Question

32. Salmone Company reported the following purchases and sales of its only product. Salmone uses a perpetual inventory system. Determine the cost assigned to cost of goods sold using FIFO.

Date	Activities	Units Acquired at Cost	Units Sold at Retail
May 1	Beginning Inventory	220 units @ $17
5	Purchase	255 units @ $19
10	Sales		175 units @ $27
15	Purchase	135 units @ $20
24	Sales		125 units @ $28
55. Valeria Company reported the following purchases and sales for its only product. Valeria uses a periodic inventory system. Determine the cost assigned to cost of goods sold using LIFO. Date Activities Units Acquired at Cost Units Sold at Retail May 1 Beginning Inventory 320 units @ $17 5 Purchase 305 units @ $19 10 Sales 225 units @ $27 15 Purchase 185 units @ $20 24 Sales 175 units @ $28 70. A company has beginning inventory of 10 units at a cost of $12.50 each on October 1. On October 5, it purchases 11 units at $13.50 per unit. On October 12 it purchases 21 units at $14.50 per unit. On October 15, it sells 33 units. Using the FIFO periodic inventory method, what is the value of the inventory at October 15 after the sale? 77. Sam Company reported the following purchases and sales of its only product. Sam uses a periodic inventory system. Determine the cost assigned to cost of goods sold using FIFO. Date Activities Units Acquired at Cost Units Sold at Retail May 1 Beginning Inventory 250 units @ $10 5 Purchase 270 units @ $12 10 Sales 190 units @ $20 15 Purchase 150 units @ $13 24 Sales 140 units @ $21 87. Sal Company reported the following purchases and sales for its only product. Sal uses a perpetual inventory system. Determine the cost assigned to cost of goods sold using LIFO. Date Activities Units Acquired at Cost Units Sold at Retail May 1 Beginning Inventory 350 units @ $20 5 Purchase 320 units @ $22 10 Sales 240 units @ $30 15 Purchase 200 units @ $23 24 Sales 190 units @ $31

90. Craigmont uses the allowance method to account for uncollectible accounts. Its year-end unadjusted trial balance shows Accounts Receivable of $148,500, allowance for doubtful accounts of $1,105 (credit) and sales of $1,145,000. If uncollectible accounts are estimated to be 6% of accounts receivable, what is the amount of the bad debts expense adjusting entry?

96. A company had the following purchases and sales during its first year of operations:

	Purchases	Sales
January:	22 units at $180	14 units
February:	32 units at $185	12 units
May:	27 units at $190	16 units
September:	24 units at $195	15 units
November:	22 units at $200	28 units

On December 31, there were 42 units remaining in ending inventory. Using the Perpetual LIFO inventory valuation method, what is the cost of the ending inventory? (Assume all sales were made on the last day of the month.)

99. During the first week of January, an employee works 48 hours. For this company, workers earn 150% of their regular rate for hours in excess of 40 per week. Her pay rate is $10 per hour, and her wages are subject to no deductions other than FICA Social Security, FICA Medicare, and federal income taxes. The tax rate for Social Security is 6.2% of the first $118,500 earned each calendar year and the FICA tax rate for Medicare is 1.45% of all earnings. The current FUTA tax rate is 0.6%, and the SUTA tax rate is 5.4%. Both unemployment taxes are applied to the first $7,000 of an employee’s pay. The employee has $87 in federal income taxes withheld. What is the amount of this employee’s gross pay for the first week of January?

Answer 1

32 . Under FIFO method , if any goods are sold than it is assumed that it is sold out of the inventory purchased most earliest.

Therefore , in the given case following table shoes the cost of goods sold :-

Date of purchase of sold goods	units	unit cost	total cost
May 1-beginning	175	17	$2975
May 1	45	17	$765
	80 .(125-45)	19	$1520
Total	300		$5260

We got total cost of goods sold as $5260.

55. Under periodically LIFO method , the product that have been purchased in the last us considered to be sold first irrespective of the date of sale, since all reporting are do e in a periodic basis. Whereas in perpetual LIFO , the product that have been purchased last but prior to the respective sale is considered to have been sold.

Following table shows calculation of cost to fix goods sold as per periodic LIFO method

Date of purchase of sold goods	units	unit cost	total cost
May 15	175	20	3500
May 15	10	20	200
May 5	215 (225-10)	19	4085
Total	400		$7785

Total cost of goods sold for 400 units is $7785 as per periodic LIFO method

70. Under FIFO any sale of goods is from inventory which is purchased earliest. Thus, sale of 33 units will be assumed to be first out of beginning inventory of 10 units, then 11 units which were purchased on October 5 and remaining those which were purchased in October 12 (i.e. 33-10-11 = 12 units).

Thus, remaining units left from those which were purchased in October 12 = 21-12 = 9 units.

Unit cost = $14.5

Thus, cost of inventory remaining =9x$14.5 = $130.5

77 cost of goods sold as per FIFOethid is calculated as follows :-

Date of purchase of sold goods	units	unit cost	total cost
May 1 - beginning	140	10	1400
May 1 - beginning	110 (250-140)	10	1100
May 5 Total	80 . (190-110) 330	12	960 $3460

Total cost of goods sold = $3460.

87 . As per perpetual LIFO method, goods purchased immediately prior to sale is deemed to have been sold. Following table shows calculation of cost of goods sold :-

Date of purchase of sold goods	units	unit cost	total cost
May 5	240	22	$5280
May 15	190	23	$4370
Total	430		$9650

Total cost of goods sold as per perpetual LIFO method = $9650.

Note :- due to lack of time on board, I am able to solve this much . However I tried to solve more than min. Required from us. Still for remaining please upload with remaining portion, I will definitely do it then. Inconvenience caused is highly regret.