Question
In: Accounting
Peeke Company uses the periodic method of accounting. Peeke Company has the following inventory information summarizing...
Peeke Company uses the periodic method of accounting. Peeke Company has the following inventory information summarizing activity during November:
|
Beginning Inventory |
100 units @ $30.00 per unit |
|
Purchase #1 |
60 units @ $35.00 per unit |
|
Purchase #2 |
40 units @ $40.00 per unit |
|
Ending Inventory (physical count) |
30 units |
Peeke's recorded 17,000 in Sales Revenue.
1. What cost is assigned to Peeke's ending inventory using Average Cost? Round interim computations to the nearest penny and your final answer to the nearest dollar.
| A. |
$1200 |
|
| B. |
$1005 |
|
| C. |
$900 |
|
| D. |
$6700 |
2. What is the cost assignment to Peeke’s COGS (cost of goods sold) using FIFO (First In First Out)?
| A. |
$5695 |
|
| B. |
$5500 |
|
| C. |
$5800 |
|
| D. |
$5650 |
3. What is Peeke’s cost of ending inventory using LIFO (Last In First Out)?
| A. |
$1200 |
|
| B. |
$5800 |
|
| C. |
$1050 |
|
| D. |
$900 |
4. What will Peeke report as gross margin for November assuming they use LIFO (Last In First Out)?
| A. |
$11200 |
|
| B. |
$5800 |
|
| C. |
$11500 |
|
| D. |
$5500 |
|
| E. |
$17000 |
5. What is the COGAS (cost of good available for sale) for November?
HINT: Remember, COGAS is sum of COGS and cost of ending inventory. This is the same regardless of if you are using FIFO, LIFO or Weighted Average, so you pick whichever one you'd like. It is the allocation of COGAS between COGS and EI that varies depending on the method employed.
| A. |
$9000 |
|
| B. |
$3800 |
|
| C. |
$6700 |
|
| D. |
$17000 |
Solutions
ekkarill92 answered 2 years agoRelated Solutions
Happy Company uses the periodic inventory method and had the following inventory information available:
Happy Company uses the periodic inventory method and had the
following inventory information available:
Units Unit Cost
Total Cost
1/1 Beginning
Inventory
100
$4
$400
1/20
Purchase
400
$6
$2400
7/25
Purchase
200
$7
$1400
10/20
Purchase
300
$8
$2400
1,000
$6,600
A physical county if inventory on December 31 revealed that
there were 400 units on hand
Answer questions below and show computations supporting the
answer:
Assume that the company uses the FIFO...
Anabtawi Company uses the periodic inventory method and had the following inventory information available: ( 8...
Anabtawi Company uses the periodic inventory method and had the
following inventory information available: ( 8 points)
Date
Explanation
Number of Units
Unit Cost
Total Cost
January 1
Beginning inventory
100
$4
$400
January 20
Purchase
400
$5
$2,000
July 25
Purchase
300
$6
$1,800
October 20
Purchase
200
$7
$1,400
Total
1000
$5,600
A physical count of inventory on December 31 revealed that there
were 300 units on hand.
Assume that the company uses the FIFO method. The Ending...
Anabtawi Company uses the periodic inventory method and had the following inventory information available: ( 8...
Anabtawi Company uses the periodic inventory method and had
the following inventory information available: ( 8 points)
Date
Explanation
Number of Units
Unit Cost
Total Cost
January 1
Beginning inventory
100
$4
$400
January 20
Purchase
400
$5
$2,000
July 25
Purchase
300
$6
$1,800
October 20
Purchase
200
$7
$1,400
Total
1000
$5,600
A physical count of inventory on December 31 revealed that
there were 300 units on hand.
Assume that the company uses the FIFO method. The Ending...
SJH Company uses the periodic inventory method and had the following inventory information available: &n
SJH Company uses the periodic inventory method and had the
following inventory information available:
Units
Unit
Cost
Total Cost
1/1 Beginning
Inventory
100
$4
$ 400
1/20
Purchase
400
$5
2,000
7/25
Purchase
200
$7
1,400
10/20
Purchase
300
$8
2,400
1,000
$6,200
A physical count of inventory on December 31 revealed that there
were 350 units on hand.
Instructions
Answer the following independent questions and show computations
supporting your answers.
Q. Assume that the
company uses...
Shanrock Company uses the periodic inventory method and had the following inventory information available: &nb
Shanrock Company uses the periodic inventory method and had the
following inventory information available:
Units
Unit
Cost
Total Cost
1/1 Beginning
Inventory
100
$4
$ 400
1/20
Purchase
400
$6
2,400
7/25
Purchase
200
$7
1,400
10/20
Purchase
300
$8
2,400
1,000
$6,600
A physical count of inventory on December 31 revealed that there
were 400 units on hand.
Instructions
Answer the following independent questions and show computations
supporting your answers.
Assume that the...
Flint Company uses the periodic inventory method and had the following inventory information available: Units Unit...
Flint Company uses the periodic inventory method and had the
following inventory information available:
Units
Unit
Cost
Total
Cost
1/1
Beginning Inventory
92
$4
$368
1/20
Purchase
460
$5
2,300
7/25
Purchase
92
$7
644
10/20
Purchase
276
$8
2,208
Total
920
$5,520
A physical count of inventory on December 31 revealed that there
were 322 units on hand.
Answer the following independent questions. (Round average
cost per unit to 2 decimal places, e.g. 5.25 and final answers to 0...
Hansen Company uses the periodic inventory method and had the following inventory information available: Units Unit...
Hansen Company uses the periodic inventory method and had the
following inventory information available:
Units
Unit Cost
Total Cost
1/1
Beginning Inventory
100
$3
$300
1/20
Purchase
500
$4
2,000
7/25
Purchase
100
$5
500
10/20
Purchase
300
$6
1,800
1,000
$4,600
A physical count of inventory on December 31 revealed that there
were 380 units on hand.
Answer the following independent questions.
1.
Assume that the company uses the FIFO method. The value of the
ending inventory at December...
Morton Company uses the periodic inventory method and had the following inventory information available: Units Unit...
Morton Company uses
the periodic inventory method and had the following inventory
information available:
Units
Unit Cost
Total Cost
1/1
Beginning Inventory
100
$4
$400
1/20
Purchase
400
$5
2,000
7/25
Purchase
200
$7
1,400
10/20
Purchase
300
$8
2,400
1,000
$6,200
A physical count of
inventory on December 31 revealed that there were 350 units on
hand.
Determine the
difference in the amount of income that the company would have
reported if it had used the FIFO method instead...
Crane Company uses a periodic inventory system and its accounting records include the following inventory information...
Crane Company uses a periodic inventory system and its
accounting records include the following inventory information for
the month of July:
Units
Unit Cost
Total Cost
July 1
Inventory on hand
150
$6.00
$900.00
12
Purchase
230
7.00
1,610.00
20
Sale
(250)
0
28
Purchase
490
9.00
4,410.00
A physical inventory count determined that 620 units were on hand
at July 31.
(a)
Calculate the ending inventory and the cost of goods sold under (1)
FIFO and (2) weighted average....
You have the following information for Sunland Company. Sunland uses the periodic method of accounting for...
You have the following information for Sunland Company. Sunland
uses the periodic method of accounting for its inventory
transactions. Sunland only carries one brand and size of
diamonds—all are identical. Each batch of diamonds purchased is
carefully coded and marked with its purchase cost.
March 1
Beginning inventory 150 diamonds at a cost of $300 per
diamond.
March 3
Purchased 200 diamonds at a cost of $340 each.
March 5
Sold 170 diamonds for $630 each.
March 10
Purchased 345...
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