PA9. 10.3 Calculate a) cost of goods sold, b) ending inventory, and c) gross margin for A76 Company,considering the following transactions under three different cost allocation methods and usingperpetual inventory updating. Provide calculations for first-in, first-out (FIFO).Number of UnitsUnit CostSales$100Beginning inventorySoldPurchasedSold240160$140520103400142Purchased400110Sold370144Ending inventory230 FIFO (perpetual) Inventory1Cost of Goods PurchasedCost of Remaining InventoryUnit Cost Total CostCost of Goods Sold3No. of UnitsUnit Cost Total CostNo. of UnitsUnit Cost Total CostNo. of Units4 Beginning.........6.7 Sale..................89.10 Purchase..................111213 Sale.........14..................1516 Purchase...............17.........1819 Sale......20.............21 Total PurchasesTotal COGS...2223Gross Margin, FIFO perpetual24 Sales...25 - COGS...26 = Gross Margin%3D...

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Description: PA9. 10.3 Calculate a) cost of goods sold, b) ending inventory, and c) gross margin for A76 Company,considering the following transactions under three different cost allocation methods and usingperpetual inventory updating. Provide calculations for

Given that, number of units available for sale = 1160 units number of units sold = 930 units…

Business

Accounting

PA9. 10.3 Calculate a) cost of goods sold, b) ending inventory, and c) gross margin for A76 Company, considering the following transactions under three different cost allocation methods and using perpetual inventory updating. Provide calculations for first-in, first-out (FIFO). Number of Units Unit Cost Sales 240 $100 Beginning inventory Sold 160 $140 Purchased 520 103 Sold 400 142 Purchased Sold 400 370 110 144 Ending inventory 230

PA9. 10.3 Calculate a) cost of goods sold, b) ending inventory, and c) gross margin for A76 Company, considering the following transactions under three different cost allocation methods and using perpetual inventory updating. Provide calculations for first-in, first-out (FIFO). Number of Units Unit Cost Sales 240 $100 Beginning inventory Sold 160 $140 Purchased 520 103 Sold 400 142 Purchased Sold 400 370 110 144 Ending inventory 230

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter10: Inventory

Section: Chapter Questions

Problem 9PA: Calculate a) cost of goods sold, b) ending inventory, and c) gross margin for A76 Company,...

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Inventory Valuation Specific identification method Weighted average cost method FIFO method LIFO method LIFO liquidation LIFO conformity rule LIFO reserve Replacement cost Inventory profit Lower-of-cost-or-market (LCM) rule Inventory turnover ratio Number of days sales in inventory Moving average (Appendix) The name given to an average cost method when a weighted average cost assumption is used with a perpetual inventory system. An inventory costing method that assigns the same unit cost to all units available for sale during the period. A conservative inventory valuation approach that is an attempt to anticipate declines in the value of inventory before its actual sale. An inventory costing method that assigns the most recent costs to ending inventory. The current cost of a unit of inventory. An inventory costing method that assigns the most recent costs to cost of goods sold. A measure of how long it takes to sell inventory. The IRS requirement that when LIFO is used on a tax return, it must also be used in reporting income to stockholders. An inventory costing method that relies on matching unit costs with the actual units sold. The portion of the gross profit that results from holding inventory during a period of rising prices. The result of selling more units than are purchased during the period, which can have negative tax consequences if a company is using LIFO. The excess of the value of a companys inventory stated at FIFO over the value stated at LIFO. A measure of the number of times inventory is sold during the period.
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