Question
In: Accounting
Part 2 -McCubbin Company uses the periodic inventory system to account for inventories. Information related to...
Part 2 -McCubbin Company uses the periodic inventory system to account for inventories. Information related to McCubbin Company's inventory at October 31 is given below:
October 1 Beginning inventory 300 units @ $10.00 = $ 3,000
8 Purchase 900 units @ $10.40 = 9,360
16 Purchase 500 units @ $10.80 = 5,400
24 Purchase 300 units @ $11.60 = 3,480
Total units and cost 2,000 units $21,240
Instructions
1. Show calculations to value the ending inventory using the FIFO cost assumption if 600 units remain on hand at October 31.
2. Show calculations to value the ending inventory using the weighted average cost method if 600 units remain on hand at October 31.
3. Show calculations to value the ending inventory using the LIFO cost assumption if 600 units remain on hand at October 31.
Solutions
ekkarill92 answered 10 months agoRelated Solutions
LEFO Company uses the periodic inventory system to account for inventories. Information related to LEFO Company's...
LEFO Company uses the periodic inventory system to account for
inventories. Information related to LEFO Company's inventory at
March 31 is given below:
Date - Description - Units - Unit Cost
March 1 - Beg. Inventory - 10 units - $100
March 8 - Purchase - 10 units - $110
March 17 - Purchase - 10 units - $120
March 24 - Purchase - 10 units - $125
March 30 - Purchase - 10 units - $130
a. Calculate the...
Kingsley Company uses the periodic inventory system to account for its inventories. Here are Kingsley’s inventory...
Kingsley Company uses the periodic inventory system to
account for its inventories. Here are Kingsley’s inventory records
for January and February of 2017:
Date
Event
Quantity
Cost per unit
Total Cost
January 1
Inventory on hand
15 units
$10/unit
$150
8
Purchase
20 units
$11/unit
$220
12
Purchase
40 units
$12/unit
$480
29
Purchase
50 units
$13/unit
$650
31
Ending inventory
20 units
?
?
February 8
Purchase
15 units
$14/unit
$210
15
Purchase
40 units
$15/unit
$600
22
Purchase...
Exercise 2: Inventory-Related Calculations in a Periodic System The Travalent Company uses the periodic inventory system. The...
Exercise 2: Inventory-Related Calculations in a Periodic
System
The Travalent Company uses the periodic inventory
system. The following information is taken from their
records. Certain data have been intentionally omitted.
Required: Compute the missing numbers.
2018
2019
2020
Sales
$4,000
$4,200
Sales Discounts
(20)
(25)
(30)
Sales Returns
(10)
(20)
(15)
Net Sales
Beginning Inventory
1,000
1,345
Purchases
3,000
2,700
Freight-In
150
200
250
Purchase Returns
(200)
(250)
(200)
Purchase Discounts
(100)
(150)
Net Purchases
3,000
Cost of Goods Available for...
Sunland Company uses a periodic inventory system. Details for the inventory account for the month of...
Sunland Company uses a periodic inventory system. Details for
the inventory account for the month of January 2022 are as
follows:
Units
Per unit price
Total
Balance, 1/1/2022
290
$5.00
$1450
Purchase, 1/15/2022
140
..5.10
714
Purchase, 1/28/2022
140
..5.30
742
An end of the month (1/31/2022) inventory showed that 230 units
were on hand. If the company uses FIFO and sells the units for $10
each, what is the gross profit for the month?
$1695
$1705
$3400
$2300
1. Effie Company uses a periodic inventory system. Details for the inventory account for the month...
1.
Effie Company uses a periodic inventory system. Details for the
inventory account for the month of January, 2013 are as
follows:
Units
Per unit price
Total
Balance, 1/1/13
200
$5.00
$1,000
Purchase, 1/15/13
100
5.30
530
Purchase, 1/28/13
100
5.50
550
An end of the month (1/31/13) inventory showed that 140 units were
on hand. If the company uses LIFO, what is the value of the ending
inventory?
A.
$742
B.
$728
C.
$762
D.
$700
2.
A company...
Altira Corporation uses a periodic inventory system. The following information related to its merchandise inventory during...
Altira Corporation uses a periodic inventory system. The
following information related to its merchandise inventory during
the month of August 2018 is available:
Aug.1
Inventory on hand—3,000 units;
cost $6.50 each.
8
Purchased 12,000 units for $5.70
each.
14
Sold 9,000 units for $12.20
each.
18
Purchased 7,000 units for $5.20
each.
25
Sold 8,000 units for $11.20
each.
31
Inventory on hand—5,000
units.
Required:
Determine the inventory balance Altira would report in its August
31, 2018, balance sheet and...
Altira Corporation uses a periodic inventory system. The following information related to its merchandise inventory during...
Altira Corporation uses a periodic inventory system. The
following information related to its merchandise inventory during
the month of August 2018 is available: Aug.1 Inventory on
hand—5,000 units; cost $7.90 each. 8 Purchased 22,000 units for
$6.70 each. 14 Sold 16,000 units for $13.20 each. 18 Purchased
12,000 units for $6.20 each. 25 Sold 15,000 units for $12.20 each.
31 Inventory on hand—8,000 units. Required: Determine the inventory
balance Altira would report in its August 31, 2018, balance sheet
and...
Altira Corporation uses a periodic inventory system. The following information related to its merchandise inventory during...
Altira Corporation uses a periodic inventory system. The
following information related to its merchandise inventory during
the month of August 2018 is available:
Aug.1
Inventory on hand—7,000 units;
cost $8.10 each.
8
Purchased 20,000 units for $6.50
each.
14
Sold 15,000 units for $13.00
each.
18
Purchased 11,000 units for $6.00
each.
25
Sold 14,000 units for $12.00
each.
31
Inventory on hand—9,000
units.
Required:
Determine the inventory balance Altira would report in its August
31, 2018, balance sheet and...
Altira Corporation uses a periodic inventory system. The following information related to its merchandise inventory during...
Altira Corporation uses a periodic inventory system. The
following information related to its merchandise inventory during
the month of August 2018 is available:
Aug.1
Inventory on hand—10,500 units; cost $8.40 each.
8
Purchased 29,000 units for $7.40 each.
14
Sold 20,500 units for $13.90 each.
18
Purchased 15,500 units for $6.90 each.
25
Sold 19,500 units for $12.90 each.
31
Inventory on hand—15,000 units.
Required:
Determine the inventory balance Altira would report in its August
31, 2018, balance sheet and...
Altira Corporation uses a periodic inventory system. The following information related to its merchandise inventory during...
Altira Corporation uses a periodic inventory system. The
following information related to its merchandise inventory during
the month of August 2018 is available:
Aug.1
Inventory on hand—10,000 units; cost $8.00 each.
8
Purchased 26,000 units for $7.10 each.
14
Sold 19,000 units for $13.60 each.
18
Purchased 14,000 units for $6.60 each.
25
Sold 18,000 units for $12.60 each.
31
Inventory on hand—13,000 units.
Determine the inventory balance Altira would report in its
August 31, 2018, balance sheet and the...
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