Question
In: Accounting
Case D. Stewart Company reports the following inventory records for November: INVENTORY Date Activity #...
Case D. Stewart Company reports the following inventory records for November:
| INVENTORY | ||||
| Date | Activity | # of Units | Cost/Unit | |
| November 1 | Beginning balance | 125 | $ | 16 |
| November 4 | Purchase | 330 | 17 | |
| November 7 | Sale (@ $57 per unit) | 210 | ||
| November 13 | Purchase | 510 | 19 | |
| November 22 | Sale (@ $57 per unit) | 505 | ||
Selling, administrative, and depreciation expenses for the month were $15,500. Stewart’s tax rate is 30 percent.
1. Calculate the cost of ending inventory and the cost of goods sold under each of the following methods using periodic inventory system: (Do not round intermediate calculations.)
2-a. What is the gross profit percentage under the
FIFO method? (Round your percentage answer to 2 decimal
places (i.e. 0.1234 should be entered as 12.34).)
2-b. What is net income under the LIFO method?
3. Stewart applied the lower of cost or market method to value its inventory for reporting purposes at the end of the month. Assuming Stewart used the FIFO method and that inventory had a market replacement value of $18.10 per unit, what would Stewart report on the balance sheet for inventory?
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ekkarill92 answered 2 years agoRelated Solutions
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a.
$1,690
b.
$1,720.
c.
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Date Transaction Number of Units Unit Cost Mar. 1 Beginning
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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
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23
Purchase
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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
37. Inventory records for MOM Company revealed the following: Date Transaction Number of Units Unit Cost...
37. Inventory records for MOM Company revealed the
following:
Date
Transaction
Number
of Units
Unit
Cost
Mar. 1
Beginning inventory
200
$66.00
Mar. 6
Purchase
1,000
$66.50
Mar. 16
Purchase
1,000
$66.80
Mar. 23
Purchase
1,000
$66.90
MOM sold 3,190 units of inventory during the
month. Ending inventory assuming FIFO would be $______________
38. Inventory records for STC Company revealed the
following:
Date
Transaction
Number
of Units
Unit
Cost
Mar. 1
Beginning inventory
100
$25.00
Mar. 3
Purchase
500
$25.50...
Inventory Costing Methods—Periodic System Oxendine Company's inventory records for the month of November reveal the following:...
Inventory Costing Methods—Periodic System
Oxendine Company's inventory records for the month of November
reveal the following:
Inventory, November 1
200 units @ $18.00
November 4, purchase
250 units @ $18.50
November 7, sale
300 units @ $42.00
November 13, purchase
220 units @ $18.90
November 18, purchase
150 units @ $19.00
November 22, sale
380 units @ $42.50
November 24, purchase
200 units @ $19.20
November 28, sale
110 units @ $43.00
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The following inventory information for ABC Company is given
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November 1 Beginning inventory 740 units @ $2.20 cost per unit
November 7 Purchased 400 units @ $6.64 cost per unit
November 15 Sold 500 units
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November 28 Sold 600 units
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Culver Corporation uses a perpetual inventory system reports the following for the month of June. Date...
Culver Corporation uses a perpetual inventory system reports the
following for the month of June.
Date
Explanation
Units
Unit Cost
Total Cost
June 1
Inventory
140
$6
$840
12
Purchases
360
7
2,520
23
Purchases
230
8
1,840
30
Inventory
245
Calculate the average cost per unit, using a perpetual inventory
system. Assume a sale of 430 units occurred on June 15 for a
selling price of $9 and a sale of 55 units on June 27 for $10.
(Round...
Flounder Corp. uses a perpetual inventory system reports the following for the month of June. Date...
Flounder Corp. uses a perpetual inventory system reports the
following for the month of June.
Date
Explanation
Units
Unit Cost
Total Cost
June 1
Inventory
130
$4
$520
12
Purchases
390
5
1,950
23
Purchases
220
6
1,320
30
Inventory
240
Partially correct answer iconYour answer is partially
correct.
Calculate the average cost per unit, using a perpetual inventory
system. Assume a sale of 450 units occurred on June 15 for a
selling price of $7 and a sale of...
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