Right Now Electronic Center began July with 65 units of merchandise inventory that cost $ 82...

Right Now Electronic Center began July with 65 units of merchandise inventory that cost $ 82 each. During July, the store made the following purchases:

Jul. 3 25 units @ $90 each

Jul. 12 30 units @ $90 each

Jul. 18 35 units @ $96 each

Right Now uses the periodic inventory system, and the physical count at July 31 indicates that 80 units of merchandise inventory are on hand.

Requirement 1. Determine the ending merchandise inventory and cost of goods sold amounts for the July financial statements using the FIFO, LIFO, and weighted-average inventory costing methods.

Requirement 2: Sales revenue for July totaled $ 28,000. Compute Right Now's gross profit for July using each method.

Requirement 3: Which method will result in the lowest income taxes for Right Now? Why? Which method will result in the highest net income for Right Now? Why?

Solutions

Expert Solution

ekkarill92 answered 1 year ago

Next > < Previous

Related Solutions

Lyon Center began operations on July 1. It uses a perpetual inventory system. During July, the...

Lyon Center began operations on July 1. It uses a perpetual inventory system. During July, the company had the following purchases and sales. Purchases Date Units Unit Cost Sales Units July 1 7 $62 July 6 5 July 11 3 $66 July 14 3 July 21 4 $71 July 27 3 New attempt is in progress. Some of the new entries may impact the last attempt grading.Your answer is incorrect. Calculate average cost for each unit. (For calculation and answers...

The Patel Merchandising Corporation began June operations with merchandise inventory of 14 units, each of which...

The Patel Merchandising Corporation began June operations with merchandise inventory of 14 units, each of which cost $130. During June, Patel Merchandising made the following purchases: (1) June 6, 26 units @ $132 per unit, (2) June 15, 28 units @ $136 per unit, (3) June 26, 32 units @ $140 per unit. During June the Company sold the following units at a sales price of $220 per unit: June 8, 18 units, June 20, 24 units, June 29, 30...

Athletic world began October with merchandise inventory of 72 crates of vitamins that cost a total...

Athletic world began October with merchandise inventory of 72 crates of vitamins that cost a total of $3600 During the month Athletic world purchased and sold merchandise on account as follows Data Table Oct 5th Purchase 120 crates @ 78 each 13 Sale 130 crates @ 98 each 18 Purchase 124 crates @ 90 each 26 Sale 130 crates @ 102 each Prepare a perpetual inventory record, using the FIFO inventory costingmethod, and determine the company's cost of goods sold,...

Athletic World began January with merchandise inventory of 95 crates that cost a total of $3800....

Athletic World began January with merchandise inventory of 95 crates that cost a total of $3800. During the month Athletic World purchased and sold merchandise as follows. Jan 5 Purchase 155 crates @ $71 each 13 Sale 180 crates @ $110 each 18 Purchase 193 crates @ 75 each 26 Sale 200 crates @ $114 each 1. Prepare a perpetual inventory record, using the FIFO inventory costingmethod, and determine the company's cost of goods sold, ending merchandise inventory, and gross...

Designer Furniture began June with merchandise inventory of 45 sofas that cost a total of $31,500....

Designer Furniture began June with merchandise inventory of 45 sofas that cost a total of $31,500. During the month, Designer Furniture purchased and sold merchandise on account as follows: June Purchas 25 sofas @ $750 each 14 Sal 30 sofas @ $1,150 each 18 Purchas 50 sofas @ $775 each 27 Sal 35 sofas @ $1,200 each Using the LIFO inventory costing method, and determine the company's cost of goods sold, ending merchandise inventory, and gross profit

Athletic World began October with merchandise inventory of 95 crates of vitamins that cost a total...

Athletic World began October with merchandise inventory of 95 crates of vitamins that cost a total of $3,800. During the month, Athletic World purchased and sold merchandise on account as follows: Oct. 5 Purchase 155 crates @ $71 each 13 Sale 180 crates @ $102 each 18 Purchase 193 crates @ $75 each 26 Sale 200 crates @ $118 each Begin by computing the cost of goods sold and cost of ending merchandise inventory using the FIFO inventory costing method....

Exercise World began January with merchandise inventory of 90 crates of vitamins that cost a total...

Exercise World began January with merchandise inventory of 90 crates of vitamins that cost a total of $5,850.00. During the month, Exercise World purchased and sold merchandise on account as follows: Jan 2 Purchase 130 crates @ $76 each 5 Sale 140 crates @ $ 100 each 16 Purchase 170 crates @ 86 each Calculate the cost of goods sold, using: LIFO, FIFO, and Weighted average methods (20 points)

Exercise World began January with merchandise inventory of 90 crates of vitamins that cost a total...

Periodic Inventory by Three Methods; Cost of Merchandise Sold The units of an item available for...

Periodic Inventory by Three Methods; Cost of Merchandise Sold The units of an item available for sale during the year were as follows: Jan. 1 Inventory 40 units @ $108 Mar. 10 Purchase 70 units @ $116 Aug. 30 Purchase 20 units @ $120 Dec. 12 Purchase 70 units @ $126 There are 80 units of the item in the physical inventory at December 31. The periodic inventory system is used. Determine the inventory cost and the cost of merchandise...

Periodic Inventory by Three Methods; Cost of Merchandise Sold The units of an item available for...

Periodic Inventory by Three Methods; Cost of Merchandise Sold The units of an item available for sale during the year were as follows: Jan. 1 Inventory 40 units @ $104 Mar. 10 Purchase 60 units @ $114 Aug. 30 Purchase 30 units @ $120 Dec. 12 Purchase 70 units @ $126 There are 80 units of the item in the physical inventory at December 31. The periodic inventory system is used. Determine the inventory cost and the cost of merchandise...

Subjects