What will be the correct answer for weight average cost method for ending inventory and cost of goods sold?
What will be the correct answer for weight average cost method for ending inventory and cost of goods sold?
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter6: Cost Of Goods Sold And Inventory
Section: Chapter Questions
Problem 44E: Perpetual and Periodic Inventory Systems Below is a list of inventory systems options. a. Perpetual...
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Question
What will be the correct answer for weight average cost method for ending inventory and cost of goods sold?
![E5-17 (simliar to)
MusicMagic.net Ltd. specializes in sound equipment. Because each inventory item is expensive, MusicMagic uses a perpetual inventory system. Company records indicate the following data for a line of speakers:
E (Click the icon to view the data.)
Requirements
1. Determine the amounts that MusicMagic should report for cost of goods sold and ending inventory in the following two ways:
a. FIFO
b. Weighted-average cost
2. MusicMagic uses the FIFO method. Prepare MusicMagic's income statement for the month ended April 30, 2020, reporting gross profit. Operating expenses totalled $319, and the income tax rate was 35%.
3. MusicMagic is thinking of changing inventory costing methods from FIFO to weighted-average cost. Are they allowed to make this change? Briefly explain.
Requirement 1. Determine the amounts that MusicMagic should report for cost of goods sold and ending inventory.
(a) Using the FIFO method, the ending inventory is $ 1,050 and the cost of goods sold is $ 1,190.
and the cost of goods sold is $
(Round interim calculations to puo docimal placos Round final answore to the noarost dollarL
(b) Using the weighted-average-cost method, the ending inventory is $
Data Table
Date
Item
Quantity Unit Cost
Sale Price
April
1 Balance.
11 $ 70
8 Sale....
$ 125
Enter your answer in the edit fields and then click Check Answer.
10 Purchase.
14
105
30 Sale.
9
165
4 parts
remaining
Clear All
5:29 PM
P Type here to search
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2020-10-31
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08](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F1babcdfe-30aa-408e-a211-76f1f12074a9%2Fe222fe1e-cc16-473a-a5b0-7f10cd0e010c%2Fyt28y9_processed.jpeg&w=3840&q=75)
Transcribed Image Text:E5-17 (simliar to)
MusicMagic.net Ltd. specializes in sound equipment. Because each inventory item is expensive, MusicMagic uses a perpetual inventory system. Company records indicate the following data for a line of speakers:
E (Click the icon to view the data.)
Requirements
1. Determine the amounts that MusicMagic should report for cost of goods sold and ending inventory in the following two ways:
a. FIFO
b. Weighted-average cost
2. MusicMagic uses the FIFO method. Prepare MusicMagic's income statement for the month ended April 30, 2020, reporting gross profit. Operating expenses totalled $319, and the income tax rate was 35%.
3. MusicMagic is thinking of changing inventory costing methods from FIFO to weighted-average cost. Are they allowed to make this change? Briefly explain.
Requirement 1. Determine the amounts that MusicMagic should report for cost of goods sold and ending inventory.
(a) Using the FIFO method, the ending inventory is $ 1,050 and the cost of goods sold is $ 1,190.
and the cost of goods sold is $
(Round interim calculations to puo docimal placos Round final answore to the noarost dollarL
(b) Using the weighted-average-cost method, the ending inventory is $
Data Table
Date
Item
Quantity Unit Cost
Sale Price
April
1 Balance.
11 $ 70
8 Sale....
$ 125
Enter your answer in the edit fields and then click Check Answer.
10 Purchase.
14
105
30 Sale.
9
165
4 parts
remaining
Clear All
5:29 PM
P Type here to search
^ e * D G 4) ENG
2020-10-31
Chp
f9
144
16
ho
11
AA
esc
rA
SU
prt sc
home
debut
end
fin
delete
pg
imprécr
&
5
num lock
6
wnue
RI
P
08
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