Principles of Accounting
12th Edition
ISBN: 9781133626985
Author: Belverd E. Needles, Marian Powers, Susan V. Crosson
Publisher: Cengage Learning
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Chapter 7, Problem 6SE
To determine
Compute the table showing the cost of goods sold and the cost of ending inventory under various methods.
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Students have asked these similar questions
Calculate the cost of goods available for sale, ending inventory, and cost of goods sold if Aircard uses (a) FIFO, (b) LIFO, or (c) weighted
average cost. (Round "Cost per Unit" to 2 decimal places.)
Flora's Gifts reported the following current-month data for its only product. The company uses a periodic inventory system, and its
ending inventory consists of 72 units-56 units from the January 6 purchase and 16 units from the January 25 purchase.
January 1 Beginning inventory
January 6
Purchase
January 17
Purchase
January 25
Purchase
Totals
165 units@ $4.00
334 units @ $3.50
570 units @ $3.10
28 units @ $2.60
1,097 units
=
$ 660.00
1,169.00
1,767.00
72.80
$
3,668.80
(a-d) Determine the cost assigned to ending inventory and to cost of goods sold for the following.
(e) Which method yields the lowest net income?
int
Gale Company has the following inventory and purchases during the fiscal year ended December 31, 2023.
Beginning Inventory
Feb. 10 purchased
Feb. 20 sold
Mar. 13 purchased
Sept. 5 purchased
Oct. 10 sold
335 units @$ 79/unit
250 units @s 83/unit
415 units @$ 159/unit
245 units @$ 77/unit
300 units @s 63/unit
555 units @$ 159/unit
Gale Company employs a perpetual inventory system.
Required:
1. Calculate the dollar value of ending inventory and cost of goods sold using: (Round your intermediate calculations and final
answers to 2 decimal places.)
a FIFO
b Moving weighted average
Ending Inventory
Cost of Goods
Sold
Artiun
Chapter 7 Solutions
Principles of Accounting
Ch. 7 - Prob. 1DQCh. 7 - Which of the following methods do not require a...Ch. 7 - Prob. 3DQCh. 7 - Prob. 4DQCh. 7 - Prob. 5DQCh. 7 - Prob. 6DQCh. 7 - Prob. 7DQCh. 7 - Prob. 1SECh. 7 - Assume the following data with regard to inventory...Ch. 7 - Prob. 3SE
Ch. 7 - Prob. 4SECh. 7 - Prob. 5SECh. 7 - Prob. 6SECh. 7 - Prob. 7SECh. 7 - Prob. 8SECh. 7 - Prob. 9SECh. 7 - Prob. 10SECh. 7 - Prob. 11SECh. 7 - Prob. 12SECh. 7 - Prob. 1EACh. 7 - Prob. 2EACh. 7 - Prob. 3EACh. 7 - Prob. 4EACh. 7 - Prob. 5EACh. 7 - Prob. 6EACh. 7 - During July 2014, Micanopy, Inc., sold 500 units...Ch. 7 - Prob. 8EACh. 7 - Prob. 9EACh. 7 - Prob. 10EACh. 7 - Prob. 11EACh. 7 - Prob. 12EACh. 7 - Midori Company merchandises a single product...Ch. 7 - The inventory of Wood4Fun and data on purchases...Ch. 7 - Prob. 3PCh. 7 - Prob. 4PCh. 7 - Prob. 5PCh. 7 - Prob. 6APCh. 7 - DiPaolos inventory, purchases, and sales for March...Ch. 7 - Prob. 8APCh. 7 - Prob. 9APCh. 7 - Zubac Company is a large retail furniture company...Ch. 7 - Prob. 1CCh. 7 - Prob. 2CCh. 7 - ExxonMobil Corporation had net income of 41.0...Ch. 7 - Prob. 4CCh. 7 - JCPenney, a large retail company with many stores,...
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- Use the weighted-average (AVG) 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.arrow_forwardUse 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.arrow_forwardUsing the following information, prepare the Cost of Goods Sold section of an income statement.arrow_forward
- 1. Calculate the number and cost of goods available to sell 2. Calculate the number of units in ending inventory 3. Calculate the cost of ending inventory and cost of goods sold use the FIFO,LIFO, Weighted cost average methods. Thank you In advance!arrow_forward(A) Using the FIFO assumption, calculate the amount charged to cost of goods sold, the value of the ending inventory and the gross profit for May. Show all computations. (B) Using the weighted-average method, calculate the amount assigned to the inventory on hand on May 31, and the gross profit for May. Show all computations.arrow_forwardPina Furniture Ltd. uses a perpetual inventory system and has a beginning inventory, as at June 1, of 490 bookcases at a cost of $132 each. During June, the company had the following purchases and sales of bookcases: Date June (a) 6 10 14 16 26 Purchases Units Unit cost 1,160 $134 1,780 970 135 136 Sales Units Unit price 950 1,660 $201 206arrow_forward
- 1. Compute the ending inventory and the cost of goods sold under the LIFO cost flow assumption assuming both a perpetual and a periodic inventory system. If required, round your answers to the nearest dollar.arrow_forward1) Compute cost of goods sold and gross profit using the FIFO inventory costing method and using the LIFO inventory costing method. 2)Compute cost of goods sold and gross profit using the weighted-average inventory costing method. (Round weighted-average cost per unit to the nearest cent and all other amounts to the nearest dollar.) 3)Which method results in the largest gross profit, and why?arrow_forwardFor each of the following formulas, select the correct name of the formula: Sales Revenue - Sales Returns and Allowances - Sales Discounts = [ Select ] Net Sales - Cost of Goods Sold = [ Select] Beginning Inventory + Cost of Goods Purchased = Cost of Goods Available for Sale - Ending %3D Inventory = [Select ] Net Sales - Cost of Goods Sold - Operating Expenses = [Select] [ Select] Income from operations Gross profit Net sales Cost of Goods Soldarrow_forward
- 0WCre skipped FOB ship- () On Fehruay 28 Pit packaged goods and had them ready for shipping to a customer ecination The invoice rice was $350 plus $25 for freight; the cost of the items recaivinuRreooct indicates that the goods were received by the customer 1L eDniar, vit received the goods on March 1. (B 1 siaaged goods set aside in the warehouse because they are no longer salea- p0ods orginally cost $400 and, originally, Pitt expected to sell these items or $600. Instructionns For each of the above transactions, specify whether the item in question should be included in ending inventory, and if so, at what amount. For each item that is not included in ending inventory, indicate who owns it and what account, if any, it should have been recorded in. of goods sold and y using FIFO, P6-2A Mullins Distribution markets CDs of numerous performing artists. At the begin- ning of March, Mullins had in beginning inventory 2,500 CDs with a unit cost of $7. Dur- ing March, Mullins made the…arrow_forward1. Compute the cost of the ending inventory under the FIFO method. Round the cost-to-retail ratio to three decimal places and the final answers to the nearest dollar.arrow_forwardFill in the table. Determine the cost assigned to ending inventory and to cost of goods sold using weighted average.arrow_forward
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