Question
In: Accounting
The following information was collected from the inventory records of a company for the month of...
The following information was collected from the inventory records of a company for the month of March, 2010. During March the company sold 90 units of its product at $25 per unit.
|
Date |
Units |
Unit Cost |
Total Cost |
|
|
Beginning inventory |
March 1 |
15 |
$10.00 |
$150 |
|
Purchase |
March 5 |
35 |
$12.00 |
$420 |
|
Purchase |
March 10 |
70 |
$14.00 |
$980 |
|
Purchase |
March 17 |
25 |
$15.00 |
$375 |
Determine cost of goods sold under LIFO for the
month of March.
answer choices: 1285, 640, 1130, 795
Solutions
Expert Solution
The cost of goods sold under LIFO for the month of March is calculated as follows:
| Date | Purchase | Sale | Ending Inventory | |
|---|---|---|---|---|
| March 1 | Begining | 15 units * $10 = $150 | ||
| March 5 | Purchase | 35 units * $12 = $420 | 15 units * $10 = $150 | |
| 35 units * $12 = $420 | ||||
| March 10 | Purchase | 70 units * $14 = $980 | 15 units * $10 = $150 | |
| 35 units * $12 = $420 | ||||
| 70 units * $14 = $980 | ||||
| March 17 | Purchase | 25 units * $15 = $375 | 15 units * $10 = $150 | |
| 35 units * $12 = $420 | ||||
| 70 units * $14 = $980 | ||||
| 25 units * $15 = $375 | ||||
| March 31 | Sale | 15 units * $10 = $150 | 30 units * $14 = $420 | |
| 35 units * $12 = $420 | 25 units * $15 = $375 | |||
| 40 units * $14 = $560 | ||||
| 55 units = $795 |
Ending Inventory = $795
Cost of goods sold under LIFO for the month of March is calculated as follows:
Cost of goods sold = Begining Inventory + Purchases - Ending Inventory
= $150 + ($420 + $980 + $375) - $795
= $150 + $1,775 - $795
= $1,130
Cost of goods sold under LIFO for the month of March is $1,130
So correct answer is an option (3) or $1,130
ekkarill92 answered 1 year agoRelated Solutions
The following information is taken from the inventory records of the CNB Company for the month...
The following information is taken from the inventory records of
the CNB Company for the month of September:
Beginning inventory, 9/1/2021
6,300
units @ $11.00
Purchases:
9/7
4,200
units @ $11.60
9/25
10,500
units @ $12.20
Sales:
9/10
5,000
units
9/29
6,000
units
10,000 units were on hand at the end of
September.
Required:
1. Assuming that CNB uses a periodic inventory
system and employs the average cost method, determine cost of goods
sold for September and September's ending inventory....
The following information is taken from the inventory records of the CNB Company for the month...
The following information is taken from the inventory records of
the CNB Company for the month of September:
Beginning inventory, 9/1/2021
7,000
units @ $10.00
Purchases:
9/7
3,000
units @ $11.00
9/25
10,000
units @ $11.50
Sales:
9/10
4,000
units
9/29
5,000
units
11,000 units were on hand at the end of
September.
Required:
1. Assuming that CNB uses a periodic inventory
system and employs the average cost method, determine cost of goods
sold for September and September's ending inventory....
The following information was available from the January inventory records of Rich Company:
The following information was available from the January
inventory records of Rich Company:
Units Unit
Cost Total Cost
Balance at January
1
800
$10.00
$8,000
Purchases:
January
6
600
11.00
6,600
January
26
800 12.00 9,600
Rich maintains a perpetual inventory system and
costs inventory using last-in, first-out (LIFO). Sales included:
900 units on Jan 7, and 600 units on Jan 31. All units sold for $20
each. Operating expenses were $500 for the month of January. Assume
a 40%...
The following information was taken from Macondo Company records for the year 2019. Raw Materials inventory,...
The following information was taken from Macondo Company records
for the year 2019.
Raw Materials inventory, 1/12/2019 $ 48,000
Raw Materials inventory, 12/31/209 39,600
Direct labor 139,250
Indirect labor 24,460
Depreciation, factory Machinery 16,000
Raw materials Purchases 96,400
Factory utilities Expense 27,600
Work in process inventory 1/12/2019 19,800
Work in process inventory 12/31/2019 18,600
Finished Goods inventory 1/12/2019 96,000
Finished Goods inventory 12/31/2019 75,900
Factory Property taxes Expense 9,600
Factory Repairs Expense 1,400
Factory Insurance Expense 4,600
Office Utilities Expense...
The following information was available from the inventory records of Anderson Corp. for January:
The following
information was available from the inventory records of Anderson
Corp. for January:
Units Unit
Cost
Balance at March
1
3,100
9.75
Purchases:
03/05/2016
2,000 10.50
03/25/2015
2,500 10.70
Sales:
03/08/2016
-2,750
03/30/2016
-3,500
Balance at March
31
1,350
Assuming that Anderson
maintains perpetual inventory records, what should be the inventory
at March 31, using the moving-average inventory method, rounded to
the nearest dollar?
Select one:
A. $13,851
B. $13,928
C. $14,016
D. $14,224
The following information is taken from the records of West End Distributors Inc. for the month...
The following information is taken from the records of West End
Distributors Inc. for the month ended May 31.
Units
Unit cost
May 1
6
12
19
29
Purchase #1
Purchase #2
Purchase #3
Purchase #4
Purchase #5
100
200
125
350
150
$1
1
2
2
3
At May 31, 200 units remain unsold. For specific identification
purposes, items on hand at May 31 were:
100 units of purchase #1
100 units of purchase #4
The other units were...
The following information was gathered from the records of Cooper Molecular Models Inc. for the month...
The following information was gathered
from the records of Cooper Molecular Models Inc. for the month
ended December 31, 2019.
Balance
December 1, 2019
Balance
December 31, 2019
Raw Materials
Inventory
$4,800
$3,960
Work In Process
Inventory
1,980
1,860
Finished Goods
Inventory
9,600
7,590
Direct Labour
$13,925
Accounts Receivable
2,700
Insurance on the factory
460
Depreciation on factory machines
1,600
Sales
53,400
Plant Manager’s salary
5,800
Raw material purchases
9,640
Factory property taxes
960
Cash
3,200
Required:
Prepare a schedule...
The inventory records of Ezra Corporation reflect the information shown below for the month of August....
The inventory records of Ezra Corporation reflect the
information shown below for the month of August. The company values
its inventory on a monthly periodic basis.
Date
Transaction
Number of Units
Cost per Unit
1
Beginning Inventory
400
$5.00
3
Purchase No. 1
400
$5.00
5
Sale No. 1
600
7
Sale No. 2
100
11
Purchase No. 2
1,000
$7.00
17
Sale No. 3
700
19
Purchase No. 3
1,000
$7.00
21
Sale No. 4
600
28
Sale No....
Larson Company employs a periodic inventory system and reported the following inventory information for the month...
Larson Company employs a periodic inventory system and reported the
following inventory information for the month of August:
August 1 Beginning inventory 2,600 units @ $27 cost per unit
August 6 Sold 1,100 units
August 15 Purchased 1,400 units @ $36 cost per unit
August 18 Sold 1,500 units
August 23 Purchased 900 units @ $29 cost per unit
August 26 Purchased 600 units @ $23 cost per unit
August 29 Sold 2,300 units
August 30 Purchased 1,500 units @...
The following cost and inventory data are taken from the accounting records of a Company for...
The following cost and inventory data are taken from the
accounting records of a Company for the year just completed:
Costs incurred:
Direct labor cost
................................................... $140,000
Purchases of raw materials ..................................
$236,000
Manufacturing overhead ......................................
$160,000
Advertising expense .............................................
$180,000
Sales salaries
.......................................................
$100,000
Depreciation, office equipment ............................
$6,000
Inventories: Beginning the Year End the Year
Raw materials ............................ $14,000 $30,000
Work in process .......................... $20,000 $10,000
Finished goods ............................ $40,000 $70,000
Required:
1. Prepare the cost of goods...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- Your company has just taken out a 5-year installment loan for $600,000 at a nominal rate...
- Create a table ‘StudentInfo’ with following fields: ID First Name Last Name SSN Date of Birth...
- I am looking for masters on Thermoluminescence dose response of the crystals grown naturally on rocks...
- I want to use public transportation/paratransit in my scenario thank you very much. Journey of the...
- Emerson Process Management, a global supplier of measurement, analytical, and monitoring instruments and services based in...
- Your firm is contemplating the purchase of a new $2,072,000 computer-based order entry system. The system...
- Using Antoine’s equation, derive an expression to calculate heats of vaporization as a function of the...
ADVERTISEMENT