[removed]1.value15.00 pointsProblem 5-3A Perpetual Alt.docx

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[removed] 1. value: 15.00 points Problem 5-3A Perpetual: Alternative cost flows LO P1 Montoure Company uses a perpetual inventory system. It entered into the following calendar-year 2015 purchases and sales transactions. Date Activities Units Acquired at Cost Units Sold at Retail Jan. 1 Beginning inventory 600 units @ $ 35 per unit Feb. 10 Purchase 300 units @ $ 32 per unit Mar. 13 Purchase 150 units @ $ 20 per unit Mar. 15 Sales 725 units @ $ 80 per unit Aug. 21 Purchase 190 units @ $ 40 per unit Sept. 5 Purchase 540 units @ $ 37 per unit Sept. 10 Sales 730 units @ $ 80 per unit Totals 1,780 units 1,455 units Required: 1. Compute cost of goods available for sale and the number of units available for sale. 2. Compute the number of units in ending inventory. 3. Compute the cost assigned to ending inventory using ( a ) FIFO, ( b ) LIFO, ( c ) weighted average, and ( d ) specific identification. For specific identification units sold consist of 600 units from beginning inventory, 200 from the February 10 purchase, 150 from the March 13 purchase, 140 from the August 21 purchase, and 365 from the September 5 purchase. (Round your average cost per unit to 2 decimal places.) 4. Compute gross profit earned by the company for each of the four costing methods. (Round your average cost per unit to 2 decimal places.) References eBook & Resources Worksheet Difficulty: 3 Hard Problem 5-3A Perpetual: Alternative cost flows LO P1 Learning Objective: 05-P1 Compute inventory in a perpetual system using the methods of specific identification, FIFO, LIFO, and weighted average. Check my work © 2016 McGraw-Hill Education. All rights reserved. .

Education

10
Purchase
300
units
@
$
32
per unit
Mar.
13
Purchase
150
units
@
$
20
per unit
Mar.

15
Sales
725
units
@
$
80
per unit
Aug.
21
Purchase
190
units
@
$
40
per unit
Sept.

5
Purchase
540
units
@
$
37
per unit
Sept.
10
Sales
730
units
@
$
80
per unit

Required:
1.
Compute cost of goods available for sale and the number of
units available for sale.
2.
Compute the number of units in ending inventory.
3.
Compute the cost assigned to ending inventory using (
a
) FIFO, (
b
) LIFO, (
c
) weighted average, and (
d
) specific identification. For specific identification units sold

consist of 600 units from beginning inventory, 200 from the
February 10 purchase, 150 from the March 13 purchase, 140
from the August 21 purchase, and 365 from the September 5
purchase.
(Round your average cost per unit to 2 decimal places.)
4.
Compute gross profit earned by the company for each of the
four costing methods.
(Round your average cost per unit to 2 decimal places.)
References
eBook & Resources
Worksheet
Difficulty: 3 Hard
Problem 5-3A Perpetual: Alternative cost flows LO P1
Learning Objective: 05-P1 Compute inventory in a perpetual
system using the methods of specific identification, FIFO,
LIFO, and weighted average.
Check my work
©
2016 McGraw-Hill Education. All rights reserved.

[removed]1.value15.00 pointsProblem 5-3A Perpetual Alt.docx

Montoure Company uses a perpetual inventory system. It entered into the following calendar- year purchases and sales transactions. (For specific identification, units sold consist of 600 units from beginning inventory, 300 from the February 10 purchase, 200 from the March 13 purchase, 50 from the August 21 purchase, and 250 from the September 5 purchase.) Date Activities Units Acquired at Cost Units Sold at Retail Jan. 1 Beginning inventory 600 units @ $45.00 per unit Feb. 10 Purchase 400 units @ $42.00 per unit Mar. 13 Purchase 200 units @ $27.00 per unit Mar. 15 Sales 800 units @ $75.00 per unit Aug. 21 Purchase 100 units @ $50.00 per unit Sept. 5 Purchase 500 units @ $46.00 per unit Sept. 10 Sales 600 units @ $75.00 per unit Totals 1,800 units 1,400 units Required 1.Compute cost of goods available for sale and the number of units available for sale. 2.Compute the number of units in ending inventory. 3.Compute the cost assigned to ending inventory using (a) FIFO, (b) LIFO, (c) weighted average, and (d) specific identification. (Round all amounts to cents.) Check (3) Ending inventory: FIFO, $18,400; LIFO, $18,000; WA, $17,760 4.Compute gross profit earned by the company for each of the four costing methods in part 3. (4) LIFO gross profit, $45,800 Solution Answer Purchase Units Rate Amount Feb-10 400 42 16800 Mar-13 200 27 5400 Aug-21 100 50 5000 Sep-05 500 46 23000 Total 1200 50200 Sales Units Rate Amount Mar-15 800 75 60000 Sep-10 600 75 45000 0 Total 1400 105000 Cost of Goods Available for Sale = Opening Inventory + Purchases = 27000 + 50200 = $77,200 Closing Inventory = Opening Inventory + Purchased units - Sold Units = 600 + 1200 – 1400 = 400 units First, FIFO FIFO Opening + Purchases Cost of Goods Sold Closing Inventory Opening Jan 1 600 45.00 27000 600 45.00 27000.00 Feb 10 Purchase 400 42.00 16800 600 45.00 27000.00 400 42.00 16800.00 Mar 13 Purchase 200 27.00 5400 600 45.00 27000.00 400 42.00 16800.00 200 27.00 5400.00 Mar 15 Sales 600 45.00 27000 200 42.00 8400.00 200 42.00 8400 200 27.00 5400.00 Aug 21 purchased 100 50.00 5000 200 42.00 8400.00 200 27.00 5400.00 100 50.00 5000.00 Sept 5 Purchase 500 46.00 23000 200 42.00 8400.00 200 27.00 5400.00 100 50.00 5000.00 500 46.00 23000.00 Sep 10 Sales 200 42.00 8400 400 46.00 18400.00 200 27.00 5400 100 50.00 5000 100 46.00 4600 TOTAL 1800 77200 1400 58800 400 18400.00 Units Value Cost of Goods Sold 1400 58800 Closing Inventory 400 18400 LIFO Method LIFO Opening + Purchases Cost of Goods Sold Closing Inventory Opening Jan 1 600 45.00 27000 600 45.00 27000.00 Feb 10 Purchase 400 42.00 16800 600 45.00 27000.00 400 42.00 16800.00 Mar 13 Purchase 200 27.00 5400 600 45.00 27000.00 400 42.00 16800.00 200 27.00 5400.00 Mar 15 Sales 200 27.00 5400 400 45.00 18000.00 400 42.00 16800 0.00 200 45.00 9000 Aug 21 purchased 100 50.00 5000 400 45.00 18000.00 100 50.00 5000.00 0.00 Sept 5 Purchase 500 46.00 23000 400 45.00 18000.00 100 50.00 5000.00 500 46.00 23000.00 Sep 10 Sales 500 46.00 23000 400 4.

1.value5.00 pointsExercise 6-4 Income effects of inventory .docx

fredellsberry

1. value: 5.00 points Exercise 6-4 Income effects of inventory methods L.O. A1 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. 1. Complete comparative income statements for the month of March for Park Company for the four inventory methods. Assume expenses are $1,600, and that the applicable income tax rate is 30%. ( Round per unit costs to three decimal places. Round your answers to the nearest dollar amounts. Input all amounts as positive values. Omit the "$" sign in your response.) PARK COMPANY Income Statements For Month Ended March 31 Specific Identification Weighted Average FIFO LIFO Sales $ [removed] $ [removed] $ [removed] $ [removed] Cost of goods sold [removed] [removed] [removed] [removed] Gross profit [removed] [removed] [removed] [removed] Expenses [removed] [removed] [removed] [removed] Income before taxes [removed] [removed] [removed] [removed] Income tax expense [removed] [removed] [removed] [removed] Net income $ [removed] $ [removed] $ [removed] $ [removed] 2. Which method yields the highest net income? [removed] FIFO [removed] Weighted average [removed] Specific identification [removed] LIFO 3. Does net income using weighted average fall between that using FIFO and LIFO? [removed] Yes [removed] No 4. If costs were rising instead of falling, which method would yield the highest net income? [removed] Weighted average [removed] Specific identification [removed] LIFO [removed] FIFO Problem 6-1A Alternative cost flows-perpetual L.O. P1 [The following information applies to the questions displayed below.] Anthony Company uses a perpetual inventory system. It entered into the following purchases and sales transactions for March. Date Activities Units Acquired at Cost Units Sold at Retail Mar. 1 Beginning inventory 50 units @ $50/unit Mar. 5 Purchase 200 units @ $55/unit Mar. 9 Sales 210 units @ $85/unit Mar. 18 Purchase 60 units @ $60/unit Mar. 25 Purchase 100 units @ $62/unit Mar. 29 Sales 80 units @ $95/unit Totals 410 units 290 units references 2. value: 3.00 points Problem 6-1A Part 1 Required: 1. Compute cost of goods available f.

Lecture 3 - Inventory Valuation - A.ppsx

ghias26

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.

1. True or false. Unlike a merchandising business, a manufacturing

AbbyWhyte974

1. True or false. Unlike a merchandising business, a manufacturing business uses multiple inventory accounts to reflect the cost of raw materials, partially completed goods, and finished goods. TRUE FALSE 2.5 points QUESTION 2 1. For a manufacturing business, the finished goods inventory account reflects the cost of what? Shipping Partially completed goods Completed goods Raw materials 2.5 points QUESTION 3 1. Super Goods, an electronics retailer, purchases $80,000 worth of computers from a manufacturer in Taiwan. The terms of the purchase are FOB shipping point. Freight costs total $9,000. The goods are shipped on June 1 and delivered on June 15. On June 1, which two accounts should be debited by Super Goods in the following journal entry? Date Account Dr. Cr. 6-01-XX 80000.00 9000.00 Accounts Payable 89000.00 Inventory and Freight-out Accounts Receivable and Freight-out Inventory and Freight-in Accounts Receivable and Freight-in 2.5 points QUESTION 4 1. At the time of shipment, goods that are purchased FOB shipping point are reported on the seller's balance sheet. considered the responsibility of the buyer. designated as freight-out. categorized as partially completed inventory. 2.5 points QUESTION 5 1. On February 15, a buyer purchases $30,000 worth of goods from a manufacturer. The manufacturer offers the buyer a 3% discount ($900) if payment for the goods is made within 10 days. The buyer pays for the merchandise on February 20. In a journal entry, the seller should debit ________ and credit ________ for $900. Sales; Purchase Discounts Accounts Receivable; Sales Sales; Accounts Receivable Accounts Payable; Inventory 2.5 points QUESTION 6 1. A buyer receives a sales discount from a seller for paying for purchased goods within a specific period of time. In what way does the sales discount affects the buyer? Reducing freight-in costs Reducing the cost of inventory Increasing freight-out costs Increasing the cost of inventory 2.5 points QUESTION 7 1. For a manufacturing business, the __________ inventory account reflects the cost of products that have been manufactured and are ready to be sold. Raw materials Work-in-process Freight-in Finished goods 2.5 points QUESTION 8 1. Which term refers to goods that a merchandising business purchases and resells? Inputs Frieght Supplies Inventory 2.5 points QUESTION 9 1. On February 15, a buyer purchases $10,000 worth of goods from a manufacturer, who spent $5,000 to manufacture the goods. The terms of sale are FOB shipping point, and shipping costs are $800. The goods will be shipped on June 1. The manufacturer must make two journal entries on June 1. In the second journal entry, the manufacturer should debit ________ and credit ________. Date Account Dr. Cr. 6-01-XX Accounts Receivable 10,000.00 Cash 800.00 Sales 10,000.00 Date Account Dr. Cr. 6-01-XX 5,000.00 5,000.00 Cash; Cost of Goods Sold Cost of Goods Sold; ...

1. True or false. Unlike a merchandising business, a manufacturing

SantosConleyha

ACC 601 Managerial AccountingGroup Case 3 (160 points)Instru.docx

standfordabbot

ACC 601 Managerial Accounting Group Case 3 (160 points) Instructions: 1. As a group, complete the following activities in good form. Read the instructions for each question carefully. Provide all supporting calculations to show how you arrived at your numbers and to demonstrate your understanding of the concepts in each question. 2. Add only the names of group members who participated in the completion of this assignment. 3. Submit only one copy of your completed work via Moodle. Do not send it to me by email. 4. Due: No later than the last day of Module 7. Please note that your professor has the right to change the due date of this assignment. Part A: Capital Budgeting Decisions Chee Company has gathered the following data on a proposed investment project: Investment required in equipment $320,000 Annual cash inflows Year 1: $50,000 Year 2: 50,000 Year 3: 60,000 Year 4: 40,000 Year 5: 65,000 Year 6: 50,000 Year 7: 70,000 Year 8: 65,000 Salvage value $60,000 Life of the investment 8 years Required rate of return 10% Assets will be depreciated using straight line depreciation method Required: 1. Show all calculations in good form. Answers without supporting calculations will earn zero marks. 2. Calculate the annual incremental net income for all the eight (8) years. 3. Using the net present value and the internal rate of return methods, is this a good investment? Part B: Master Budget You have just been hired as a new management trainee by Earrings Unlimited, a distributor of earrings to various retail outlets located in shopping malls across the country. In the past, the company has done very little in the way of budgeting and at certain times of the year has experienced a shortage of cash. Since you are well trained in budgeting, you have decided to prepare a master budget for the upcoming second quarter. To this end, you have worked with accounting and other areas to gather the information assembled below. The company sells many styles of earrings, but all are sold for the same price—$10 per pair. Actual sales of earrings for the last three months and budgeted sales for the next six months follow (in pairs of earrings): January (actual) 30,000 June (budget) 45,000 February (actual) 20,000 July (budget) 40,000 March (actual) 50,000 August (budget) 30,000 April (budget) 70,000 September (budget) 20,000 May (budget) 95,000 Sufficient inventory should be on hand at the end of each month to supply 40% of the earrings sold in the following month. Suppliers are paid $3 for a pair of earrings. 40% of a month’s purchases is paid for in the month of purchase; the other 60% is paid for in the following month. All sales are on credit. Only 30% of a month’s sales are collected in the month of sale. An additional 60% is collected in the following month, and the remaining 10% is collected in the second month following sale. Monthly operating expenses .

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.

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.

Wcm (2)Chandan Kumar

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 ...

Homework 7 instructions help[The following informati.docx

adampcarr67227

Homework 7 instructions | help [The following information applies to the questions displayed below.] Near the end of 2013, the management of Dimsdale Sports Co., a merchandising company, prepared the following estimated balance sheet for December 31, 2013. DIMSDALE SPORTS COMPANY Estimated Balance Sheet December 31, 2013 Assets Cash $ 36,500 Accounts receivable 520,000 Inventory 105,000 Total current assets 661,500 Equipment $ 545,000 Less accumulated depreciation 68,125 Equipment, net 476,875 Total assets $ 1,138,375 Liabilities and Equity Accounts payable $ 370,000 Bank loan payable 14,000 Taxes payable (due 3/15/2014) 90,000 Total liabilities $ 474,000 Common stock 471,000 Retained earnings 193,375 Total stockholders’ equity 664,375 Total liabilities and equity $ 1,138,375 To prepare a master budget for January, February, and March of 2014, management gathers the following information. a. Dimsdale Sports’ single product is purchased for $20 per unit and resold for $53 per unit. The expected inventory level of 5,250 units on December 31, 2013, is more than management’s desired level for 2014, which is 20% of the next month’s expected sales (in units). Expected sales are: January, 7,250 units; February, 9,250 units; March, 10,500 units; and April, 10,000 units. b. Cash sales and credit sales represent 20% and 80%, respectively, of total sales. Of the credit sales, 63% is collected in the first month after the month of sale and 37% in the second month after the month of sale. For the December 31, 2013, accounts receivable balance, $130,000 is collected in January and the remaining $390,000 is collected in February. c. Merchandise purchases are paid for as follows: 20% in the first month after the month of purchase and 80% in the second month after the month of purchase. For the December 31, 2013, accounts payable balance, $75,000 is paid in January and the remaining $295,000 is paid in February. d. Sales commissions equal to 20% of sales are paid each month. Sales salaries (excluding commissions) are $72,000 per year. e. General and administrative salaries are $132,000 per year. Maintenance expense equals $2,100 per month and is paid in cash. f. Equipment reported in the December 31, 2013, balance sheet was purchased in January 2013. It is being depreciated over eight years under the straight-line method with no salvage value. The following amounts for new equipment purchases are planned in the coming quarter: January, $36,000; February, $95,000; and March, $29,000. This equipment will be depreciated under the straight-line method over eight years with no salvage value. A full month’s depreciation is taken for the month in which equipment is purchased. g. The company plans to acquire land at the end of March at.

Loss of stock 6

Dr Yashodhan Mithare

·NEWSStates Take Aim at Social Welfare Programs By Ti.docx

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