6. Tudors, Inc. purchases and resells a single item ofproduct. Inventory at the beginning of September2017 was 400 units, values at P1.80 each. Furtherreceipts and sales during the month were as follows:UnitsPesos Per UnitSept. 8Sept. 14Sept. 25ReceiptsReceipts600P2.10500?Sales1,2504.00The company uses the FIFO. Gross margin forSeptember was P2,500.What was the cost per unit of the 500 units receivedon Sept. 14?P2.08а.b. P2.00С.P1.94d. P1.04

The FIFO method states that units that are purchased first are to be sold first. The cost per unit…

Tudors, Inc. purchases and resells a single item of product. Inventory at the beginning of September 2017 was 400 units, values at P1.80 each. Further receipts and sales during the month were as follows: Pesos Per Unit Units Sept. 8 Sept. 14 Sept. 25 Receipts Receipts Sales 600 P2.10 500 ? 1,250 4.00 The company uses the FIFO. Gross margin for September was P2,500.

Tudors, Inc. purchases and resells a single item of product. Inventory at the beginning of September 2017 was 400 units, values at P1.80 each. Further receipts and sales during the month were as follows: Pesos Per Unit Units Sept. 8 Sept. 14 Sept. 25 Receipts Receipts Sales 600 P2.10 500 ? 1,250 4.00 The company uses the FIFO. Gross margin for September was P2,500.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Autok Fabricators, Inc. has 10 units in beginning inventory costing $45 each. It purchased 90 more for $36each during the month. The company sold 80 units during the month. Autok used a periodic inventorysystem.Calculate cost of goods sold using:a) FIFOb) Weighted-average costc) LIFO
Linden Inc. purchased 10 merchandise inventory items at a total cost of $4,000 to add to its inventory on February 21, 2015. It started the month with 10 items at a total cost of $3,000. If the company used FIFO, what is the cost of goods sold if it sold 11 items in February. a. $3,850 b. $3,400 c. $3,500 d. $4,000
Altira Corporation provides the following information related to its merchandise inventory during the month of August 2021: Aug.1 Inventory on hand-3,300 units; cost $7.40 each. 8 Purchased 16,500 units for $6.80 each. 14 Sold 13,200 units for $13.30 each. 18 Purchased 9,900 units for $6.20 each. 25 Sold 12,200 units for $12.30 each. 28 Purchased 5,300 units for $5.80 each. 31 Inventory on hand-9,600 units. Using calculations based on a perpetual inventory system, determine the inventory balance Altira would report in its August 31, 2021, balance sheet and the cost of goods sold it would report in its August 2021 income statement using last-in, first-out (LIFO). Perpetual LIFO: Beg. Inventory Purchases: August 8 August 18 August 28 Total Cost of Goods Available for Sale Cost per unit 3,300 $7.40 $ # of units 16,500 6.80 9,900 6.20 5.8 5,300 35,000 Cost of Goods Available for Sale $ 24,420 112,200 61,380 30,740 228,740 Cost of Goods Sold - August 14 # of units sold 0 Cost per unit Cost…
CHERRY Company has 10,000 units of merchandise with unit cost of ₱50 at the beginning of the year. Purchases in chronological order during the year are as follows: 2,000 units at ₱51; 1,000 units at ₱52; 500 units at ₱53. The entity sold 13,100 units during the year. What is the ending inventory cost at year-end using FIFO? A. ₱ 20,000 B. ₱ 21,200 C. ₱ 655, 000 D. ₱ 680, 000
Ayayai Ltd. distributes suitcases to retail stores. At the end of June, Ayayai's inventory consisted of 70 suitcases purchased at $50 each. Ayayai uses a perpetual inventory system. Ayayai has experienced a 5% return rate historically. During the month of July, the following merchandising transactions occurred: July 2Purchased 75 suitcases on account for $70 each from Sandhill Ltd., terms 2/10, n/30. 3Received a $280 credit from Sandhill after returning four suitcases because they were damaged. 6Sold 60 suitcases on account to Satchel World Inc. for $90 each, with an individual cost of $50, terms n/45. 7Issued a $270 credit for three suitcases returned by Satchel World because they were the wrong model. The suitcases were returned to inventory. 9Sold three suitcases-the right model number this time-on account to Satchel World Inc. for $100 each, with an individual cost of $70, terms n/30 11Paid Sandhill the balance owing 13Sold 30 suitcases on account to The Going Concern Limited for…
The problem is stated in the picture. Here is the question: 1. How much is the gross profit for the year?
Altira Corporation provides the following information related to its merchandise inventory during the month of August 2021: Aug.1 Inventory on hand—4,000 units; cost $7.30 each. 8 Purchased 20,000 units for $7.50 each. 14 Sold 16,000 units for $14.00 each. 18 Purchased 12,000 units for $7.60 each. 25 Sold 15,000 units for $13.00 each. 28 Purchased 6,000 units for $5.80 each. 31 Inventory on hand—11,000 units. Required:Using calculations based on a periodic inventory system, determine the inventory balance Altira would report in its August 31, 2021, balance sheet and the cost of goods sold it would report in its August 2021 income statement using FIFO.
Red Company has beginning inventory of 22 units at a cost of $12.00 each on May 1. On May 5, it purchases 9 units at $14.00 per unit. On May 12 it purchases 25 units at $15.00 per unit. On May 15, it sells 39 units for $32 each. Using the FIFO perpetual inventory method, what is the value of the inventory on May 15 after the sale?
In 2018, Mona Inc. started operations with an inventory costing P20,000. For the 2nd quarter of 2018, the purchase and sales were as follows: April May June TotalPurchases P5,000 P38,000 P70,400 P113,400Sales 24,000 51,000 75,500 150,500 The goods are sold at a gross profit of 20% of sales. For interim statement purposes, the inventory at the end of April, May and June, respectively are
Syarikat Layang uses the LIFO (Last-in, First-out) costing method forits perpetual inventory system. It had inventory on 1st January 2021 consisting of 400 articles bought at RM4 each. The purchases during the month of January consisted of 800 at RM4.20 each purchased on 8 January, and 2,000 at RM3.80 each on 18 January. It sold 2,400 at RM5.00 each on 28 January. 40 of those sold were returned in perfect condition on 31 January. The returned goods were bought on 18 January. Required: a) i. Calculate, by means of an inventory account the number and cost of the articles held in inventory duringJanuary 2021. ii. The unit price and total cost of the inventory. b. Show the trading account for the month ended 31 January 2021.
Dream Big Pillow Co. pays 65% of its purchases in the month of purchase, 30% the month after the purchase, and 5% in the second month following the purchase. It made the following purchases at the end of 2017 and the beginning of 2018: Dream Big Pillow Co. purchase data December Month January 2018 February 2018 March 2018 2017 Purchases $31,908 $36,096 $33,603 $32,410 Calculate the payments made in February. Round to the nearest penny, two decimal places.
Frigid Supplies reported beginning inventory of 200 units, for a total cost of $2,000. The companyhad the following transactions during the month:Jan. 3 Sold 20 units on account at a selling price of $15 per unit.6 Bought 30 units on account at a cost of $10 per unit.16 Sold 30 units on account at a selling price of $15 per unit.19 Sold 20 units on account at a selling price of $20 per unit.26 Bought 10 units on account at a cost of $10 per unit.31 Counted inventory and determined that 160 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.TIP: Adjust for shrinkage by decreasing Inventory and increasing Cost of Goods Sold.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…