Answered: June 1 June 11 Junes 20 Balance. 400…

June 1 June 11 Junes 20 Balance. 400 units @ $10 Purchased 900 units @ $12 Purchased 600 units @ $13 June 10 June 15 June 27 Sold Sold Sold 300 units @ $24 600 units @ $25 500 units @ $27

Financial Accounting

14th Edition

ISBN:9781305088436

Author:Carl Warren, Jim Reeve, Jonathan Duchac

Publisher:Carl Warren, Jim Reeve, Jonathan Duchac

Chapter7: Inventories

Section: Chapter Questions

Problem 3PEA: Beginning inventory, purchases, and sales for Item Zebra 9x are as follows: Assuming a perpetual...

See similar textbooks

Related questions

Q: Ida Sidha Karya Company is a family-owned company located in the village of Gianyar on the island of…

A: ABSORPTION COSTINGAbsorption Costing is a Cost Management Accounting method in which all costs…

Q: Toblerone Chocolate Company produces high quality chocolates and candles for sales throughout the…

A: PRODUCTION BUDGETProduction Budget is a Forecast of the Production for the Budgeted Period of an…

Q: Strategic initiatives and CSR Quicksaw Inc. is a production company that is in the process of…

A: The objective of the question is to calculate the cost of labor, materials, and overhead for both…

Q: Required: Record the abandonment entry assuming abandonment does not significantly affect the…

A: AccountDebit ($)Credit ($)Lease A: unproved property75,000-Lease B: proved property50,000-Wells and…

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

A: A journal entry is a basic accounting record that is used to chronologically track financial…

Q: Under which of the following inventory costing methodologies can lower-of-cost-or-market be use

A: Inventory, based on its intended use and where it is in the manufacturing or distribution process.…

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

A: Income StatementIn the Income statement, we can find out the respective year's income and expenses…

Q: Fill in the blank. When taxpayers file jointly and only one spouse owes a past- due amount, the…

A: A taxpayer is an individual or reality that's obliged to pay levies to a government, generally…

Q: Jackpot Mining Company operates a copper mine in central Montana. The company paid $1,600,000 in…

A: As per the accounting standard Property Plant and Equipment (IAS 16) if any amount is incurred on…

Q: Waterways has two major public-park projects to provide with comprehensive irrigation in one of its…

A: Job costs are used for work completion where work done on each job is different from other jobs.…

Q: 120000

A: Incremental Analysis is a decsion making technique which compares relevant cost and revnue to choose…

Q: Portsmouth Company makes upholstered furniture. Its only variable cost is direct materials. The…

A: Contribution margin is the difference between the selling price per unit and the variable cost per…

Q: Fager Clinic uses client-visits as its measure of activity. During February, the clinic budgeted for…

A: Budgeted revenue = Budgeted client visit x Budgeted Charges per visit= 2,260*$68.80= $155,488

Q: Comparative income statements of Sub Corporation for the calendar years 2019, 2020, and 2021 are as…

A: The objective of the question is to calculate Pub's income from Sub, Pub's net income, and the…

Q: Click here to view Exhibit 14B-1 and Exhibit 14B-2, to determine the appropriate discount factor…

A: Whenever an investment is made, many prospects take into consideration whether the total savings…

Q: Prepare the operating activities section of a statement of cash flows using the direct method. (Show…

A: Operating activities are those activities which are done by a business entity in its normal course…

Q: e following information is available for Birch Company at December 31: Cash in registers Investment…

A: Cash comprises cash on hand and cash equivalents are checks received but not deposited and saving…

Q: Kenneth Googal owns a garage and is contemplating purchasing a tire retreading machine for $18,000.…

A: Present value of retreading operation is present value of annual cash inflows.If present value of…

Q: Lucia Company has two service departments: Office and Purchasing. Total expenses for the Office is…

A: Joint costs means the costs incurred in producing multiple products simultaneously from the same raw…

Q: You own 350 shares of Maslyn Tours stock that sells for $52.48 per share. If the stock has a…

A: The money received by a person or organization from stock or mutual fund investments is referred to…

Q: A company reported the following information for the month of July: Net sales $ 57,500 Cost of goods…

A: The difference between the sales and the cost of goods sold is called gross profit. Gross profit…

Q: Required information Problem 14-63 (LO 14-6) (Static) [The following information applies to the…

A: Home office use refers to the situation when an individual sets up a business in his or her home and…

Q: Contribution Margin by Segment The following information is for Moss Creek Apparel: Sales volume…

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

Q: Wilson, Inc. has outstanding 20,000 shares of $80 par value, 6% nonparticipating, cumulative…

A: Annual Dividend to Preferred Shareholders = No. of preferred share outstanding x Par value per share…

Q: Merger Company has 10 employees, each of whom earns $1,600 per month and has been employed since…

A: Journal entry is the procedure for initially documenting commercial transactions in the books of…

Q: Prepare a production budget for Sunland Company by month and for the first quarter of the year.

A: Budget is the statement prepared by the entity for the purpose of estimating the revenues and…

Q: At the beginning of the year, Algernon Companies bought three used machines. The machines…

A: The straight-line method of depreciation is evenly spread the cost of an asset over its useful…

Q: Haven Corporation issued $700,000 of 10-year bonds payable at par in Year 1. During Year 5, Haven…

A: Cash flow statement :— It is one of the financial statements that shows change in cash and cash…

Q: Delta Company produces a single product. The cost of producing and selling a single unit of this…

A: Special order and decision rule Companies can assess the financial viability of taking a special…

Q: Prepared from a situation suggested by Professor John W. Hardy.) Lone Star Meat Packers is a major…

A: Variable costs are costs that varies with the change in the level of output whereas fixed costs are…

Q: Kluver Enterprises manufactures tires for the Formula I motor racing circuit. For August, it…

A: A budget performance report is a document that compares actual performance to budgeted performance…

Q: Dungy Training Company has a current ratio of 0.90 to 1, based on current assets of $6.03 million…

A: The ratio is the technique used by the prospective investor or an individual or strategist to read…

Q: Complete the following schedule by supplying the missing information. Net Delivered Cost of…

A: Net cost of purchase is computed by adding the purchase price of goods and freight in cost minus…

Q: A wedding maching custs $250,000. A facility purchases one and plans to use it for 10 years, at…

A: Depreciation is an accounting method which is used to reduce the book value of asset due to its…

Q: What amount will Luther calculate for ending inventory and cost of goods sold using FIFO, assuming…

A: A FIFO method based of inventory valuation of goods for the computation of cost of goods sold and…

Q: Indirect materials Indirect labor Other overhead Overhead applied Star Promotions $ 11,400 56,700…

A: Over-Applied Overhead: A corporation is said to have over-applied overhead when the actual…

Q: Plat Company operated at normal capacity during the current year producing 50,000 units of its…

A: BREAKEVEN POINTBreak Even means the volume of production or sales where there is no profit or loss.…

Q: Milligan's Millworks pays its employees weekly. Use the wage-bracket tables from Appendix C to…

A: Governments get their money through income taxes. They are used to pay for debts owed to the…

Q: Cullumber Company incurs a cost of $35 per unit, of which $19 is variable, to make a product that…

A: Relevant cost for the special order is the cost which differs from the alternatives. Fixed cost for…

Q: The charter of a corporation provides for the issuance of 90,000 shares of common stock. Assume that…

A: DECLARATION OF DIVIDENDSDividend is the amount paid by the Corporation its shareholders in return…

Q: displayed below.] Haven received 200 NQOS (each option gives him the right to purchase 20 shares of…

A: Capital GainThe capital gain refers to an increase in the value of a capital asset and the amount…

Q: Jay Banning, CEO and a major stockholder of Banning Incorporated, was unhappy with its operating…

A: Every company prepares a budget for its operations every year. Budgeting is important to formulate…

Q: Futura Company purchases the 71,000 starters that it installs in its standard line of farm tractors…

A: The differential analysis is performed to compare the different alternatives available with the…

Q: Required informeren Heidelberg Fabrication manufactures two products, G-09 and G-35: Units produced…

A: The question is related to Overheads and Activity Based Costing. Under traditional Costing System…

Q: No-More-Caviar Corporation issued ten-year term bonds on January 1, 2020, with a face value of…

A: Solution:Amount of interest expense = Beginning of period carrying value*market interest rateAmount…

Q: The Regal Cycle Company manufactures three types of bicycles-a dirt bike, a mountain bike, and a…

A: Product line analysis is required when there is more than one product in a company. Segmented income…

Q: Tamarisk, Inc. is a company that manufactures and sells a single product. Unit sales for each of the…

A: Budget is the estimate of revenue and expenses over a specified future period of time.An income…

Q: Beyer Company is considering buying an asset for $230,000. It is expected to produce the following…

A: The payback period is the time to recover the cost of the investment.

Q: ABC Co. uses a perpetual inventory system and uses the weighted average cost flow assumption. During…

A: Weighted-average method is a method of inventory valuation.. In this method, average cost of units…

Q: -Your answer is partially correct. Make a 5-year trend analysis, using 2016 as the base year, of (1)…

A: Trend analysis is a useful technique to compare the trends with the different years. This analysis…

Question

Please do not give solution in image format thanku

III. Inventory information for 379 part of Santa Ana Corp. discloses the
following information for the month of June.
June 1
June
11
Junes.
20
Balance 400 units @ $10
Purchased 900 units @ $12
Purchased 600 units @ $13
June 10
June 15
June 27
Sold
Sold
Sold
300 units @ $24
600 units @ $25
500 units @ $27
a. Assuming that the period inventory method is used, compute the cost of
goods sold and ending inventory under: LIFO and FIFO

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: Calculation

VIEW

Solution

VIEW

Step by step

Solved in 3 steps with 2 images

SEE SOLUTION Check out a sample Q&A here

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

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.
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.
Refer to the information for Morgan Inc. above. If Morgan uses a perpetual inventory system, what is the cost of ending inventory under FIFO at April 30? a. $32,500 b. $38,400 c. $63,600 d. $69,500
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.
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.
Calculate the cost of goods sold dollar value for A67 Company for the month, considering the following transactions under three different cost allocation methods and using perpetual inventory updating. Provide calculations for weighted average (AVG).
PERPETUAL: LIFO AND MOVING-AVERAGE Kelley Company began business on January 1, 20-1. Purchases and sales during the month of January follow. REQUIRED Calculate the total amount to be assigned to cost of goods sold for January and the ending inventory on January 31, under each of the following methods: 1. Perpetual LIFO inventory method. 2. Perpetual moving-average inventory method.
Alternative Inventory Methods Park Companys perpetual inventory records indicate the following transactions in the month of June: Required: 1. Compute the cost of goods sold for June and the inventory at the end of June using each of the following cost flow assumptions: a. FIFO b. LIFO c. Average cost (Round unit costs to 3 decimal places and other amounts to the nearest dollar.) 2. Next Level Why are the cost of goods sold and ending inventory amounts different for each of the three methods? What do these amounts tell us about the purchase price of inventory during the year? 3. Next Level Which method produces the most realistic amount for net income? For inventory? Explain your answer. 4. Next Level If Park uses IFRS, which of the previous alternatives would be acceptable and why?
Calculate the cost of goods sold dollar value for B74 Company for the sale on November 20, considering the following transactions under three different cost allocation methods and using perpetual inventory updating. Provide calculations for (a) first-in, first-out (FIFO); (b) last-in, first-out (LIFO); and (c) weighted average (AVG).
Calculate the cost of goods sold dollar value for A74 Company for the sale on March 11, considering the following transactions under three different cost allocation methods and using perpetual inventory updating. Provide calculations for (a) first-in, first-out (FIFO); (b) last-in, first-out (LIFO); and (c) weighted average (AVG).
The moving average inventory cost flow assumption is applicable to which of the following inventory systems? Questions M7-6 and M7-7 are based on the following data: City Stationers Inc. had 200 calculators on hand on January 1, 2019, costing 18 each. Purchases and sales of calculators during the month of January were as follows: City uses a periodic inventory system. According to a physical count, 150 calculators were on hand at January 31, 2019.