Question
In: Accounting
Elston Company had a beginning inventory of 200 units at a cost of rm12 per unit...
- Elston Company had a beginning inventory of 200 units at a cost of rm12 per unit on August 1. During the month, the following purchases and sales were made.
Purchases ______________Sales ________
August 4 250 units at RM13/unit August 7 150 units @ RM20
August 15 350 units at RM15/unit August 11 100 units @ RM20
August 28 200 units at RM14/unit August 17 250 units @ RM25
August 24 260 units @ RM25
Elston uses a perpetual inventory system.
Required:
i.Determine ending inventory and cost of goods sold under:
- average cost, and
- FIFO.
- Compute gross profit for the month of August using:
a) average cost, and
b) FIFO.
Solutions
Expert Solution
| FIFO METHOD | PURHASES | COST OF GOODS SOLD | ENDING INVENTORY | |||||||
| Date | Particulars | Units | Rate | Total Cost | Units | Rate | Total Cost | Units | Rate | Total Cost |
| August.01 | Beginning inventory | 200 | $ 12.00 | $ 2,400 | ||||||
| August.04 | Purchases | 250 | $ 13.00 | $ 3,250 | 200 | $ 12.00 | $ 2,400 | |||
| 250 | $ 13.00 | $ 3,250 | ||||||||
| August.07 | Sales | 150 | $ 12.00 | $ 1,800 | 50 | $ 12.00 | $ 600 | |||
| 250 | $ 13.00 | $ 3,250 | ||||||||
| August.11 | Sales | 50 | $ 12.00 | $ 600 | ||||||
| 50 | $ 13.00 | $ 650 | 200 | $ 13.00 | $ 2,600 | |||||
| August.15 | Purchases | 350 | $ 15.00 | $ 5,250 | 200 | $ 13.00 | $ 2,600 | |||
| 350 | $ 15.00 | $ 5,250 | ||||||||
| August.17 | Sales | 200 | $ 13.00 | $ 2,600 | ||||||
| 50 | $ 15.00 | $ 750 | 300 | $ 15.00 | $ 4,500 | |||||
| August.24 | Sales | 260 | $ 15.00 | $ 3,900 | 40 | $ 15.00 | $ 600 | |||
| August.28 | Purchases | 200 | $ 14.00 | $ 2,800 | 40 | $ 15.00 | $ 600 | |||
| 200 | $ 14.00 | $ 2,800 | ||||||||
| Total | 800 | $11,300 | 760 | $10,300 | 240 | $ 3,400 | ||||
| Average Cost Method | PURHASES | COST OF GOODS SOLD | ENDING INVENTORY | |||||||
| August.01 | Beginning inventory | 200 | $ 12.00 | $ 2,400 | ||||||
| August.04 | Purchases | 250 | $ 13.00 | $ 3,250 | 450 | $ 12.56 | $ 5,650 | |||
| August.07 | Sales | 150 | $ 12.56 | $ 1,883 | 300 | $ 12.56 | $ 3,767 | |||
| August.11 | Sales | 100 | $ 12.56 | $ 1,256 | 200 | $ 12.56 | $ 2,511 | |||
| August.15 | Purchases | 350 | $ 15.00 | $ 5,250 | 550 | $ 14.11 | $ 7,761 | |||
| August.17 | Sales | 250 | $ 14.11 | $ 3,528 | 300 | $ 14.11 | $ 4,233 | |||
| August.24 | Sales | 260 | $ 14.11 | $ 3,669 | 40 | $ 14.11 | $ 564 | |||
| August.28 | Purchases | 200 | $ 14.00 | $ 2,800 | 240 | $ 14.02 | $ 3,364 | |||
| Total | 800 | $11,300 | 760 | $10,336 | 240 | $ 3,364 | ||||
 ekkarill92 answered 10 months agoRelated SolutionsBotter Company had a beginning inventory of 200 units at a cost of $13 per unit...
Botter Company had a beginning inventory of 200 units at a cost
of $13 per unit on August 1. During the month, the following
purchases and sales were made.
Purchases
Sales
August
4
250 units at $14
August
7
150 units
August
15
350 units at $15
August
11
100 units
August
28
200 units at $16
August
17
300 units
August
24
200 units
Botter uses a periodic inventory system.
Instructions
Determine ending inventory and cost of goods sold...
Please answer asap Elston Company had a beginning inventory of 200 units at a cost of...Please answer asap
Elston Company had a beginning inventory of 200 units at a cost
of rm12 per unit on August 1. During the month, the following
purchases and sales were made.
Purchases
______________Sales
________
August 4 250
units at
RM13/unit
August
7 150 units @
RM20
August 15 350 units at
RM15/unit
August
11 100 units @ RM20
August 28 200 units at
RM14/unit
August
17 250 units @ RM25
August
24 ...
Units Per unit cost Beginning Inventory 200 $ 120.00 $ 24,000.00 30-Jan purchase 130 $ 124.00...
Units
Per unit cost
Beginning Inventory
200
$ 120.00
$ 24,000.00
30-Jan
purchase
130
$ 124.00
$ 16,120.00
12-Mar
purchase
220
$ 128.00
$ 28,160.00
Total
Sales
350
$ 320.00
$ 112,000.00
Ending Inventory
FIFO
LIFO
Ending Inventory
Ending Inventory
Goods Available for Sale
Goods Available for Sale
Deduct ending Inventory
Deduct ending Inventory
Cost of Goods Sold
Cost of Goods Sold
Sales
Sales
Cost of Goods Sold
Cost of Goods Sold
Gross Profit
Gross Profit
Operating Expense
$ 24,000.00...
Beginning Inventory # of units Cost per unit Total Beginning Inventory 15 $10 $150 Jan 1....
Beginning Inventory
# of units
Cost per unit
Total
Beginning Inventory
15
$10
$150
Jan 1. Purchase
15
$11
$165
Jan 10. Purchase
15
$12
$180
Total
45
1. During January, AA sold 20 units at $30 per unit.
Under FIFO, how much is the Gross
Profit?
$365
$380
$390
$395
2. During January, AA sold 20 units at $30 per unit
Under the Weighted Average Method, how much is the
Gross Profit?.
$365
$380
$395
$400
3. During January,...
Ella Company had 160 units in beginning inventory at a total cost of $320. The company...
Ella Company had 160 units in beginning inventory at a total
cost of $320. The company purchased 400 units at a total cost of
$1,500. At the end of the year, Ella had 120 units in ending
inventory
Beginning 160 units ($2.00) $ 320
Purchases 500 units ($3.00) 1,500
Cost of goods available for sale $1,820
A physical count of ending inventory on June 30 reveals that
there are 100 units on hand.
REQUIREMENTS:
Calculate the cost of ending inventory...
4. Sylvia's Designs Co. had the following inventory activity during April: Units Unit Cost Beginning inventory...4. Sylvia's Designs Co. had the following inventory
activity during April:
Units
Unit
Cost
Beginning inventory
100
$10
Purchase (April 3)
50
12
Sale (April 10)
80
Purchase (April 18)
40
14
Purchase (April 23)
60
15
Sale (April 28)
120
Assuming Sylvia's uses a perpetual LIFO cost flow
assumption, ending inventory for April would be
a.
$ 750
b.
$2,560
c.
$ 500
d.
$2,310
Sekhon company had a beginning inventory on January 1 of 200 units of product 4-18-15 at...
Sekhon company had a beginning inventory on January 1 of 200 units
of product 4-18-15 at cost of $20 per unit. During the year, the
following purchases were made.
Mar. 15 500 units at $21, July 20 313 units at $22 Sept. 4 413
units at $27. Dec. 2. 125 units at $31
1250 units were sold. Sekhon Company uses a periodic inventory
system.
1. Determine the cost of good available for sale.
2. Calculate average cost per unit.
3....
Groves Company Inc. had a beginning inventory of 300 units of Product MLN at a cost...Groves Company Inc. had a beginning inventory of 300 units of
Product MLN at a cost of $8 per unit. During the year, purchases
were:
Feb. 20 700 units at $9
Aug. 12 600 units at $11
May 5 500 units at $10
Dec. 8 100 units at $12
Groves Company uses a periodic inventory system. Sales totaled
1,800 units.
Instructions:
(a) determine the cost of goods
available for sale.
(b) Determine the ending inventory and
the cost of goods...
AU Company has the following inventory transactions for the month of March: Units Unit Cost Beginning,...AU Company has the following inventory transactions for the
month of March:
Units
Unit Cost
Beginning, Mar. 1
10,000
15
Purchases, Mar. 10
20,000
18
Sold, Mar. 15
15,000
Purchases, Mar. 18
5,000
23
Sold, Mar. 25
6,000
The company uses the perpetual inventory system. Determine the
cost of inventory on March 31 and cost of goods sold under:
Inventory Cost Flow
Ending Inventory
Cost of Goods Sold
First in, first out (FIFO)
Moving Average
Last in, first out (LIFO)
EBECEDE Company has the following inventory transactions for the month of February: Units Unit Cost Beginning,...EBECEDE Company has the following inventory transactions for the
month of February:
Units
Unit Cost
Beginning, Feb. 1
10,000
40
Purchases, Feb. 10
10,000
43
Sold, Feb. 15
15,000
Purchases, Feb. 18
5,000
44
Sold, Feb. 25
2,000
The company uses the perpetual inventory system. Determine the
cost of inventory on February 29 and cost of goods sold under:
Inventory Cost Flow
Ending Inventory
Cost of Goods Sold (COGS
First in, first out (FIFO)
Weighted Average
Last in, first out...
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