Question
In: Accounting
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 would report in its June 2018 income statement using each of the following cost flow methods: a. First-in, first-out (FIFO)b. Last-in, first-out (LIFO)c. Average cost
can you explain how to do the three methods for me
Solutions
ekkarill92 answered 1 year agoRelated Solutions
Altira Corporation uses a perpetual inventory system. The following transactions affected its merchandise inventory during the...
Altira Corporation uses a perpetual inventory system. The
following transactions affected its merchandise inventory during
the month of August 2018:
Aug.1
Inventory on hand—3,300 units;
cost $7.40 each.
8
Purchased 16,500 units for $6.80
each.
14
Sold 13,200 units for $13.30
each.
18
Purchased 9,900 units for $6.20
each.
25
Sold 12,200 units for $12.30
each.
31
Inventory on hand—4,300
units.
Exercise 8-14 Part 2
2. Determine the inventory balance Altira would
report in its August 31, 2018, balance sheet...
Mead Company uses a perpetual inventory system and engaged in the following transactions during the month...
Mead Company uses a perpetual inventory system and engaged in
the following transactions during the month of May:
Date
Transaction
May 1
Made cash sales of $8,100; the cost of the inventory was
$3,100.
5
Purchased $2,400 of inventory on credit.
9
Made credit sales of $3,500; the cost of the inventory sold was
$2,100.
13
Paid sales salaries of $800 and office salaries of $500.
14
Paid for the May 5 purchases.
18
Purchased sales equipment costing $5,100; made...
Required information Altira Corporation uses a perpetual inventory system. The following transactions affected its merchandise inventory...
Required information
Altira Corporation uses a perpetual inventory system. The
following transactions affected its merchandise inventory during
the month of August 2018:
Aug.1
Inventory on hand—3,900 units;
cost $8.00 each.
8
Purchased 19,500 units for $7.40
each.
14
Sold 15,600 units for $13.90
each.
18
Purchased 11,700 units for $6.60
each.
25
Sold 14,600 units for $12.90
each.
31
Inventory on hand—4,900
units.
3. Determine the inventory balance Altira would
report in its August 31, 2018, balance sheet and the...
Jaywall Corporation, which uses a perpetual inventory system, recorded the following inventory transactions during 20X3. ...
Jaywall Corporation, which uses a perpetual inventory system,
recorded the following inventory transactions during 20X3.
Units
Unit Cost
Units
Selling Price
April 1
Beginning inventory
45
$8
25
Purchase
150
9
May 4
Purchase
65
10
16
Sale
120
$16
June 4
Purchase
50
12
(a) Using the FIFO cost formula, calculate the amount
of the cost of goods sold for the quarter ended June 30. (Show
calculations)
(b) Using the average cost formula, calculate the amount of ending...
A corporation uses a FIFO perpetual inventory system. During August, it had the following transactions: August...
A corporation uses a FIFO perpetual inventory system. During
August, it had the following transactions: August 1, Beginning
inventory of 8 units @ $11 per unit August 2, 25 units were
purchased at $12 per unit. August 15, 12 units were sold at $25 per
unit. August 18, 15 units were purchased at $14 per unit. August
20. 18 units were sold at $25 per unit August 28. 14 units were
sold at $26 per unit What was the amount...
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
March 11 Purchase 200 units at $85
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:
Ayayai Ltd. uses the perpetual inventory system and reports the following inventory transactions for the month...
Ayayai Ltd. uses the perpetual inventory system and reports the
following inventory transactions for the month of June:
Date
Explanation
Units
Unit Cost
Total Cost
June
1
Beginning inventory
1,390
$4
$5,560.00
12
Purchases
2,230
5
11,150
15
Sale
(2,640
)
16
Purchases
4,580
6
27,480
23
Purchases
1,640
7
11,480
27
Sales
(5,460
)
Part 1
Determine the cost of goods sold and the cost of the ending
inventory using (1) FIFO and (2) Average cost. (Round
average
final...
Ayayai Ltd. uses the perpetual inventory system and reports the following inventory transactions for the month...
Ayayai Ltd. uses the perpetual inventory system and reports the
following inventory transactions for the month of June:
Date
Explanation
Units
Unit Cost/Price
Total Cost
June
1
Beginning inventory
1,480
$5
$7,400
12
Purchases
2,340
6
14,040
15
Sale
(2,420
)
12
16
Purchases
4,280
7
29,960
23
Purchases
1,580
8
12,640
27
Sales
(5,580
)
15
alculate the gross profit for the month of June using (1) FIFO
and (2) average cost. (Round average final answers to 2
decimal...
Schumacher Company uses the perpetual inventory system, and it engaged in the following transactions during 2014:...
Schumacher Company uses the perpetual inventory system, and it
engaged in the following transactions during 2014:
1) Started the business by issuing common stock for $8,100
cash
2) Paid cash to purchase $5,200 of inventory
3) Sold inventory that cost $3,300 for $7,850 cash
4) Incurred and paid operating expenses, $270
Schumacher Company engaged in the following transactions during
2015:
1) Paid cash to purchase $6,300 of inventory
2) Sold inventory that cost $7,600 for $16,350 cash
3) Incurred and...
During the month, the following transactions occurred for Trevor’s Supply Company. The company uses the perpetual inventory...
During the month, the following transactions occurred for
Trevor’s Supply Company. The company uses the
perpetual inventory method.
Dec. 1
Accepted a 4-month, 6% note from a customer in settlement of
$12,400 account.
3
Wrote off as uncollectible specific accounts totaling $680.
8
Purchased $17,200 of inventory on account, terms 2/10, n/30.
11
Sold $25,000 of inventory that cost $17,500, terms 1/15,
n/45.
12
Paid $13,750 for employee salaries.
15
Customers returned $8,000 of inventory sold on December
11th that cost...
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