Question
In: Accounting
Gleem Sales Corporation uses the perpetual inventory system. On January 1, 2019, Gleem had: 2,600 units...
Gleem Sales Corporation uses the perpetual inventory system. On January 1, 2019, Gleem had: 2,600 units of product B with a unit cost of $40 per unit. A summary of purchases and sales during 2019 follows :
|
Unit |
Units |
Units |
|
|
Mar. 8 |
$44 |
3,000 |
|
|
June 13 |
4,000 |
||
|
Sept.19 |
50 |
800 |
|
|
Nov.23 |
55 |
1,200 |
|
|
Dec.28 |
2,800 |
Required
a. Assume that Gleem uses the first-in, first-out
method. Compute the cost of goods sold for 2019 and the
ending inventory balance at December 31, 2019, for product B.
B. Assume that Gleem uses the last-in, first-out
method. Compute the cost of goods sold for 2019 and the
ending inventory balance at December 31, 2019, for product B.
C. Assume that Gleem uses the weighted-average
cost method. Compute the cost of goods sold for 2019 and the ending
inventory balance at December 31, 2019, for product B.
Solutions
ekkarill92 answered 3 years agoRelated Solutions
During January, a company that uses a perpetual inventory system had beginning inventory, purchases, and sales...
During January, a company that uses a perpetual inventory system
had beginning inventory, purchases, and sales as follows :
Units
Cost per unit
Begin Inventory
100
12
Jan 5
Sale
50
10
Purchase
70
16
15
Sale
25
25
Sale
35
Required:
Prepare a schedule showing cost of goods sold and ending
inventory using weighted average.
Prepare a schedule showing cost of goods sold and ending
inventory using First In First Out.
C.
Compute gross profit under for
a...
During January, a company that uses a perpetual inventory system had beginning inventory, purchases, and sales...
During January, a company that uses a perpetual inventory system
had beginning inventory, purchases, and sales as follows :
Units
Cost per unit
Begin Inventory
100
12
Jan 5
Sale
50
10
Purchase
70
16
15
Sale
25
25
Sale
35
Required:
Prepare a schedule showing cost of goods sold and ending
inventory using weighted average.
Prepare a schedule showing cost of goods sold and ending
inventory using First In First Out
Compute gross profit under for a and b....
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...
Ranns Supply uses a perpetual inventory system. On January 1, its inventory account had a beginning...
Ranns Supply uses a
perpetual inventory system. On January 1, its inventory account had
a beginning balance of $6,900,000. Ranns engaged in the following
transactions during the year.
Purchased merchandise
inventory for $9,700,000.
Generated net sales of
$25,000,000.
Recorded inventory
shrinkage of $10,000 after taking a physical inventory at
year-end.
Reported gross profit
for the year of $15,000,000 in its income statement.
a. At
what amount was Cost of Goods Sold reported in the company's
year-end income statement?
b. At...
Salisbury Company uses the perpetual inventory system and had the following inventory & sales activity for...
Salisbury Company uses the perpetual inventory system
and had the following inventory & sales activity for the month
of May 2019:
Date
Activity
Quantity
Unit Price
5/1
Beginning Inventory
175
$12.00
5/5
Purchase
200
$10.50
5/10
Sales
300
$25
5/15
Purchase
200
$13.00
5/20
Sales
250
$28
5/25
Purchase
150
$13.50
Using the LIFO method, determine the dollar value for
Ending Inventory at the end of month of May. Round to the nearest
cent.
Walstrom Company uses a perpetual inventory system and had the following inventory transactions for June 2019....
Walstrom Company uses a perpetual inventory system and had the
following inventory transactions for June 2019. June 1 Beg.
Inventory 50 units @ $14 for $700, on June 4 Purchased 115 units @
$15 for $1,725, on June 5 Sold 100 units, on June 10 Purchased 75
units @ $16 for $1,200, and on June 24 Sold 50 units. Total Cost of
Goods Sold Available equals $3,625. The June 30th Ending Inventory
is 90 units. The June 30th ending inventory...
ernabe, Inc. uses the perpetual inventory system. On September 1, 2019, the inventory account in Bernabe,...
ernabe, Inc. uses the perpetual inventory
system. On September 1, 2019, the inventory account in Bernabe,
Inc.'s general ledger has a balance of $50,000 (assume normal
balance).
On September 19, 2019, Bernabe purchases $200,000 worth of
merchandise with credit terms
1/10, net 30.
On September 21, 2019, Bernabe returns $10,000 worth of defective
merchandise.
On September 24, 2019, Bernabe sells inventory having a cost of
$11,000 for a selling price of $22,000. Title of the goods
transferred to the buyer...
A corporation uses a FIFO perpetual inventory system. During August, it had the following transactions: August...
A corporation uses a FIFO perpetual inventory system. During
August, it had the following transactions: August 1, Beginning
inventory of 8 units @ $11 per unit August 2, 25 units were
purchased at $12 per unit. August 15, 12 units were sold at $25 per
unit. August 18, 15 units were purchased at $14 per unit. August
20. 18 units were sold at $25 per unit August 28. 14 units were
sold at $26 per unit What was the amount...
Stolte Trimble Corporation (STC) uses a perpetual inventory system. At the beginning of May, STC had...
Stolte Trimble Corporation (STC) uses a perpetual inventory
system. At the beginning of May, STC had 30 units of inventory, of
which 10 units were purchased in March for $60 per unit and 20
units were purchased in April for $66 per unit. STC uses its
perpetual inventory system to account for the following
transactions.
May
2
STC shipped 25 units of inventory to customers for $150 per
unit, on credit terms n/60, FOB shipping point.
May
4
STC purchased...
Stolte Trimble Corporation (STC) uses a perpetual inventory system. At the beginning of May, STC had...
Stolte Trimble Corporation (STC) uses a perpetual inventory
system. At the beginning of May, STC had 30 units of inventory, of
which 10 units were purchased in March for $60 per unit and 20
units were purchased in April for $66 per unit. STC uses its
perpetual inventory system to account for the following
transactions.
May
2
STC shipped 25 units of inventory to customers for $150 per
unit, on credit terms n/60, FOB shipping point.
May
4
STC purchased...
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