roblem 8-06 Waterway Company is a multiproduct firm. Presented below is information concerning one of its products, the Hawkeye. Date Transaction 1/1 Beginning inventory 2,900 Quantity Price/Cost $18 2/4 Purchase 3,900 26 2/20 Sale 4,400 44 4/2 Purchase 4,900 34 11/4 Sale 4,100 48

Laker Company reported the following January purchases and sales data for its only product.  Date   Activities Units Acquired at Cost Units sold at Retail Jan. 1   Beginning inventory 145 units @ $ 7.00  = $ 1,015               Jan. 10   Sales                   105 units @ $ 16.00   Jan. 20   Purchase 70 units @ $ 6.00  =   420               Jan. 25   Sales                   85 units @ $ 16.00   Jan. 30   Purchase 190 units @ $ 5.50 =   1,045                     Totals 405 units         $ 2,480   190 units            The Company uses a perpetual inventory system. For specific identification, ending inventory consists of 215 units, where 190 are from the January 30 purchase, 5 are from the January 20 purchase, and 20 are from beginning inventory. Exercise 5-3 Perpetual: Inventory costing methods LO P1 Required:3. Determine the cost assigned to ending inventory and to cost of goods sold using FIFO.4. Determine the cost assigned to ending inventory and to cost of…

The following data were taken from the records of C5 Drinks Company for the years ending Year I and Year 2 Year 1 Year 2 In units 00 Inventory, beginning Production Available for sale 20,000 20,000 13,000 7,000 P260,000 7,000 18,000 25,000 23,000 2,000 P460,000 Units sold Inventory ending Sales (P20 per unit) egtarb won sE Variable Manufacturing cost (P7.50 per unit) Fixed Manufacturing costs Selling and administrative (60% fixed, 40% variable) 45,000 150,000 50,000 135,000 54,000 75,000 ani nel Instructions: 1. Determine the net income under absorption costing for Year I and Year 2. 2. Determine the net income under variable costing for Year1 and Year 2. 3. Determine the cause of the difference in the two net incomes in Year 1 and Year 2.sV