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Calculating LIFO Inventory Values The Mann Corporation began operations in 2015. Information relating to the company’s...
Calculating LIFO Inventory Values
The Mann Corporation began operations in 2015. Information relating to the company’s purchases of inventory and sales of products for 2015 and 2016 is presented below.
| 2015 | ||||||
|---|---|---|---|---|---|---|
| February 1 | Purchase | 200 | units | @ | $10 | per unit |
| May 1 | Sold | 120 | units | @ | $25 | per unit |
| August 1 | Purchase | 100 | units | @ | $14 | per unit |
| October 1 | Sold | 130 | units | @ | $25 | per unit |
| 2016 | ||||||
|---|---|---|---|---|---|---|
| February 1 | Purchase | 100 | units | @ | $16 | per unit |
| May 1 | Sold | 80 | units | @ | $30 | per unit |
| August 1 | Purchase | 100 | units | @ | $18 | per unit |
| October 1 | Sold | 100 | units | @ | $35 | per unit |
Calculate the LIFO cost of goods sold and ending inventory for 2015 and 2016 assuming use of (a) the peri- odic method and (b) the perpetual method.
a. LIFO Periodic. Round to nearest whole number.
| 2015 | |
|---|---|
| Cost of goods sold | $Answer |
| Ending inventory | $Answer |
| 2016 | |
|---|---|
| Cost of goods sold | $Answer |
| Ending inventory | $Answer |
b. LIFO Perpetual. Round to nearest whole number.
| 2015 | |
|---|---|
| Cost of goods sold | $Answer |
| Ending inventory | $Answer |
| 2016 | |
|---|---|
| Cost of goods sold | $Answer |
| Ending inventory | $Answer |
Solutions
ekkarill92 answered 1 year agoRelated Solutions
Calculating FIFO Inventory Values The Mann Corporation began operations in 2015. Information relating to the company’s...
Calculating FIFO Inventory Values
The Mann Corporation began operations in 2015. Information
relating to the company’s purchases of inventory and sales of
products for 2015 and 2016 is presented below.
2015
January 1
Purchase
200
units
@
$10
per unit
April 1
Sold
120
units
@
$25
per unit
July 1
Purchase
100
units
@
$14
per unit
September 1
Sold
130
units
@
$25
per unit
2016
January 1
Purchase
100
units
@
$16
per unit
April 1
Sold...
Calculating Weighted-Average Cost Inventory Values The Mann Corporation began operations in 2015. Information relating to the...
Calculating Weighted-Average Cost Inventory Values
The Mann Corporation began operations in 2015. Information
relating to the company’s purchases of inventory and sales of
products for 2015 and 2016 is presented below
2015
March 1
Purchase
200
units
@
$10
per unit
June 1
Sold
120
units
@
$25
per unit
September 1
Purchase
100
units
@
$14
per unit
November 1
Sold
130
units
@
$25
per unit
2016
March 1
Purchase
100
units
@
$16
per unit
June 1...
Calculating Weighted-Average Cost Inventory Values The Mann Corporation began operations in 2015. Information relating to the...
Calculating Weighted-Average Cost Inventory Values The Mann
Corporation began operations in 2015. Information relating to the
company’s purchases of inventory and sales of products for 2015 and
2016 is presented below 2015 March 1 Purchase 200 units @ $10 per
unit June 1 Sold 120 units @ $25 per unit September 1 Purchase 100
units @ $14 per unit November 1 Sold 130 units @ $25 per unit 2016
March 1 Purchase 100 units @ $16 per unit June 1...
The Mann Corporation began operations in 2011. Information relating to the company's purchases of inventory and...
The Mann Corporation began operations in 2011. Information
relating to the company's purchases of inventory and sales of
products for 2011 and 2012 is presented below.
2011
February 1 Purchase 200 units @ $20 per unit
May 1 Sold 120 units @ $50 per unit
August 1 Purchase 100 units @ $28 per unit October 1 Sold 130
units @ $50 per unit
2012
February 1 Purchase 100 units @ $32 per unit May 1 Sold 80 units
@ $60...
Calculating Weighted-Average Cost Inventory Values The Brattle Corporation began operations in 2018. Information relating to the...
Calculating Weighted-Average Cost Inventory Values
The Brattle Corporation began operations in 2018. Information
relating to the company’s purchases of inventory and sales of
products for 2018 and 2019 is presented below.
2018
March 1 Purchase 220 units @ $12 per unit
June 1 Sold 120 units @ $25 per unit
September 1 Purchase 100 units @ $15 per unit
November 1 Sold 130 units @ $25 per unit
2019
March 1 Purchase 70 units @ $16 per unit
June 1...
Calculating Weighted-Average Cost Inventory Values The Brattle Corporation began operations in 2018. Information relating to the...
Calculating Weighted-Average Cost Inventory Values The Brattle
Corporation began operations in 2018. Information relating to the
company’s purchases of inventory and sales of products for 2018 and
2019 is presented below. 2018 March 1 Purchase 220 units @ $12 per
unit June 1 Sold 120 units @ $25 per unit September 1 Purchase 100
units @ $15 per unit November 1 Sold 130 units @ $25 per unit 2019
March 1 Purchase 70 units @ $16 per unit June 1...
Fava Company began operations in 2015 and used the LIFO inventory method for both financial reporting...
Fava Company began operations in 2015 and used the LIFO
inventory method for both financial reporting and income taxes. At
the beginning of 2016, the anticipated cost trends in the industry
had changed, so that it adopted the FIFO method for both financial
reporting and income taxes. Fava reported revenues of $300,000 and
$270,000 in 2016 and 2015, respectively. Fava reported expenses
(excluding income tax expense) of $125,000 and $120,000 in 2016 and
2015, which included cost of goods sold...
Larkspur, Inc. values its inventory at the lower-of-LIFO-cost-or-market. The following information is available from the company’s...
Larkspur, Inc. values its inventory at the
lower-of-LIFO-cost-or-market. The following information is
available from the company’s inventory records as of December 31,
2020.
Item
Quantity
Unit
Cost
Replacement
Cost/Unit
Estimated Selling
Price/Unit
Completion & Disposal
Cost/Unit
Normal Profit
Margin/Unit
X490
12,444
$15.25
$14.58
$17.08
$3.66
$4.15
X512
6,039
8.54
9.15
10.86
0.31
2.20
X682
21,960
23.18
22.69
38.49
3.97
10.98
Z195
15,250
17.39
17.08
24.16
1.71
7.02
Z846
10,492
14.64
15.56
17.02
2.56
1.34
Calculate the lower-of-cost-or-market using the individual-item...
n 2017, Frost Company, which began operations in 2015, decided to change from LIFO to FIFO...
n 2017, Frost Company, which began operations in 2015, decided
to change from LIFO to FIFO because management believed that FIFO
better represented the flow of their inventory. Management prepared
the following analysis showing the effect of this change:
Ending Inventory
LIFO
FIFO
Cumulative Difference
12/31/2015
$240,000
$273,000
$33,000
12/31/2016
245,000
301,000
56,000
12/31/2017
256,000
328,000
72,000
Frost reported net income of $2,500,000, $2,400,000, and
$2,100,000 in 2015, 2016, and 2017, respectively. The tax rate is
30%.
Required:
1.
Prepare...
Skysong Company began operations in 2019 and determined its ending inventory at cost and at lower-of-LIFO...
Skysong Company began operations in 2019 and determined its
ending inventory at cost and at lower-of-LIFO cost-or-market at
December 31, 2019, and December 31, 2020. This information is
presented below:
Cost
Lower-of-Cost-or-Market
12/31/19
$332,620
$312,620
12/31/20
375,420
359,540
(a) Prepare the journal entries required at
December 31, 2019, and December 31, 2020, assuming that the
inventory is recorded at market, and a perpetual inventory system
(cost-of-goods-sold method) is used. (Credit account
titles are automatically indented when amount is entered. Do...
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