Question

I.          Cost Flow Assumptions

RennStall made the following purchases and sales of a particular product:

Date                            Purchases at Cost   Total Cost                  Sales at Retail          Total Retail

Begin Inventory        100 x $35 =

8/6                              200 x $40 =

8/10                                                                                                    150 x $100 =

8/15                                                                                                    50 x $100 =

8/22                            250 x $45 =

8/23                                                                                                    160 x $100 =

8/31                                                                                                    50 x $100 =                        

            Totals                         units                                                                                                 

III.        Periodic Method

For the month of August, compute the value of ending inventory and cost of goods sold under (a) FIFO, (b) LIFO, (c) Weighted Average, and (d) Specific Identification. The units physically remaining are all from the August 6 purchase which cost $40 each.

Answer 1

FIFO Periodic
	Available for sale	Cost of goods sold	Ending Inventory
Purchase Date	Activity	Units	Unit Cost	Units available	Units sold	Unit cost	COGS	Ending Inventory units	Cost per unit	Ending Inventory cost
	Beginning Inventory	100	35	3500	100	35	3500
Jun-06	Purchases	200	40	8000	200	40	8000
Jun-22	Purchases	250	45	11250	110	45	4950	140	45	6300
	Total	550		22750	410		16450	140		6300
LIFO Periodic
	Available for sale	Cost of goods sold	Ending Inventory
Purchase Date	Activity	Units	Unit Cost	Units available	Units sold	Unit cost	COGS	Ending Inventory units	Cost per unit	Ending Inventory cost
	Beginning Inventory	100	35	3500	0	0	0	100	35	3500
Jun-06	Purchases	200	40	8000	160	40	6400	40	40	1600
Jun-22	Purchases	250	45	11250	250	45	11250
	Total	550		22750	410		17650	140		5100
Weighted Average
	Available for sale	Cost of goods sold	Ending Inventory
Purchase Date	Activity	Units	Unit Cost	Units available	Units sold	Unit cost	COGS	Ending Inventory units	Cost per unit	Ending Inventory cost
	Beginning Inventory	100	35	3500	100	41.36	4136
Jun-06	Purchases	200	40	8000	200	41.36	8273
Jun-22	Purchases	250	45	11250	110	41.36	4550	140	41.36	5791
	Total	550	41.36	22750	410		16959	140		5791
Special Identification
	Available for sale	Cost of goods sold	Ending Inventory
Purchase Date	Activity	Units	Unit Cost	Units available	Units sold	Unit cost	COGS	Ending Inventory units	Cost per unit	Ending Inventory cost
	Beginning Inventory	100	35	3500	100	35	3500
Jun-06	Purchases	200	40	8000	60	40	2400	140	40	5600
Jun-22	Purchases	250	45	11250	250	45	11250
	Total	550		22750	410		17150	140		5600
					FIFO	LIFO	Weighted	Sepecific	ekkarill92 Next > < Previous Related Solutions 2. Pick one of the cost flow assumptions and a product that would utilize that flow.... 2. Pick one of the cost flow assumptions and a product that would utilize that flow. Describe why it is the best of the four methods or LMC for that product. 2. Pick one of the cost flow assumptions and a product that would utilize that flow.... 2. Pick one of the cost flow assumptions and a product that would utilize that flow. Describe why it is the best of the four methods or LMC for that product. We report the following current-year purchases and sales for our only product: Date Activity Starting Purchases... We report the following current-year purchases and sales for our only product: Date Activity Starting Purchases Sales January 1 Beginning Inventory 200 Units @ $10 January 10 Sales 150 Units March 14 Purchase 350 Units @ $15 March 15 Sales 300 Units July 30 Purchase 450 Units @ $20 October 5 Sales 430 Units October 26 Purchase 100 Units @ $25 Determine the costs assigned to ending inventory using (1) FIFO, (2) LIFO, and (3) Weighted Average. FIFO Date Beg.... During its first year of operations, Maine Corporation made the following inventory purchases and sales. Date... During its first year of operations, Maine Corporation made the following inventory purchases and sales. Date Units Purchased/(Sold) Cost Per Unit Inventory Balance (in units) April 3 5,000 $4.25 5,000 April 10 2,000 $4.00 7,000 April 16 (4,000) 3,000 April 20 5,000 $4.50 8,000 April 25 2,000 $4.75 10,000 Calculate ending inventory and cost of goods sold using the 1) FIFO method under a periodic inventory system 2) FIFO method under a perpetual inventory system 3) LIFO method under a... Laker Company reported the following January purchases and sales data for its only product.    Date... Laker Company reported the following January purchases and sales data for its only product.    Date Activities Units Acquired at Cost Units Sold at Retail Jan. 1 Beginning inventory 300 units @ $7.60 = $ 2,280 Jan. 10 Sales 180 units @ $18.20 Jan. 20 Purchase 220 units @ $6.60 = 1,452 Jan. 25 Sales 160 units @ $18.20 Jan. 30 Purchase 340 units @ $6.10 = 2,074     Totals 860 units $ 5,806 340 units     Laker uses a... Laker Company reported the following January purchases and sales data for its only product.    Date... Laker Company reported the following January purchases and sales data for its only product.    Date Activities Units Acquired at Cost Units Sold at Retail Jan. 1 Beginning inventory 280 units @ $9.60 = $ 2,688 Jan. 10 Sales 155 units @$17.60 Jan. 20 Purchase 350 units @ $8.60 = 3,010 Jan. 25 Sales 275 units @$17.60 Jan. 30 Purchase 220 units @ $7.60 = 1,672     Totals 850 units $ 7,370 430 units    Required: The Company uses a... Laker Company reported the following January purchases and sales data for its only product.    Date... Laker Company reported the following January purchases and sales data for its only product.    Date Activities Units Acquired at Cost Units Sold at Retail Jan. 1 Beginning inventory 205 units @ $13.00 = $ 2,665 Jan. 10 Sales 165 units @ $22.00 Jan. 20 Purchase 140 units @ $12.00 = 1,680 Jan. 25 Sales 145 units @ $22.00 Jan. 30 Purchase 310 units @ $11.50 = 3,565     Totals 655 units $ 7,910 310 units 1.The Company uses a...    Hemming Co. reported the following current-year purchases and sales for its only product.      Date...    Hemming Co. reported the following current-year purchases and sales for its only product.      Date Activities Units Acquired at Cost Units Sold at Retail Jan. 1 Beginning inventory 300 units @ $14.00 = $ 4,200 Jan. 10 Sales 250 units @ $44.00 Mar. 14 Purchase 520 units @ $19.00 = 9,880 Mar. 15 Sales 460 units @ $44.00 July 30 Purchase 500 units @ $24.00 = 12,000 Oct. 5 Sales 480 units @ $44.00 Oct. 26 Purchase 200 units... Laker Company reported the following January purchases and sales data for its only product.    Date... Laker Company reported the following January purchases and sales data for its only product.    Date Activities Units Acquired at Cost Units sold at Retail Jan. 1 Beginning inventory 165 units @ $ 9.00 = $ 1,485 Jan. 10 Sales 125 units @ $ 18.00 Jan. 20 Purchase 110 units @ $ 8.00 = 880 Jan. 25 Sales 125 units @ $ 18.00 Jan. 30 Purchase 250 units @ $ 7.50 = 1,875 Totals 525 units $ 4,240 250 units... Hemming Co. reported the following current-year purchases and sales for its only product.    Date Activities... Hemming Co. reported the following current-year purchases and sales for its only product.    Date Activities Units Acquired at Cost Units Sold at Retail Jan. 1 Beginning inventory 125 units @ $11.00 = $ 1,375 Jan. 10 Sales 115 units @ $41.00 Mar. 14 Purchase 275 units @ $16.00 = 4,400 Mar. 15 Sales 165 units @ $41.00 July 30 Purchase 425 units @ $21.00 = 8,925 Oct. 5 Sales 275 units @ $41.00 Oct. 26 Purchase 625 units @... ADVERTISEMENT Subjects Accounting Advanced Math Anatomy and Physiology Biology Chemistry Civil Engineering Computer Science Economics Electrical Engineering Finance History Math Mechanical Engineering Operations Management Physics Psychology Statistics and Probability Nursing Other ADVERTISEMENT Latest Questions Tim Smith is shopping for a used luxury car. He has found one priced at $30,000.... Assignment specification — Case Study :IKEA Operations Management IKEA is the one of the most successful... What are the four ways to test internal Controls? What are some of the potential effects of bilingualism and home language use for a student... Imperial Jewelers manufactures and sells a gold bracelet for $405.00. The company’s accounting system says that... The Butler-Perkins Company (BPC) must decide between two mutually exclusive projects. Each costs $6,500 and has... You are the operations manager for an airline and you are considering a higher fare level... ADVERTISEMENT About @ 2020 WizEdu