Question
In: Accounting
During June, the following changes in inventory item 27 took place: June 1 Balance 1,420 units...
During June, the following changes in inventory item 27 took
place:
| June 1 | Balance | 1,420 units | @ $35 | |||
| 14 | Purchased | 870 units | @ $55 | |||
| 24 | Purchased | 700 units | @ $45 | |||
| 8 | Sold | 300 units | @ $74 | |||
| 10 | Sold | 1,120 units | @ $60 | |||
| 29 | Sold | 510 units | @ $65 | |||
Perpetual inventories are maintained.
What is the cost of the ending inventory for item 27 under the FIFO method?
Cost of the ending Inventory?
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$ What is the cost of the ending inventory for item 27 under the
LIFO method?
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Solutions
Expert Solution
Answer:
Perpectual Inventory System: FIFO
| 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 |
| June 1 | 1420 | $ 35.00 | $ 49,700.00 | ||||||
| June 8 | 300 | $ 35.00 | $ 10,500.0 | 1120 | $ 35.00 | $ 39,200.00 | |||
| June 10 | 1120 | $ 35.00 | $ 39,200.0 | 0 | $ - | $ - | |||
| June 14 | 870 | $ 55.00 | $ 47,850.00 | 870 | $ 55.00 | $ 47,850.00 | |||
| June 24 | 700 | $ 45.00 | $ 31,500.00 | 870 | $ 55.00 | $ 47,850.00 | |||
| 700 | $ 45.00 | $ 31,500.00 | |||||||
| June 29 | 510 | $ 55.00 | $ 28,050.0 | 360 | $ 55.00 | $ 19,800.00 | |||
| 700 | $ 45.00 | $ 31,500.00 | |||||||
| Total | 1570 | $ 79,350.00 | 1930 | $ 77,750.0 | 1,060 | $ 51,300.00 |
As from above working,
Cost of ending Inventory using FIFO method is $ 51,300
Perpectual 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 |
| June 1 | 1420 | $ 35.00 | $ 49,700.00 | ||||||
| June 8 | 300 | $ 35.00 | $ 10,500.0 | 1120 | $ 35.00 | $ 39,200.00 | |||
| June 10 | 1120 | $ 35.00 | $ 39,200.0 | 0 | $ - | $ - | |||
| June 14 | 870 | $ 55.00 | $ 47,850.00 | 870 | $ 55.00 | $ 47,850.00 | |||
| June 24 | 700 | $ 45.00 | $ 31,500.00 | 870 | $ 55.00 | $ 47,850.00 | |||
| 700 | $ 45.00 | $ 31,500.00 | |||||||
| June 29 | 510 | $ 45.00 | $ 22,950.0 | 870 | $ 55.00 | $ 47,850.00 | |||
| 190 | $ 45.00 | $ 8,550.00 | |||||||
 ekkarill92 answered 2 years agoRelated SolutionsDuring June, the following changes in inventory item 27 took place: June 1 Balance 1,470 units...During June, the following changes in inventory item 27 took
place:
June 1
Balance
1,470 units
@ $37
8
Sold
360 units
@ $70
10
Sold
1,110 units
@ $63
14
Purchased
890 units
@ $56
24
Purchased
680 units
@ $44
29
Sold
450 units
@ $65
Perpetual inventories are maintained.
a. What is the cost of the ending inventory for item 27 under
the FIFO method?
b. What is the cost of the ending inventory for item 27...
During June, the following changes in inventory item A took place: June 1 Balance 800...During June, the following changes in inventory item A took
place:
June 1 Balance 800 units @
$20
June 8 Sold 600
units @ $50
June 10 Purchased 800 units @ $21
June 14 Sold
700 units @ $50
June 24 Purchased 600 units @ $22
Instructions
What is the cost of goods sold and the ending inventory for item
A under the following methods? (Show calculations.)
A. Periodic
(a) FIFO
(b) LIFO
(c) Average...
Ranieri Company maintains perpetual inventories. During June, the following changes in inventory took place:
Ranieri Company maintains perpetual inventories. During June, the following changes in inventory took place:
6/1 Balance 1,200 units @ $3.00
6/7 Sold 700 units @ $12.00
6/10 Purchased 600 units @ $3.20
6/18 Purchased 1,000 units @ $3.30
6/19 Sold 1,900 units @ $12.00
6/24 Purchased 1,300 units @ $3.40
6/25 Sold 800 units @ $12.00
6/28 Purchased 1,500 units @...
During April, the following changes in the single inventory product took place: April 1 Balance &nbDuring April, the following changes in the single
inventory product took place:
April 1
Balance
1,400 units @ $24
8
Purchased
900 units @ $36
12
Purchased
700 units @ $30
24
Purchased
400 units @ $50
10
Sold
1,500 units @ $40
26
Sold
1,700 units @ $44
Calculate the COGS after each sales transaction and the
ending inventory after each transaction under the following
methods.
(a)
FIFO.
(b) Average Cost.
(round numbers...
During May the following changes in inventory took place: Show all calculations: May 1 Balance 1,100...During May the following changes in inventory took place: Show
all calculations:
May 1 Balance 1,100 units @ $25 = 27500
14 Purchases 800 units @ $36 =
28,800
24 Purchases 700 units @ $30 =
21,000
May 8
Sold
500 units @ $50
19
Sold
300 units @ $49
29
Sold
600 units @ $54
A physical count indicates that 1,200 units are on hand on May
31.
Part A: Assuming the company uses the perpetual method.
A. Compute the Cost...
Q3. During April, the following changes in the single inventory product took place: (1 mark). ...Q3. During April, the following changes
in the single inventory product took place: (1 mark).
April 1
Balance
1,400 units @ $24
8
Purchased
900 units @ $36
12
Purchased
700 units @ $30
24
Purchased
400 units @ $50
10
Sold
1,500 units @ $40
26
Sold
1,700 units @ $44
Calculate the COGS after each sales transaction and the
ending inventory after each transaction under the following
methods.
(a)
FIFO.
(b) Average...
The following activities took place in the work in process inventory account during April: Beginning Balance...The following activities took place in the work in process
inventory account during April:
Beginning Balance $15,000
Direct Materials Used $120,000
Total manufacturing labor incurred in April was $162,500, 80% of
this amount represented direct labor. The predetermined
manufacturing overhead rate is 120% of direct labor cost. Actual
manufacturing overhead costs for April amounted to $150,000.
Two jobs were completed with total costs of $120,000 and
$85,000, respectively. They were sold on account for $265,000 and
$155,000, respectively.
a) Compute...
The following units of an inventory item were available for sale during the year: Beginning inventory...The following units of an inventory item were available for sale
during the year:
Beginning inventory 7 units at $52
First purchase 15 units at $54
Second purchase 28 units at $55 T
hird purchase 16 units at $57
The firm uses the periodic inventory system. During the year, 26
units of the item were sold.
The value of ending inventory rounded to the nearest dollar
using average cost is (Round average cost per unit to three decimal
place.)
a.$1,462...
The following transactions took place during the month of June 2018 for Syarikat Bam Buu. Date...The following transactions took place
during the month of June 2018 for Syarikat Bam Buu.
Date
Particular
RM
June 1
Started business with RM20,000 in
bank.
7
Sold goods on credit to Syarikat Kam
Yuu
3,000
10
Paid shop rental by cheque
1,100
12
Syarikat Kam Yuu returned goods
500
15
Withdrew cash from bank for personal
use
1,200
18
Bought goods on credit from Syarikat
Pelangi
2,000
20
Purchased an equipment on credit from
Syarikat Awan
1,000
25
Returned...
Financial Statements of a Manufacturing Firm The following events took place for Salsa Inc. during June...Financial Statements of a Manufacturing Firm
The following events took place for Salsa Inc. during June 2016,
the first month of operations as a producer of road bikes:
Purchased $302,900 of materials.
Used $260,500 of direct materials in production.
Incurred $224,000 of direct labor wages.
Applied factory overhead at a rate of 75% of direct labor
cost.
Transferred $626,400 of work in process to finished goods.
Sold goods with a cost of $605,800.
Sold goods for $1,084,400.
Incurred $260,500 of...
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