Question

In: Accounting

A toy store has beginning inventory of 20 plastic bouncy balls at a cost of $1.05...

A toy store has beginning inventory of 20 plastic bouncy balls at a cost of $1.05 each. During the year the toy store purchased 2 at $1.40; 4 at $2.00; 6 at $3.00; and 20 at $4.00. By the end of the year, 25 balls were sold.

Calculate the following:

the number of plastic bouncy balls in stock at the end of the year,
the cost of ending inventory under LIFO,
the cost of ending inventory under FIFO, and
the cost of ending inventory under weighted average.

Solutions

Expert Solution


Related Solutions

A toy store has beginning inventory of 20 plastic bouncy balls at a cost of $1.05...
A toy store has beginning inventory of 20 plastic bouncy balls at a cost of $1.05 each. During the year the toy store purchased 2 at $1.40; 4 at $2.00; 6 at $3.00; and 20 at $4.00. By the end of the year, 25 balls were sold. Calculate the following: the number of plastic bouncy balls in stock at the end of the year, the cost of ending inventory under LIFO, the cost of ending inventory under FIFO, and the...
A toy store has beginning inventory of 20 plastic bouncy balls at a cost of $1.05...
A toy store has beginning inventory of 20 plastic bouncy balls at a cost of $1.05 each. During the year the toy store purchased 2 at $1.40; 4 at $2.00; 6 at $3.00; and 20 at $4.00. By the end of the year, 25 balls were sold. Calculate the following: the number of plastic bouncy balls in stock at the end of the year, the cost of ending inventory under LIFO, the cost of ending inventory under FIFO, and the...
XY merchandising has 20 coffee mugs in the beginning inventory at a cost of $5 per...
XY merchandising has 20 coffee mugs in the beginning inventory at a cost of $5 per coffee mug . on february 1,2012 they purchase 10 coffee mugs on account (Each coffee mug cost $6). On februay 5,2012 they sell coffee mugs for $10 per coffee mug on account. The business uses first in first out.  prepare the entry XY merchandising would make to record the sale of february 5,2012. a) debt: accounts receivable -$150 credit: revenue - $150 debit: cost of...
On May 1, a tire store had a beginning inventory of 20 tires which it purchased...
On May 1, a tire store had a beginning inventory of 20 tires which it purchased for $300 each. On May 5th, the store purchased 4 more tires for $350 each. On May 12th, the store purchased 6 more tires for $400 each. In May, the store sold a total of 12 tires. Question: At the end of May, will the tire stores total assets on its balance sheet be higher if it uses the LIFO or weighted average inventory...
StorSmart Company makes plastic organizing bins. The company has the following inventory balances at the beginning...
StorSmart Company makes plastic organizing bins. The company has the following inventory balances at the beginning and end of March: Beginning Inventory Ending Inventory Raw Materials 29,100 26,900 Work in process 22,900 45,300 Finished goods 78,300 69,300 Additional information for the month of March follows: Raw materials purchases 41,600 Indirect materials used 1,100 Direct labor 63,400 Manufacturing overhead applied 35,900 Selling, general, and administrative expenses 23,800 Sales Revenue 237,000 Required: 1. Based on the above information, prepare a cost of...
StorSmart Company makes plastic organizing bins. The company has the following inventory balances at the beginning...
StorSmart Company makes plastic organizing bins. The company has the following inventory balances at the beginning and end of March: Beginning Inventory Ending Inventory Raw materials $ 29,600 $ 26,700 Work in process 21,400 46,400 Finished goods 78,900 68,600 Additional information for the month of March follows: Raw materials purchases $ 41,900 Indirect materials used 2,000 Direct labor 63,900 Manufacturing overhead applied 36,500 Selling, general, and administrative expenses 23,500 Sales revenue 236,800 Required: 1. Based on the above information, prepare...
StorSmart Company makes plastic organizing bins. The company has the following inventory balances at the beginning...
StorSmart Company makes plastic organizing bins. The company has the following inventory balances at the beginning and end of March: Beginning Inventory Ending Inventory Raw materials $ 28,600 $ 26,000 Work in process 22,500 45,300 Finished goods 78,700 69,100 Additional information for the month of March follows: StorSmart Company makes plastic organizing bins. The company has the following inventory balances at the beginning and end of March: Raw materials purchases $ 41,200 Indirect materials used 1,200 Direct labor 63,000 Manufacturing...
torSmart Company makes plastic organizing bins. The company has the following inventory balances at the beginning...
torSmart Company makes plastic organizing bins. The company has the following inventory balances at the beginning and end of March: Beginning Inventory Ending Inventory Raw materials $ 29,800 $ 26,400 Work in process 21,800 46,500 Finished goods 80,000 69,900 Additional information for the month of March follows:  Raw materials purchases $ 40,300 Indirect materials used 1,400 Direct labor 63,000 Manufacturing overhead applied 36,400 Selling, general, and administrative expenses 23,800 Sales revenue 236,800 Required: 1. Based on the above information,...
StorSmart Company makes plastic organizing bins. The company has the following inventory balances at the beginning...
StorSmart Company makes plastic organizing bins. The company has the following inventory balances at the beginning and end of March: Beginning Inventory Ending Inventory Raw materials $ 29,600 $ 26,800 Work in process 22,600 47,000 Finished goods 78,300 69,800 Additional information for the month of March follows: StorSmart Company makes plastic organizing bins. The company has the following inventory balances at the beginning and end of March: Raw materials purchases $ 40,600 Indirect materials used 2,000 Direct labor 62,300 Manufacturing...
A small toy store has organized its 10 inventory items on an annual dollar-volume basis. The...
A small toy store has organized its 10 inventory items on an annual dollar-volume basis. The information below shows the items, their annual demands, and unit costs. How should the store classify these items into groups A, B, and C? Item Number       Annual Volume (Units)         Unit Cost ($) Item 1                                   300                                    $10 Item 2                                 1000                                    $30 Item 3                                   500                                    $60 Item 4                                   100                                      $2 Item 5                                 1500                                    $20 Item 6                                   600                                    $50 Item 7                                 2000                                 $1.50 Item 8                                   900                                    $70 Item 9                                ...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT