Maintain inventory records Fire fox manufacturing has the following information in relation to commodity for July inventory ................July1...................20 units at birr 50 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 Task 1: the company used perpetual inventory system and LIFO costing determine cost of goods sold and ending inventory Task 2: if the company used periodic inventory system and FIFO costing method , determine costs of goods sold and ending inventory.

Maintain inventory records Fire fox manufacturing has the following information in relation to commodity for July inventory ................July1...................20 units at birr 50 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 Task 1: the company used perpetual inventory system and LIFO costing determine cost of goods sold and ending inventory Task 2: if the company used periodic inventory system and FIFO costing method , determine costs of goods sold and ending inventory.

Name: Maintain inventory records Fire fox manufacturing has the following in
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Description: Maintain inventory records Fire fox manufacturing has the following information in relation to commodity for July inventory ................July1...................20 units at birr 50SalesJuly 7.........10 units July 18.......... 10 unitsJuly 27.....

Financial Accounting

15th Edition

ISBN:9781337272124

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter7: Inventories

Section: Chapter Questions

Problem 1PEB: The following three identical units of Item Beta are purchased during June: Assume that one unit is...

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Fire 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?
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
Late in the year, sofware city began carry WorldCrafter, a new word processing software program. At December 31, Software City's perpetual inventory records included the following cost layers in its inventory of worldCrafter program. Purchase Date Quantity Unit Cost Total Coost Nov. 4 ....................................... 8 $400 $3,200 Dec. 12 ..................................... 20 $310 6,200 Total on hand .................... 28 $9,400 a. At December 31, Software City takes a physical inventory and finds that all 28 units WordCrafter are on hand. However, the current replacement cost (whosale price) of product is $250 only per unit. Prepare the entries to record the following 1. This write down of the inventory tho the lower of cost or marker at December 31.(Company policy is to charge LCM…
Beginning inventory and purchases are presented below: November 1 Beginning inventory .............................. 10 units at $61 November 6 purchase ................................................. 40 units at $62 November 14 purchase ............................................... 35 units at $65 November 24 purchase ............................................... 15 units at $63 Assuming the periodic inventory system, on November 30th there are 23 items left in inventory. Determine the Total Cost of the Merchandise Sold and the Total Cost of the Ending Inventory using a) FIFO b) LIFO c) Weighted Average FIFO LIFO Beginning inventory and purchases are presented below: November 1 Beginning inventory .............................. 10 units at $61 November 6 purchase…
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.
Phillips Supply uses a periodic inventory system but needs to determine the approximate amountof inventory at the end of each month without taking a physical inventory. Phillips has provided thefollowing inventory data: EXERCISE 8.10Estimating Inventoryby the Retail MethodEEbLO6 RetailCost SellingPrice PriceInventory of merchandise, June 30. . . . . . . . . . . . . . . . . . . . . . . . . . . . $300,000 $500,000Purchases during July . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 222,000 400,000Goods available for sale during July. . . . . . . . . . . . . . . . . . . . . . . . . . . $522,000 $900,000Net sales during July . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $600,000a. Estimate the cost of goods sold and the cost of the July 31 ending inventory using the retailmethod of evaluation.b. Was the cost of Phillips’s inventory, as a percentage of retail selling prices, higher or lower inJuly than it was in June? Explain.
LIFO, FIFO, & Moving Average Cost: Perpetual Inventory Methods: Rock Shop shows the following data related to an item of inventory: Inventory, January 1st.............. 100 units @ $5.00 Purchase, January 9th............ 300 units @ $5.40 Sold, January 11th.. Purchase, January 19th............ Purchase, January 21st.... Sold, January 28th.... 325 units 70 @ $6.00 250 @$6.10 150 units Please answer the following questions under the Perpetual Inventory Method: 1) What is the value of Ending Inventory & COGS under the FIFO Method? 2) What is the value of Ending Inventory & COGS under the LIFO Method? 3) What is the value of Ending Inventory & COGS under the Moving Avg. Cost Method?
Late in the year, Software City began carrying WordCrafter, a new word processing software program. At December 31, Software City’s perpetual inventory records included the following cost layers in its inventory of WordCrafter programs: Purchase Date Quantity Unit Cost Total Cost Nov. 14 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 $400 $3,200 Dec. 12 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 310 6,200 Total available for sale at Dec. 31 . . . . . . . . . . . . . . . . 28 $9,400 a. At December 31, Software City takes a physical inventory and finds that all 18 units of WordCrafter are on hand. However, the current replacement cost (wholesale price) of this product is only $255 per unit. Prepare the entries to record: 1. This write-down of the inventory to the lower-of-cost-or-market at December 31. (Company policy is to charge LCM adjustments of less than $2,100 to Cost of Goods Sold and larger amounts to a separate loss…
Paul Company uses its periodic inventory system and you are given the following information: Sales... $65,100 $16,800 $14,700 $48,300 Inventory- Beginning. Inventory- Ending... Purchases.... ............ How much is the gross profit? A. $14,700. B. $50,400. C. $48,300. D. $65,100.
2. Consider the following transactions for DeTrees Company for the month shown in chronological order: Number of Units Unit Cost Sales Beginnig inventory 100 $66 Puchased 80 75 Sold 50 $120 Sold 25 125 Ending inventory 105 In the table below, calculate the dollar value for the period for each of the following items using the listed cost allocation methods and using perpetual inventory updating. PLEASE NOTE: All dollar amounts will be rounded to whole dollars using "$" with commas as needed (i.e. $12,345), except for the Weighted Average cost per unit,…
Calculate the cost of goods sold dollar value for B67 Company for the month, considering the following transactions under three different cost allocation methods and using perpetual inventory updating. Provide calculations for weighted average (AVG).
The following three identical units of Item Beta are purchased during June: Assume that one unit is sold on June 27 for 110. Determine the gross profit for June and ending inventory on June 30 using the (a) first-in, first-out (FIFO); (b) last-in, first-out (LIFO); and (c) weighted average cost methods.