ABC Company sells 75 units on June 3. The inventory data on that date are: Lot Date Acquired Units Cost per Unit Total Cost S-3 May 12 30 10.50 315 S-4 May 25 60 10.75 645 S-5 June 1 50 11.00 550 What amount of COGS should ABC record for the June 3 sale if it uses the FIFO (first-in, first-out) method? S818.75 S825.00 S787.50 S798.75

ABC Company sells 75 units on June 3. The inventory data on that date are: Lot Date Acquired Units Cost per Unit Total Cost S-3 May 12 30 10.50 315 S-4 May 25 60 10.75 645 S-5 June 1 50 11.00 550 What amount of COGS should ABC record for the June 3 sale if it uses the FIFO (first-in, first-out) method? S818.75 S825.00 S787.50 S798.75

Name: ABC Company sells 75 units on June 3. The inventory data on that date
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Description: ABC Company sells 75 units on June 3. The inventory data on that date are:LotDate AcquiredUnitsCost per UnitTotal CostS-3May 123010.50315S-4May 256010.75645S-5June 15011.00550What amount of COGS should ABC record for the June 3 sale if it uses the F

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter7: Inventories: Cost Measurement And Flow Assumptions

Section: Chapter Questions

Problem 9RE: RE7-8 Johnson Company uses a perpetual inventory system. On October 23, Johnson purchased 100,000 of...

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RE7-8 Johnson Company uses a perpetual inventory system. On October 23, Johnson purchased 100,000 of inventory on credit with payment terms of 1/15, net 45. Using the net price method, prepare journal entries to record Johnsons purchases on October 23 and the subsequent payment on October 31. Using the information from RE7-8, prepare journal entries to record Johnsons purchase on October 23 and the subsequent payment on November 30.
The following three identical units of Item BZ1810 are purchased during November: Assume that one unit is sold on November 30 for 90. Determine the gross profit for November and ending inventory on November 30 using the (a) first-in, first-out (FIFO); (b) last-in, first-out (LIFO); and (c) weighted average cost methods.
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).
Webster Company adopted do liar-value LIFO on January 1, 2019. Webster produces three products: X, Y, and Z. Websters beginning inventory consisted of the following: During 2019, Webster had the following purchases and sales: Required: 1. Compute the LIFO cost of the ending inventory assuming Webster uses a single inventory pool. Round cost index to 4 decimal places. 2. Compute the LIFO cost of the ending inventory assuming Webster uses three inventory pools. Round cost indexes to 4 decimal places.
Montana co has determined its year end inventory on a fifo basis tp be 635000. info pertaining to that inventory is as follows selling price 610000 cost to sell 34000 replacement cost 549000 what should be the reported value of montanas inventory?
Tetum Company has four products in its inventory. Information sbout the December 31, 2021, inventory is os follows: Total Net Realizable Value $187,0e0 Product Tatal Cost $134, 000 97,e00 101 102 117,00 57, 0ee 57,080 103 67, e00 37,e00 184 Required: 1. Determine the carrying value of inventory at December 31, 2021, assuming the lower of cost or net reslizable value (LCNRV) rule is applied to individual products. 2 Assuming that inventory write-downs are common for Tatum Company, record any necessary year-end adjusting entry. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Determine the carrying value of inventory at December 31, 2021, assuming the lower of cost or net realizable value (LCNRV) rule is applied to individual products. Inventory Value Product Cost NRV 101 134,000 107,000 102 97,000 117,000 103 67,000 57,000 104 37,000 57,000 335,000
A) LC Company is deciding whether to use the LIFO or FIFO method. Based on the following data, determine inventory cost at the end of 2021 under LIFO and under FIFO. Units Unit Cost 500 $12.00 Purchases 600 11.00 400 11.50 450 12.50 250 13.00 Sold in 2021 1/1/21 3/5/21 7/12/21 10/18/21 12/22/21 1,600 | B) After determining inventory cost (per part A above), LC Company will adjust its inventory to market or net realizable value (NRV). Using the data below for 12/31/21, 1- calculate the market value and the NRV of the 2021 ending inventory 2- show lower of cost or market and lower of cost or NRV, for LIFO and FIFO, as appropriate. 3- If an adjustment is necessary, prepare journal entries to adjust inventory under the direct and indirect methods. Selling Price $16 Selling Cost 3 Normal Profit 4 Replacement Cost $8 Show all calculations for parts A & B.
Port Corporation sells item X-100. Purchases, sales and costs of item X-100 for the last quarter of 2019 follow: Date Units Purchased Units Sold Unit Cost October 1 October15 October 30 500 300 $4.00 $4.10 600 November 10 400 $4.20 November 25 500 December 5 December 20 800 $3.90 700 The selling price for all units sold in the quarter was $10.00. REQUIRED: 1. Assume the company uses a periodic inventory system. Calçulate the cost of goods sold for the last quarter of 2019 using the FIFO method of cost valuation. 2. Prepare the journal entry to record the sale on October 30th (on account Assume the company uses a perpetual inventory system and FIFO method of valuation. 3. Prepare the journal entry to record the sale on October 30th (on account). Assume the company uses a periodic inventory system and FIFO method of valuation 4. This question does not relate to the data above. Ignore all of the above information. Required: If ANY company wants to maximize gross margin and, assuming the…
The XYZ Company completed the following perpetual inventory transactions: May 1 Beginning inventory 20 units @ $ 61 each May 11 purchase 6 units @ $ 76 each May 23 sale 16 units @ $ 89 each May 26 purchase 14 units @ $ 86 each May 29 sale 17 units @ $ 89 each Requirements Calculate cost of goods sold, Cost of ending inventory, and gross profit using LIFO. of rising prices, which method (FIFO-LIFO-AVCO) results in the highest gross profit? Why? Which method would be more consistent with the matching principle? Why?
Splish Brothers, Inc. values its inventory at the lower-of-LIFO-cost-or-market. The following information is available from the company’s inventory records as of December 31, 2020. Item Quantity UnitCost ReplacementCost/Unit Estimated SellingPrice/Unit Completion & DisposalCost/Unit Normal ProfitMargin/Unit X490 8,976 $11.00 $10.52 $12.32 $2.64 $2.99 X512 4,356 6.16 6.60 7.83 0.22 1.58 X682 15,840 16.72 16.37 27.76 2.86 7.92 Z195 11,000 12.54 12.32 17.42 1.23 5.06 Z846 7,568 10.56 11.22 12.28 1.85 0.97 (a) Correct answer icon Your answer is correct. Calculate the lower-of-cost-or-market using the individual-item approach. (Round answers to 2 decimal places, e.g. 52.75.) (b) Partially correct answer icon Your answer is partially correct. Show the journal entries Splish Brothers, Inc. will…
XYZ Inc. uses the average cost formula in a perpetual inventory system. (Use unrounded numbers in your calculations but round to the nearest cent for presentation purposes in your answer.) Jun 1 Beginning inventory 20 units @ $19.00 per unit Purchase Jun 5 100 units @ $22.00 per unit Jun 8 Sale 70 units@ selling price $30 per unit 80 units @ 22.31 per unit Jun 9 Purchase Jun 10 Sale Jun 22 Sale Assuming that all sales were paid, the journal entry (or entries) for the June 10 sale should be: O Cash Cash Sales Cash Sales Sales 25 units @ selling price $30 per unit 40 units @ selling price $30 per unit Cost of Goods Sold 549.96 Inventory Cost of Goods Sold Inventory Cost of Goods Sold Inventory None of the above. 750 750 750 550.00 750 750 750 549.96 750 550.00 750