Question

In: Accounting

A company has beginning inventory of 17 units at a cost of $17 each on February...

A company has beginning inventory of 17 units at a cost of $17 each on February 1. On February 3, it purchases 27 units at $19 each. 21 units are sold on February 5. Using the FIFO periodic inventory method, what is the cost of the 21 units that are sold?

Solutions

Expert Solution

Cost of Goods Sold for 21 Units sold on 15 Feb
Date Qty Rate Amount
Beg.               17               17            289
Feb.3                 4               19               76
Total Cost of Goods sold               21            365
Cost of 21 units that are sold = $365
Note: We have taken 17 units at beg. Rate and 4 units at purchase rate of Feb.3 which means out of total 21 units which are sold. We took 17 units which were in our hand at the beginning of month and 4 units took from the purchase made on Feb.3
Do rate answer if satisfied, else feel free to ask query in comment box.

Related Solutions

EBECEDE Company has the following inventory transactions for the month of February: Units Unit Cost Beginning,...
EBECEDE Company has the following inventory transactions for the month of February: Units Unit Cost Beginning, Feb. 1 10,000 40 Purchases, Feb. 10 10,000 43 Sold, Feb. 15 15,000 Purchases, Feb. 18 5,000 44 Sold, Feb. 25 2,000 The company uses the perpetual inventory system. Determine the cost of inventory on February 29 and cost of goods sold under: Inventory Cost Flow Ending Inventory Cost of Goods Sold (COGS First in, first out (FIFO) Weighted Average Last in, first out...
A company has beginning inventory of 14 units at a cost of $12.00 each on October...
A company has beginning inventory of 14 units at a cost of $12.00 each on October 1. On October 5, it purchases 13 units at $13.00 per unit. On October 12 it purchases 23 units at $14.00 per unit. On October 15, it sells 39 units. Using the FIFO periodic inventory method, what is the value of the inventory at October 15 after the sale?
A company has beginning inventory of 15 units at a cost of $12 each on October...
A company has beginning inventory of 15 units at a cost of $12 each on October 1. On October 5, it purchases 10 units at $13 per unit. On October 12 it purchases 20 units at $14 per unit. On October 15, it sells 30 units. Using the FIFO periodic inventory method, what is the value of the inventory at October 15 after the sale?
Company Z had the beginning inventory of 500 units at $15 each. On February 1, they...
Company Z had the beginning inventory of 500 units at $15 each. On February 1, they purchased an additional 800 units at $18 each. On March 15, they sold 1000 units at $50 each. On June 1, they purchased another 600 units at $20 each. Lastly, on August 15, they sold another 500 units at $55 each. Calculate the company’s cost of goods sold using average cost. Assume the company uses the periodic method
A company has beginning inventory of 2 units at 10/each. In order: A purchase of 3...
A company has beginning inventory of 2 units at 10/each. In order: A purchase of 3 units at $13.00/each and then purchased 10 units at $15.00 each. The company sold 11 units at $25.00/each (on credit). Book all entries assuming FIFO. The terms were 2/10, N30. The customer paid within 5 days.
AU Company has the following inventory transactions for the month of March: Units Unit Cost Beginning,...
AU Company has the following inventory transactions for the month of March: Units Unit Cost Beginning, Mar. 1 10,000 15 Purchases, Mar. 10 20,000 18 Sold, Mar. 15 15,000 Purchases, Mar. 18 5,000 23 Sold, Mar. 25 6,000 The company uses the perpetual inventory system. Determine the cost of inventory on March 31 and cost of goods sold under: Inventory Cost Flow Ending Inventory Cost of Goods Sold First in, first out (FIFO) Moving Average Last in, first out (LIFO)
Grouper Ltd. had beginning inventory of 54 units that cost $102 each. During September, the company...
Grouper Ltd. had beginning inventory of 54 units that cost $102 each. During September, the company purchased 208 units on account at $102 each, returned 8 units for credit, and sold 153 units at $201 each on account. Correct answer iconYour answer is correct. Journalize the September transactions, assuming that Grouper Ltd. uses a perpetual inventory system. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry"...
A company has inventory of 10 units at a cost of $10 each on June 1....
A company has inventory of 10 units at a cost of $10 each on June 1. On June 3, it purchased 20 units at $12 each. 12 units are sold on June 5. Using the average-cost periodic inventory method, what is the cost of the 12 units that were sold? Select one: a.  $136. b.  $130. c.  $204. d.  $340.
A company has inventory of 15 units at a cost of $12 each on August 1....
A company has inventory of 15 units at a cost of $12 each on August 1. On August 5, they purchased 10 units at $13 per unit. On August 12 they purchased 20 units at $14 per unit. On August 15, they sold 30 units. Using the FIFO perpetual inventory method, what is the value of the inventory at August 15 after the sale? 140 160 210 380 590
Potter Company has the following data​ available: Transaction Units Purchased Unit Cost Units Sold Beginning Inventory...
Potter Company has the following data​ available: Transaction Units Purchased Unit Cost Units Sold Beginning Inventory 500 ​$10 March 1 Purchase 200 ​$12 April 25 Sale 350 June 10 Purchase 300 ​$14 July 20 Sale 250 October 30 Purchase 300 ​$15 December 15 Sale 400 If Potter Company uses a perpetual movingminus average inventory​ system, the cost of goods sold for the year is​ ________. ​ (Round average cost per unit to four decimal places and all other numbers to...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT