On December 1, Skysong, Inc. has three DVD players left in stock. All are identical, all are priced to sell at $86. One of the three DVD players left in stock, with serial #1012, was purchased on June 1 at a cost of $53. Another, with serial #1045, was purchased on November 1 for $49. The last player, serial #1056, was purchased on November 30 for $41. (a) Calculate the cost of goods sold using the FIFO periodic inventory method, assuming that two of the three players were sold by the end of December, Skysong, Inc.' year-end. Cost of goods sold $

On December 1, Skysong, Inc. has three DVD players left in stock. All are identical, all are priced to sell at $86. One of the three DVD players left in stock, with serial #1012, was purchased on June 1 at a cost of $53. Another, with serial #1045, was purchased on November 1 for $49. The last player, serial #1056, was purchased on November 30 for $41. (a) Calculate the cost of goods sold using the FIFO periodic inventory method, assuming that two of the three players were sold by the end of December, Skysong, Inc.' year-end. Cost of goods sold $

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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On December 1, Kiyak Electronics Ltd. has three DVD players left in stock. All are identical, all are priced to sell at $150. One of the three DVD players left in stock, with serial #1012, was purchased on June 1 at a cost of $100. Another, with serial #1045, was purchased on November 1 for $88. The last player, serial #1056, was purchased on November 30 for $80. Instructions a. Calculate the cost of goods sold using the FIFO periodic inventory method assuming that two of the three players were sold by the end of December, Kiyak Electronics’ year-end. b. If Kiyak Electronics used the specific identification method instead of the FIFO method, how might it alter its earnings by “selectively choosing” which particular players to sell to the two customers? What would Kiyak’s cost of goods sold be if the company wished to minimize earnings? Maximize earnings? c. Which of the two inventory methods do you recommend that Kiyak use? Explain why.
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On July 1st. Comfort Furnishings purchased all the remaining inventory of a competitor for $100,000 when their competitor, Lazy Days, went out of business. The products and their estimated selling price for each listed below. Estimated Selling Price Per Unit Sofas Recliners Tables Chairs Maku 200 600 100 Qty 150 $400 $220 $130 $85 1. What is the amount of Gross Profit that Comfort will realize if they sell half of the sofas (100 units) in July? 2. What should the chairs be valued at in Comfort's ending inventory as of 7/31 if 100 chairs were sold during July?
E6.4 (LO 2), AN On December 1, Kiyak Electronics Ltd. has three DVD players left in stock. All are identical, all are priced to sell at $150. One of the three DVD players left in stock, with serial #1012, was purchased on June 1 at a cost of $100. Another, with serial #1045, was purchased on November 1 for $88. The last player, serial #1056, was purchased on November 30 for $80. Instructions a. Calculate the cost of goods sold using the FIFO periodic inventory method assuming that two of the three players were sold by the end of December, Kiyak Electronics' year-end. b. If Kiyak Electronics used the specific identification method instead of the FIFO method, how might it alter its earnings by "selectively choosing" which particular players to sell to the two cus- tomers? What would Kiyak's cost of goods sold be if the company wished to minimize earnings? Maximize earnings? c. Which of the two inventory methods do you recommend that Kiyak use? Explain why. Calculate cost of goods sold…
Legend Company sold $87,000 worth of goods on account to Destiny Inc. on June 20. It cost Legend $60,900 to make these goods. Destiny has 30 days to return the goods for any reason. On July 1, Destiny returns $8,000 worth of goods that had cost Legend $5,600. Legend expects to be able to resell these goods for a profit. Prepare the following entries on the books of Legend Company: Journal entries to record the initial sales on June 20 if a perpetual inventory system is used
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