Valuing Inventory and Recording Entries Using Relative Sales Value Method AVC inc purchased 1,680 bags of pecans that cost $5.880 The company also incurred $420 for transportation and grading. The relative sales value method is used to allocate the lump sum cost. The pecans graded out as follows Grade Quantity (hags) Current Market Price per Bag 16.75 4.00 A . C Required a Prepare the purchase entry assuming a perpetual inventory system b. Determine the value of ending inventory assuming the following quantities are in inventory at year-end grade A, 140 bags: grade 112 bags and grade C 56 bags Prepare the entry for sale of 28 bags of grade A pecans at a market price of $5.75 cash per bag Note: Carry all decimals in calculations round the final answer to the nearest dolar

Valuing Inventory and Recording Entries Using Relative Sales Value Method AVC inc purchased 1,680 bags of pecans that cost $5.880 The company also incurred $420 for transportation and grading. The relative sales value method is used to allocate the lump sum cost. The pecans graded out as follows Grade Quantity (hags) Current Market Price per Bag 16.75 4.00 A . C Required a Prepare the purchase entry assuming a perpetual inventory system b. Determine the value of ending inventory assuming the following quantities are in inventory at year-end grade A, 140 bags: grade 112 bags and grade C 56 bags Prepare the entry for sale of 28 bags of grade A pecans at a market price of $5.75 cash per bag Note: Carry all decimals in calculations round the final answer to the nearest dolar

Name: rr a. Inventory-Grade AInventory-Grade BInventory-Grade CAccounts Paya
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Description: rr a. Inventory-Grade AInventory-Grade BInventory-Grade CAccounts PayableTo record the purchase of inventory.b. Inventory-Grade A $Inventory-Grade BInventory-Grade CTotalC. CashCost of Goods SoldSalesAccount Name$588 x418 x157 X1,163 xAccount NameInv

Century 21 Accounting General Journal

11th Edition

ISBN:9781337680059

Author:Gilbertson

Publisher:Gilbertson

Chapter20: Accounting For Inventory

Section: Chapter Questions

Problem 2AP

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Calculate the cost of goods sold dollar value for A74 Company for the sale on March 11, considering the following transactions under three different cost allocation methods and using perpetual inventory updating. Provide calculations for (a) first-in, first-out (FIFO); (b) last-in, first-out (LIFO); and (c) weighted average (AVG).
Calculate the cost of goods sold dollar value for B74 Company for the sale on November 20, considering the following transactions under three different cost allocation methods and using perpetual inventory updating. Provide calculations for (a) first-in, first-out (FIFO); (b) last-in, first-out (LIFO); and (c) weighted average (AVG).
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?
Retail method; gross profit method Selected data on inventory, purchases, and sales for Celebrity Tan Co. and Ranchworks Co. are as follows: Instructions 1. Determine the estimated cost of the inventory of Celebrity Tan Co. on August 31 by the retail method, presenting details of the computations. 2. A. Estimate the cost of the inventory of Ranchworks Co. on November 30 by the gross profit method, presenting details of the computations. B. Assume that Ranchworks Co. took a physical inventory on November 30 and discovered that 369,750 of inventory was on hand. What was the estimated loss of inventory due to theft or damage during March through November?
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?
Analyzing the Accounts Casey Company uses a perpetual inventory system and engaged in the following transactions: a. Made credit sales of $825,000. The cost of the merchandise sold was $560,000. b. Collected accounts receivable in the amount of $752,600. c. Purchased goods on credit in the amount of $574,300. d. Paid accounts payable in the amount of $536,200. Required: Prepare the journal entries necessary to record the transactions. Indicate whether each transaction increased cash, decreased cash, or had no effect on cash.
Calculate the cost of goods sold dollar value for B67 Company for the month, considering the following transactions under three different cost allocation methods and using perpetual inventory updating. Provide calculations for weighted average (AVG).
Retail method; gross profit method Selected data on inventory, purchases, and sales for Jaffe Co. and Coronado Co. are as follows: Instructions 1. Determine the estimated cost of the inventory of Jaffe Co. on February 28 by the retail method, presenting details of the computations. 2. a. Estimate the cost of the inventory of Coronado Co. on October 31 by the gross profit method, presenting details of the computations. b. Assume that Coronado Co. took a physical inventory on October 31 and discovered that 366,500 of inventory was on hand. What was the estimated loss of inventory due to theft or damage during May through October?
Use the last-in, first-out method (LIFO) cost allocation method, with perpetual inventory updating, to calculate (a) sales revenue, (b) cost of goods sold, and c) gross margin for B75 Company, considering the following transactions.
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 last-in, first-out (LIFO).
Use the first-in, first-out (FIFO) cost allocation method, with perpetual inventory updating, to calculate (a) sales revenue, (b) cost of goods sold, and c) gross margin for A75 Company, considering the following transactions.
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).