Question
In: Accounting
1) ABC Corp. had the following inventory transactions for the month of December 20X5: Date Transaction...
1) ABC Corp. had the following inventory transactions for the month of December 20X5:
| Date | Transaction type | Amount (units) | Price per unit |
| Dec. 1 | Opening balance | 400 | $5.12 |
| Dec. 3 | Purchase | 1,100 | $5.23 |
| Dec. 15 | Purchase | 900 | $5.48 |
| Dec. 22 | Purchase | 250 | $5.66 |
| Dec. 2 | Sale | 300 | $6.50 |
| Dec. 6 | Sale | 800 | $6.50 |
| Dec. 18 | Sale | 700 | $8.00 |
| Dec. 25 | Sale | 150 | $8.00 |
What is the value of the inventory held by ABC as at December
31, 20X5, if the company values its inventory using the weighted
average cost formula and uses a perpetual inventory system?
Round all calculations to two significant decimal places, for
example, $5.66
2) Rocketfire Corp. uses the retail method to estimate its closing inventory. Extracts from the company’s records follow:
| At cost | At retail | |
| Net sales | $715,000 | |
| Beginning inventory | $ 70,000 | 143,000 |
| Purchases | 365,000 | 745,000 |
| Purchase returns | 22,000 | 43,000 |
| Additional markups | 24,000 | |
| Markup cancellations | 5,000 | |
| Markdowns | 11,000 | |
| Markdown cancellations | 3,000 |
What amount should Rocketfire report on its financial statements as ending inventory estimated using the retail method? Round your cost ratio calculation to four decimal places, for example, 24.76%.
Solutions
ekkarill92 answered 1 year agoRelated Solutions
Abc Corporation was incorporated on December 1, 2019 and had following transactions during December 1 Dec...
Abc Corporation was incorporated on December 1, 2019 and had
following transactions during December
1 Dec Issued Capital for 5000 cash
3 Dec Paid 1200 cash for three months rent in advance
4 Dec Purchased a used truck for 10,000 on credit
4 Dec Purchased Supplies of 1000 on credit
6 Dec Paid 1800 for a one-year truck insurance policy
7 Dec Billed a customer 4500 for work completed to date
8 Dec Collected...
Abc Corporation was incorporated on December 1, 2019 and had following transactions during December 1 Dec...
Abc Corporation was incorporated on December 1, 2019 and had
following transactions during December
1 Dec Issued Capital for 5000 cash
3 Dec Paid 1200 cash for three months rent in advance
4 Dec Purchased a used truck for 10,000 on credit
4 Dec Purchased Supplies of 1000 on credit
6 Dec Paid 1800 for a one-year truck insurance policy
7 Dec Billed a customer 4500 for work completed to date
8 Dec Collected...
Flounder Corp. uses a perpetual inventory system reports the following for the month of June. Date...
Flounder Corp. uses a perpetual inventory system reports the
following for the month of June.
Date
Explanation
Units
Unit Cost
Total Cost
June 1
Inventory
130
$4
$520
12
Purchases
390
5
1,950
23
Purchases
220
6
1,320
30
Inventory
240
Partially correct answer iconYour answer is partially
correct.
Calculate the average cost per unit, using a perpetual inventory
system. Assume a sale of 450 units occurred on June 15 for a
selling price of $7 and a sale of...
Bridgeport Corp. uses a periodic inventory system reports the following for the month of June. Date...
Bridgeport Corp. uses a periodic inventory system reports the
following for the month of June.
Date
Explanation
Units
Unit Cost
Total Cost
June 1
Inventory
112
$5
$560
12
Purchases
336
6
2016
23
Purchases
190
7
1330
30
Inventory
200
A sale of 388 units occurred on June 15 for a selling price of
$8 and a sale of 50 units on June 27 for $9.
Calculate the average cost per unit, using a perpetual inventory
system. (Round answers...
During the year, TRC Corporation has the following inventory transactions. Date Transaction Number of Units Unit...
During the year, TRC Corporation has the following inventory
transactions. Date Transaction Number of Units Unit Cost Total Cost
Jan. 1 Beginning inventory 54 $ 46 $ 2,484 Apr. 7 Purchase 134 48
6,432 Jul. 16 Purchase 204 51 10,404 Oct. 6 Purchase 114 52 5,928
506 $ 25,248 For the entire year, the company sells 440 units of
inventory for $64 each. 3. Using weighted-average cost, calculate
ending inventory, cost of goods sold, sales revenue, and gross
profit. (Round...
During the year, Trombley Incorporated has the following inventory transactions. Date Transaction Number of Units Unit...
During the year, Trombley Incorporated has the following
inventory transactions.
Date
Transaction
Number
of Units
Unit
Cost
Total Cost
Jan. 1
Beginning inventory
16
$ 18
$ 288
Mar. 4
Purchase
21
17
357
Jun. 9
Purchase
26
16
416
Nov. 11
Purchase
26
14
364
89
$ 1,425
For the entire year, the company sells 69 units of inventory for
$26 each.
1. Using...
During the year, Trombley Incorporated has the following inventory transactions. Date Transaction Number of Units Unit...
During the year, Trombley Incorporated has the following
inventory transactions.
Date
Transaction
Number
of Units
Unit
Cost
Total Cost
Jan. 1
Beginning inventory
11
$ 13
$ 143
Mar. 4
Purchase
16
12
192
Jun. 9
Purchase
21
11
231
Nov. 11
Purchase
21
9
189
69
$ 755
For the entire year, the company sells 51 units of inventory for
$21 each.
A: Using FIFO,...
During the year, TRC Corporation has the following inventory transactions. Date Transaction Number of Units Unit...
During the year, TRC Corporation has the following inventory
transactions.
Date
Transaction
Number of Units
Unit Cost
Total Cost
Jan.
1
Beginning inventory
49
$
41
$
2,009
Apr.
7
Purchase
129
43
5,547
Jul.
16
Purchase
199
46
9,154
Oct.
6
Purchase
109
47
5,123
486
$
21,833
For the entire year, the company sells 428 units of inventory
for $59 each.
Required:
1. Using FIFO, calculate ending inventory, cost
of goods sold, sales revenue, and gross profit.
Klump Co. uses a perpetual inventory system and had the following inventory transactions for the month...
Klump Co. uses a perpetual inventory system and had the
following inventory transactions for the month of March.
Beginning Inventory - 150 units at $81
March 7 Sold 70 units
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March 12 Sold 220 units
If the company uses the FIFO inventory costing method, the
amount of ending inventory reported on the balance sheet is:
ABC Corporation uses a perpetual inventory system. The following transactions affected itsmerchandise inventory during the month...
ABC Corporation uses a perpetual inventory system. The following
transactions affected itsmerchandise inventory during the month of
June 2018:June 2 Inventory on hand-1,500 units; cost$4.50 each. 6
Purchased 5,000 units for $5.00 each. 13 .Sold 5,500 units for
$10.00 each. 21 Purchased 8,000 units for $5.50 each. 26 Sold 5,000
units for $9.00 each. 30 Inventory on hand-4,000 units. Determine
the inventory balance ABC would report in its June 30, 2018,
balance sheet and the cost of goods sold it...
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