Question
In: Accounting
A. The Boxwood Company sells blankets for $31 each. The following was taken from the inventory...
A.
The Boxwood Company sells blankets for $31 each. The following was taken from the inventory records during May. The company had no beginning inventory on May 1.
| Date | Blankets | Units | Cost |
| May 3 | Purchase | 27 |
$16 |
| 10 | Sale | 11 | |
| 17 | Purchase | 40 |
$18 |
| 20 | Sale | 19 | |
| 23 | Sale | 5 | |
| 30 | Purchase | 29 |
$19 |
Assuming that the company uses the perpetual inventory system, determine the gross profit for the sale of May 23 using the FIFO inventory cost method.
a.$65
b.$256
c.$90
d.$310
B.
The Boxwood Company sells blankets for $37 each. The following was taken from the inventory records during May. The company had no beginning inventory on May 1.
| Date | Blankets | Units | Cost |
| May 3 | Purchase | 11 |
$14 |
| 10 | Sale | 4 | |
| 17 | Purchase | 11 |
$18 |
| 20 | Sale | 8 | |
| 23 | Sale | 3 | |
| 30 | Purchase | 9 |
$19 |
Assuming that the company uses the perpetual inventory system, determine the cost of goods sold for the sale of May 20 using the FIFO inventory cost method.
a.$242
b.$116
c.$200
d.$140
C.
The following units of an inventory item were available for sale during the year.
| Beginning inventory | 10 units at $55 |
| First purchase | 25 units at $60 |
| Second purchase | 30 units at $65 |
| Third purchase | 15 units at $70 |
The firm uses the periodic inventory system. During the year, 60 units of the item were sold.
The ending inventory cost using LIFO is
a.$1,250
b.$1,350
c.$1,375
d.$1,150
Solutions
Expert Solution
| Solution: A | |||||||||||
| PURHASES | COST OF GOODS SOLD | CLOSING BALANCE | |||||||||
| Date | Particulars | Units (A) | Rate | Total Cost | Units (A) | Rate | Total Cost | Units (A) | Rate | Total Cost | |
| May.03 | Purchases | 27 | $ 16.00 | $ 432 | 27 | $ 16.00 | $ 432 | ||||
| May.10 | Sales | 11 | $ 16.00 | $ 176 | 16 | $ 16.00 | $ 256 | ||||
| May.17 | Purchases | 40 | $ 18.00 | $ 720 | 16 | $ 16.00 | $ 256 | ||||
| 40 | $ 18.00 | $ 720 | |||||||||
| May.20 | Sales | 16 | $ 16.00 | $ 256 | |||||||
| 3 | $ 18.00 | $ 54 | 37 | $ 18.00 | $ 666 | ||||||
| May.23 | Sales | 5 | $ 18.00 | $ 90 | 32 | $ 18.00 | $ 576 | ||||
| Calculation of Gross Profit | |||||||||||
| Sales as on May -23 (5 Units X $ 31) | $ 155 | ||||||||||
| Less: Cost of Goods Sold | $ 90 | ||||||||||
| Gross Profit | $ 65 | ||||||||||
| Answer = Option A = $ 65 | |||||||||||
| Solution: B | |||||||||||
| PURHASES | COST OF GOODS SOLD | CLOSING BALANCE | |||||||||
| Date | Particulars | Units (A) | Rate | Total Cost | Units (A) | Rate | Total Cost | Units (A) | Rate | Total Cost | |
| May.03 | Purchases | 11 | $ 14.00 | $ 154 | 11 | $ 14.00 | $ 154 | ||||
| May.10 | Sales | 4 | $ 14.00 | $ 56 | 7 | $ 14.00 | $ 98 | ||||
| May.17 | Purchases | 11 | $ 18.00 | $ 198 | 7 | $ 14.00 | $ 98 | ||||
| 11 | $ 18.00 | $ 198 | |||||||||
| 7 | $ 14.00 | $ 98 | |||||||||
| May.20 | Sales | 1 | $ 18.00 | $ 18 | |||||||
| $ 116 | |||||||||||
| Answer = Cost of Goods Sold for May 20 = Option B= $ 116 | |||||||||||
| Solution: C | |||||||||||
| PURHASES | COST OF GOODS SOLD | CLOSING BALANCE | |||||||||
| Particulars | Units (A) | Rate | Total Cost | Units (A) | Rate | Total Cost | Units (A) | Rate | Total Cost | ||
| Beginning inventory | 10 | $ 55.00 | $ 550 | 10 | $ 55.00 | $ 550 | |||||
| First Purchase | 25 | $ 60.00 | $ 1,500 | 15 |
 ekkarill92 answered 1 year agoRelated SolutionsThe Boxwood Company sells blankets for $35 each. The following was taken from the inventory records...The Boxwood Company
sells blankets for $35 each. The following was taken from the
inventory records during May. The company had no beginning
inventory on May 1.
Date
Blankets
Units
Cost
May 3
Purchase
40
$18
10
Sale
16
17
Purchase
39
$20
20
Sale
28
23
Sale
4
30
Purchase
31
$21
Assuming that the
company uses the perpetual inventory system, determine the gross
profit for the sale of May 23 using the FIFO inventory cost
method.
a. $60
The Boxwood Company sells blankets for $60 each. The following was taken from the inventory records...The Boxwood Company sells blankets for $60 each. The following
was taken from the inventory records during May. The company had no
beginning inventory on May 1.
Date
Blankets
Units
Cost
May 3
Purchase
5
$30
10
Sale
3
17
Purchase
10
$34
20
Sale
6
23
Sale
3
30
Purchase
10
$40
Assuming that the company uses the perpetual inventory system,
determine the gross profit for the sale of May 23 using the average
inventory cost method.
A physical inventory of Liverpool Company taken at December 31 reveals the following. Per Unit...A physical inventory of Liverpool Company taken at December 31
reveals the following.
Per Unit
Item
Units
Cost
Market
Car audio equipment
Speakers
350
$
105
$
113
Stereos
265
126
116
Amplifiers
331
101
110
Subwoofers
209
67
57
Security equipment
Alarms
485
165
155
Locks
296
108
98
Cameras
217
327
337
Binocular equipment
Tripods
190
89
99
Stabilizers
175
110
120
Required:
1. Calculate the lower of cost or market for the inventory
applied separately to...
A physical inventory of Office Necessities Company taken at December 31 reveals the following. A B...A physical inventory of Office Necessities Company taken at
December 31 reveals the following.
A
B
C
D
1
Item
Units
Cost per Unit
Market per Unit
2
3
Office furniture
4
Desks
536
$261
$305
5
Chairs
395
227
256
6
Mats
687
49
43
7
Bookshelves
421
93
82
8
Filing cabinets
9
Two-drawer
114
81
70
10
Four-drawer
298
135
122
11
Lateral
75
104
118
12
Office equipment
13...
A physical inventory of Liverpool Company taken at December 31 reveals the following. Per Unit...A physical inventory of Liverpool Company taken at December 31
reveals the following.
Per Unit
Item
Units
Cost
Market
Car audio equipment
Speakers
346
$
101
$
109
Stereos
261
122
112
Amplifiers
327
97
106
Subwoofers
205
63
53
Security equipment
Alarms
481
161
151
Locks
292
104
94
Cameras
213
323
333
Binocular equipment
Tripods
186
85
95
Stabilizers
171
106
116
1. Calculate the lower of cost or market for the
inventory applied separately to each...
A physical inventory of Liverpool Company taken at December 31 reveals the following. Per Unit...
A physical inventory of Liverpool Company taken at December 31
reveals the following.
Per Unit
Item
Units
Cost
Market
Audio
equipment
Receivers
345
$
90
$
98
CD players
260
111
100
MP3 players
326
86
95
Speakers
204
52
41
Video equipment
Handheld LCDs
480
150
125
VCRs
291
93
84
Camcorders
212
310
322
Car audio
equipment
Satellite radios
185
70
84
CD/MP3 radios
170
97
105
Required:
1.
Calculate the lower of cost or market...
The following information is taken from the inventory records of the CNB Company for the month...The following information is taken from the inventory records of
the CNB Company for the month of September:
Beginning inventory, 9/1/2021
6,300
units @ $11.00
Purchases:
9/7
4,200
units @ $11.60
9/25
10,500
units @ $12.20
Sales:
9/10
5,000
units
9/29
6,000
units
10,000 units were on hand at the end of
September.
Required:
1. Assuming that CNB uses a periodic inventory
system and employs the average cost method, determine cost of goods
sold for September and September's ending inventory....
The following information is taken from the inventory records of the CNB Company for the month...The following information is taken from the inventory records of
the CNB Company for the month of September:
Beginning inventory, 9/1/2021
7,000
units @ $10.00
Purchases:
9/7
3,000
units @ $11.00
9/25
10,000
units @ $11.50
Sales:
9/10
4,000
units
9/29
5,000
units
11,000 units were on hand at the end of
September.
Required:
1. Assuming that CNB uses a periodic inventory
system and employs the average cost method, determine cost of goods
sold for September and September's ending inventory....
The following cost and inventory data are taken from the accounting records of a Company for...The following cost and inventory data are taken from the
accounting records of a Company for the year just completed:
Costs incurred:
Direct labor cost
................................................... $140,000
Purchases of raw materials ..................................
$236,000
Manufacturing overhead ......................................
$160,000
Advertising expense .............................................
$180,000
Sales salaries
.......................................................
$100,000
Depreciation, office equipment ............................
$6,000
Inventories: Beginning the Year End the Year
Raw materials ............................ $14,000 $30,000
Work in process .......................... $20,000 $10,000
Finished goods ............................ $40,000 $70,000
Required:
1. Prepare the cost of goods...
The following cost and inventory data are taken from the accounting records of a Company for...The following cost and inventory data are taken from the
accounting records of a Company for the year just completed:
Costs incurred:
Direct labor cost
................................................... $140,000
Purchases of raw materials ..................................
$236,000
Manufacturing overhead ......................................
$160,000
Advertising expense .............................................
$180,000
Sales salaries
.......................................................
$100,000
Depreciation, office equipment ............................
$6,000
Inventories: Beginning the Year End the Year
Raw materials ............................ $14,000 $30,000
Work in process .......................... $20,000 $10,000
Finished goods ............................ $40,000 $70,000
Required:
1. Prepare the cost of goods...
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