Principles of Financial Accounting.
24th Edition
ISBN: 9781260158601
Author: Wild
Publisher: MCG
expand_more
expand_more
format_list_bulleted
Videos
Textbook Question
Chapter 6, Problem 4QS
A company reports the following beginning inventory and two purchases for the month of January. On January 26, the company sells 350 units. Ending inventory at January 31 totals 150 units.
| Units | Unit Cost | |
| Beginning inventory on January 1............. | 320 | $3.00 |
| Purchase on January 9...................... | 80 | 3.20 |
| Purchase on January 25.................... | 100 | 3.34 |
Required
Assume the perpetual inventory system is used and then determine the costs assigned to ending inventory when costs are assigned based on the FIFO method. (Round per unit costs and inventory amounts to cents.)
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
ABC Products uses a periodic inventory system. The company’s records show the beginning inventory of oil filters on January 1 and the purchases of this item during the current year to be as follows:
Jan 1 Beginning Inventory ……………………………. 19 units at Rs 30
Feb 23 Purchase ………………………………………… 12 units at Rs 35
Apr 20 Purchase ………………………………………... 30 units at Rs 38
May 4 Purchase ………………………………………... 40 units at Rs 45
Nov.30 Purchase ………………………………………... 9 units at Rs 50
A physical count indicates 22 units in inventory at year-end. Determine the cost of the ending inventory and cost of goods sold on the basis of each of the following methods of inventory valuation.
Average cost
FIFO
LIFO
Hatfield Company, which has only one product, has provided the following data concerning its most recent month of operations:
Selling price ............................ $123
Units in beginning inventory ............. 0
Units produced ........................... 6,400
Units sold ............................... 6,100
Units in ending inventory ................ 300
Variable costs per unit:
Direct materials ....................... $45
Direct labor ........................... 30
Variable manufacturing overhead ........ 1
Variable selling and administrative .... 8
Fixed costs:
Fixed manufacturing overhead ........... $140,800
Fixed selling and administrative ....... 91,500
What is the total period cost for the month under the variable costing approach?
Hatfield Company, which has only one product, has provided the following data concerning its most recent month of operations:
Selling price ............................ $123
Units in beginning inventory ............. 0
Units produced ........................... 6,400
Units sold ............................... 6,100
Units in ending inventory ................ 300
Variable costs per unit:
Direct materials ....................... $45
Direct labor ........................... 30
Variable manufacturing overhead ........ 1
Variable selling and administrative .... 8
Fixed costs:
Fixed manufacturing overhead ........... $140,800
Fixed selling and administrative ....... 91,500
What is the net income for the month under variable costing?
Chapter 6 Solutions
Principles of Financial Accounting.
Ch. 6 - Perpetual: Assume that Marvel uses a perpetual...Ch. 6 - Perpetual: Assume that Marvel uses a perpetual...Ch. 6 - Perpetual and Periodic: Assume that Marvel uses a...Ch. 6 - Periodic: Assume that Marvel uses a periodic FIFO...Ch. 6 - Prob. 5MCQCh. 6 - A company has cost of goods sold of 85,000 and...Ch. 6 - Describe how costs flow from inventory to cost of...Ch. 6 - Where is the amount of merchandise inventory...Ch. 6 - If costs are declining, will the LIFO or FIFO...Ch. 6 - If inventory errors are said to correct...
Ch. 6 - Prob. 5DQCh. 6 - What is the meaning of market as it is used in...Ch. 6 - What factors contribute to (or cause) inventory...Ch. 6 - When preparing interim financial statements, what...Ch. 6 - Prob. 9DQCh. 6 - Prob. 10DQCh. 6 - Prob. 11DQCh. 6 - Prob. 12DQCh. 6 - Inventory ownership Homestead Crafts, a...Ch. 6 - Prob. 2QSCh. 6 - Computing goods available for sale Wattan Company...Ch. 6 - A company reports the following beginning...Ch. 6 - Perpetual: Inventory costing with FIFO P1 A...Ch. 6 - Perpetual: Inventory costing with FIFO P1 A...Ch. 6 - Perpetual: Inventory costing with FIFO P1 A...Ch. 6 - Perpetual: Inventory costing with FIFO P1 A...Ch. 6 - Perpetual: Inventory costing with FIFO P1 A...Ch. 6 - Perpetual: Assigning costs with FIFO Trey Monson...Ch. 6 - Perpetual: Assigning costs with FIFO P1 Trey...Ch. 6 - Perpetual: Assigning costs with FIFO P1 Trey...Ch. 6 - Perpetual: Assigning costs with FIFO P1 Trey...Ch. 6 - Perpetual: Assigning costs with FIFO P1 Trey...Ch. 6 - Perpetual: Assigning costs with FIFO P1 Trey...Ch. 6 - Perpetual: Assigning costs with FIFO P1 Trey...Ch. 6 - Perpetual: Assigning costs with FIFO P1 Trey...Ch. 6 - Prob. 18QSCh. 6 - Prob. 19QSCh. 6 - Prob. 20QSCh. 6 - Analyzing inventory Endor Company begins the year...Ch. 6 - Prob. 22QSCh. 6 - Prob. 23QSCh. 6 - Prob. 1ECh. 6 - Inventory costs Walberg Associates, antique...Ch. 6 - Perpetual: Inventory costing methods P1 Laker...Ch. 6 - Question: Laker Company reported the following...Ch. 6 - Prob. 5ECh. 6 - Prob. 6ECh. 6 - Perpetual: Inventors- costing methodsFIFO and...Ch. 6 - Question: Refer to the information in Exercise...Ch. 6 - Question: Refer to the information in Exercise 6-7...Ch. 6 - Lower of cost or market Martinez Companys ending...Ch. 6 - Prob. 11ECh. 6 - Prob. 12ECh. 6 - Prob. 13ECh. 6 - Periodic: Cost flow assumptions Lopez Company...Ch. 6 - Periodic: Cost flow assumptions Floras Gifts...Ch. 6 - Prob. 16ECh. 6 - Estimating ending inventorgross profit method On...Ch. 6 - Alternative cost flows Warnerwoods Company uses a...Ch. 6 - Perpetual: Alternative cost flows P1 Warnerwoods...Ch. 6 - Alternative cost flows Montoure Company uses a...Ch. 6 - Perpetual: Alternative cost flows P1 Montoure...Ch. 6 - Prob. 5APCh. 6 - Analysis of inventory errors A2 Navajo Company's...Ch. 6 - Prob. 7APCh. 6 - Periodic: Income comparisons and cost flows A1 P3...Ch. 6 - Prob. 9APCh. 6 - Prob. 10APCh. 6 - Alternative cost flows Ming Company uses a...Ch. 6 - Perpetual: Alternative cost flows P1 Ming Company...Ch. 6 - Perpetual: Alternative cost flows Aloha Company...Ch. 6 - Prob. 4BPCh. 6 - Prob. 5BPCh. 6 - Analysis of inventory errors A2 Hallam Company's...Ch. 6 - Prob. 7BPCh. 6 - Periodic: Income comparisons and cost flows A1 P3...Ch. 6 - Retail inventory method The records of Macklin Co....Ch. 6 - Prob. 10BPCh. 6 - SERIAL PROBLEM Business Solutions P2 A3 This...Ch. 6 - Prob. 1AACh. 6 - Prob. 2AACh. 6 - Prob. 3AACh. 6 - ETHICS CHALLENGE Golf Challenge Corp. is a retail...Ch. 6 - COMMUNICATING IN PRACTICE You are a financial...Ch. 6 - Prob. 3BTNCh. 6 - Prob. 5BTN
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- Janos Company, which has only one product, has provided the following data concerning its most recent month of operations:Selling price ............................................. P111 Units in beginning inventory ............... 300 Units produced....................................... 2,000 Units sold ................................................. 2,200 Units in ending inventory ..................... 100 Variable costs per unit: Direct materials.......................................... P29 Direct labor ................................................... 30 Variable manufacturing overhead ......... 4 Variable selling and administrative ...... 9 Fixed costs: Fixed manufacturing overhead ............. P34,000 Fixed selling and administrative........... 39,600 The company produces the same number of units every month, although the sales in units vary from month to month. The company's variable costs per unit and total fixed costs have been constant from month to month.What is the…arrow_forwardFire fax manufacturing company has the following information in relation to commodity D2 for July: Inventory July 1………………………............. 20units at hr. 50 Sales July 7 …………………………..10units July 18 ………………………… 5units July 27...............................10 units Purchases July 3…………………………………20 units at br. 51 July 20 ………………………………15 units at br. 52 Required: A. If Fire fax company used a perpetual inventory system & LIFO costing method. Determine the cost of goods sold &ending inventory. B. If the company used a periodic inventory system and FIFO costing method. Determine cost of goods sold & ending inventoryarrow_forwardFire fox manufacturing has the following information in relations to commodity for July Inventory........july1.......20 units at birr50 Sales July 7. ........ 10 units July 18. ....... 10 units July 27........10 units Purchase July 3.........20 units at birr 51 July 20............15 units at birr 52 Required 1. The company used perpetual inventory system and LIFO costing, determine cost of goods sold and ending inventory? 2. If the company used periodic inventory system and FIFO costing method, determine cost of goods sold and ending inventory?arrow_forward
- The sales department of F. Pollard Manufacturing Co. has forecast sales in March to be 25,000 units. Additional information follows: Finished goods inventory, March 1................................. 5,000 units. Finished goods inventory required, March 31................. 2,000 units Inventory Required inv. Standard March1 March 31 Cost a.One gallon per unit 600 gal 1,500gal $ 4 per gal b. One poundper unit 1,500 lb 1,500lb $ 3 per lb Prepare the following: a. A production budget for March (in units). b. A direct materials budget for the month (in units and dollars).arrow_forward97) A company had the following purchases and sales during its first month of operations: Date January 1 January 9 January 17 January 27 A) $84.00. B) $60.71. Activities C) $23.35. D) $46.70. E) $37.36. Purchase Sales Purchase Sales Units Acquired at Cost 10 units @ $4.00 = $40.00 8 units @ $5.50 = $44.00 Units Sold at Retail 6 units @ $12.00 Using the Periodic weighted average method, what is the value of cost of goods sold? (Round weighted average cost per unit to 2 decimal places.) 7 units @ $12.00arrow_forwardA company reports the following beginning inventory and two purchases for the month of January. On January 26, the company sells 350 units. Ending inventory at January 31 totals 150 units. Beginning inventory on January 1 Purchase on January 9 Purchase on January 25 Units 320 80 100 Unit Cost $ 4.50 4.70 4.84arrow_forward
- Maffei Company, which has only one product, has provided the following data concerning its most recent month of operations: Selling price...............................................P138 Units in beginning inventory......................0 Units produced..........................................7,200 Units sold...................................................7,000 Units in ending inventory...........................200 Variable costs per unit: Direct materials......................................P42 Direct labor.............................................P32 Variable manufacturing overhead..........P1 Variable selling and administrative........P8 Fixed costs: Fixed manufacturing overhead..............P280,800 Fixed selling and administrative.............P98,000 Required: a.What is the net income under variable costing? b.What is the net income under variable costing? c.What is the fixed overhead deferred under absorption costing?arrow_forwardWasson Company purchased items of inventory as follows:Dec. 2 50 units @ $20Dec. 12 12 units @ $21Wasson sold 15 units on December 20. Determine the cost of goods sold for the month under theLIFO inventory method.arrow_forwardThe units of an item available for sale during the year were as follows: Jan. 1 Inventory 11 units at $35 Feb. 17 Purchase 20 units at $37 Jul. 21 Purchase 16 units at $38 Nov. 23 Purchase 10 units at $39 There are 11 units of the item in the physical inventory at December 31. The periodic inventory system is used. Round average unit cost to the nearest cent and final answers to the nearest whole dollar, if required.arrow_forward
- Cost of goods sold—merchandiser and manufacturerThe following data were taken from the general ledgers and other data of Alpha Manufacturing, Inc., and Bravo Merchandis-ing Co. on April 30 of the current year: Merchandise inventory, April 1 . ................................. $ 38,000Finished goods, April 1 . . . ....................................... 67,000Purchases . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 121,000Cost of goods manufactured . . . . . . .............................. 287,000Merchandise inventory, April 30 ................................. 33,000Finished goods, April 30 . . . . .................................... 61,000 LO1 LO3 54 Principles of Cost Accounting Required:1. Compute the cost of goods sold for Bravo Merchandising Co.,selecting the appropriate items from the previous list.2. Compute the cost of goods sold for Alpha Manufacturing,Inc., selecting the appropriate items from the previous list.arrow_forwardThe S&S Corporation produces and sells one product. The following data refer to the year just completed: Beginning Inventory 0 units Units produced........................... 20,000 Units sold...................................... 12,500 Sales price per unit.................... $550 Variable selling and administrative expenses per unit $ 50 Fixed Selling and administrative expenses (Total) $500,000 Manufacturing Costs: Direct materials cost per unit..................................................$ 150 Direct labor cost per unit..........................................................$ 95 Variable manufacturing overhead cost per unit..............$ 40 Fixed manufacturing overhead (Total).................................$300,000 Required:a. What is the unit product cost for the month under variable costing? b. What is the unit product cost for the month under absorption…arrow_forwardA manufacturing company that produces a single product has provided the followingdata concerning its most recent month of operations: Selling price........................................................... $143Units in beginning inventory................................. 0Units produced ...................................................... 8,200Units sold............................................................... 7,800Units in ending inventory...................................... 400Variable costs per unit:Direct materials.................................................. $49Direct labor......................................................... $42Variable manufacturing overhead ...................... $3Variable selling and administrative.................... $7Fixed costs:Fixed manufacturing overhead........................... $270,600Fixed selling and administrative ........................ $46,800 What is the total period cost for the month under the variable costing approach?arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Principles of Accounting Volume 2AccountingISBN:9781947172609Author:OpenStaxPublisher:OpenStax College
Principles of Accounting Volume 2
Accounting
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax College
IAS 29 Financial Reporting in Hyperinflationary Economies: Summary 2021; Author: Silvia of CPDbox;https://www.youtube.com/watch?v=55luVuTYLY8;License: Standard Youtube License