance between having enough stock to…
Q: A company håð the fólló JANUARY: 10 UN TEDRU A DV 20 II
A: Specific Identification is a method that helps in finding out the ending cost of inventory. It…
Q: Jillet Corporation began the year with inventory of 19,000 units of its only product. The units cost…
A: The last in-first out is an inventory valuation method, as per this method the cost of goods sold…
Q: [The following information applies Kangaroo Jim Company reported beginning inventory of 480 units at…
A: Perpetual Inventory System –Under the Perpetual inventory system in every sales transaction cost of…
Q: Lily Company had 100 units in beginning inventory at a total cost of $10,000. The company purchased…
A: The choice of inventory valuation method can have a significant impact on a company's financial…
Q: A firm that sells a single product had a beginning inventory of 7,000 units with a total cost of…
A: As per LIFO method goods that comes in last are sold first, so the ending inventory is valued at the…
Q: Rose Co. sells one product and uses the last-in, first-out method to determine inventory cost.…
A: LIFO method is one of the methods of inventory valuation in which it is assumed that recent or new…
Q: PIOLO produces a main product TEDDY BEAR together with a by-product WIRE. There was no beginning…
A: The Company produces a main product TEDDY BEAR together with a by-product WIRE. There was no…
Q: Blossom Company began operations on January 1. The company uses a periodic inventory system. It…
A: INVENTORY VALUATION Inventory Valuation is a Method of Calculation of Value of Inventory at the…
Q: Syarikat Layang uses the LIFO (Last-in, First-out) costing method for its perpetualinventory system.…
A: Using LIFO method, newer units are sold first and old units are sold later.
Q: In its first month of operation, Vaughn Manufacturing purchased 320 units of inventory for $ 8, then…
A:
Q: Compute ending inventory and cost of good sold under LIFO, assuming Matthias Company uses the…
A: Cost of goods sold UnitUnit CostTota AmountInventory, beg2,800$0.60$1,680Dec 3…
Q: The inventory of Royal decking consisted of five products. Information about the December 31. 2021,…
A: LCM stands for Lower of cost or market method which is used to value the inventory through comparing…
Q: Locent technology maintains In grass Margain of 40% April the Company had A 231, 180 B 300, 960. ẹ…
A: Solution:- Gross profit means the amount of profit earned after deducting manufacturing expenses…
Q: A firm that sells a single product had a beginning inventory of 10,000 units with a total cost of…
A: FIFO means the first in first out which means that goods purchased first will be sold first.…
Step by step
Solved in 2 steps
- QP Corporated sold 5,360 units of its product at $46.40 per unit during the year and incurred operating expenses of $7.40 per unit in selling the units. It began the year with 740 units in inventory and made successive purchases of its product as follows. January 1 February 20 May 16 October 3 December 11 Beginning inventory. Purchase Purchase. Purchase Purchase Total Required: 1. Prepare comparative year-end income statements for the three inventory costing methods of FIFO, LIFO, and weighted average which includes a detailed cost of goods sold section as part of each statement. The company uses a periodic inventory system. Note: Round your average cost per unit to 2 decimal places and round your final answers to nearest whole dollar amount. Sales Cost of goods sold: Beginning inventory, January 1 Cost of purchases Cost of goods available for sale Less: Ending inventory, December 31 QP CORPORATION Income Statements Comparing FIFO, LIFO, and Weighted Average For Year Ended December 31…A company had the following purchases and sales during its first year of operations: Purchases Sales 6 units 10 units at $120 20 units at $125 January: February: May: September: 12 units at $135 5 units 15 units at $130 9 units 8 units November: 10 units at $140 13 units On December 31, there were 26 units remaining in ending inventory. Using the perpetual LIFO inventory costing method, what is the value of cost of goods sold? (Assume all sales were made on the last day of the month.)A company had the following purchases and sales during its first year of operations: Purchases January: 10 units at $120 20 units at $125 February: May: September: 15 units at $130 12 units at $135 November: 10 units at $140 On December 31, there were 26 units remaining in ending inventory. Using the periodic FIFO inventory costing method, what is the cost of the ending inventory? (Assume all sales were made on the last day of the month.) Multiple Choice $3,540 Sales 6 units 5 units 9 units 8 units 13 units $3,445
- Traylor Corporation began the year with three items in beginning inventory, each costing $5. During the year Traylor purchased five more items at a cost of $6 each and then two more items at a cost of $7 each. Traylor sold eight items for $10 each. If Traylor uses a periodic LIFO system, what would be Traylor’s gross profit for this year? 45 $45 $80 $80 $51 $51 $36In its first month of operation, Waterway Industries purchased 340 units of inventory for $9, then 440 units for $10, and finally 380 units for $11. At the end of the month, 420 units remained.Compute the amount of phantom profit that would result if the company used FIFO rather than LIFO. Phantom Profit =?A company had the following purchases and sales during its first year of operations: Purchases Sales January: 10 units at $120 6 units February: 20 units at $125 5 units May: 15 units at $130 9 units September: 12 units at $135 8 units November: 10 units at $14013 units On December 31, there were 26 units remaining in ending inventory. Using the perpetual LIFO inventory costing method, what is the cost of the ending inventory? (Assume all sales were made on the last day of the month.) $3,405.
- Sims company reports beginning raw materials inventory of $900 and ending raw materials inventory of $1,100. Assume the company purchased $5,200 of raw materials and used $5,000 of raw materials during the year. Compute raw materials inventory turnover and the number of days' sales in raw materials inventory. Complete this question by entering your answers in the tabs below. Raw Materials Days Sales In Raw Materials Inventory Inventory turnover Compute the number of days' sales in raw materials inventory. Numerator: Days' Sales In Raw Materials Inventory. 1 Denominator: 1On December 31 of last year, Wolfson Corporation had 660 units in inventory of its product, which cost $17 per unit to produce. During January, the company produced 970 units at a cost of $20 per unit. Assuming Wolfson Corporation sold 1, 160 units in January, what was the cost of goods sold (assume FIFO inventory method)? Cost of goods soldTefft Industires has an average inventory of $170,000, sells on term of 2/10, net 30, and its cost of sales is $540,000. What is Tefft's inventory conversion period? *show work* A) 85 days B) 115 days C) 105 days D) cannot be determined from the data given
- The Shirt Shop had the following transactions for T-shirts for Year 1, its first year of operations: Jan. 20 Apr. 21 July 25 Sept. 19 Purchased Purchased Purchased Purchased Required A During the year, The Shirt Shop sold 810 T-shirts for $20 each. Required a. Compute the amount of ending inventory The Shirt Shop would report on the balance sheet, assuming the following cost flow assumptions: (1) FIFO, (2) LIFO, and (3) weighted average. b. Compute the difference in gross margin between the FIFO and LIFO cost flow assumptions. 400 units 200 units 280 units 90 units Complete this question by entering your answers in the tabs below. Required B Ending inventory @ @ FIFO $8 = $3,200 $10 = 2,000 $13 = 3,640 $15 = 1,350 Compute the amount of ending inventory The Shirt Shop would report on the balance sheet, assuming the following cost flow assumptions: (1) FIFO, (2) LIFO, and (3) weighted average. (Round intermediate calculations to 2 decimal places and final answers to nearest whole dollar…At May 1, 2016, Bramble Company had beginning inventory consisting of 220 units with a unit cost of $4.30. During May, the company purchased inventory as follows: 700 units at $4.30 580 aunits at $7.00 The company sold 1000 units during the month for $12 per unit. Bramble uses the average cost method. Bramble's gross profit for the month of May is $6656. $6031. $6602. $6531.Ashavinbhai