Suppose that Amazon uses a periodic inventory system and reports the following for the month of June:DateJune(a)122330ExplanationInventoryPurchasePurchaseInventoryUnitsEnding inventory315Cost of goods sold7351,050Your answer is incorrect.392Unit CostFIFO$789Compute the cost of the ending inventory and the cost of goods sold under (1) FIFO, (2) LIFO, and (3) average-cost. (Round averagecost per unit to 2 decimal places, e.g. 5.25 and final answers to O decimal places, e.g. 2,520.)Total Cost$2,2055,8809,450LIFOLA$AVERAGE-COSTSUPPORT

Weighted Average Method is one of the methods of inventory valuation in which it is assumed that…

Suppose that Amazon uses a periodic inventory system and reports the following for the month of June: Explanation Units Unit Cost Total Cost 315 $7 735 TIT 1,050 392 Date June 1 (a) Inventory 12 Purchase 23 Purchase 30 Inventory Your answer is incorrect. Ending inventory Cost of goods sold $ $ 8 Compute the cost of the ending inventory and the cost of goods sold under (1) FIFO, (2) LIFO, and (3) average-cost. (Round average cost per unit to 2 decimal places, e.g. 5.25 and final answers to 0 decimal places, e.g. 2,520.) FIFO 9 $ $2,205 $ 5,880 9,450 LIFO $ $ AVERAGE-COST SUPPOR

Suppose that Amazon uses a periodic inventory system and reports the following for the month of June: Explanation Units Unit Cost Total Cost 315 $7 735 TIT 1,050 392 Date June 1 (a) Inventory 12 Purchase 23 Purchase 30 Inventory Your answer is incorrect. Ending inventory Cost of goods sold $ $ 8 Compute the cost of the ending inventory and the cost of goods sold under (1) FIFO, (2) LIFO, and (3) average-cost. (Round average cost per unit to 2 decimal places, e.g. 5.25 and final answers to 0 decimal places, e.g. 2,520.) FIFO 9 $ $2,205 $ 5,880 9,450 LIFO $ $ AVERAGE-COST SUPPOR

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 41BE: ( Appendix 6B) Inventory Costing Methods: Periodic Inventory Systems. Refer to the information for...

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Refer to the information for Morgan Inc. above. If Morgan uses a perpetual inventory system, what is the cost of ending inventory under FIFO at April 30? a. $32,500 b. $38,400 c. $63,600 d. $69,500
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( Appendix 6B) Refer to the information for Morgan Inc. above. If Morgan uses a periodic inventory system, what is the cost of goods sold under FIFO at April 30? a. $32,800 b. $38,400 c. $63,600 d. $69,200
Calculate a) cost of goods sold, b) ending inventory, and c) gross margin for A76 Company, considering the following transactions under three different cost allocation methods and using perpetual inventory updating. Provide calculations for last-in, first-out (LIFO).
Perpetual and Periodic Inventory Systems Below is a list of inventory systems options. a. Perpetual inventory system b. Periodic inventory system c. Both perpetual and periodic inventory systems Required: Match each option with one of the following: 1. Only revenue is recorded as sales are made during the period; the cost of goods sold is recorded at the end of the period. 2. Cost of goods sold is determined as each sale is made. 3. Inventory purchases are recorded in an inventory account. 4. Inventory purchases are recorded in a purchases account. 5. Cost of goods sold is determined only at the end of the period by subtracting the cost of ending inventory from the cost of goods available for sale. 6. Both revenue and cost of goods sold are recorded during the period as sales are made. 7. The inventory is verified by a physical count.
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Alternative Inventory Methods Park Companys perpetual inventory records indicate the following transactions in the month of June: Required: 1. Compute the cost of goods sold for June and the inventory at the end of June using each of the following cost flow assumptions: a. FIFO b. LIFO c. Average cost (Round unit costs to 3 decimal places and other amounts to the nearest dollar.) 2. Next Level Why are the cost of goods sold and ending inventory amounts different for each of the three methods? What do these amounts tell us about the purchase price of inventory during the year? 3. Next Level Which method produces the most realistic amount for net income? For inventory? Explain your answer. 4. Next Level If Park uses IFRS, which of the previous alternatives would be acceptable and why?