Question
In: Accounting
P6-2B The Piano Studio Ltd. has provided you with the following information with respect to its...
P6-2B
The Piano Studio Ltd. has provided you with the following information with respect to its piano inventory for the month of August. The company uses the specific identification cost formula.
|
Date |
Explanation |
Supplier |
Serial # |
Unit Cost/Price |
|
Aug. 1 |
Beginning inventory |
Yamaha |
YH6318 |
$1,800 |
|
Kawai |
KG1268 |
1,800 |
||
|
Kawai |
KG1520 |
900 |
||
|
Suzuki |
SZ5716 |
1,400 |
||
|
Suzuki |
SZ5828 |
1,900 |
||
|
Steinway |
ST8411 |
2,900 |
||
|
Steinway |
ST0944 |
2,500 |
||
|
10 |
Sales |
Suzuki |
SZ5828 |
3,000 |
|
Kawai |
KG1268 |
2,100 |
||
|
15 |
Purchases |
Yamaha |
YH4418 |
1,600 |
|
Yamaha |
YH5632 |
1,900 |
||
|
18 |
Sales |
Yamaha |
YH4418 |
2,400 |
|
Steinway |
ST8411 |
4,000 |
||
|
22 |
Purchases |
Suzuki |
SZ6132 |
2,100 |
|
Suzuki |
SZ6148 |
1,900 |
||
|
26 |
Sales |
Suzuki |
SZ6132 |
3,200 |
|
Yamaha |
YH6318 |
2,800 |
||
|
Yamaha |
YH5632 |
2,900 |
Instructions
(a) Determine the cost of goods sold and ending inventory for the month of August.
(b) Determine the gross profit for the month of August.
(c) Discuss whether the specific identification cost formula is likely the most appropriate cost determination cost formula for the Piano Studio. Explain why this is, or is not, the case.
Apply perpetual FIFO and average cost; compare effects.
Solutions
ekkarill92 answered 2 years agoRelated Solutions
P6-2B The Piano Studio Ltd. has provided you with the following information with respect to its...
P6-2B
The Piano Studio Ltd. has provided you
with the following information with respect to its piano inventory
for the month of August. The company uses the specific
identification cost formula.
Date
Explanation
Supplier
Serial #
Unit Cost/Price
Aug. 1
Beginning inventory
Yamaha
YH6318
$1,800
Kawai
KG1268
1,800
Kawai
KG1520
900
Suzuki
SZ5716
1,400
Suzuki
SZ5828
1,900
Steinway
ST8411
2,900
Steinway
ST0944
2,500
10
Sales
Suzuki
SZ5828
3,000
Kawai
KG1268
2,100
15
Purchases
Yamaha
YH4418
1,600
Yamaha
YH5632
1,900
18...
A. You are provided with the following information form the accounts of BBS Ltd for the...
A. You are provided with the following information form the
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services to be performed in August 2019 9 500 Rent expenses for
year ended 30 June 2019 9 000 Rent Prepaid for two months to 31
August 2019 1 200 Doubtful debts expenses 1 200 Amount provided in
2019 for employees’ long-service leave entitlements...
A. You are provided with the following information form the accounts of BBS Ltd for the...
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35 000
Amount received in advance for services to be performed in
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9 000
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1 200
Doubtful debts expenses
1 200
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Use the following information to answer questions 40 to 41: CDE Ltd has provided the following...
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July
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$,000
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Explanation
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Unit Price
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Beginning inventory
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Purchases
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89
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(130
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