Question
In: Accounting
Carlson Auto Dealers Inc. sells a handmade automobile as its only product. Each automobile is identical;...
Carlson Auto Dealers Inc. sells a handmade automobile as its
only product. Each automobile is identical; however, they can be
distinguished by their unique ID number. At the beginning of 2018,
Carlson had three cars in inventory, as follows:
| Car ID | Cost | ||
| 203 | $ | 51,000 | |
| 207 | 51,000 | ||
| 210 | 54,000 | ||
During 2018, each of the three autos sold for $81,000. Additional
purchases (listed in chronological order) and sales for the year
were as follows:
| Car ID | Cost | Selling Price | ||||
| 211 | $ | 51,000 | $ | 81,000 | ||
| 212 | 51,000 | 84,000 | ||||
| 213 | 52,500 | not sold | ||||
| 214 | 54,000 | 87,000 | ||||
| 215 | 57,000 | 91,500 | ||||
| 216 | 58,500 | not sold | ||||
| 217 | 60,000 | 96,000 | ||||
| 218 | 60,300 | 97,500 | ||||
| 219 | 63,000 | not sold | ||||
Required:
1. Calculate 2018 ending inventory and cost of
goods sold assuming the company uses the specific identification
inventory method.
2. Calculate ending inventory and cost of goods
sold assuming FIFO and a periodic inventory system.
3. Calculate ending inventory and cost of goods
sold assuming LIFO and a periodic inventory system.
4. Calculate ending inventory and cost of goods
sold assuming the average cost method and a periodic inventory
system.
Solutions
Expert Solution
Solution 1:
| Specific identification (Periodic) | |||
| Particulars | Units | Cost per unit | Total |
| Beginning Inventory - CarID: | |||
| 203 | 1 | $51,000.00 | $51,000.00 |
| 207 | 1 | $51,000.00 | $51,000.00 |
| 210 | 1 | $54,000.00 | $54,000.00 |
| Purchases - Car ID: | |||
| 211 | 1 | $51,000.00 | $51,000.00 |
| 212 | 1 | $51,000.00 | $51,000.00 |
| 213 | 1 | $52,500.00 | $52,500.00 |
| 214 | 1 | $54,000.00 | $54,000.00 |
| 215 | 1 | $57,000.00 | $57,000.00 |
| 216 | 1 | $58,500.00 | $58,500.00 |
| 217 | 1 | $60,000.00 | $60,000.00 |
| 218 | 1 | $60,300.00 | $60,300.00 |
| 219 | 1 | $63,000.00 | $63,000.00 |
| Goods available for Sale | 12 | $663,300.00 | |
| Cost of goods sold - Car ID: | |||
| 203 | 1 | $51,000.00 | $51,000.00 |
| 207 | 1 | $51,000.00 | $51,000.00 |
| 210 | 1 | $54,000.00 | $54,000.00 |
| 211 | 1 | $51,000.00 | $51,000.00 |
| 212 | 1 | $51,000.00 | $51,000.00 |
| 214 | 1 | $54,000.00 | $54,000.00 |
| 215 | 1 | $57,000.00 | $57,000.00 |
| 217 | 1 | $60,000.00 | $60,000.00 |
| 218 | 1 | $60,300.00 | $60,300.00 |
| Total cost of goods sold | 9 | $489,300.00 | |
| Ending Inventory | 3 | $174,000.00 | |
Solution 2:
| FIFO (Periodic) | |||
| Particulars | Units | Cost per unit | Total |
| Beginning Inventory - CarID: | |||
| 203 | 1 | $51,000.00 | $51,000.00 |
| 207 | 1 | $51,000.00 | $51,000.00 |
| 210 | 1 | $54,000.00 | $54,000.00 |
| Purchases - Car ID: | |||
| 211 | 1 | $51,000.00 | $51,000.00 |
| 212 | 1 | $51,000.00 | $51,000.00 |
| 213 | 1 | $52,500.00 | $52,500.00 |
| 214 | 1 | $54,000.00 | $54,000.00 |
| 215 | 1 | $57,000.00 | $57,000.00 |
| 216 | 1 | $58,500.00 | $58,500.00 |
| 217 | 1 | $60,000.00 | $60,000.00 |
| 218 | 1 | $60,300.00 | $60,300.00 |
| 219 | 1 | $63,000.00 | $63,000.00 |
| Goods available for Sale | 12 | $663,300.00 | |
| Cost of goods sold - Car ID: | |||
| 203 | 1 | $51,000.00 | $51,000.00 |
| 207 | 1 | $51,000.00 | $51,000.00 |
| 210 | 1 | $54,000.00 | $54,000.00 |
| 211 | 1 | $51,000.00 | $51,000.00 |
| 212 | 1 | $51,000.00 | $51,000.00 |
| 213 | 1 | $52,500.00 | $52,500.00 |
| 214 | 1 | $54,000.00 | $54,000.00 |
| 215 | 1 | $57,000.00 | $57,000.00 |
| 216 | 1 | $58,500.00 | $58,500.00 |
| Total cost of goods sold | 9 | $480,000.00 | |
| Ending Inventory | 3 | $183,300.00 | |
Solution 3:
| LIFO (Periodic) | |||
| Particulars | Units | Cost per unit | Total |
| Beginning Inventory - CarID: | |||
| 203 | 1 | $51,000.00 | $51,000.00 |
| 207 | 1 | $51,000.00 | $51,000.00 |
| 210 | 1 | $54,000.00 | $54,000.00 |
| Purchases - Car ID: | |||
| 211 | 1 | $51,000.00 | $51,000.00 |
| 212 | 1 | $51,000.00 | $51,000.00 |
| 213 | 1 | $52,500.00 | $52,500.00 |
| 214 | 1 | $54,000.00 | $54,000.00 |
| 215 | 1 | $57,000.00 | $57,000.00 |
| 216 | 1 | $58,500.00 | $58,500.00 |
| 217 | 1 | $60,000.00 | $60,000.00 |
| 218 | 1 | $60,300.00 | $60,300.00 |
| 219 | 1 | $63,000.00 | $63,000.00 |
| Goods available for Sale | 12 | $663,300.00 | |
| Cost of goods sold - Car ID: | |||
| 211 | 1 | $51,000.00 | $51,000.00 |
| 212 | 1 | $51,000.00 | $51,000.00 |
| 213 | 1 | $52,500.00 | $52,500.00 |
| 214 | 1 | $54,000.00 | $54,000.00 |
| 215 | 1 | $57,000.00 | $57,000.00 |
| 216 | 1 | $58,500.00 | $58,500.00 |
| 217 | 1 | $60,000.00 | $60,000.00 |
| 218 | 1 | $60,300.00 | $60,300.00 |
| 219 | 1 | $63,000.00 | $63,000.00 |
| Total cost of goods sold | 9 | $507,300.00 | |
| Ending Inventory | 3 | $156,000.00 | |
Solution 4:
| Weighted Average (Periodic) | |||
| Particulars | Units | Cost per unit | Total |
| Beginning Inventory - CarID: | |||
| 203 | 1 | $51,000.00 | $51,000.00 |
| 207 | 1 | $51,000.00 | $51,000.00 |
| 210 | 1 | $54,000.00 | $54,000.00 |
| Purchases - Car ID: | |||
| 211 | 1 | $51,000.00 | $51,000.00 |
| 212 | 1 | $51,000.00 | $51,000.00 |
| 213 | 1 | $52,500.00 | $52,500.00 |
| 214 | 1 | $54,000.00 | $54,000.00 |
| 215 | 1 | $57,000.00 | $57,000.00 |
| 216 | 1 | $58,500.00 | $58,500.00 |
| 217 | 1 | $60,000.00 | $60,000.00 |
| 218 | 1 | $60,300.00 | $60,300.00 |
| 219 | 1 | $63,000.00 | $63,000.00 |
| Goods available for Sale | 12 | $55,275.00 | $663,300.00 |
| Cost of goods sold | 9 | $55,275.00 | $497,475.00 |
| Ending Inventory | 3 | $165,825.00 | |
ekkarill92 answered 2 years agoRelated Solutions
Carlson Auto Dealers Inc. sells a handmade automobile as its only product. Each automobile is identical;...
Carlson Auto Dealers Inc. sells a handmade automobile as its
only product. Each automobile is identical; however, they can be
distinguished by their unique ID number. At the beginning of 2021,
Carlson had three cars in inventory, as follows:
Car ID
Cost
203
$
69,000
207
69,000
210
72,000
During 2021, each of the three autos sold for $99,000. Additional
purchases (listed in chronological order) and sales for the year
were as follows:
Car ID
Cost
Selling Price
211
$...
Carlson Auto Dealers Inc. sells a handmade automobile as its only product. Each automobile is identical
Carlson Auto Dealers Inc. sells a handmade automobile as its only product. Each automobile is identical; however, they can be distinguished by their unique ID number. At the beginning of 2021, Carlson had three cars in inventory, as follows:
Car ID..................Cost
203.......................$60,000
207........................60,000
210........................63,000
During 2021, each of the three autos sold for $90,000. Additional purchases (listed in chronological order) and sales for the year were as follows:
Required:
1. Calculate 2021 ending inventory and cost of goods sold...
Carlson Auto Dealers Inc. sells a handmade automobile as its only product. Each automobile is identical;...
Carlson Auto Dealers Inc. sells a handmade automobile as its
only product. Each automobile is identical; however, they can be
distinguished by their unique ID number. At the beginning of 2021,
Carlson had three cars in inventory, as follows:
Car ID
Cost
203
$
69,000
207
69,000
210
72,000
During 2021, each of the three autos sold for $99,000. Additional
purchases (listed in chronological order) and sales for the year
were as follows:
Car ID
Cost
Selling Price
211
$...
Teton Inc sells its only product for 50 per unit Teton, Inc. sells its only product for $50 pe
Teton Inc sells its only product for 50 per unit
Teton, Inc. sells its only product for $50 per unit. Fixed expenses total $800,000 per year. Variable expenses are $1,000,000 when 40,000 units are sold. How many units must be sold to earn a net operating income of $75,000?
A manufacturing company makes auto parts and sells them to auto dealers.
A manufacturing company makes auto parts and sells them to auto dealers. Last week the company shipped 25 auto parts to a dealer. Later it found out that 5 of those parts were defective. By the time the company manager contacted the dealer 4 auto parts from that shipment had already been sold. What is the probability that 3 of those 4 parts were non-defective?
Suppose that a monopoly sells its product in a market with 10 identical consumers. Each consumer...
Suppose that a monopoly sells its product in a market with 10
identical consumers. Each consumer has an individual demand given
by P = 30 − 2y, where y is the individual quantity demanded at
price P. The firm has no fixed costs and a constant marginal cost
equal to 5. a) Show that the aggregate inverse market demand is
given by P(Y ) = 30 − Y /5, where Y is total quantity demanded in
the market. b) First,...
Grills, Inc. makes a single product - a handmade specialty barbeque grill that sells for $700....
Grills, Inc. makes a single product - a handmade specialty
barbeque grill that sells for $700. Data for last year’s operations
follow:
Units in beginning
inventory
0
Units
produced
50,000
Units sold
40,000
Variable costs per unit:
Direct
materials
$ 200
Direct
labor
100
Variable manufacturing
overhead
70
Variable selling and administrative
30
Total variable cost per
unit
$ 400
Fixed costs:
Fixed manufacturing...
Suppose a monopoly with constant marginal cost of 10 sells its product to identical consumers. Each...
Suppose a monopoly with constant marginal cost of 10 sells its
product to identical consumers. Each consumer has an inverse demand
curve given by P = 210 − 10Q.
(a) Find the price and quantity the monopolist chooses if it can
only set one price, and it can not use a two-part tariff. What is
the monopolist’s profit on each consumer?
(b) Now suppose the monopolist can use a two-part tariff. What
is the profit maximizing choice of the fixed...
Question No.1 An auto parts supplier sells Hardy-brand batteries to car dealers and auto mechanics....
Question No.1
An auto parts supplier sells Hardy-brand batteries to car
dealers and auto mechanics. The
annual demand is approximately 1500 batteries. The supplier pays
25 R.O for each battery
and estimates that the annual holding cost is 30% of the
battery's value. It costs
approximately 30 R.O to place an order. The supplier currently
orders 125 batteries per
month.
a. Determine the EOQ.
b. How many orders will be placed per year using the EOQ?
c. Determine the...
Question No.1 An auto parts supplier sells Hardy-brand batteries to car dealers and auto mechanics....
Question No.1
An auto parts supplier sells
Hardy-brand batteries to car dealers and auto mechanics. The
annual demand is approximately 1500
batteries. The supplier pays 25 R.O for each battery
and estimates that the annual
holding cost is 30% of the battery's value. It costs
approximately 30 R.O to place an
order. The supplier currently orders 125 batteries per
month.
a. Determine the EOQ.
b. How many orders will be placed
per year using the EOQ?
c. Determine the...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- THIS PROGRAM HAS TO BE WRITTEN IN C Single function to perform the parity computation on...
- Consider a buffer system consisting of Benzoic acid (pKa = 4.20) and sodium benzoate, a) Would...
- Decision Variables S T Minimize 1.8S + 2.20T Subject to: Potassium 5S + 8T >= 200...
- A neurologist needs to counsel a stroke victim and her husband about possible outcomes, treatment options,...
- Case Study: Personal Beliefs in the Workplace Don Shakow was a prominent professional who worked in...
- 1: Competency framework usage is the modern best practice in management. What is meant by competency...
- A 19.34 g mixture of sugar (C12H22O11) and table salt (NaCl) is dissolved in 231 g...
ADVERTISEMENT