Professional-I's opened a new custom or selling of its inventory. Purchased 325 units at $7 per unit Purchased 220 units at $6 per unit May 1 May 7 May 11 Sold 260 units May 16 May 19 May 25 May 30 Sold 140 units Purchased 475 units at $5 per unit Purchased 240 units at $4 per unit Sold 190 units t-shirt sh ration, rding the buying ar In the month of May, the company sold each custom organic t-shirt for $18 per unit. Required: Assume the company uses a periodic inventory method. a. Calculate the following values for each inventory method. FIFO: LIFO: Cost of Goods Sold type your answer... type your answer... Weighted-Average: type your answer... Ending Inventory type your answer... type your answer... Gross Profit type your answer... type your answer... type your answer... type your answer.... . If Professional-T's wanted to minimize income taxes, what method would you recommend to the company using the inventory information for t-shirts as a guide? type your answer...

Professional-I's opened a new custom or selling of its inventory. Purchased 325 units at $7 per unit Purchased 220 units at $6 per unit May 1 May 7 May 11 Sold 260 units May 16 May 19 May 25 May 30 Sold 140 units Purchased 475 units at $5 per unit Purchased 240 units at $4 per unit Sold 190 units t-shirt sh ration, rding the buying ar In the month of May, the company sold each custom organic t-shirt for $18 per unit. Required: Assume the company uses a periodic inventory method. a. Calculate the following values for each inventory method. FIFO: LIFO: Cost of Goods Sold type your answer... type your answer... Weighted-Average: type your answer... Ending Inventory type your answer... type your answer... Gross Profit type your answer... type your answer... type your answer... type your answer.... . If Professional-T's wanted to minimize income taxes, what method would you recommend to the company using the inventory information for t-shirts as a guide? type your answer...

Financial Accounting

15th Edition

ISBN:9781337272124

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter7: Inventories

Section: Chapter Questions

Problem 4CP: Golden Eagle Company began operations on April 1 by selling a single product. Data on purchases and...

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Golden Eagle Company began operations on April 1 by selling a single product. Data on purchases and sales for the year are as follows: Purchases: Sales: The president of the company, Connie Kilmer, has asked for your advice on which inventory cost flow method should be used for the 32,000-unit physical inventory that was taken on December 31. The company plans to expand its product line in the future and uses the periodic inventory system. Write a brief memo to Ms. Kilmer comparing and contrasting the LIFO and FIFO inventory cost flow methods and their potential impacts on the companys financial statements.
Logo Gear purchased $2,250 worth of merchandise during the month, and its monthly income statement shows cost of goods sold of $2,000. What was the beginning inventory if the ending inventory was $1,000?
Masonrys records show the raw materials inventory had purchases of $1,000and an ending raw materials inventory balance of $200. If the cost of materials used during the month was $900, what was the beginning inventory?
MANGO store had the following purchases during its first year of operations. They purchased 1880 units in January at $40 cost per unit and 4,300 unit at $25. The store has sold 1,480 units at $50 per units. What is the number of units in the ending inventory? O 1,480 units O 4.700 units O 7,660 units O 1.880 units
Quick Stop Dairy had beginning inventory of Heavy Cream of 200 units at a cost of $2 each. During the month, they had the following purchases: 1st purchase: 500 units at $3 each 2nd purchase: 400 units at $4 each Quick Stop Dairy sold 1,000 units to a customer. Using a FIFO cost flow assumption, determine the cost of goods sold for this sale as well as the balance in ending inventory
Cortez Company sells chairs that are used at computer stations. Its beginning inventory of chairs was 100 units at $60 per unit. During the year, Cortez made two batch purchases of this chair. The first was a 150-unit purchase at $68 per unit; the second was a 200-unit purchase at $72 per unit. During the period, it sold 270 chairs. Required Determine the amount of product costs that would be allocated to cost of goods sold and ending inventory, assuming that Cortez uses a. FIFO. b. LIFO. c. Weighted average. Cost of goods sold Ending inventory FIFO LIFO Weighted Average
Sigfusson Supplies reported beginning inventory of 100 units, for a total cost of $2,000. The company had the following transactions during the month:Jan. 6 Sold 20 units on account at a selling price of $30 per unit.9 Bought 10 units on account at a cost of $20 per unit.11 Sold 10 units on account at a selling price of $35 per unit.19 Sold 20 units on account at a selling price of $40 per unit.27 Bought 10 units on account at a cost of $20 per unit.31 Counted inventory and determined that 60 units were on hand.Required:1. Prepare the journal entries that would be recorded using a periodic inventory system.2. Prepare the journal entries that would be recorded using a perpetual inventory system, including any “book-to-physical” adjustment that might be needed.3. What is the dollar amount of shrinkage that you were able to determine in (a) requirement 1,and (b) requirement 2? Enter CD (cannot determine) if you were unable to determine the dollar amount of shrinkage
Cortez Company sells chairs that are used at computer stations. Its beginning inventory of chairs was 180 units at $49 per unit. During the year, Cortez made two batch purchases of this chair. The first was a 270-unit purchase at $54 per unit; the second was a 355-unit purchase at $56 per unit. During the period, it sold 500 chairs. Required Determine the amount of product costs that would be allocated to cost of goods sold and ending inventory, assuming that Cortez uses a. FIFO. b. LIFO. c. Weighted average. (Do not round intermediate calculations. Round your final answers to nearest whole dollar amount.) Weighted Average FIFO LIFO Cost of goods sold Ending inventory
Cortez Company sells chairs that are used at computer stations. Its beginning inventory of chairs was 180 units at $49 per unit. During the year, Cortez made two batch purchases of this chair. The first was a 265-unit purchase at $54 per unit; the second was a 390-unit purchase at $56 per unit. During the period, it sold 505 chairs. Required Determine the amount of product costs that would be allocated to cost of goods sold and ending inventory, assuming that Cortez uses a. FIFO. b. LIFO. c. Weighted average. (Do not round intermediate calculations. Round your final answers to nearest whole dollar amount.) Cost of goods sold Ending inventory FIFO LIFO Weighted Average
Harry’s Haunting Halloween Decorations (Harry’s) began October with 3,900 units of inflatable yard decorations that cost $40 each. Harry’s uses the Perpetual inventory system. During the month, the company completed these inventory transactions: Date Number of Units Cost per unit 7 Purchased 6,000 $56 8 Sold 4,500 12 Purchased 7,500 $52 16 Sold 9,000 25 Purchased 10,500 $48 29 Sold 13,500 Harry’s sells the inflatable yard decorations for $85 each. Required – Part 1: Complete the Inventory tracking (using the tables on the following page) under the: FIFO Costing Method; and Average Costing Method (Remember: For the unit cost under average costing, round to 2 decimal points. Use this rounded value in your calculations. Ie. if value is $49.6969…use 49.70 for the following sales) Required – Part 2: Once the tables are completed in Part 1, use the information there (and from the question) to…
Home Hardware reported beginning inventory of 20 shovels, for a total cost of $100. The companyhad the following transactions during the month:Jan. 2 Sold 4 shovels on account at a selling price of $10 per unit.16 Sold 10 shovels on account at a selling price of $10 per unit.18 Bought 5 shovels on account at a cost of $5 per unit.19 Sold 10 shovels on account at a selling price of $10 per unit.24 Bought 10 shovels on account at a cost of $5 per unit.31 Counted inventory and determined that 10 units were on hand.Required:1. Prepare the journal entries that would be recorded using a periodic inventory system.2. Prepare the journal entries that would be recorded using a perpetual inventory system, including any “book-to-physical” adjustment that might be needed.3. What is the dollar amount of shrinkage that you were able to determine in (a) requirement 1,and (b) requirement 2? Enter CD (cannot determine) if you were unable to determine the dollar amount of shrinkage.
Cortez Company sells chairs that are used at computer stations. Its beginning inventory of chairs was 140 units at $65 per unit. During the year, Cortez made two batch purchases of this chair. The first was a 130-unit purchase at $74 per unit; the second was a 228-unit purchase at $78 per unit. During the period, it sold 288 chairs. Required Determine the amount of product costs that would be allocated to cost of goods sold and ending inventory, assuming that Cortez uses: a. FIFO. b. LIFO. c. Weighted average.