Question

In: Accounting

Required information [The following information applies to the questions displayed below.] Jimmie’s Fishing Hole has the...

Required information [The following information applies to the questions displayed below.] Jimmie’s Fishing Hole has the following transactions related to its top-selling Shimano fishing reel for the month of June. Jimmie’s Fishing Hole uses a periodic inventory system. Date Transactions Units Unit Cost Total Cost June 1 Beginning inventory 16 $ 290 $ 4,640 June 7 Sale 11 June 12 Purchase 10 280 2,800 June 15 Sale 12 June 24 Purchase 10 270 2,700 June 27 Sale 8 June 29 Purchase 9 260 2,340 $ 12,480 3. Using LIFO, calculate ending inventory and cost of goods sold at June 30.

Solutions

Expert Solution

Ans. Total units sold (11 + 12 + 8)   =   31 units
LIFO: Cost of goods available for sale Cost of goods sold - Periodic LIFO Ending inventory - Periodic LIFO
Units Rate Total Units Rate Total Units Rate Total
Beginning inventory 16 $290.00 $4,640 2 $290.00 $580 14 $290.00 $4,060
Purchases:
12-Jun 10 $280.00 $2,800 10 $280.00 $2,800 0 $280.00 $0
24-Jun 10 $270.00 $2,700 10 $270.00 $2,700 $270.00
29-Jun 9 $260.00 $2,340 9 $260.00 $2,340 0 $260.00 $0
Total 45 $12,480 31 $8,420 14 $4,060
*In LIFO method the units that have purchased last, are released the first one and ending inventory units
remain from the first purchase.

Related Solutions

Required information [The following information applies to the questions displayed below.]    This firm has two...
Required information [The following information applies to the questions displayed below.]    This firm has two offices—one in Paris and one in Italy. The firm classifies the direct costs of consulting jobs as variable costs. A contribution format segmented income statement for the company’s most recent year is given: Office Total Company Paris Italy Sales $ 1,125,000 100.0 % $ 225,000 100 % $ 900,000 100 % Variable expenses 607,500 54.0 % 67,500 30 % 540,000 60 % Contribution margin...
Required information [The following information applies to the questions displayed below.] The following are the transactions...
Required information [The following information applies to the questions displayed below.] The following are the transactions for the month of July. Units Unit Cost Unit Selling Price July 1 Beginning Inventory 45 $ 10 July 13 Purchase 225 13 July 25 Sold (100 ) $ 15 July 31 Ending Inventory 170 Calculate cost of goods available for sale and ending inventory, then sales, cost of goods sold, and gross profit, under LIFO. Assume a periodic inventory system is used. LIFO...
Required information [The following information applies to the questions displayed below.] The following are the transactions...
Required information [The following information applies to the questions displayed below.] The following are the transactions for the month of July. Units Unit Cost Unit Selling Price July 1 Beginning Inventory 54 $ 10 July 13 Purchase 270 12 July 25 Sold (100 ) $ 16 July 31 Ending Inventory 224 Calculate cost of goods available for sale and ending inventory, then sales, cost of goods sold, and gross profit, under weighted average cost. Assume a periodic inventory system is...
Required information [The following information applies to the questions displayed below.] The following information is available...
Required information [The following information applies to the questions displayed below.] The following information is available for Lock-Tite Company, which produces special-order security products and uses a job order costing system. April 30 May 31 Inventories Raw materials $ 28,000 $ 52,000 Work in process 9,000 21,000 Finished goods 61,000 33,300 Activities and information for May Raw materials purchases (paid with cash) 181,000 Factory payroll (paid with cash) 200,000 Factory overhead Indirect materials 10,000 Indirect labor 46,000 Other overhead costs...
Required information [The following information applies to the questions displayed below.] The following information is available...
Required information [The following information applies to the questions displayed below.] The following information is available for Lock-Tite Company, which produces special-order security products and uses a job order costing system. April 30 May 31 Inventories Raw materials $ 46,000 $ 55,000 Work in process 9,000 19,600 Finished goods 62,000 33,300 Activities and information for May Raw materials purchases (paid with cash) 183,000 Factory payroll (paid with cash) 250,000 Factory overhead Indirect materials 11,000 Indirect labor 57,500 Other overhead costs...
A) Required information [The following information applies to the questions displayed below.] The following information pertains...
A) Required information [The following information applies to the questions displayed below.] The following information pertains to the inventory of Parvin Company during Year 2: Jan. 1 Beginning Inventory 400 units @ $ 30 Apr. 1 Purchased 2,000 units @ $ 35 Oct. 1 Purchased 600 units @ $ 38 During Year 2, Parvin sold 2,700 units of inventory at $90 per unit and incurred $41,500 of operating expenses. Parvin currently uses the FIFO method but is considering a change...
Required information [The following information applies to the questions displayed below.] The following information was reported...
Required information [The following information applies to the questions displayed below.] The following information was reported in the December 31, 2017, financial statements of National Airways, Inc. (listed alphabetically, amounts in millions). Accounts Payable $ 4,125 Accounts Receivable 710 Aircraft Fuel Expense 10,000 Cash 3,100 Common Stock 1,285 Dividends 20 Equipment 15,930 Income Tax Expense 320 Interest Expense 260 Landing Fees Expense 4,400 Notes Payable 7,015 Repairs and Maintenance Expense 2,500 Retained Earnings (as of December 31, 2017) 8,060 Salaries...
Required information [The following information applies to the questions displayed below.] The following information is available...
Required information [The following information applies to the questions displayed below.] The following information is available to reconcile Branch Company’s book balance of cash with its bank statement cash balance as of July 31, 2017.    On July 31, the company’s Cash account has a $25,752 debit balance, but its July bank statement shows a $27,446 cash balance. Check No. 3031 for $1,260 and Check No. 3040 for $622 were outstanding on the June 30 bank reconciliation. Check No. 3040...
Required information [The following information applies to the questions displayed below.] The following information is available...
Required information [The following information applies to the questions displayed below.] The following information is available to reconcile Branch Company’s book balance of cash with its bank statement cash balance as of July 31, 2017.    On July 31, the company’s Cash account has a $24,754 debit balance, but its July bank statement shows a $26,063 cash balance. Check No. 3031 for $1,110 and Check No. 3040 for $547 were outstanding on the June 30 bank reconciliation. Check No. 3040...
Question: Required information [The following information applies to the questions displayed below.] Fo... Required information [The...
Question: Required information [The following information applies to the questions displayed below.] Fo... Required information [The following information applies to the questions displayed below.] For many years, Yelena Company manufactured a single product called a Mono-Relay. Then three years ago, the company automated a portion of its plant and at the same time introduced a second product called a Bi-Relay that has become increasingly popular. The Bi-Relay is a more complex product, requiring 1.00 hour of direct labor time per...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT