Suppose The Style Fashions, a specialty retailer, had these records for evening gowns during 2018:(Click the icon to view inventory data.)Assume that The Style sold 120 gowns during 2018 and uses the LIFO method to account for inventory. The Style's income tax rate is 35%.Read the requirements.Requirement 1. Compute The Style's cost of goods sold for evening gowns in 2018.Unit priceTotalUnitsFrom beginning inventoryFrom purchase in FebruaryFrom purchase in JuneFrom purchase in DecemberLIFO cost of goods soldRequirement 2. Compute what cost of goods sold would have been if The Style had purchased enough inventory in December-at $1,325 per evening gown-to keep year-end inventory at the same level it was at the beginning of theyear.Cost of goods sold without LIFO liquidation18 $235227Units9501,2251,2751,325$17,10028,17566,30035,775147,350Unit priceTotal

Cost of goods sold can be calculated by using the following equation:Cost of goods sold=Opening…

Answered: Assume that The Style sold 120 gowns…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter10: Inventory

Section: Chapter Questions

Problem 2TP: Assume your company uses the periodic inventory costing method, and the inventory count left out an...

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Assume your company uses the periodic inventory costing method, and the inventory count left out an entire warehouse of goods that were in stock at the end of the year, with a cost value of $222,000. How will this affect your net income in the current year? How will it affect next years net income?
Trini Company had the following transactions for the month. Calculate the cost of goods sold dollar value for the period for each of the following cost allocation methods, using periodic inventory updating. Provide your calculations. A. first-in, first-out (FIFO) B. last-in, first-out (LIFO) C. weighted average (AVG)
ABC Company makes the following purchases: 1.One item on 2/2/2020 for $10 2.One item on 2/15/2020 for $15 3.One item on 2/25/2020 for $20 ABC Company sells one item on 2/28/2020 for $90. What would be the balance of ending inventory and cost of goods sold for the month ended February 2020. Find the Ending Inventory and Cost of good Sold by : FIFO?Average cost?
UMET's Stores had the following inventory transactions in 2020: Transaction Units Cost per unit 1/1 Balance 50 $6 2/14 Sale 25 5/23 Purchase 100 8 8/21 Sale 50 11/5 Purchase 25 12 11/18 Sale 95 Required: Compute tge cost of goods sold and the ending inventory using the periodic inventory system for each of the following cost flow assumptions: a. FIFO b. LIFO c. Weighted average
Uki Company had the following transactions for inventory during 2020: Units Unit Cost Unit Selling Price Inventory, January 1 250 P10.50 Purchase, March 20 200 11.00 Purchase, July 5 275 11.75 Sale, May 11 120 P14.00 Sale, June 15 55 15.00 Sale, October 14 250 16.00 Inventory, December 31 ? Requirements: Determine the cost of ending inventory, cost of goods sold, and gross profit under FIFO method. Determine the cost of ending inventory, cost of goods sold, and gross profit under Weighted average method. Determine the cost of ending inventory, cost of goods sold, and gross profit under Moving average method.
Next Hope reported the following income statement for the year ended December 31, 2026: View the income statement. Requirements 1. 2. Compute Next Hope's inventory turnover rate for the year. (Round to two decimal places.) Compute Next Hope's days' sales in inventory for the year. (Round to two decimal places.) ... Requirement 1. Compute Next Hope's inventory turnover rate for the year. (Round to two decimal places.) Select the labels and enter the amounts to compute the inventory turnover rate. (Round your answer to two decimal places, X.XX.) Income statement = Inventory turnover = times Next Hope Income Statement Year Ended December 31, 2026 Requirement 2. Compute Next Hope's days' sales in inventory for the year. (Round to two decimal places.) ÷ ÷ Select the labels and enter the amounts to compute the days' sales in inventory for the year. (Enter all amounts to two decimal places, X.XX.) Days' sales in inventory days Net Sales Revenue $ 148,000 Cost of Goods Sold: = Beginning…
You are provided with the following information for Bonita Inc. for the month ended June 30, 2020. Bonita uses the periodic method for inventory. Unit Cost or Date Description Quantity Selling Price June 1 Beginning inventory 41 $39 June 4 Purchase 138 42 June 10 Sale 113 73 June 11 Sale return 13 73 June 18 Purchase 52 45 June 18 Purchase return 8 45 June 25 Sale 62 79 June 28 Purchase 33 50 (a1) Calculate cost per unit. (Round answer to 2 decimal places, e.g. 5.25.) Weighted-average cost per unit %24
The management of Tudor Living asks for your help in determining the comparative effects of the FIFO and average-cost inventory cost flow methods. For 2020, the accounting records provide the data shown below. Units purchased consisted of 40,000 units at £4.00 on May 10; 60,000 units at £4.20 on August 15; and 20,000 units at £4.45 on November 20. Income taxes are 28%. Instructions a.Prepare comparative condensed income statements for 2020 under FIFO and average cost. (Show computations of ending inventory.) b.Answer the following questions for management: 1.Which inventory cost flow method produces the more meaningful inventory amount for the statement of financial position? Why? 2.Which inventory cost flow method is more likely to approximate the actual physical flow of the goods? Why? 3.How much more cash will be available for management under average-cost thanunder FIFO? Why?
You are provided with the following information for Lily Inc. for the month ended June 30, 2020. Lily uses the periodic method for inventory. Date Description Quantity Unit Cost or Selling Price June 1 Beginning inventory 39 $40 June 4 Purchase 135 44 June 10 Sale 112 71 June 11 Sale return 18 71 June 18 Purchase 56 45 June 18 Purchase return 12 45 June 25 Sale 66 76 June 28 Purchase 25 48 (a1) Your Answer Correct Answer Correct answer icon Your answer is correct. Calculate cost per unit. (Round answer to 2 decimal places, e.g. 5.25.) Weighted-average cost per unit $Enter the weighted-average cost per unit in dollars eTextbook and Media Solution Attempts: 3 of 3 used (a2) Incorrect answer icon Your answer is incorrect. Calculate ending inventory, cost of goods sold, gross profit…
Givens Company uses a periodic inventory system.Its records show the following for the month of december 2019,in which 68 units were sold at$100 per unit. Units Units Cost Total Cost December 1 Beginning inventory 30 $9 $270 15 Purchase 25 $11 $275 24 Purchase 35 $12 $420 Totals 90 $965 Required: (show all calculate the Cost of Goods Sold on December 31,2019 for Given Company using the following cost flow assumptions: a.Calculate the Cost of Goods Sold on December 31,2019 for Given Company using the following cost flow assumptions: i)Weighted Average Cost method and ii) First-In-First-Out(FIFO) method. b.calculate the Gross Profit for the month ended December 31,2019 for Given Company using the following cost flow assumptions: i)Weighted Average Cost method and ii) First-In-First-Out(FIFO) method.
Ripken Company uses a perpetual inventory system and reported the following transactions involving inventory during the month of April 2019: April 1 Beginning inventory 4 Purchases 30 Sales @ $150 @ $160 @ $200 70 units 30 units 90 units Required: (Show all calculations) a. Calculate the Cost of Goods Sold on April 30, 2019 for Ripken Company using the following cost flow assumptions: (i) Weighted Average Cost method and (ii) First-In-First-Out (FIFO) method. b. Calculate the Gross Profit for the month ended April 30, 2019 for Ripken Company using the following cost flow assumptions: (i) Weighted Average Cost method and (ii) First-In-First-Out (FIFO) method. c. If costs were rising instead of falling, which cost flow assumptions in (a) would report the highest profit for the current year? Explain. d. Ripken Company's perpetual inventory system indicate that the Inventory account has a balance of $675,400 as at December 31, 2019. However, a physical count shows that the inventory on…
Compute for the net sales that would be reported in LIVA company's Income Statement. You are assigned to prepare the financial statements of LIVA Company for the year 2021. The following data were made available for you: Ending Inventory at Cost 739,160 Goods Available for Sale at retail 3,930,000 16,000 48,500 Sales Discount Net markdowns Net markups 30,000 Beginning inventory at retail 1,450,000 Purchases at retail 2,422,000 The company adopts the average cost approach to estimate the value of its inventory and the cost ratio is computed at 68%.

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