Question
In: Accounting
A company uses the periodic inventory system and had the following activity during the current monthly...
A company uses the periodic inventory system and had
the following activity during the current monthly period.
| November 1: | Beginning inventory | 116 Units @ $10 |
| November 5: | Purchased | 116 Units @ $26 |
| November 8: | Purchased | 66 Units @ $25 |
| November 16: | Sold | 190 Units @ $125 |
| November 19: | Purchased | 95 Units @ $20 |
Using the weighted-average inventory method, the company's ending
inventory would be:
a. $1,160
b. $3,991
c. $3,550
d. $4,710
e. $3,060
Solutions
Expert Solution
- Correct Answer = Option ‘B’ $ 3,991
- Working
|
Average Method |
Cost of Goods available for sale |
||
|
Units |
Cost/unit |
COG for sale |
|
|
Beginning Inventory |
116 |
$ 10.00 |
$ 1,160.00 |
|
Purchases: |
|||
|
05-Nov |
116 |
$ 26.00 |
$ 3,016.00 |
|
08-Nov |
66 |
$ 25.00 |
$ 1,650.00 |
|
19-Nov |
95 |
$ 20.00 |
$ 1,900.00 |
|
TOTAL |
393 |
$ 19.659 or $ 19.66 |
$ 7,726.00 |
Ending Inventory = (393 units – 190
units) x $ 19.66
= $ 3991
ekkarill92 answered 2 years agoRelated Solutions
A company uses the periodic inventory system and had the following activity during the current monthly...
A company uses the periodic inventory system and had the
following activity during the current monthly period.
November 1: Beginning inventory 107 Units @ $10
November 5: Purchased 107 Units @ $26
November 8: Purchased 57 Units @ $25
November 16: Sold 154 Units @ $80
November 19: Purchased 50 Units @ $20
Using the weighted-average inventory method, the company's
ending inventory would be:
A company uses the periodic inventory system and had the following activity during the current monthly...
A company uses the periodic inventory system and had the
following activity during the current monthly period.
November 1: Beginning inventory 114 Units @ $30
November 5: Purchased 114 Units @ $26
November 8: Purchased 64 Units @ $30
November 16: Sold 182 Units @ $115
November 19: Purchased 85 Units @ $30
Using the weighted-average inventory method, the company's
ending inventory would be:
Chris Company uses the perpetual inventory system and had the following activity during the current monthly...
Chris Company uses the perpetual inventory system and had the
following activity during the current monthly period.
November
1: Beginning
Inventory of 100 units @$20
November
5: Purchased
100 units @ $22
November
8: Purchased
50 units @$23
November
16: Sold
200 units @ $45
November
19: Purchased
50 units @ $25
Using the weighted-average inventory method, the company's
ending inventory would be reported at:
A) $2,200.
B) $2,320.
C) $2,250.
D) $2,400.
E) $2,270.
The answer is B but I need a detailed explanation...
Easton Company uses the periodic inventory system and had the following inventory & sales activity for...
Easton Company uses the periodic inventory system and
had the following inventory & sales activity for the month of
May 2019:
Date
Activity
Quantity
Unit Price
5/1
Beginning Inventory
130
$10
5/5
Purchase
210
$12
5/15
Purchase
350
$14
5/25
Purchase
310
$16
Sales were 470 units at $20. Using the FIFO
method, determine the dollar value of Cost of Goods Sold for the
month of May.
Alpha Company uses the periodic inventory system and had the following inventory & sales activity for...
Alpha Company uses the periodic inventory system and had the
following inventory & sales activity for the month of May
2016:
Date
Activity
Quantity
Unit Price
5/1
Beginning Inventory
150
$10
5/5
Purchase
200
$12
5/15
Purchase
300
$14
5/25
Purchase
150
$16
Sales were 525 units at $20. Using the LIFO method,
determine the dollar values following for the month of May:
1. Ending Inventory
2. Cost of Goods Available for Sale
3. Cost of Goods Sold
3. Easton Company uses the periodic inventory system and had the following inventory & sales activity...
3. Easton Company uses the periodic inventory system and had the
following inventory & sales activity for the month of May 2019:
Date Activity Quantity Unit Price 5/1 Beginning Inventory 100 $10
5/5 Purchase 240 $12 5/15 Purchase 270 $14 5/25 Purchase 320 $16
Sales were 430 units at $20. Using the FIFO method, determine the
dollar value of Cost of Goods Sold for the month of May.
Calvin Company uses a periodic inventory system. They had the following information concerning their inventory for...
Calvin Company uses a periodic inventory system. They had the
following information concerning their inventory for the month of
March.
Units Cost Per Unit
Beginning Inventory (March 1) 250 $12
Purchase (March 25th) 130 $13
Purchase (March 28th) 285 $15
Sale (March 30th) 350
1. If the company uses a FIFO inventory method, what will be
COST OF GOODS SOLD for the month of March? (please only enter
positive numbers)
Use the same information as for Question 1 If the...
Swifty Corp. uses a periodic inventory system. The company had the following inventory transactions in April:...
Swifty Corp. uses a periodic inventory system. The company had
the following inventory transactions in April:
April
3
Purchased merchandise from Blue Spruce Ltd. for $26,000, terms
1/10, n/30, FOB shipping point.
6
The appropriate company paid freight costs of $770 on the
merchandise purchased on April 3.
7
Purchased supplies on account for $5,050.
8
Returned damaged merchandise to Blue Spruce and was given a
purchase allowance of $3,700. The merchandise was repaired by Blue
Spruce and returned to...
Flint Corp. uses a periodic inventory system. The company had the following inventory transactions in April:...
Flint Corp. uses a periodic inventory system. The company had
the following inventory transactions in April:
April
3
Purchased merchandise from Pina Colada Ltd. for $27,200, terms
n/30, FOB shipping point.
6
The appropriate company paid freight costs of $710 on the
merchandise purchased on April 3.
7
Purchased supplies on account for $4,940.
8
Returned damaged merchandise to Pina Colada received a credit
of $3,200. The merchandise was returned to inventory for future
resale.
30
Paid the amount due...
Q1. Maia's Bike Shop uses the periodic inventory system and had the following transactions during the...
Q1. Maia's Bike Shop uses the periodic
inventory system and had the following transactions during the
month of May:
May 3
Sold merchandise to a customer on credit for $600, terms 2/10,
n/30. The cost of the merchandise sold was $350.
May 4
Sold merchandise to a customer for cash of $425. The cost of the
merchandise was $250.
May 6
Sold merchandise to a customer on credit for $1,300, term 2/10,
n/30. The cost of the merchandise sold was...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- Will iron(III) hydroxide precipitate from a pH = 1.00 solution with [Fe3+] = 1.0 x 10-5?...
- What do you believe happens during the final scene of the story between the brothers at....
- A 5.171 g sample of a solid, weak, monoprotic acid is used to make a 100.0...
- 1. Creep is one of deformation that occurred in concrete structure. Give one example that can...
- Why does a particular codon represent only one specific amino acid?
- Write a function template sort that takes two references to generic objects and switches them if...
- What 2 things happen to the melting point of a solid when an impurity is present?
ADVERTISEMENT