Question
In: Accounting
Units Cost/unit Feb. 1, 2017 Purchase 86 $36 Mar. 14, 2017 Purchase 149 $38 May 1,...
| Units | Cost/unit | |||||
| Feb. 1, 2017 | Purchase | 86 | $36 | |||
| Mar. 14, 2017 | Purchase | 149 | $38 | |||
| May 1, 2017 | Purchase | 106 | $39 |
The company sold 245 units at $50 each and has a tax rate of 30%.
Assuming that a periodic inventory system is used, what is the
company’s gross profit using LIFO? (rounded to whole dollars)
Solutions
Expert Solution
Periodic Inventory System: LIFO
| 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 |
| Feb 1, 2017 | 86 | $ 36.00 | $ 3,096.00 | 86 | $ 36.00 | $ 3,096.00 | |||
| Mar 14, 2017 | 149 | $ 38.00 | $ 5,662.00 | 86 | $ 36.00 | $ 3,096.00 | |||
| 149 | $ 38.00 | $ 5,662.00 | |||||||
| May 1, 2017 | 106 | $ 39.00 | $ 4,134.00 | 86 | $ 36.00 | $ 3,096.00 | |||
| 149 | $ 38.00 | $ 5,662.00 | |||||||
| 106 | $ 39.00 | $ 4,134.00 | |||||||
| 106 | $ 39.00 | $ 4,134.0 | 86 | $ 36.00 | $ 3,096.00 | ||||
| 139 | $ 38.00 | $ 5,282.0 | 10 | $ 38.00 | $ 380.00 | ||||
| Total | 341 | $ 12,892.00 | 245 | $ 9,416.0 | 96 | $ 3,476.00 |
Gross Profit = Total Sales - Cost of goods sold
= $ 12,250 - $ 9,416
= $ 2834
Thus, Company's Gross Profit using LIFO (Periodic Inventory System) is $ 2834.
Total Sales = Sold units * Selling price per unit
= 245 * $ 50
= $ 12,250
Note: Tax effect ignored as it will considered while calculation of Net Profit Margin. Tax is not considered for calculation of Gross Profit.
ekkarill92 answered 2 years agoRelated Solutions
Purchase Units Unit Cost Sold Units Beg.nventory &
Purchase Units Unit Cost Sold Units
Beg.nventory
3000
0.60$
Dec3
4000
0.74$
Dec5
4400
Dec17 2200 0.80$
Dec22 2100
Compute ending inventory and cost of goods sold using moving-
average cost, assuming the Company uses the perpetual inventory
system
Inventory records for Marvin Company revealed the following: Date Transaction Number of Units Unit Cost Mar....
Inventory records for Marvin Company revealed the following:
Date Transaction Number of Units Unit Cost Mar. 1 Beginning
inventory 960 $7.15 Mar. 10 Purchase 540 7.65 Mar. 16 Purchase 395
8.25 Mar. 23 Purchase 530 8.95 Marvin sold 1,790 units of inventory
during the month. Ending inventory assuming FIFO would be (Do not
round your intermediate calculations. Round your answer to the
nearest dollar amount): $5,610 $1,156 $6,864 $1,541
Inventory records for Marvin Company revealed the following: Date Transaction Number of Units Unit Cost Mar....
Inventory records for Marvin Company revealed the
following:
Date
Transaction
Number
of Units
Unit
Cost
Mar.
1
Beginning inventory
1,000
$
7.26
Mar.
10
Purchase
540
7.71
Mar.
16
Purchase
760
8.14
Mar.
23
Purchase
590
8.54
Marvin sold 1,910 units of inventory during the month. Cost of
goods sold assuming FIFO would be:
Inventory records for Marvin Company revealed the following: Date Transaction Number of Units Unit Cost Mar....
Inventory records for Marvin Company revealed the
following:
Date
Transaction
Number
of Units
Unit
Cost
Mar. 1
Beginning inventory
1,070
$7.29
Mar. 10
Purchase
580
7.79
Mar. 16
Purchase
445
8.39
Mar. 23
Purchase
550
9.09
Marvin sold 1,960 units of inventory during the month. Ending
inventory assuming FIFO would be
Date Transaction Units Cost Sell 1/1 Beginning inventory 1,700 $28 3/6 Sale 1,100 $38 6/26 Purchase...
Date Transaction Units Cost Sell 1/1 Beginning inventory 1,700
$28 3/6 Sale 1,100 $38 6/26 Purchase 3,100 29 8/2 Purchase 2,100 30
10/31 Sale 3,500 40
(e) Periodic system, weighted-average cost flow.
(f) Perpetual system, moving-average cost flow.
Tess Company's inventory records show the following data for the month of May: Units Unit Cost...
Tess Company's inventory records show the following data for the
month of May: Units Unit Cost Inventory, May 1 200 $2.00 Purchases:
May 8 200 3.00 May 15 100 4.00 The company uses a periodic
inventory system. A physical inventory on May 30 shows 150 units on
hand. Assuming FIFO (First-In-First-Out) inventory costing,
calculate the cost of goods sold. a. $1,100 b. $850 c. $700 d.
$980
Data: Date Item Units Cost per unit Dec. 1 Inventory 30 $12 Dec. 10 Purchase 60...
Data:
Date Item Units Cost per unit
Dec. 1 Inventory 30 $12
Dec. 10 Purchase 60 $13
Dec. 20 Purchase 40 $14
Dec. 12 Sale 40
Dec. 27 Sale 15
Required: (1) Find the ending inventory and the cost of goods
sold for December under the
periodic inventory system using the following inventory costing
methods.
(a) average cost
(b) FIFO
(2) Also find ending inventory and the cost of goods sold for
the month of December
under the perpetual inventory...
Henry Company reported the following information for 2017: TRANSACTIONS UNITS UNIT COST Beginning Inventory – January...
Henry Company reported the following information for 2017:
TRANSACTIONS UNITS
UNIT COST
Beginning Inventory – January 1 6,000 $ 3.00
Purchases
April 10 9,000 3.50
July 20 5,000 3.80
November 24 5,000 4.00
During 2017, Henry sold 12,000 units. The company uses a
periodic inventory system.
REQUIRED:
What is the value of ending inventory and cost of goods sold for
2017 under the following assumptions:
FIFO
LIFO
Weighted-Average
An organization reported the following: Units $ per unit Beginning Inventory 100 $2 1/1 Purchase on...
An organization reported the following:
Units
$ per unit
Beginning Inventory
100
$2
1/1 Purchase on account
1200
$3
1/14 Sell 600 units on account for $8/each
1/22 Purchase on account
900
$4
1/29 Sell 850 units on account for $9/each
A. Prepare the journal entries for above (using FIFO). Find the
ending inventory for 1/31 and gross profit for January.
B. Prepare the journal entries for above (using LIFO). Find the
ending inventory for 1/31 and gross profit for...
Units Per unit cost Beginning Inventory 200 $ 120.00 $ 24,000.00 30-Jan purchase 130 $ 124.00...
Units
Per unit cost
Beginning Inventory
200
$ 120.00
$ 24,000.00
30-Jan
purchase
130
$ 124.00
$ 16,120.00
12-Mar
purchase
220
$ 128.00
$ 28,160.00
Total
Sales
350
$ 320.00
$ 112,000.00
Ending Inventory
FIFO
LIFO
Ending Inventory
Ending Inventory
Goods Available for Sale
Goods Available for Sale
Deduct ending Inventory
Deduct ending Inventory
Cost of Goods Sold
Cost of Goods Sold
Sales
Sales
Cost of Goods Sold
Cost of Goods Sold
Gross Profit
Gross Profit
Operating Expense
$ 24,000.00...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- You are tasked with assessing the health department’s intervention program in preventing recurrence of acute alcohol...
- Compare the MOSFET, JFET , and BJT and identify the reasons these devices behave differently. What...
- How would you use SAS Enterprise Miner to create a neural network model of your example?
- Explain the use of neural networking modeling in predictive analytics.
- Current Market Mix of Netflix, as detail as possible, please.
- This is all one question, thank you so much in advance! You must evaluate a proposal...
- X Company is considering the purchase of a new processor that costs $200,000. Shipping and setup...
ADVERTISEMENT