Question

In: Accounting

In its first month of operation, Bonita Company purchased 150 units of inventory for $4, then...

In its first month of operation, Bonita Company purchased 150 units of inventory for $4, then 200 units for $5, and finally 140 units for $6. At the end of the month, 180 units remained.

(a1) Compute the amount of phantom profit that would result if the company used FIFO rather than LIFO. The company uses the periodic method.

The amount of phantom profit $ ?

Solutions

Expert Solution


Related Solutions

In its first month of operation, Crane Company purchased 100 units of inventory for $4, then...
In its first month of operation, Crane Company purchased 100 units of inventory for $4, then 200 units for $5, and finally 140 units for $6. At the end of the month, 180 units remained. (a1) Compute the amount of phantom profit that would result if the company used FIFO rather than LIFO. The company uses the periodic method.
In its first month of operation, Hoffman Company purchased 100 units of inventory for $6, then...
In its first month of operation, Hoffman Company purchased 100 units of inventory for $6, then 200 units for $7, and finally 140 units for $8. At the end of the month, 180 units remained. The company uses the periodic method. Compute the amount of phantom profit that would result if the company used FIFO rather than LIFO. Phantom Profit
Periodic Inventory System and Inventory Costing Methods During its first year of operation, Lux Company purchased...
Periodic Inventory System and Inventory Costing Methods During its first year of operation, Lux Company purchased 5,600 units of a product at $42 per unit. During the second year, it purchased 6,000 units of the same product at $48 per unit. During the third year, it purchased 5,000 units at $60 per unit. Lux managed to have an ending inventory each year of 1,000 units. The company uses the periodic inventory system. Prepare cost of goods sold statements that compare...
A company purchased 150 units of inventory for $20 each on January 31. On February 28,...
A company purchased 150 units of inventory for $20 each on January 31. On February 28, the company purchased another 200 units for $40 each. From March 1 through December 31, the company sold a total of 250 units for $110 each. Determine the Cost of Goods sold on the income statement on December 31, assuming the company uses the last-in, first-out inventory costing method.
Bonita Industries estimates its sales at 170000 units in the first quarter and that sales will...
Bonita Industries estimates its sales at 170000 units in the first quarter and that sales will increase by 13000 units each quarter over the year. They have, and desire, a 25% ending inventory of finished goods. Each unit sells for $35. 40% of the sales are for cash. 70% of the credit customers pay within the quarter. The remainder is received in the quarter following sale. Cash collections for the third quarter are budgeted at $5625200. $7820400. $3896900. $6778100.
1. Bonita Industries estimates its sales at 170000 units in the first quarter and that sales...
1. Bonita Industries estimates its sales at 170000 units in the first quarter and that sales will increase by 21000 units each quarter over the year. They have, and desire, a 25% ending inventory of finished goods. Each unit sells for $25. 40% of the sales are for cash. 70% of the credit customers pay within the quarter. The remainder is received in the quarter following sale. Cash collections for the third quarter are budgeted at a. $4346000. b. $5205500....
Crane Company had 450 units of “Dink” in its inventory at a cost of $4 each....
Crane Company had 450 units of “Dink” in its inventory at a cost of $4 each. It purchased, for $2350, 280 more units of “Dink”. Crane then sold 580 units at a selling price of $9 each, resulting in a gross profit of $1670. The cost flow assumption used by Crane FIFO LIFO Cannot be determined weighted average
Dozier Company produced and sold 1,000 units during its first month of operations. It reported the...
Dozier Company produced and sold 1,000 units during its first month of operations. It reported the following costs and expenses for the month: Direct materials $ 73,000 Direct labor $ 37,000 Variable manufacturing overhead $ 16,600 Fixed manufacturing overhead 29,200 Total manufacturing overhead $ 45,800 Variable selling expense $ 12,800 Fixed selling expense 19,600 Total selling expense $ 32,400 Variable administrative expense $ 4,400 Fixed administrative expense 25,800 Total administrative expense $ 30,200 Required: 1. With respect to cost classifications...
Dozier Company produced and sold 1,000 units during its first month of operations. It reported the...
Dozier Company produced and sold 1,000 units during its first month of operations. It reported the following costs and expenses for the month:Dozier Company produced and sold 1,000 units during its first month of operations. It reported the following costs and expenses for the month: Direct Material $77,000 Direct Labor $39,000 Variable Manufacturing Overhead $18,200 Fixed Manufacturing Overhead $30,400 Total Manufacturing Overhead $48,600 Variable Selling expense $13,600 Fixed Selling expense $21,200 Total Selling expense $34,800 Variable Administrative expense $4,800 Fixed...
Dozier Company produced and sold 1,000 units during its first month of operations. It reported the...
Dozier Company produced and sold 1,000 units during its first month of operations. It reported the following costs and expenses for the month: Direct materials $ 84,000 Direct labor $ 42,500 Variable manufacturing overhead $ 21,000 Fixed manufacturing overhead 32,500 Total manufacturing overhead $ 53,500 Variable selling expense $ 15,000 Fixed selling expense 24,000 Total selling expense $ 39,000 Variable administrative expense $ 5,500 Fixed administrative expense 28,000 Total administrative expense $ 33,500 Required: 1. With respect to cost classifications...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT