Required: 1. Calculate Topanga's cost of goods sold for the first quarter using: a. FIFO b. LIFO c. Average cost 2. Calculate Topanga's gross profit ratio for the first quarter using FIFO, LIFO, and Average cost. 3. Comment on the relative effect of each of the three inventory methods on the gross profit ratio. Complete this question by entering your answers in the tabs below. Req 1A Req 1B Req 1C Req 2 Req 3 Calculate Topanga's cost of goods sold for the first quarter using FIFO. Cost of Goods Available for Sale Cost of Goods Sold - Periodic FIFO Ending Inventory - Periodic FIFO FIFO: of units unit Cost of Goods Number Cost per Available for Number of units Cost per unit Cost of Goods Sold Number of units in Sale sold ending Cost per unit Ending Inventory inventory Beginning Inventory 0 $ 0.00 $ 0 0 $ 0.00 $ 0 Purchases: January 7 8,000 $5.00 40,000 February 16 24,000 $6.00 144,000 8,000 $ 24,000 $ 5.00 40,000 0 $ 5.00 0 6.00 144,000 0 $ 6.00 0 March 22 28,000 $7.00 196,000 1,000 $ 7.00 7,000 $ 7.00 0 Total 60,000 $ 380,000 33,000 $ 191,000 0 $ 0

Required: 1. Calculate Topanga's cost of goods sold for the first quarter using: a. FIFO b. LIFO c. Average cost 2. Calculate Topanga's gross profit ratio for the first quarter using FIFO, LIFO, and Average cost. 3. Comment on the relative effect of each of the three inventory methods on the gross profit ratio. Complete this question by entering your answers in the tabs below. Req 1A Req 1B Req 1C Req 2 Req 3 Calculate Topanga's cost of goods sold for the first quarter using FIFO. Cost of Goods Available for Sale Cost of Goods Sold - Periodic FIFO Ending Inventory - Periodic FIFO FIFO: of units unit Cost of Goods Number Cost per Available for Number of units Cost per unit Cost of Goods Sold Number of units in Sale sold ending Cost per unit Ending Inventory inventory Beginning Inventory 0 $ 0.00 $ 0 0 $ 0.00 $ 0 Purchases: January 7 8,000 $5.00 40,000 February 16 24,000 $6.00 144,000 8,000 $ 24,000 $ 5.00 40,000 0 $ 5.00 0 6.00 144,000 0 $ 6.00 0 March 22 28,000 $7.00 196,000 1,000 $ 7.00 7,000 $ 7.00 0 Total 60,000 $ 380,000 33,000 $ 191,000 0 $ 0

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter20: Inventory Management: Economic Order Quantity, Jit, And The Theory Of Constraints

Section: Chapter Questions

Problem 2CE: Sterling Corporation has an EOQ of 5,000 units. The company uses an average of 500 units per day. An...

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Sales per unit P15.00Variable production cost 8.00Annual fixed production cost 35,000.00Variable selling expense (unit) 3.00Annual fixed selling expense 15,000.00Produced 12,500 units during the periodNo inventory at January 1 (beg.)Sold 10,000 units 21. The ending inventory under direct costing isa. P25,000 b. P27,500 c. P20,000 d. P32,500 22. Ending inventory under absorption costing isa. P32,500 b. P20,000 c. P25,000 d. P27,000
Compute for the Economic order quantity, assuming the no of units of materials required annually 20,000 cost of placing the order P29.00, Annual Carrying cost of inventory P 5.4
Sales per unit $15.00Variable production cost 8.00Annual fixed production cost 35,000.00Variable selling expense (unit) 3.00Annual fixed selling expense 15,000.00Produced 12,500 units during the periodNo inventory at January 1 (beg.)Sold 10,000 units Total variable annual cost charged to expense in direct costinga. $110,000b. $117,500c. $80,000 d. $100,000 6. Total fixed cost charged against current year’s operations in absorption costinga. P35,000 b. $25,000 c. $15,000 d. $43,000
The following data relates to component L512: Ordering costs $100 per order Inventory holding costs $8 per unit per annum Annual demand 1,225 units What is the economic order quantity (to the nearest whole unit)?
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еВook Print Item Evansville Company had the following transactions for the month. Number Cost of Units per Unit Purchase $5,000 Purchase 4 6,000 Purchase 5. 6,500 Calculate the gross margin for each of the following cost allocation methods, assuming Evansville sold just one unit of these goods for $11,000. Round your intermediate calculations and final answers to the nearest dollar amount. Gross Margin A. First-in, First-out (FIFO) B. Last-in, First-out (LIFO) C. Weighted Average (AVG) When prices are rising (inflation), which costing method would produce the highest value for gross margin? Check My Work Previous Nex 3.
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The following data relates to component L512: Ordering costs $100 per order Inventory holding costs $8 per unit per annum Annual demand 1,225 units What is the economic order quantity (to the nearest whole unit)? A 175 units B 62 units C 44 units D 124 units
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A company reports the following Information: Month Units Sold Total Cost January 1,020 $ 6,57O $ 7,140 $9,30O $ 4,500 February 1,920 March 2,640 April 720 Using the high-low method, the estimated total fixed cost is: Multiple Choice $2,700. $3,660. $4,500. $6,120. $1,620. Nex 7 of 25 < Prev
Activities/Assessments: Activity 9 Solve the following EOQ model problems: 1. Each year, Y Company purchases 20,000 units of an item that costs P 640 per unit. The cost of placing an order is P 480, and the cost to hold the item in inventory for one year is P 150. a. Determine the EOQ. b. What is the average inventory level, assuming that the minimum inventory level is zero? c. Determine the total annual ordering cost and the total annual holding cost for the item if the EOQ is used. 2. A toy manufacturer uses approximately 32,000 silicon chips annually. The chips are used at a steady rate during the 240 days the plant operates. Annual holding cost is P27 per chip and ordering cost is P1,080. Lead time = 1 week. a. Find the EOQ. b. Find the reorder point. c. What would be your ordering policy for this item? d. Find the total annual cost of ordering and carrying silicon chips. 3. A large bakery buys sugar in 50-kg bags. The bakery uses an average of 1,344 bags a year. Preparing an order…
8- Calculate EOQ from the following details: Consumption per month is 2,000 units, ordering cost is RO 10 per order, purchase price is RO 100 per unit and annual carrying cost is 10%. a. 310 units b. 283 units c. 245 units d. 219 units