6 Rembrandt Artist Supplies Company had 10 easels in inventory on January 1, 2019 that cost...

6 Rembrandt Artist Supplies Company had 10 easels in inventory on January 1, 2019 that cost $10 per easel. On February 1, 2019 it acquired 20 additional easels valued at $12 per easel and acquired an additional 30 easels at $14 an easel on March 1, 2019. On June 1, 2019 Rembrandt made its only sale of easels for the year amounting to 40 easels.

What was the value of Rembrandt's ending inventory and cost of goods sold for the easels at the end of 2019 using the
a. average cost, b. FIFO and c. LIFO methods?

Expert Solution

a. Average Cost

b. FIFO

c. LIFO

I hope this clear your doubt.

Feel free to comment if you still have any query or need something else. I'll help asap.

Do give a thumbs up if you find this helpful.

ekkarill92 answered 1 year ago

PQR Corporation had an inventory of widgets on hand on January 1, 2016 which cost $10...

PQR Corporation had an inventory of widgets on hand on January 1, 2016 which cost $10 per widget. During 2016 PQR increased its widget inventory through two purchases. On February 1, PQR purchased another 1000 widgets at a cost of $13 per widget; and on September 1, 2016 it purchased another 1000 widgets at 15 per widget. There was only one sale of widgets during 2016. It occurred on December 11, 2016 when 1500 widgets were sold. What was the...

On January 1, 2019, Rowley Company purchased a truck that cost $55,000. The truck had an...

On January 1, 2019, Rowley Company purchased a truck that cost $55,000. The truck had an expected useful life of 5 years and a $5,000 salvage value. The amount of depreciation expense on the 2019 Income Statement assuming that Rowley uses the straight line method is: Group of answer choices $10,000 $11,000 $5,000 None of these 2. On January 1, 2018, Rowley Company purchased a truck that cost $50,000. The truck had an expected useful life of 5 years and...

Following is the information for the PHL Company for 2019: Inventory on January 1, 2019 8,000...

Following is the information for the PHL Company for 2019: Inventory on January 1, 2019 8,000 units x $6 $48,000 The company sold 10,000 units for $240,000 during the year 2019. The total purchases were 12,000 units @ $8 each and the total operating expenses were $25,000 during this period. A periodic method is used. Required: a) Determine the cost of goods sold and the ending inventory on December 31 using the FIFO method. b) Determine the COGS and inventory...

1a. Depot Company had 10 tons of sand in inventory on January 1, 2017 valued at...

1a. Depot Company had 10 tons of sand in inventory on January 1, 2017 valued at $70 per ton. On February 1, 2017 it acquired 20 tons valued at $80 per ton and an additional 30 tons at $100 a tons on March 1, 2018. On June 1 it made its only sale of sand for the year amounting to 40 tons. What was the ending inventory and cost of goods sold value for the sand that should be recorded...

Company A purchased a lathe on January 1, 2019, at a cost of $45,000. At the...

Company A purchased a lathe on January 1, 2019, at a cost of $45,000. At the time of purchase, the lathe was expected to have a five-year economic life and a residual value of $3,000. Company A uses straight-line depreciation. At the beginning of 2021, Company A estimated the lathe to have a remaining life of four years with no residual value. For the year ended December 31, 2021, Company A would report depreciation expense of: A. $6750 B. $7050...

On January 1, 2019, DAS Company authorized a $1,000,000, 10-year, 6% coupon bond, with annual interest...

On January 1, 2019, DAS Company authorized a $1,000,000, 10-year, 6% coupon bond, with annual interest to be paid each December 31. The market rate of interest at the time the bonds were issued was 9%. a) Show the journal entry to record the sale of the bonds. b) Prepare the journal entry on December 31, 2019, to record amortization for the year, assuming the straight-line method. Please show work / explain steps to the answer

A company has inventory of 10 units at a cost of $10 each on June 1....

A company has inventory of 10 units at a cost of $10 each on June 1. On June 3, it purchased 20 units at $12 each. 12 units are sold on June 5. Using the average-cost periodic inventory method, what is the cost of the 12 units that were sold? Select one: a. $136. b. $130. c. $204. d. $340.

BFI had $100 of office supplies at January 1, 2016 and purchased $2,000 of office supplies...

BFI had $100 of office supplies at January 1, 2016 and purchased $2,000 of office supplies during 2016. BFI has $750 of office supplies on the shelf at December 31, 2016. How much office supplies expense should BFI recognize in the Income Statement for the year ended December 31, 2016? 1. $1,350 2. $750 3. $2,100 4. $0 5. None of the above 2.5 points QUESTION 26 On June 1, 2016, BFI paid $4,000 for a 24-month insurance policy effective...

Gleem Sales Corporation uses the perpetual inventory system. On January 1, 2019, Gleem had: 2,600 units...

Gleem Sales Corporation uses the perpetual inventory system. On January 1, 2019, Gleem had: 2,600 units of product B with a unit cost of $40 per unit. A summary of purchases and sales during 2019 follows : Unit Cost Units Purchased Units Sold Mar. 8 $44 3,000 June 13 4,000 Sept.19 50 800 Nov.23 55 1,200 Dec.28 2,800 Required a. Assume that Gleem uses the first-in, first-out method. Compute the cost of goods sold for 2019 and the ending inventory...

Balotelli Co. had 3,000 units in its inventory on January 1, 2010. The unit cost of...

Balotelli Co. had 3,000 units in its inventory on January 1, 2010. The unit cost of goods in the beginning inventory is $9.77. Balotelli purchased 2,000 units on January 6 and 2,700 units on January 26. The unit costs for January 6 and January 26 purchases are $10.30 and $10.71, respectively. Balotelli sells 2,500 units on January 7 and 4,000 units on January 31. Assuming that Balotelli maintains periodic inventory records, what should be the inventory at January 31, using...

Question