Question

In: Accounting

The basic data are presented below for the three years covered by the example: Year 1-Year...

The basic data are presented below for the three years covered by the example: Year 1-Year 3. There were 40 units in beginning inventory at the start of Year 1. Each of these units had a cost basis of $30 per unit.

                                          Year 1                                                   Year 2                                                   Year 3

Purchases         Jan.22 120@$31                                Feb.15 210@$36                                Jun.20 280@$42

                                Mar.20 240@$32                               Apr. 20 180@$38                              Aug.30 300@$46

                                Jul.30 310@$33                                  Dec.17 100@$40

Sales                     Jan.11 20@$60                                   Jan.15 50@$70                                   Jul.16 220@$84

                                May 15 320@$60                              Jul.30 150@$90                                 Nov.20 250@$90

                                Nov.25 300@$65                               Dec.20 350@$90

Sales and purchases are the same numbers for a particular year regardless of the inventory method being used. Sales figures for Year 1-Year 3 are $39,900, $48,500 and $40,980, respectively. Purchases for the same three years, respectively, are $21,630, $18,400 and $25,560.

Ending inventories for each system and for each method will usually vary by year depending on the particular sequence of the purchases and the sales. There is one notable exception: FIFO will always produce the same result for the perpetual system as for the periodic system. [LIFO liquidation occurs during Year 2.]

Ending Inventories:

●Perpetual/Periodic FIFO Year 1                         $_____

■Perpetual LIFO Year 1                                      $_____

●Periodic LIFO Year 1                                        $_____

■Periodic Weighted Average Year 1                   $_____

●Perpetual Weighted Average Year 1                  $_____

Solutions

Expert Solution


Related Solutions

Below are three possible investments that follow a 5-year time horizon: 1. Invest in a basic...
Below are three possible investments that follow a 5-year time horizon: 1. Invest in a basic human resource information system: Cost: $300K Cash Flows: $150K each year for 5 years 2. Invest in a high-end human resource information system: Cost: $1 Million Cash Flows: $500K each year for 5 years 3. Invest in a talent acquisition function Cost: $500K Cash Flows: $250 K each year for 5 years. Assume that you will pay for one of these projects by withdrawing...
The Millard Division's operating data for the past two years are provided below: Year 1 Year...
The Millard Division's operating data for the past two years are provided below: Year 1 Year 2 Return on investment 10 % 24 % Net operating income ? $ 380,000 Turnover ? 4 Margin ? ? Sales $ 3,210,000 ? Millard Division's margin in Year 2 was 120% of the margin in Year 1. The net operating income for Year 1 was: Garrison 16e Rechecks 2017-10-31 Multiple Choice $385,200 $160,500 $192,600 $190,000 Last year a company had sales of $370,000,...
Presented below are data for Wildhorse Co.
Presented below are data for Wildhorse Co.20202021Assets, January 1$6835?Liabilities, January 1?$4109Stockholders' Equity, Jan. 1?$4117Dividends845974Common Stock917969Stockholders' Equity, Dec. 31?3402Net Income1016?Net income for 2021 is$715 loss.$207 income.$715 income.$259 loss.
1--Presented below are select financial data from Major Drug’s annual report: Amounts in millions Year 1...
1--Presented below are select financial data from Major Drug’s annual report: Amounts in millions Year 1 Year 2 Balance sheet Accounts receivable (net) $9,367 $13,765 Inventory 6,860 6,239 Income statement Net sales $52,716 $61,498 Cost of goods sold 7,541 8,525 What can be said about Major Drug’s accounts receivable turnover for Year 2? It improved from Year 1 to Year 2 Major Drug collected receivables less effectively in Year 2 as compared to Year 1 Fewer customers purchased items on...
1. Presented below is the basic accounting equation. Determine the missing amounts. Assets =Liabilities + Owner’s...
1. Presented below is the basic accounting equation. Determine the missing amounts. Assets =Liabilities + Owner’s Equit y (a) $90,000= $30,000 + ? (b) ? = $45000 + $70,000 (c) $94,000 = ? + $55,000 2 - Given the accounting equation, answer each of the following questions. (a) The liabilities of Weber Company are $120,000 and the owner’s equity is $232,000. What is the amount of Weber Company’s total assets? (b) The total assets of Weber Company are $190,000 and...
Discounted Cash Flow Valuation Presented below are data for Rom Com Truck: Forecast Year 1 2...
Discounted Cash Flow Valuation Presented below are data for Rom Com Truck: Forecast Year 1 2 3 4 5 Terminal No. of outstanding shares 500 500 500 500 500 500 Terminal year growth rate 4% Cost of common equity 10% 10% 10% 10% 10% 10% Net income $79 $94 $111 $130 $150 $157 Beginning of year common equity $649 $683 $720 $758 $797 $839 Free cash flow to common equity $44 $58 $73 $90 $108 $115 Compute the value of...
Discounted Cash Flow Valuation Presented below are data for Boso Audio: Forecast Year 1 2 3...
Discounted Cash Flow Valuation Presented below are data for Boso Audio: Forecast Year 1 2 3 4 5 Terminal No. of outstanding shares 500 500 500 500 500 500 Terminal year growth rate 4% Cost of common equity 9% 9% 9% 9% 9% 9% Net income $79 $94 $111 $130 $150 $157 Beginning of year common equity $649 $683 $720 $758 $797 $839 Free cash flow to common equity $44 $58 $73 $90 $108 $115 Compute the value of a...
Operating data for Navarro Corporation are presented below.
Operating data for Navarro Corporation are presented below.   Instructions Prepare a schedule showing a vertical analysis for 2017 and 2016.
Determine if the below researches are applied or basic Example 1: Apple's iPod fueled the company's...
Determine if the below researches are applied or basic Example 1: Apple's iPod fueled the company's success in recent years, helping to increase sales from $5 billion in 2001 to $32 billion in the fiscal year 2008 (which ended on September 30). Growth for the music player averaged more than 200% in 2006 and 2007, before falling to 6% in 2008. One reason for this decrease in sales is that iPod owners see little or no reason to upgrade, especially...
#1. Review the walk - in data presented below. Taxes are assumed to be 30%. Projections...
#1. Review the walk - in data presented below. Taxes are assumed to be 30%. Projections for 1st Year of Operations Revenues (10,000 visits) $ 400,000 Wages and benefits $ 220,000 Rent $ 5,000 Depreciation $ 30,000 Utilities $ 2,500 Medical supplies $ 50,000 Administrative supplies $ 10,000 Construct a projected P&L statements at volume levels of 8,000 units. What would be the total revenues for this projected volume of 8,000 units? #2. Review the walk-in data presented below. Taxes...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT