Question
In: Accounting
Practice Problem 01 a, b1-b2, c Sunland Company had a beginning inventory on January 1 of...
|
|
|
|
|
Solutions
Expert Solution
Average cost = Total cost of inventory/total no. of units = (5130+15840+10350+15750+5040)/2250= $23.16
FIFO
January 1- 270 units @ $19
March 15- 720 units @ $22
July 20 - 450 units @ 23
Sept 4- 630 units @25
Dec 2 - 180 units @28
Sale - 1800 units
COGS - 270 units @ $19 + 720 units @ $22 + 450 units @ 23 + 360 units @25 = 5130+15840+10350+9000
= $40320
Closing inventory- 270 units @25 +180 units @28= 6750+5040 = $11,790
LIFO
January 1- 270 units @ $19
March 15- 720 units @ $22
July 20 - 450 units @ 23
Sept 4- 630 units @25
Dec 2 - 180 units @28
Sale - 1800 units
COGS - 180 units @28 + 630 units @25 + 450 units @ 23 + 540 units @22 = 5040+15750+10350+11880=
= $43020
Closing inventory- 180 units @22 +270 units @ $19= $3960+$5130 = $9090
Average cost
Average cost = Total cost of inventory/total no. of units = (5130+15840+10350+15750+5040)/2250= $23.16
COGS = 1800*23.16 = $41,688
Closing Inventory = 450*23.16 = $10,422
Hence,
Highest cogs - LIFO
Highest Closing Inventory - FIFO
ekkarill92 answered 1 year agoRelated Solutions
Sunland Company had January 1 inventory of $299000 when it adopted dollar-value LIFO. During the year,...
Sunland Company had January 1 inventory of $299000 when it
adopted dollar-value LIFO. During the year, purchases were $1750000
and sales were $3090000. December 31 inventory at year-end prices
was $421800, and the price index was 111. What is Sunland Company’s
gross profit?
A) 1462800
B) 2701090
C) 1198000
D) 1429910
Problem 6-3A Wildhorse Co. had a beginning inventory on January 1 of 308 units of Product...
Problem 6-3A
Wildhorse Co. had a beginning inventory on January 1 of 308
units of Product 4-18-15 at a cost of $19 per unit. During the
year, the following purchases were made.
Mar. 15
820 units
at
$22
Sept. 4
718 units
at
$25
July 20
513 units
at
$23
Dec. 2
205 units
at
$28
2,050 units were sold. Wildhorse Co. uses a periodic inventory
system
a.Determine the cost of goods available for sale.
b. Calculate average cost per...
During January, a company that uses a perpetual inventory system had beginning inventory, purchases, and sales...
During January, a company that uses a perpetual inventory system
had beginning inventory, purchases, and sales as follows :
Units
Cost per unit
Begin Inventory
100
12
Jan 5
Sale
50
10
Purchase
70
16
15
Sale
25
25
Sale
35
Required:
Prepare a schedule showing cost of goods sold and ending
inventory using weighted average.
Prepare a schedule showing cost of goods sold and ending
inventory using First In First Out.
C.
Compute gross profit under for
a...
During January, a company that uses a perpetual inventory system had beginning inventory, purchases, and sales...
During January, a company that uses a perpetual inventory system
had beginning inventory, purchases, and sales as follows :
Units
Cost per unit
Begin Inventory
100
12
Jan 5
Sale
50
10
Purchase
70
16
15
Sale
25
25
Sale
35
Required:
Prepare a schedule showing cost of goods sold and ending
inventory using weighted average.
Prepare a schedule showing cost of goods sold and ending
inventory using First In First Out
Compute gross profit under for a and b....
Manning Company had the following inventory balances at the beginning and end of the year: January...
Manning Company had the following inventory balances at the
beginning and end of the year:
January 1
December 31
Raw material
$60,000
$50,000
Work in process
140,000
180,000
Finished goods
280,000
255,000
During the year, the company purchased $100,000 of raw material and
incurred $340,000 of direct labor costs.
Other data: manufacturing overhead incurred, $440,000;
manufacturing overhead applied, $450,000
Sales, $1,560,000;
Selling and administrative expenses, $90,000;
Income tax rate, 30%.
Required:
A. Calculate cost of goods manufactured.
B. Calculate cost...
Ehrlich Company had the following inventory balances at the beginning and end of the year: January...
Ehrlich Company had the following inventory balances at the
beginning and end of the year:
January 1 December 31
Raw material $60,000 $50,000
Work in proces 140,000 180,000
Finished goods 280,000. 255,000
During the year, the company purchased $100,000 of raw
material and incurred $340,000 of direct labor costs.
Other data: manufacturing overhead incurred, $440,000;
manufacturing overhead applied, $450,000
Sales, $1,560,000;
Selling and administrative expenses, $90,000;
Income tax rate, 30%.
Required:
A. Calculate cost of goods manufactured.
B. Calculate cost...
Sekhon company had a beginning inventory on January 1 of 200 units of product 4-18-15 at...
Sekhon company had a beginning inventory on January 1 of 200 units
of product 4-18-15 at cost of $20 per unit. During the year, the
following purchases were made.
Mar. 15 500 units at $21, July 20 313 units at $22 Sept. 4 413
units at $27. Dec. 2. 125 units at $31
1250 units were sold. Sekhon Company uses a periodic inventory
system.
1. Determine the cost of good available for sale.
2. Calculate average cost per unit.
3....
Lily Company had a beginning inventory on January 1 of 190 units of Product 4-18-15 at...
Lily Company had a beginning inventory on January 1 of 190 units
of Product 4-18-15 at a cost of $20 per unit. During the year, the
following purchases were made.
Mar. 15
450 units
at
$23
Sept. 4
350 units
at
$25
July 20
230 units
at
$24
Dec. 2
100 units
at
$26
1,120 units were sold. Lily Company uses a periodic inventory
system.
Determine (1) the ending inventory, and (2) the cost of goods
sold under each of...
Ziad Company had a beginning inventory on January 1 of 143 units of Product 4-18-15 at...
Ziad Company had a beginning inventory on January 1 of 143 units
of Product 4-18-15 at a cost of $20 per unit. During the year, the
following purchases were made.
Mar. 15
380 units
at
$23
Sept. 4
333 units
at
$26
July 20
238 units
at
$24
Dec. 2
95 units
at
$29
950 units were sold. Ziad Company uses a periodic inventory
system.
a) Determine the cost of goods available for sale.
b) Calculate average cost per unit....
Ziad Company had a beginning inventory on January 1 of 285 units of Product 4-18-15 at...
Ziad Company had a beginning inventory on January 1 of 285 units
of Product 4-18-15 at a cost of $19 per unit. During the year, the
following purchases were made.
Mar. 15
760 units
at
$22
Sept. 4
665 units
at
$25
July 20
475 units
at
$23
Dec. 2
190 units
at
$28
1,900 units were sold. Ziad Company uses a periodic inventory
system.
A: Determine the cost of good available for
sale
B: Calculate the average cost per...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- Blossom, Inc., has four-year bonds outstanding that pay a coupon rate of 8.00 percent and make...
- In a file called NumbersToMonths.java, write a program that: Asks the user to specify a month...
- 1.The purpose of the indole test is to differentiate groups of gram-negative, lactose-fermenting bacteria called___________ ....
- How could you justify the ideas of "Zero Defects", "Do it Right the First Time", and...
- Write a program that prompts the user to enter a 3 x 3 matrix of double...
- A steam turbine is to operate on a simple regenerative cycle. Steam is supplied dry saturated...
- Describe your rationale about whether and why the person meets or does not meet civil commitment...
ADVERTISEMENT