alue 0.83 points M7-6 Calculating Cost of Goods Available for Sale, E.pdf

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A surfer is riding a wave with an amplitude of 20 feet and a period of 40 feet. If the wave completes a period in 10 seconds, what is the speed of the surfer? Select one: a. 400 feet per second b. 40 feet per second c. 4 feet per second d. 1414 feet per second Solution Amplitude = 20 feet Period = 40 feet The wave completes a period in 10 seconds. Speed of the surfer =Distance/Time =Period length /Time = 40 /10 = 4 feet per second Option C.

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alue 0.83 points M7-6 Calculating Cost of Goods Available for Sale, Ending Inventory, Sales,
Cost of Goods Sold, and Gross Profit under Periodic FIFO, LIFO, and Weighted Average Cost
[LO 7-3 The following are the transactions for the month of July July 1 Beginning Inventory 49
July 25 Sold July 31 Ending Inventory194 Units Unit Cost Selling Price 245 11 100) S10 $14
Solution
Answers
FIFO (Periodic)
Units
Cost per unit
Total
Beginning Inventory
49
$ 10.00
$ 490.00
Purchases:
Jul-13
245
$ 11.00
$ 2,695.00
Goods Available for Sale
$ 3,185.00
Cost of Goods Sold:
Beginning Inventory
49
$ 10.00
$ 490.00
Jul-13
51
$ 11.00
$ 561.00
Total Cost of Goods Sold
$ 1,051.00
Ending Inventory
$ 2,134.00

Sales
$ 1,400.00
Cost of Goods Sold
$ 1,051.00
Gross Profit
$ 349.00
LIFO (Periodic)
Units
Cost per unit
Total
Beginning Inventory
49
$ 10.00
$ 490.00
Purchases:
Jul-13
245
$ 11.00
$ 2,695.00
Goods Available for Sale
$ 3,185.00
Cost of Goods Sold:
Jul-13
100
$ 11.00
$ 1,100.00
$ -
Total Cost of Goods Sold
$ 1,100.00
Ending Inventory
$ 2,085.00
Sales
$ 1,400.00
Cost of Goods Sold
$ 1,100.00

Gross Profit
$ 300.00
Weighted Average cost per unit:
Goods Available for sale = $ 3,185
Beginning + Purchased units = 49+ 245 = 294 units
Weighted Average cost per unit = 3185 / 294 = $ 10.83 per unit
Weighted Average (Periodic)
Units
Cost per unit
Total
Beginning Inventory
49
$ 10.00
$ 490.00
Purchases
245
$ 11.00
$ 2,695.00
Goods Available for Sale
$ 3,185.00
Cost of Goods Sold:
100
$ 10.83
$ 1,083.00
Ending Inventory
$ 2,102.00
Sales
$ 1,400.00
Cost of Goods Sold
$ 1,083.00
Gross Profit
$ 317.00
FIFO (Periodic)
Units

Cost per unit
Total
Beginning Inventory
49
$ 10.00
$ 490.00
Purchases:
Jul-13
245
$ 11.00
$ 2,695.00
Goods Available for Sale
$ 3,185.00
Cost of Goods Sold:
Beginning Inventory
49
$ 10.00
$ 490.00
Jul-13
51
$ 11.00
$ 561.00
Total Cost of Goods Sold
$ 1,051.00
Ending Inventory
$ 2,134.00
Sales
$ 1,400.00
Cost of Goods Sold
$ 1,051.00
Gross Profit
$ 349.00

This document discusses inventory costing and cost of goods sold. It provides examples of how to calculate inventory and cost of goods sold using different costing methods like FIFO, LIFO, and weighted average. FIFO assigns the oldest costs to cost of goods sold and most recent costs to ending inventory. LIFO does the opposite by assigning most recent costs to cost of goods sold. Weighted average assigns an average unit cost. The choice of method affects reported income and taxes. Inventory is also reported at the lower of cost or market value. Managers may choose methods to maximize reported income and minimize taxes within GAAP.

Laker Company reported the following January purchases and sales data.pdf

mohammedfootwear

Laker Company reported the following January purchases and sales data for its only product. Activities Units Acquired at Cost Date Jan. 1Beginning inventory Jan. 10 Sales Jan. 20 Purchase Jan. 25 Sales Jan. 30 Purchase 220 units 170 units 370 units $14.50$ 3,190 $13.502,295 $13.004,810 Units sold at Retalil 170 units $23.50 200 units @ $23.50 370 units Totals 760 units $10,295 The company uses a periodic inventory system. For specific identification, ending inventory consists of 390 units, where 370 are from the January 30 beginning inventory value: 2.00 points Required 1. Complete the table to determine the cost assigned to ending inventory and to cost of goods sold using specific identification. (Round cost per uni Specific Identification Cost of Goods Available for Sale Cost of Goods Sold Ending Inventory per Cost ofof units Cost per Ending # of units | Cost per Cost of Goods Availableforl#of units cost unit Goods Sold in ending inventory sold unit Inventory Sale Beginning inventory Purchases Jan. 20 Jan. 30 Total Solution Answers FIFO, LIFO, Specific Identification, Weighted Average. FIFO Cost of Goods available for sale Cost of Goods Sold Ending Inventory Units Cost/unit COG for sale Units sold Cost/unit COGS Units Cost/unit Ending inventory Beginning Inventory 220 $ 14.50 $ 3,190.00 220 $ 14.50 $ 3,190.00 0 $ 14.50 $ - Purchases: 20-Jan 170 $ 13.50 $ 2,295.00 150 $ 13.50 $ 2,025.00 20 $ 13.50 $ 270.00 30-Jan 370 $ 13.00 $ 4,810.00 0 $ 13.00 $ - 370 $ 13.00 $ 4,810.00 TOTAL 760 $ 10,295.00 370 $ 5,215.00 390 $ 5,080.00 LIFO Cost of Goods available for sale Cost of Goods Sold Ending Inventory Units Cost/unit COG for sale Units sold Cost/unit COGS Units Cost/unit Ending inventory Beginning Inventory 220 $ 14.50 $ 3,190.00 $ 14.50 $ - 220 $ 14.50 $ 3,190.00 Purchases: 20-Jan 170 $ 13.50 $ 2,295.00 $ 13.50 $ - 170 $ 13.50 $ 2,295.00 30-Jan 370 $ 13.00 $ 4,810.00 370 $ 13.00 $ 4,810.00 0 $ 13.00 $ - TOTAL 760 $ 10,295.00 370 $ 4,810.00 390 $ 5,485.00 Specific Identification Cost of Goods available for sale Cost of Goods Sold Ending Inventory Units Cost/unit COG for sale Units sold Cost/unit COGS Units Cost/unit Ending inventory Beginning Inventory 220 $ 14.50 $ 3,190.00 200 $ 14.50 $ 2,900.00 20 $ 14.50 $ 290.00 Purchases: 20-Jan 170 $ 13.50 $ 2,295.00 170 $ 13.50 $ 2,295.00 0 $ 13.50 $ - 30-Jan 370 $ 13.00 $ 4,810.00 0 $ 13.00 $ - 370 $ 13.00 $ 4,810.00 TOTAL 760 $ 10,295.00 370 $ 5,195.00 390 $ 5,100.00 Average Method Cost of Goods available for sale Cost of Goods Sold Ending Inventory Units Cost/unit COG for sale Units sold Cost/unit COGS Units Cost/unit Ending inventory Beginning Inventory 220 $ 14.50 $ 3,190.00 Purchases: 20-Jan 170 $ 13.50 $ 2,295.00 30-Jan 370 $ 13.00 $ 4,810.00 TOTAL 760 13.55 $ 10,295.00 370 13.55 $ 5,013.50 390 $ 13.55 $ 5,284.50 FIFO Cost of Goods available for sale Cost of Goods Sold Ending Inventory Units Cost/unit COG for sale Units sold Cost/unit COGS Units Cost/unit Ending inventory Beginning Inventory 220 $ 1.

E8-13Altira Corporation uses a periodic inventory system. The fo.docx

jacksnathalie

E8-13 Altira Corporation uses a periodic inventory system. The following information related to its merchandise inventory during the month of August 2011 is available: Aug 1 Inventory on hand - 2,000 units; cost $6.10 each. Aug 8 Purchased 10,000 units for $5.50 each. Aug 14 Sold 8,000 units for $12.00 each. Aug 18 Purchased 60,000 units for $5.00 each. Aug 25 Sold 7,000 units for $11.00 each. Aug 31 Inventory on hand – 3,000 units. Required: Determine the inventory balance Altira would report in its August 31, 2011, balance sheet and the cost of goods sold it would report in its August 2011 income statement using each of the following cost flow methods: 1. First-in, First-out (FIFO) 2. Last-in, First-out (LIFO) 3. Average Cost E8-14 [This is a variation of Exercise 8-13 modified to focus on the perpetual inventory system and alternative cost flow methods.] Altira Corporation uses a perpetual inventory system. The following transactions affected its merchandise inventory during the month of August 2011: Aug 1 Inventory on hand – 2,000 units; cost $6.10 each. Aug 8 Purchased 10,000 units for $5.50 each Aug 14 Sold 8,000 units for $12.00 each Aug 18 Purchased 6,000 units for $5.00 each Aug 25 Sold 7,000 units for $11.00 each. Aug 31 Inventory on hand – 3,000 units. Required: Determine the inventory balance Altira would report in its August 31, 2011 balance sheet and the cost of goods sold it would report in its August 2011 income statement using each of the following cost flow methods: 1. First-in, First-out (FIFO) 2. Last-in, First-out (LIFO) 3. Average Cost E8-18 Steelcase, Inc. is the global leader in providing furniture for office environments. The company uses the LIFO inventory method for external reporting and for income tax purposes but maintains its internal records using FIFO. The following disclosure note was included in a recent annual report: 5. Inventories ($in millions) February 27, 2009 February 29, 2008 Raw Materials $61.3 $67.5 Work-in-Process 15.9 20.9 Finished Goods 79.9 87.9 157.1 176.3 LIFO reserve (27.2) (29.6) $129.9 $146.7 The company’s income statement reported cost of goods sold of $2,236.7 million for the fiscal year ended February 27, 2009. Required: 1. Steelcase adjusts the LIFO reserve at the end of its fiscal year. Prepare the February 27, 2009 adjusting entry to make the cost of goods sold adjustment. 2. If Steelcase had used FIFO to value its inventories, what would cost of goods sold have been for the 2009 fiscal year? P 8-5 Ferris Company began 2011 with 6,00o units of its principal product. The cost of each unit is $8. Merchandise transactions for the month of January 2011 are as follows: Purchases Date of Purchase Units Unit Cost* Total Cost Jan. 10 5,000 $9 $45,000 Jan. 18 6,000 10 60,000 Totals 11,000 $105,000 *Includes purchase price and cost of freight. Sales Date of Sale Units Jan. 5 3,000 Jan. 12 2,000 Jan. 20 4,000 Total 9,000 8,000 units were on hand at th ...

Park Company reported the following March purchases and sales data f.docx

MARRY7

Park Company reported the following March purchases and sales data for its only product. Date Activities Units Acquired at Cost Units sold at Retail Mar. 1 Beginning Inventory 150 units @ $ 7.00 = $ 1,050 Mar. 10 Sales 90 units @ $ 15 Mar. 20 Purchase 220 units @ $ 6.00 = 1,320 Mar. 25 Sales 145 units @ $ 15 Mar. 30 Purchase 90 units @ $ 5.00 = 450 Totals 460 units $ 2,820 235 units Park uses a perpetual inventory system. For specific identification, ending inventory consists of 225 units, where 90 are from the March 30 purchase, 80 are from the March 20 purchase, and 55 are from beginning inventory. references 2. value: 1.00 points Exercise 5-3 Part 1 1. Determine the cost assigned to ending inventory and to cost of goods sold using specific identification. (Omit the "$" sign in your response.) Ending inventory $ Exercise 5-3 Part 2 2. Determine the cost assigned to ending inventory and to cost of goods sold using weighted average. (Due to rounding, the sum of Cost of Goods Sold and Ending inventory may not equal the Cost of Good available for sales. Round per unit costs to three decimal places. Round your answer to nearest dollar amount. Omit the "$" sign in your response.) Date Cost of Goods Sold Inventory Balance 3/1 $ Exercise 5-3 Part 3 3. Determine the cost assigned to ending inventory and to cost of goods sold using FIFO. (Omit the "$" sign in your response.) Date Cost of Goods Sold Inventory Balance 3/1 $ Exercise 5-3 Part 4 4. Determine the cost assigned to ending inventory and to cost of goods sold using LIFO. (Omit the "$" sign in your response.) Date Cost of Goods Sold Inventory Balance 3/1 $ [removed] 3/10 $ [removed] $ [removed] 3/20 $ [removed] 3/25 [removed] $ [removed] 3/30 $ [removed] Total $ [removed] check my work eBook Link View Hint #1 references 9 years ago 22.03.2013 5 Report Issue Answer ( 1 ) corp.sumit 1.0 ( 2 ) ( Not rated ) Chat Purchase the answer to view it NOT RATED solution-1.xlsx 9 years ago plagiarism check Purchase $5 Bids ( 1 ) corp.sumit other Questions ( 10 ) a cube has a side length of 36 inches. what is the area of the base? slope intercept form of -1/4 (-2,8) need the facts to a case by tonight VM2 home work assugnment Statistics Need help with parabola, hyperbola, and ellipse homework. need help in my homework Loihi is a future Hawaiian island in the process of forming on the ocan floor Considering how this island chain... Applied Sciences Architecture and Design Biology Business & Finance Chemistry Computer Science Geography Geology Education Engineering English Environmental science Spanish Government History Human Resource Management Information Systems Law Literature Mathematics Nursing Physics Political Science Psychology Reading Science Social Science Liberty University New Hampshire University Strayer University University Of Phoenix Walden.

Periodic Inventory by Three Methods; Cost of Merchandise Sold The un.pdf

ajithmobiles

Periodic Inventory by Three Methods; Cost of Merchandise Sold The units of an item available for sale during the year were as follows: Jan. 1 Inventory 30 units @ $124 Mar. 10 Purchase 60 units @ $134 Aug. 30 Purchase 10 units @ $140 Dec. 12 Purchase 100 units @ $146 There are 40 units of the item in the physical inventory at December 31. The periodic inventory system is used. Determine the inventory cost and the cost of merchandise sold by three methods. Round interim calculations to one decimal and final answers to the nearest whole dollar. Cost of Merchandise Inventory and Cost of Merchandise Sold Inventory Method Merchandise Inventory Merchandise Sold First-in, first-out (FIFO) $ $ Last-in, first-out (LIFO) Weighted average cost Cost of Merchandise Inventory and Cost of Merchandise Sold Inventory Method Merchandise Inventory Merchandise Sold First-in, first-out (FIFO) $ $ Last-in, first-out (LIFO) Weighted average cost Solution Working: Cost of Goods Available for Sale: Date Units Rate Cost A B A*B Jan. 1 30 $ 124 $ 3,720 Jan. 10 60 $ 134 $ 8,040 Aug. 30 10 $ 140 $ 1,400 Dec. 12 100 $ 146 $ 14,600 Cost of Goods Available for Sale = $ 27,760 Cost of Merchandise Inventory and Cost of Merchandise Sold: 1 First-in, first-out (FIFO) : Cost of Merchandise Inventory: Date Units Rate Cost A B A*B Dec. 12 40 $ 146 $ 5,840 Cost of Merchandise Inventory: $ 5,840 Cost of Merchandise Sold Cost of Goods Available for Sale $ 27,760 Less: Cost of Merchandise Inventory: $ (5,840) Cost of Merchandise Sold $ 21,920 2 Last-in, first-out (LIFO) : Cost of Merchandise Inventory: Date Units Rate Cost A B A*B Jan. 1 30 $ 124 $ 3,720 Jan. 10 10 $ 134 $ 1,340 Cost of Merchandise Inventory: $ 5,060 Cost of Merchandise Sold Cost of Goods Available for Sale $ 27,760 Less: Cost of Merchandise Inventory: $ (5,060) Cost of Merchandise Sold $ 22,700 3 Weighted average cost: Cost of Goods Available for Sale $ 27,760 Total Units Available for Sale = 200 Weighted average cost per unit = 27760 /200 $ 138.80 Cost of Merchandise Inventory: = 40 units *138.80 = $ 5,552 Cost of Merchandise Sold Cost of Goods Available for Sale $ 27,760 Less: Cost of Merchandise Inventory: $ (5,552) Cost of Merchandise Sold $ 22,208 Working: Cost of Goods Available for Sale: Date Units Rate Cost A B A*B Jan. 1 30 $ 124 $ 3,720 Jan. 10 60 $ 134 $ 8,040 Aug. 30 10 $ 140 $ 1,400 Dec. 12 100 $ 146 $ 14,600 Cost of Goods Available for Sale = $ 27,760 Cost of Merchandise Inventory and Cost of Merchandise Sold: 1 First-in, first-out (FIFO) : Cost of Merchandise Inventory: Date Units Rate Cost A B A*B Dec. 12 40 $ 146 $ 5,840 Cost of Merchandise Inventory: $ 5,840 Cost of Merchandise Sold Cost of Goods Available for Sale $ 27,760 Less: Cost of Merchandise Inventory: $ (5,840) Cost of Merchandise Sold $ 21,920 2 Last-in, first-out (LIFO) : Cost of Merchandise Inventory: Date Units Rate Cost A B A*B Jan. 1 30 $ 124 $ 3,720 Jan. 10 10 $ 134 $ 1,340 Cost of Merchandise Inventory: $ 5,060 Cost of Merchandise S.

PROBLEM 5-5BPrepare a correct detailed multiple-step income stat.docx

jeffsrosalyn

PROBLEM 5-5B Prepare a correct detailed multiple-step income statement. Assume a tax rate of 25%. WRIGHT COMPANY Income Statement For the Month Ended December 31, 2014 Sales Revenues Account title Amount Account title Amount Account title Amount Net Sales Cost of goods sold Gross profit Amount Operating Expenses Account title Amount Account title Amount Account title Amount Account title Amount Account title Amount Account title Amount Account title Amount Total operating expenses Amount Income from operations Amount Other revenues and gains Account title Amount Other expenses and losses Account title Amount Amount (Total) Income before income taxes Income tax expense Net Income P5-5B An inexperienced accountant prepared this condensed income statement for Wright Company, a retail firm that has been in business for a number of years. WRIGHT COMPANY Income Statement For the Year Ended December 31, 2014 Revenues Net sales $952,000 Other revenues 16,000 968,000 Cost of goods sold 548,000 Gross profit 420,000 Operating expenses Selling expenses 160,000 Administrative expenses 104,000 264,000 Net earnings $156,000 As an experienced, knowledgeable accountant, you review the statement and determine the following facts. 1. Net sales consist of sales $972,000, less freight-out on merchandise sold $20,000. 2. Other revenues consist of sales discounts $12,000 and interest revenue $4,000. 3. Selling expenses consist of salespersons’ salaries $88,000; depreciation on equip- ment $4,000; sales returns and allowances $46,000; advertising $12,000; and sales commissions $10,000. All compensation should be recorded as Salaries and Wages Expense. 4. Administrative expenses consist of office salaries $54,000; dividends $14,000; utilities $13,000; interest expense $3,000; and rent expense $20,000, which includes prepayments totaling $2,000 for the first month of 2015. The utilities represent utilities paid. At December 31, utility expense of $3,000 has been incurred but not paid. Problem 6-2B (a) Determine the Cost of Goods Available for Sale Date Explanation Units Unit Cost Total Cost Total (b) Determine the ending inventory and cost of goods sold under each of the assumed cost flow methods. Prove the accuracy of the cost of goods sold under FIFO and LIFO. FIFO (1) Ending Inventory (2) Cost of Goods Sold Date Units Unit Cost Total Cost Cost of goods available for sale Amount Amount Amount Less: ending inventory Amount Amount Amount Total Amount Total Amount Cost of Goods Sold Amount Proof of Cost of Goods Sold (FIFO) Date Units Unit Cost Total Cost Amount Amount Amount Amount Amount Amount Amount Amount Total Amount Total Amount LIFO (1) Ending Inventory (2) Cost of Goods Sold Date Units Unit Cost Total Cost Cost of goods available for sale Amount Amount Amount Less: ending inventory Amount Amount Amount Total Amount Total Amount Cost of Goods Sold Amount Proof of .

Perpetual Inventory Using FIFOBeginning inventory, purchases, an.docx

rowthechang

Perpetual Inventory Using FIFO Beginning inventory, purchases, and sales data for portable DVD players are as follows: June 1 Inventory 64 units @ $95 6 Sale 52 units 14 Purchase 38 units @ $101 19 Sale 21 units 25 Sale 21 units 30 Purchase 35 units @ $108 The business maintains a perpetual inventory system, costing by the first-in, first-out method. Determine the cost of the merchandise sold for each sale and the inventory balance after each sale, presenting the data in the form illustrated in Exhibit 3. Hide a. Under FIFO, if units are in inventory at two different costs, enter the units with the LOWER unit cost first in the Cost of Merchandise Sold Unit Cost column and in the Inventory Unit Cost column. Cost of the Merchandise Sold Schedule First-in, First-out Method Portable DVD Players Date Quantity Purchased Purchases Unit Cost Purchases Total Cost Quantity Sold Cost of Merchandise Sold Unit Cost Cost of Merchandise Sold Total Cost Inventory Quantity Inventory Unit Cost Inventory Total Cost June 1 64 $ 95 $ 6,080 June 6 [removed] $ [removed] $ [removed] [removed] [removed] [removed] June 14 [removed] $ [removed] $ [removed] [removed] [removed] [removed] [removed] [removed] [removed] June 19 [removed] [removed] [removed] [removed] [removed] [removed] [removed] [removed] [removed] June 25 [removed] [removed] [removed] [removed] [removed] [removed] June 30 [removed] [removed] [removed] [removed] [removed] [removed] [removed] [removed] [removed] June 30 Balances $ [removed] $ [removed] Perpetual Inventory Using LIFO Beginning inventory, purchases, and sales data for portable DVD players are as follows: June 1 Inventory 43 units @ $53 6 Sale 33 units 14 Purchase 58 units @ $55 19 Sale 32 units 25 Sale 9 units 30 Purchase 33 units @ $58 The business maintains a perpetual inventory system, costing by the last-in, first-out method. Determine the cost of merchandise sold for each sale and the inventory balance after each sale, presenting the data in the form illustrated in Exhibit 4 . Hide Under LIFO, if units are in inventory at two different costs, enter the units with the HIGHER unit cost first in the Cost of Merchandise Sold Unit Cost column and LOWER unit cost first in the Inventory Unit Cost column. Schedule of Cost of Merchandise Sold LIFO Method Portable DVD Players Date Quantity Purchased Purchases Unit Cost Purchases Total Cost Quantity Sold Cost of Merchandise Sold Unit Cost Cost of Merchandise Sold Total Cost Inventory Quantity Inventory Unit Cost Invento.

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alue 0.83 points M7-6 Calculating Cost of Goods Available for Sale, E.pdf

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