Question

In: Accounting

Morton Company uses the periodic inventory method and had the following inventory information available: Units Unit...

Morton Company uses the periodic inventory method and had the following inventory information available:

Units Unit Cost Total Cost
1/1 Beginning Inventory 100 $4 $400
1/20 Purchase 400 $5 2,000
7/25 Purchase 200 $7 1,400
10/20 Purchase 300 $8 2,400
1,000 $6,200

A physical count of inventory on December 31 revealed that there were 350 units on hand.

Determine the difference in the amount of income that the company would have reported if it had used the FIFO method instead of the LIFO method. Would income have been greater or less?

Fill in the blank with the appropriate amount. Please give your answer in the following format: EXAMPLE: $3,000.

Solutions

Expert Solution


Related Solutions

Flint Company uses the periodic inventory method and had the following inventory information available: Units Unit...
Flint Company uses the periodic inventory method and had the following inventory information available: Units Unit Cost Total Cost 1/1 Beginning Inventory 92 $4 $368 1/20 Purchase 460 $5 2,300 7/25 Purchase 92 $7 644 10/20 Purchase 276 $8 2,208 Total 920 $5,520 A physical count of inventory on December 31 revealed that there were 322 units on hand. Answer the following independent questions. (Round average cost per unit to 2 decimal places, e.g. 5.25 and final answers to 0...
Hansen Company uses the periodic inventory method and had the following inventory information available: Units Unit...
Hansen Company uses the periodic inventory method and had the following inventory information available: Units Unit Cost Total Cost 1/1 Beginning Inventory 100 $3 $300 1/20 Purchase 500 $4 2,000 7/25 Purchase 100 $5 500 10/20 Purchase 300 $6 1,800 1,000 $4,600 A physical count of inventory on December 31 revealed that there were 380 units on hand. Answer the following independent questions. 1. Assume that the company uses the FIFO method. The value of the ending inventory at December...
Happy Company uses the periodic inventory method and had the following inventory information available:                          
Happy Company uses the periodic inventory method and had the following inventory information available:                                                              Units       Unit Cost           Total Cost 1/1       Beginning Inventory               100                  $4                    $400 1/20     Purchase                                  400                  $6                    $2400 7/25     Purchase                                  200                  $7                    $1400 10/20   Purchase                                  300                  $8                    $2400 1,000                                      $6,600 A physical county if inventory on December 31 revealed that there were 400 units on hand Answer questions below and show computations supporting the answer: Assume that the company uses the FIFO...
McGuire Metals Ltd uses the periodic inventory method and had the following inventory information available: Units...
McGuire Metals Ltd uses the periodic inventory method and had the following inventory information available: Units Unit Cost Unit Price 1st January Beginning inventory 38 $3 20th February Sale 15 $5 25th July Purchase 20 $4 20th October Purchase 10 $5.5 20th December Sale 30 $8 Required What would the Inventory amount be as reported on the balance sheet at 31 December 2019 if the perpetual LIFO method is used? Use the following template in your Word document file. Metro...
Anabtawi Company uses the periodic inventory method and had the following inventory information available: ( 8...
Anabtawi Company uses the periodic inventory method and had the following inventory information available: ( 8 points) Date Explanation Number of Units Unit Cost Total Cost January 1 Beginning inventory 100 $4 $400 January 20 Purchase 400 $5 $2,000 July 25 Purchase 300 $6 $1,800 October 20 Purchase 200 $7 $1,400 Total 1000 $5,600 A physical count of inventory on December 31 revealed that there were 300 units on hand. Assume that the company uses the FIFO method. The Ending...
Anabtawi Company uses the periodic inventory method and had the following inventory information available: ( 8...
Anabtawi Company uses the periodic inventory method and had the following inventory information available: ( 8 points) Date Explanation Number of Units Unit Cost Total Cost January 1 Beginning inventory 100 $4 $400 January 20 Purchase 400 $5 $2,000 July 25 Purchase 300 $6 $1,800 October 20 Purchase 200 $7 $1,400 Total 1000 $5,600 A physical count of inventory on December 31 revealed that there were 300 units on hand. Assume that the company uses the FIFO method. The Ending...
SJH Company uses the periodic inventory method and had the following inventory information available:                          &n
SJH Company uses the periodic inventory method and had the following inventory information available:                                                                Units              Unit Cost           Total Cost 1/1         Beginning Inventory                    100                    $4                $   400 1/20       Purchase                                     400                    $5                     2,000 7/25       Purchase                                     200                    $7                     1,400 10/20     Purchase                                  300                    $8                 2,400                                                                1,000                                           $6,200 A physical count of inventory on December 31 revealed that there were 350 units on hand. Instructions Answer the following independent questions and show computations supporting your answers. Q.  Assume that the company uses...
Shanrock Company uses the periodic inventory method and had the following inventory information available:                         &nb
Shanrock Company uses the periodic inventory method and had the following inventory information available:                                                                Units               Unit Cost           Total Cost 1/1         Beginning Inventory                    100                    $4                   $   400 1/20       Purchase                                     400                    $6                     2,400 7/25       Purchase                                     200                    $7                     1,400 10/20     Purchase                                     300                    $8                   2,400                                                                1,000                                           $6,600 A physical count of inventory on December 31 revealed that there were 400 units on hand. Instructions Answer the following independent questions and show computations supporting your answers.    Assume that the...
Consider the following information for Maynor Company, which uses a periodic inventory system: Transaction Units Unit...
Consider the following information for Maynor Company, which uses a periodic inventory system: Transaction Units Unit Cost Total Cost January 1 Beginning Inventory 21 $ 71 $ 1,491 March 28 Purchase 31 77 2,387 August 22 Purchase 42 81 3,402 October 14 Purchase 47 87 4,089 Goods Available for Sale 141 $ 11,369 The company sold 47 units on May 1 and 42 units on October 28. Required: Calculate the company's ending inventory and cost of goods sold using the...
Calvin Company uses a periodic inventory system. They had the following information concerning their inventory for...
Calvin Company uses a periodic inventory system. They had the following information concerning their inventory for the month of March. Units Cost Per Unit Beginning Inventory (March 1) 250 $12 Purchase (March 25th) 130 $13 Purchase (March 28th) 285 $15 Sale (March 30th) 350 1. If the company uses a FIFO inventory method, what will be COST OF GOODS SOLD for the month of March? (please only enter positive numbers) Use the same information as for Question 1 If the...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT