Rahul Required InformationProblem 6-1A (Algo) Calculate ending inventory and cost of goods sold for four inventory methods(LO6-3)[The following Information applies to the questions displayed below.]Alexandra's Boutique has the following transactions related to its top-selling Gucci purse for the month of October.Alexandra's Boutique uses a periodic Inventory system.DateOctober 1October 4October 10TransactionsBeginning inventoryUnits6Unit Cost$720Total Cost$4,320Sale4Purchase57303,650October 13Sale3October 20October 28October 30PurchaseSale47402,9607Purchase67504,500$15,430Problem 6-1A (Algo) Part 1Required:1. Calculate ending Inventory and cost of goods sold at October 31, using the specific Identification method. The October 4 saleconsists of purses from beginning Inventory, the October 13 sale consists of one purse from beginning Inventory and two purses fromthe October 10 purchase, and the October 28 sale consists of three purses from the October 10 purchase and four purses from theOctober 20 purchase.Ending inventoryCost of goods sold

Specific identification method is a method of inventory valuation in which specific inventory is…

Required Information Problem 6-1A (Algo) Calculate ending inventory and cost of goods sold for four inventory methods (LO6-3) [The following Information applies to the questions displayed below.] Alexandra's Boutique has the following transactions related to its top-selling Gucci purse for the month of October. Alexandra's Boutique uses a periodic inventory system. Date October 1 October 4 October 18 Transactions Beginning inventory Sale Purchase October 13 Sale October 20 Purchase October 28 Sale October 30 Purchase Units 6 Unit Cost Total Cost $720 $4,320 4 5 738 3,650 3 4 748 2,960 7 10 6 758 4,500 $15,430 Problem 6-1A (Algo) Part 1 Required: 1. Calculate ending inventory and cost of goods sold at October 31, using the specific Identification method. The October 4 sale consists of purses from beginning Inventory, the October 13 sale consists of one purse from beginning Inventory and two purses from the October 10 purchase, and the October 28 sale consists of three purses from the October 10 purchase and four purses from the October 20 purchase. Ending inventory Cost of goods sold

Required Information Problem 6-1A (Algo) Calculate ending inventory and cost of goods sold for four inventory methods (LO6-3) [The following Information applies to the questions displayed below.] Alexandra's Boutique has the following transactions related to its top-selling Gucci purse for the month of October. Alexandra's Boutique uses a periodic inventory system. Date October 1 October 4 October 18 Transactions Beginning inventory Sale Purchase October 13 Sale October 20 Purchase October 28 Sale October 30 Purchase Units 6 Unit Cost Total Cost $720 $4,320 4 5 738 3,650 3 4 748 2,960 7 10 6 758 4,500 $15,430 Problem 6-1A (Algo) Part 1 Required: 1. Calculate ending inventory and cost of goods sold at October 31, using the specific Identification method. The October 4 sale consists of purses from beginning Inventory, the October 13 sale consists of one purse from beginning Inventory and two purses from the October 10 purchase, and the October 28 sale consists of three purses from the October 10 purchase and four purses from the October 20 purchase. Ending inventory Cost of goods sold

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter7: Inventories: Cost Measurement And Flow Assumptions

Section: Chapter Questions

Problem 11RE: Jessie Stores uses the periodic system of calculating inventory. The following information is...

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Inventory Costing Methods Andersons Department Store has the following data for inventory, purchases, and sales of merchandise for December. Andersons uses a perpetual inventory system. All purchases and sales were for cash. Required: 1. Compute cost of goods sold and the cost of ending inventory using FIFO. 2. Compute cost of goods sold and the cost of ending inventory using LIFO. 3. Compute cost of goods sold and the cost of ending inventory using the average cost method. ( Note: Use four decimal places for per-unit calculations.) 4. Prepare the journal entries to record these transactions assuming Anderson chooses to use the FIFO method. 5. CONCEPTUAL CONNECTION Which method would result in the lowest amount paid for taxes?
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Inventory Costing Methods Crandall Distributors uses a perpetual inventory system and has the following data available for inventory, purchases, and sales for a recent year. Required: 1. Compute the cost of ending inventory and the cost of goods sold using the specific identification method. Assume the ending inventory is made up of 40 units from beginning inventory, 30 units from Purchase 1, 80 units from Purchase 2, and 40 units from Purchase 3. 2. Compute the cost of ending inventory and cost of goods sold using the FIFO inventory costing method. 3. Compute the cost of ending inventory and cost of goods sold using the LIFO inventory costing method. 4. Compute the cost of ending inventory and cost of goods sold using the average cost inventory costing method. ( Note: Use four decimal places for per-unit calculations and round all other numbers to the nearest dollar.) 5. CONCEPTUAL CONNECTION Compare the ending inventory and cost of goods sold computed under all four methods. What can you conclude about the effects of the inventory costing methods on the balance sheet and the income statement?
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