Question
In: Accounting
Question 6 Jackpot Limited uses a perpetual inventory system. Inventory data for the year ended December...
Question 6
Jackpot Limited uses a perpetual inventory system. Inventory data for the year ended December 31, 2019, are as follows:
Beginning inventory 35 units at $130 each
February 28 purchase 25 units at $145 each
1st quarter sales 40 units
July 31 purchase 45 units at $115 each
2nd quarter sales 55 units
October 31 purchase 60 units at $125 each
Required
Determine the amounts to report for Cost of Goods Sold and Ending inventory using FIFO and the weighted-average cost method.
Solutions
Expert Solution
Calculation of Cost of Goods Sold and Ending inventory using perpetual inventory system is as follows:
FIFO:
| Date | Number of Units Purchased | Cost per Unit | Purchase Cost | Number of Units Sold | Cost per Unit | Cost of Goods Sold | Number of Units Balance | Cost per Unit | Inventory Balance |
| 35 | $ 130.00 | $ 4,550.00 | |||||||
| February 28 | 25 | $ 145.00 | $ 3,625.00 | 35 | $ 130.00 | $ 4,550.00 | |||
| 25 | $ 145.00 | $ 3,625.00 | |||||||
| 1st Quarter | 35 | $ 130.00 | $ 4,550.0 | 20 | $ 145.00 | $ 2,900.00 | |||
| 5 | $ 145.00 | $ 725.0 | |||||||
| July 31 | 45 | $ 115.00 | $ 5,175.00 | 20 | $ 145.00 | $ 2,900.00 | |||
| 45 | $ 115.00 | $ 5,175.00 | |||||||
| 2nd Quarter | 20 | $ 145.00 | $ 2,900.00 | 10 | $ 115.00 | $ 1,150.00 | |||
| 35 | $ 115.00 | $ 4,025.00 | |||||||
| October 31 | 60 | $ 125.00 | $ 7,500.00 | 10 | $ 115.00 | $ 1,150.00 | |||
| 60 | $ 125.00 | $ 7,500.00 | |||||||
| Total | 130 | $ 16,300.00 | 95 | $ 12,200.0 | 70 | $ 8,650.00 |
As per above table,
Cost of Goods Sold is $ 12,200
Ending Inventory is $ 8,650
Weighted-average cost method:
| Date | Number of Units Purchased | Cost per Unit | Purchase Cost | Number of Units Sold | Cost per Unit | Cost of Goods Sold | Number of Units Balance | Cost per Unit | Inventory Balance |
| 35 | $ 130.00 | $ 4,550.00 | |||||||
| February 28 | 25 | $ 145.00 | $ 3,625.00 | 35 | $ 130.00 | $ 4,550.00 | |||
| 25 | $ 145.00 | $ 3,625.00 | |||||||
| 60 | $ 136.25 | $ 8,175.00 | |||||||
| 1st Quarter | 40 | $ 136.25 | $ 5,450.0 | 20 | $ 136.25 | $ 2,725.00 | |||
| July 31 | 45 | $ 115.00 | $ 5,175.00 | 20 | $ 136.25 | $ 2,725.00 | |||
| 45 | $ 115.00 | $ 5,175.00 | |||||||
 ekkarill92 answered 1 year agoRelated SolutionsConcord Limited uses a perpetual inventory system. The inventory records show the following data for its...Concord Limited uses a perpetual inventory system. The inventory
records show the following data for its first month of
operations:
Date
Explanation
Units
Unit Cost
Total Cost
Balance in
Units
Aug.
2
Purchases
237
$73
$17,301
237
3
Purchases
475
97
46,075
712
10
Sales
(300
)
412
15
Purchases
894
122
109,068
1,306
25
Sales
(330
)
976
Calculate the cost of goods sold and ending inventory using the
FIFO cost method.
Cost of goods sold
$enter a dollar...
Grouper Limited uses a perpetual inventory system. The inventory records show the following data for its first month of operations:Grouper Limited uses a perpetual inventory system. The inventory
records show the following data for its first month of
operations:DateExplanationUnitsUnit CostTotal CostBalance in
UnitsAug.2Purchases251$72$18,0722513Purchases49810351,29474910Sales(300)44915Purchases902118106,4361,35125Sales(332)1,019Calculate the cost of goods sold and ending inventory using the
FIFO cost method.Cost of goods sold$enter a dollar amountEnding inventory$enter a dollar amount Calculate the cost of goods sold and ending inventory using the
average cost method. (Round average cost per unit and
final answers to 2 decimal places, e.g. 1.25.)Cost of goods sold$enter a dollar amountEnding...
The inventory data of Bilal Inc. is provided below, The company uses perpetual inventory system. Inventory:...The inventory data of Bilal Inc. is provided below, The company
uses perpetual inventory system.
Inventory: 1st March = 200 units @ $4.00 (purchased)
Purchases: 12th March = 500 units @ $4.50 (purchased)
15th March = 400 units @ $4.75 (purchased)
17th March = 828 units @ $5.00 (purchased)
Sales: 20th March = 1928 units sold
Instructions
Under a perpetual inventory system, determine the cost of goods
sold and ending inventory for the month of March under FIFO
method
CKL Limited Inc. uses a perpetual inventory system. During the month of April 2020, the following...CKL Limited Inc. uses a perpetual inventory system. During the
month of April 2020, the following transactions occurred.
On April 2, CKL purchased $300 of office supplies on account,
terms net 30 days.
On April 5, CKL sold $3,500 of merchandise to Wong Enterprises
on credit terms
of 2/15 net 30 days. The of the inventory was $1,750.
On April 7, CKL Limited purchased $4,900 of inventory from
VanCity
Wholesalers on terms of 1/15 net 30, FOB destination.
On April...
CKL Limited Inc. uses a perpetual inventory system. During the month of April 2020, the following...CKL Limited Inc. uses a perpetual inventory system.
During the month of April 2020, the following transactions
occurred.
On April 2, CKL purchased $300 of office supplies on account,
terms net 30 days.
On April 5, CKL sold $3,500 of merchandise to Wong Enterprises
on credit terms of 2/15 net 30 days. The of the inventory was
$1,750.
On April 7, CKL Limited purchased $4,900 of inventory from
VanCity Wholesalers on terms of 1/15 net 30, FOB destination.
On April...
Pot Limited (Ltd) uses a perpetual inventory system. The company concluded the following transactions for material...Pot Limited (Ltd) uses a perpetual inventory system. The company
concluded the following transactions for material PSR 1 during
April 2018:
Date
Information
01
Opening balance of materials: 2 000 units at R 1 per unit
03
Purchased 2 400 units at R 1.10 per unit
Transport cost (to be capitalised) R 100
04
Issued 3 200 units to production
06
Purchased 4 000 units at R 1.15 per unit
07
Returned to supplier, 120 defective units (bought on...
Question text Inventory Costing Methods—Perpetual Method Chou Sales Corporation uses the perpetual inventory system. On January...Question text
Inventory
Costing Methods—Perpetual Method
Chou Sales Corporation
uses the perpetual inventory system. On January 1, 2018, Chen had
1,000 units of product A with a unit cost of $20 per unit. A
summary of purchases and sales during 2018 follows:
Unit
Cost
Units
Purchased
Units
Sold
Feb.2
400
Apr.6
$22
1,800
July 10
1,600
Aug.9
25
800
Oct.23
800
Dec.30
28
1,400
Required
a. Assume that Chou uses the first-in, first-out method. Compute
the cost of goods sold...
The Lippert Company uses the perpetual inventory system. The following July data are for an item...The Lippert Company uses the perpetual inventory system. The
following July data are for an item in Lippert's inventory:
July
1
Beginning inventory
60
units @
$11
per unit
10
Purchased
80
units @
$12
per unit
15
Sold
90
units @
26
Purchased
55
units @
$13
per unit
Calculate the cost of goods sold for the July 15 sale using (a)
first-in, first-out, (b) last-in, first-out, and (c) the
weighted-average cost methods.
Round your final answers to the...
Jayson Products uses a perpetual inventory system. At year-end, the Inventory account had a balance of...Jayson Products uses a perpetual inventory system. At year-end,
the Inventory account had a balance of $280,000, but a complete
year-end physical inventory indicated goods on hand costing only
$273,000. Jayson should:
Inventory Costing Methods-Perpetual Method Fortune Stores uses the perpetual inventory system for its merchandise inventory. The...Inventory Costing Methods-Perpetual Method
Fortune Stores uses the perpetual inventory system for its
merchandise inventory. The April 1 inventory for one of the items
in the merchandise inventory consisted of 130 units with a unit
cost of $335. Transactions for this item during April were as
follows:
April
9
Purchased
40
units @
$355 per unit
14
Sold
80
units @
560 per unit
23
Purchased
20
units @
360 per unit
29
Sold
40
units
Required
a. Calculate the...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
ADVERTISEMENT
|