Question
In: Accounting
Simple Plan Enterprises uses a periodic inventory system. Its records showed the following: Inventory, December 31,...
Simple Plan Enterprises uses a periodic inventory system. Its
records showed the following:
Inventory, December 31, using FIFO → 58 Units @ $24 = $1,392
Inventory, December 31, using LIFO → 58 Units @ $20 = $1,160
| Transactions in the Following Year | Units | Unit Cost | Total Cost | ||||||
| Purchase, January 9 | 70 | 25 | $ | 1,750 | |||||
| Purchase, January 20 | 120 | 26 | 3,120 | ||||||
| Sale, January 11 (at $48 per unit) | 100 | ||||||||
| Sale, January 27 (at $49 per unit) | 76 | ||||||||
Required:
- Compute the number and cost of goods available for sale, the cost of ending inventory, and the cost of goods sold under FIFO and LIFO.
- Compute the inventory turnover ratio under the FIFO and LIFO inventory costing methods.
- Does the inventory method used make a significant difference in the inventory turnover ratio?
Solutions
ekkarill92 answered 1 year agoRelated Solutions
Simple Plan Enterprises uses a periodic inventory system. Its records showed the following: Inventory, December 31,...
Simple Plan Enterprises uses a periodic inventory system. Its
records showed the following:
Inventory, December 31, using FIFO → 36 Units @ $15 = $540
Inventory, December 31, using LIFO → 36 Units @ $11 = $396
Transactions in the Following Year
Units
Unit Cost
Total Cost
Purchase, January 9
48
16
$
768
Purchase, January 20
98
17
1,666
Sale, January 11 (at $39 per unit)
78
Sale, January 27 (at $40 per unit)
54
Required:
Compute the number...
Simple Plan Enterprises uses a periodic inventory system. Its records showed the following: Inventory, December 31,...
Simple Plan
Enterprises uses a periodic inventory system. Its records showed
the following:
Inventory, December 31, using FIFO → 50 Units @ $20 = $1,000
Inventory, December 31, using LIFO → 50 Units @ $16 = $800
Transactions in
the Following Year
Units
Unit Cost
Total Cost
Purchase,
January 9
62
21
$
1,302
Purchase,
January 20
112
22
2,464
Sale, January 11
(at $44 per unit)
92
Sale, January 27
(at $45 per unit)
68
Required:
Compute the number...
Simple Plan Enterprises uses a periodic inventory system. Its records showed the following: Inventory, December 31,...
Simple Plan Enterprises uses a periodic inventory system. Its
records showed the following:
Inventory, December 31, using
FIFO ? 38 Units @ $14 = $532
Inventory, December 31, using
LIFO ? 38 Units @ $10 = $380
Transactions in the
Following Year
Units
Unit Cost
Total Cost
Purchase, January
9
50
$
15
750
Purchase, January
20
100
16
1,600
Sale, January 11 (at
$38 per unit)
80
Sale, January 27 (at
$39 per unit)
56
1.
Compute the...
Simple Plan Enterprises uses a periodic inventory system. Its records showed the following: Inventory, December 31,...
Simple Plan Enterprises uses a periodic inventory system. Its
records showed the following:
Inventory, December 31, using FIFO → 44 Units @ $19 = $836
Inventory, December 31, using LIFO → 44 Units @ $15 = $660
Transactions in the Following Year
Units
Unit Cost
Total
Cost
Purchase, January 9
56
$
20
1,120
Purchase, January 20
106
21
2,226
Sale, January 11, (at $43 per unit)
86
Sale, January 27 (at $44 per unit)
62
Required:
1.
Compute the...
Simple Plan Enterprises uses a periodic inventory system. Its records showed the following: Inventory, December 31,...
Simple Plan Enterprises uses a periodic inventory system. Its
records showed the following:
Inventory, December 31, using FIFO → 44 Units @ $17 = $748
Inventory, December 31, using LIFO → 44 Units @ $13 = $572
Transactions in the Following Year
Units
Unit Cost
Total Cost
Purchase, January 9
56
18
$
1,008
Purchase, January 20
106
19
2,014
Sale, January 11 (at $41 per unit)
86
Sale, January 27 (at $42 per unit)
62
Required:
Compute the number...
Capwell Corporation uses a periodic inventory system. The company's ending inventory on December 31, 2018, its...
Capwell Corporation uses a periodic inventory system. The
company's ending inventory on December 31, 2018, its fiscal-year
end, based on a physical count, was determined to be $338,000.
Capwell's unadjusted trial balance also showed the following
account balances: Purchases, $740,000; Accounts payable; $270,000;
Accounts receivable, $285,000; Sales revenue, $920,000.
The internal audit department discovered the following items:
Goods valued at $44,000 held on consignment from Dix Company
were included in the physical count but not recorded as a
purchase.
Purchases...
Buffalo Industries uses a periodic inventory system. Its records show the following for the month of...
Buffalo Industries uses a periodic inventory system. Its records
show the following for the month of May, in which 68 units were
sold.
Date
Explanation
Units
Unit Cost
Total Cost
May 1
Inventory
35
$9
$315
15
Purchase
25
10
250
24
Purchase
40
11
440
Total
100
$1,005
(a)
Calculate the weighted-average unit cost. (Round
answer to 3 decimal places, e.g. 5.125.)
Weighted-average unit cost
$Enter the Weighted-average unit cost in dollars
Calculate the ending inventory at May 31...
Crane Company uses a periodic inventory system and its accounting records include the following inventory information...
Crane Company uses a periodic inventory system and its
accounting records include the following inventory information for
the month of July:
Units
Unit Cost
Total Cost
July 1
Inventory on hand
150
$6.00
$900.00
12
Purchase
230
7.00
1,610.00
20
Sale
(250)
0
28
Purchase
490
9.00
4,410.00
A physical inventory count determined that 620 units were on hand
at July 31.
(a)
Calculate the ending inventory and the cost of goods sold under (1)
FIFO and (2) weighted average....
Bailey Company uses a periodic inventory system and its inventory records contain the following information: Units...
Bailey Company uses a periodic inventory system and its
inventory records contain the following information:
Units
Total
Cost
Beginning Inventory:
300
$780
Purchased on May 10
400
1,170
Purchased on June 15
500
1,260
Purchased on August 28
300
990
1,500
$4,200
The company sold 1,000 units during June. There were no additional
purchases or sales during the remainder of the year. The company
had 500 units were in its ending inventory at the end of the
year....
SAP Co. uses a periodic inventory system. It records show the following for the month of...
SAP Co. uses a periodic inventory system. It records show the
following for the month of February:
Date Units UnitPrice Total Cost
2/1 40 $20.00 $800
2/15 Purchases 130 22.00 2,860
2/24 Purchases 110 23.50 2,585
Totals 280 $6,245
2/20 Sales 100 47.00
2/27 Sales 130 47.00
Given the information above, please calculate COGS,Ending
Inventory, and Gross Profit under each of the following methods.
(Please explain)
1) FIFO:
2) LIFO:
3) Average Cost:
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