Question

In: Accounting

Brief Exercise 6-35 (Algorithmic)Inventory Costing MethodsTyler Company has the following information related to purchases...

  1. Brief Exercise 6-35 (Algorithmic)
    Inventory Costing Methods

    Tyler Company has the following information related to purchases and sales of one of its inventory items.

    DateDescriptionUnits Purchased at CostUnits Sold at Retail
    Sept. 1Beginning inventory400 units @ $12
    Sept. 10Purchase600 units @ $13
    Sept. 20Sales
    700 units @ $22
    Sept. 25Purchase800 units at $15

    Assume the company uses a perpetual inventory system.

    Required:

    Calculate ending inventory and cost of goods sold using the FIFO, LIFO, and average cost methods.


    FIFOLIFOAvg Cost
    Cost of goods sold???
    Ending inventory???

Solutions

Expert Solution

FIFO LIFO AVERAGE COST
Cost of Goods Sold

(400*12)+(300*13)

= 8700

(600*13)+(100*12)

= 9000

(700*12.60) = 8820
Ending inventory

(300*13)+(800*15)

= 15,900

(300*12)+(800*15)

= 15,600

(14.35*1100)

= 15,780

Average cost per unit

= [(400*12)+(600*13)]/(400+600) = 12.60

= [(300*12.60)+(800*15)]/(300+800) = 14.35


Related Solutions

Brief Exercise 6-35 (Algorithmic) Inventory Costing Methods Tyler Company has the following information related to purchases...
Brief Exercise 6-35 (Algorithmic) Inventory Costing Methods Tyler Company has the following information related to purchases and sales of one of its inventory items. Date Description Units Purchased at Cost Units Sold at Retail Sept. 1 Beginning inventory 400 units @ $13 Sept. 10 Purchase 600 units @ $14 Sept. 20 Sales 680 units @ $24 Sept. 25 Purchase 600 units at $16 Assume the company uses a perpetual inventory system. Required: Calculate ending inventory and cost of goods sold...
Inventory Costing Methods Tyler Company has the following information related to purchases and sales of one...
Inventory Costing Methods Tyler Company has the following information related to purchases and sales of one of its inventory items. Date Description Units Purchased at Cost Units Sold at Retail Sept. 1 Beginning inventory 400 units @ $17 Sept. 10 Purchase 600 units @ $18 Sept. 20 Sales 700 units @ $31 Sept. 25 Purchase 700 units at $20 Assume the company uses a perpetual inventory system. Required: Calculate ending inventory and cost of goods sold using the FIFO, LIFO,...
Inventory Costing Methods Tyler Company has the following information related to purchases and sales of one...
Inventory Costing Methods Tyler Company has the following information related to purchases and sales of one of its inventory items. Date Description Units Purchased at Cost Units Sold at Retail Sept. 1 Beginning inventory 400 units @ $18 Sept. 10 Purchase 600 units @ $19 Sept. 20 Sales 630 units @ $32 Sept. 25 Purchase 800 units at $21 Assume the company uses a perpetual inventory system. Required: Calculate ending inventory and cost of goods sold using the FIFO, LIFO,...
Cornerstone Exercise 6-25 Effects of Inventory Costing Methods Filimonov Inc. has the following information related to...
Cornerstone Exercise 6-25 Effects of Inventory Costing Methods Filimonov Inc. has the following information related to purchases and sales of one of its inventory items: Date Description Units Purchased at Cost Units Sold at Retail June 1 Beginning Inventory 200 units @ $10 = $2,000 9 Purchase 1 300 units @ $12 = $3,600 14 Sale 1 400 units @ $25 22 Purchase 2 250 units @ $14 = $3,500 29 Sale 2 225 units @ $25 Required: 1. In...
Tyler Company has the following information related to purchases and sales of one of its inventory items.
Inventory Costing MethodsTyler Company has the following information related to purchases and sales of one of its inventory items.DateDescriptionUnits Purchased at CostUnits Sold at RetailSept. 1Beginning inventory400 units @ $16Sept. 10Purchase600 units @ $18Sept. 20Sales690 units @ $31Sept. 25Purchase800 units at $19Assume the company uses a perpetual inventory system.Required:Calculate ending inventory and cost of goods sold using the FIFO, LIFO, and average cost methods.FIFOLIFOAvg CostCost of goods sold$fill in the blank 1$fill in the blank 2$fill in the blank 3Ending...
Inventory Costing Methods: Periodic Inventory Systems. (Appendix 6B) Tyler Company has the following information related to...
Inventory Costing Methods: Periodic Inventory Systems. (Appendix 6B) Tyler Company has the following information related to purchases and sales of one of its inventory items. Date Description Units Purchased at Cost Units Sold at Retail Sept. 1 Beginning inventory 20 units @ $5 10 Purchase 30 units @ $8 20 Sales 40 units @ $15 25 Purchase 25 units at $10 Assume that the company uses the periodic inventory system. Required: Calculate the cost of goods sold and the cost...
Problem 6-63A Inventory Costing Methods Anderson's Department Store has the following data for inventory, purchases, and...
Problem 6-63A Inventory Costing Methods Anderson's Department Store has the following data for inventory, purchases, and sales of merchandise for December for one of the items the company sells: Activity Units Purchase Price (per unit) Sale Price (per unit) Beginning inventory 10 $6.00 Purchase 1, Dec. 2 22 6.80 Purchase 2, Dec. 5 26 7.50 Sale 1, Dec. 7 19 $12.00 Sale 2, Dec. 10 25 12.00 Purchase 3, Dec. 12 12 8.00 Sale 3, Dec. 14 20 12.00 Anderson's...
Exercise 5-3 Perpetual: Inventory costing methods LO P1 Laker Company reported the following January purchases and...
Exercise 5-3 Perpetual: Inventory costing methods LO P1 Laker Company reported the following January purchases and sales data for its only product. Date Activities Units Acquired at Cost Units sold at Retail Jan. 1 Beginning inventory 205 units @ $ 13.00 = $ 2,665 Jan. 10 Sales 165 units @ $ 22.00 Jan. 20 Purchase 140 units @ $ 12.00 = 1,680 Jan. 25 Sales 145 units @ $ 22.00 Jan. 30 Purchase 310 units @ $ 11.50 = 3,565...
Perpetual: Inventory costing with FIFO A company reports the following beginning inventory and two purchases for...
Perpetual: Inventory costing with FIFO A company reports the following beginning inventory and two purchases for the month of January. On January 26, the company sells 360 units. Ending inventory at January 31 totals 130 units.    Units Unit Cost Beginning inventory on January 1   320 $ 3.10 Purchase on January 9 70 3.30 Purchase on January 25 100 3.40    Required: Assume the perpetual inventory system is used and then determine the costs assigned to ending inventory when costs...
6. Periodic Inventory System and Inventory Costing Methods In chronological order, the inventory, purchases, and sales...
6. Periodic Inventory System and Inventory Costing Methods In chronological order, the inventory, purchases, and sales of a single product for a recent month are as follows: Units   Amount per Unit June 1 Beginning inventory 150 $30 4 Purchase 400   33 12 Purchase 800   36 16 Sale 1,300   60 24 Purchase 300   39 Using the periodic inventory system, compute the cost of ending inventory, cost of goods sold, and gross margin. Use the average-cost, FIFO, and LIFO inventory costing methods....
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT