Question
In: Accounting
You are provided with the following information for Bridgeport Inc., which purchases its inventory from a...
You are provided with the following information for Bridgeport
Inc., which purchases its inventory from a supplier for cash and
has only cash sales. Bridgeport uses the average cost formula in a
perpetual inventory system. Increased competition has recently
reduced the price of the product.
| Date | Explanation | Units | Unit Cost/Price | ||||||
| Apr. | 1 | Beginning inventory | 50 | $84 | |||||
| 6 | Purchases | 110 | 87 | ||||||
| 8 | Sales | (130 | ) | 116 | |||||
| 15 | Purchases | 120 | 71 | ||||||
| 20 | Sales | (120 | ) | 98 | |||||
| 27 | Purchases | 20 | 62 | ||||||
1. Prepare all journal entries for the month of April for Bridgeport, the buyer
2.Determine the ending inventory amount for Bridgeport
3. On April 30, Bridgeport learns that the product has a net realizable value of $51 per unit. What amount should ending inventory be valued at on the April statement of financial position
Solutions
Expert Solution
1. Prepare all journal entries for the month of April for
Bridgeport, the buyer
2.Determine the ending inventory amount for Bridgeport
There will be 50 units of inventory @ of 69.21 = $3,460.36 (see highlighted in above image)
3. On April 30, Bridgeport learns that the product has a net realizable value of $51 per unit. What amount should ending inventory be valued at on the April statement of financial position
Inventory should be valued at actual rate and Market rate whichever is lower. Here inventory market value is lower due to competition in market so we have to recognize this loss as per prudence concept.
ekkarill92 answered 1 year agoRelated Solutions
Sheffield Inc. has provided you with the following information. This company purchases its inventory from a...
Sheffield Inc. has provided you with the following information.
This company purchases its inventory from a supplier for cash and
has only cash sales. Sheffield uses the average cost formula in a
perpetual inventory system. Increased competition has recently
reduced the price of the product.
Date
Explanation
Units
Unit
Cost
Unit Price
Apr.
1
Beginning inventory
50
$78
6
Purchases
110
89
8
Sales
(130
)
$120
15
Purchases
120
68
20
Sales
(120
)
102
27
Purchases
20
59...
On December 21, 2020, Bridgeport Company provided you with the following information regarding its equity investments....
On December 21, 2020, Bridgeport Company provided you with the
following information regarding its equity investments.
Securities
Cost
Fair Value
Unrealized
Gain
(Loss)
SC Corp. stock
$39,100
34,980
$(4,120
)
True Co. stock
53,500
60,060
6,560
Plus, Inc. stock
30,400
30,124
(276
)
Total of portfolio
$123,000
$125,164
2,164
Previous fair value adjustment
balance
-0-
Fair value adjustment – Dr.
$2,164
During 2021, the Plus, Inc. stock was sold for $30,940. The fair
value of the stock on December 31,...
When calculating ending inventory under a periodic inventory, you are provided this information: Purchases $88,000; Beginning...
When calculating ending inventory under a periodic inventory,
you are provided this information: Purchases $88,000; Beginning
Inventory $4,000; Sales Revenue $125,000; physical count of Ending
Inventory $7,500. Which of the following is true?
Question 23 options:
The journal entry to record the ending inventory is Debit
Inventory $3,500, Credit Cost of Goods Sold $3,500
Debit Cost of Goods Sold $92,000, Credit Inventory $4,000 and
Credit Purchases $88,000
Both a. and b.
Neither a. nor b.
You are provided with the following information about Bramble Inc.’s inventory for the month of August:...
You are provided with the following information about Bramble
Inc.’s inventory for the month of August: Date Description Units
Unit Cost Aug. 1 Beginning inventory 50 $90 4 Purchase 180 91 10
Sale (160 ) 18 Purchase 70 94 25 Sale (100 ) 28 Purchase 40 95
Collapse question part (a) Calculate the cost of ending inventory
and cost of goods sold using FIFO in (1) a periodic inventory
system, and (2) a perpetual inventory system. Periodic Inventory
System Perpetual...
Bridgeport Co. follows the practice of valuing its inventory at the lower-of-cost-or-market. The following information is...
Bridgeport Co. follows the practice of valuing its inventory at
the lower-of-cost-or-market. The following information is available
from the company’s inventory records as of December 31, 2020.
Item
Quantity
Unit Cost
Replacement
Cost/Unit
Estimated Selling
Price/Unit
Completion & Disposal
Cost/Unit
Normal Profit
Margin/Unit
A
1,800
$8.18
$9.16
$11.45
$1.64
$1.96
B
1,500
8.94
8.61
10.25
0.98
1.31
C
1,700
6.10
5.89
7.85
1.25
0.65
D
1,700
4.14
4.58
6.87
0.87
1.64
E
2,100
6.98
6.87
7.30
0.76
1.09
Greg Forda...
Bridgeport Co. follows the practice of valuing its inventory at the lower-of-cost-or-market. The following information is...
Bridgeport Co. follows the practice of valuing its inventory at
the lower-of-cost-or-market. The following information is available
from the company’s inventory records as of December 31, 2020.
Item
Quantity
Unit Cost
Replacement
Cost/Unit
Estimated Selling
Price/Unit
Completion & Disposal
Cost/Unit
Normal Profit
Margin/Unit
A
1,800
$8.18
$9.16
$11.45
$1.64
$1.96
B
1,500
8.94
8.61
10.25
0.98
1.31
C
1,700
6.10
5.89
7.85
1.25
0.65
D
1,700
4.14
4.58
6.87
0.87
1.64
E
2,100
6.98
6.87
7.30
0.76
1.09
Greg Forda...
The following information was taken from the records of Bridgeport Inc. for the year 2017: Income...
The following information was taken from the records of
Bridgeport Inc. for the year 2017: Income tax applicable to income
from continuing operations $206,448; income tax applicable to loss
on discontinued operations $27,336, and unrealized holding gain on
available-for-sale securities (net of tax) $23,700.
Gain on sale of equipment
$97,700
Cash dividends declared
$139,500
Loss on discontinued operations
80,400
Retained earnings January 1, 2017
611,500
Administrative expenses
244,100
Cost of goods sold
933,800
Rent revenue
44,200
Selling expenses
277,800
Loss...
The following information was taken from the records of Bridgeport Inc. for the year 2017: Income...
The following information was taken from the records of
Bridgeport Inc. for the year 2017: Income tax applicable to income
from continuing operations $206,448; income tax applicable to loss
on discontinued operations $27,336, and unrealized holding gain on
available-for-sale securities (net of tax) $23,700.
Gain on sale of equipment
$97,700
Cash dividends declared
$139,500
Loss on discontinued operations
80,400
Retained earnings January 1, 2017
611,500
Administrative expenses
244,100
Cost of goods sold
933,800
Rent revenue
44,200
Selling expenses
277,800
Loss...
FIFO –LIFO The Inventory Company has provided you with three months of their inventory and purchases...
FIFO –LIFO
The Inventory Company has provided you with three months of
their inventory and purchases for the last three months:
Date
Item
Quantity
Unit Price
July 1
Begin Inventory
2,500
$38
July 15
Purchase
3,300
$37
July 29
Purchase
5,500
$36
Aug 11
Purchase
4,100
$36
Aug 30
Purchase
6,700
$35
Sept 14
Purchase
3,900
$34
During three months the company sold 23,200 units.Selling price
is $78 and the company’s tax rate is 32%.
Required:
A.Complete the worksheet for...
Tyler Company has the following information related to purchases and sales of one of its inventory items.
Inventory Costing MethodsTyler Company has the following information related to purchases
and sales of one of its inventory items.DateDescriptionUnits Purchased at
CostUnits Sold at
RetailSept. 1Beginning inventory400 units @ $16Sept. 10Purchase600 units @ $18Sept. 20Sales690 units @ $31Sept. 25Purchase800 units at $19Assume the company uses a perpetual inventory system.Required:Calculate ending inventory and cost of goods sold using the
FIFO, LIFO, and average cost methods.FIFOLIFOAvg CostCost of goods sold$fill in the blank 1$fill in the blank 2$fill in the blank 3Ending...
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