Question

In: Accounting

Urban Glam Cosmetics made purchases of lipstick in the current year as follows: Jan. 1 Beginning...

Urban Glam Cosmetics made purchases of lipstick in the current year as follows:

Jan. 1 Beginning inventory 75 units @ $ 12.00 = $ 900
Mar. 14 Purchased 250 units @ $ 13.00 = 3,250
July 30 Purchased 500 units @ $ 14.00 = 7,000
Units available for sale 825 units
Cost of goods available for sale $ 11,150


Urban Glam Cosmetics made sales on the following dates at a selling price of $35 per unit:

Jan. 10 70 units
Mar. 15 180 units
Oct. 5 450 units
Totals 700 units

Solutions

Expert Solution

Caclulation of COGS Ending inventory Value & Gross Profir Under FIFO

COGS = (70 units *$12) +(5 units *$12) + (175 units * $13) + (75 units * $13) + (375* $14) = $9,400

Inventory Value = (125* $14) = $1,750

Gross Profit = Sales - COGS = (700 * $35) - $9,400 = $15,100

Caclulation of COGS Ending inventory Value & Gross Profir Moving Weighted Average.

Average Cost per unit on different date

Jan 1 = $12 (75units)

Jan 10 = $12 (units left = 75 - 70 = 5 units)

March 14 = (5*12 + 3250 )/ 5 +250 = $12.98 (units left = 5 + 250 = 255 units )

March 15 = $12.98 (units left = 255 -180 = 75 units )

July 30 = (75*12.98 + 7000) / 75 + 500 = $13.83  (75 + 500 = 575 units )

Oct 5 = $13.87  (units left = 575 -450 = 125 units )

COGS = (70 units *$12) +(180 units *$12.98) + (450 units * $13.86) = $9,417.90

Inventory Value = (125* $13.86) = $1,732.10

Gross Profit = Sales - COGS = (700 * $35) - $9,417.90= $15,082.10

ekkarill92 answered 1 year ago
Next > < Previous

Related Solutions

Urban Glam Cosmetics made purchases of lipstick in the current year as follows: Jan. 1 Beginning...
Urban Glam Cosmetics made purchases of lipstick in the current year as follows: Jan. 1 Beginning inventory 81 units @ $ 13.00 = $ 1,053 Mar. 14 Purchased 280 units @ $ 14.00 = 3,920 July 30 Purchased 530 units @ $ 15.00 = 7,950 Units available for sale 891 units Cost of goods available for sale $ 12,923 Urban Glam Cosmetics made sales on the following dates at a selling price of $35 per unit: Jan. 10 73 units...
Paddington Gifts made purchases of a particular product in the current year as follows: Jan. 1...
Paddington Gifts made purchases of a particular product in the current year as follows: Jan. 1 Beginning inventory 170 units @ $ 5.30 = $ 901 Mar. 7 Purchased 430 units @ $ 4.90 = 2,107 July 28 Purchased 1,200 units @ $ 4.30 = 5,160 Oct. 3 Purchased 730 units @ $ 3.70 = 2,701 Totals 2,530 units $ 10,869 Required: 1. The business uses a periodic inventory system. Ending inventory consists of 110 units. Calculate the costs to...
Paddington Gifts made purchases of a particular product in the current year as follows: Jan. 1...
Paddington Gifts made purchases of a particular product in the current year as follows: Jan. 1 Beginning inventory 200 units @ $ 5.60 = $ 1,120 Mar. 7 Purchased 460 units @ $ 5.20 = 2,392 July 28 Purchased 1,200 units @ $ 4.60 = 5,520 Oct. 3 Purchased 760 units @ $ 4.00 = 3,040 Totals 2,620 units $ 12,072 Required: 1. The business uses a periodic inventory system. Ending inventory consists of 110 units. Calculate the costs to...
Hemming Co. reported the following current-year purchases and sales for its only product. Jan. 1 Beginning...
Hemming Co. reported the following current-year purchases and sales for its only product. Jan. 1 Beginning inventory 205 units @ $10.20 = $ 2,091 (Units Acquired at Cost) Jan. 10 Sales 160 units @ $40.20 (Units sold at Retail) Mar. 14 Purchase 300 units @ $15.20 = 4,560 (Units Acquired at Cost) Mar. 15 Sales 250 units @ $40.20 (Units sold at Retail) July 30 Purchase 400 units @ $20.20 = 8,080 (Units Acquired at Cost) Oct. 5 Sales 375...
1. Selected transactions for Green iguana Inc. during current fiscal year as follows: - Jan.20 Split...
1. Selected transactions for Green iguana Inc. during current fiscal year as follows: - Jan.20 Split the common stock 3 for 1 and reduced the par from $75 to $25 per share. After the split, there were 600,000 common shares outstanding. - Apr. 1 Purchased 30,000 shares of the corporation’s own common stock at $27, recording the stock at cost. - May 1 Declared semiannual dividends of $.80 on 25,000 shares of preferred of preferred stock and $0.18 on the...
Beginning inventory, purchases, and sales for Product XCX are as follows: Sept. 1 Beginning Inventory 26...
Beginning inventory, purchases, and sales for Product XCX are as follows: Sept. 1 Beginning Inventory 26 units @ $13       5 Sale 12 units      17 Purchase 23 units @ $16      30 Sale 15 units Assuming a perpetual inventory system and the last-in, first-out method, determine (a) the cost of the merchandise sold for the September 30 sale and (b) the inventory on September 30. a) Cost of merchandise sold $ b) Inventory, September 30 $
The beginning inventory and purchases of Commodity A for the period were as follows: Beginning inventory...
The beginning inventory and purchases of Commodity A for the period were as follows: Beginning inventory 24 units @ $10 each First purchase 32 units @ $11 each Second purchase 20 units @ $13 each Third purchase 20 units @ $15 each The company uses the periodic system and there were 25 units of Commodity A in the inventory at the end of the period. REQUIRED:  Determine the cost of the 25 units in the inventory by each of the following...
beginning inventory, purchases, and sales for prodcut XCX as follows: sep 1: beginning inventory 22 units...
beginning inventory, purchases, and sales for prodcut XCX as follows: sep 1: beginning inventory 22 units @ $14 sep 5: sale, 13 units sep 17: purchase 27 units @ $17 sep 30: sale, 19 units assuming a perpetual inventory system, and the last in, first out method, determine (a) the cost of the goods sold for the september 30 sale and (b) the inventory on september 30
Beginning inventory, purchases, and sales data for cell phones are as follows:? ? ?? July 1...
Beginning inventory, purchases, and sales data for cell phones are as follows:? ? ?? July 1 Inventory . 20 units @ $70      10   Purchase 30 units @ $80      15   Sale 30 units      18   Purchase 30 units @ $100      23   Sale 25 units ? Complete the inventory cost card assuming the business maintains a perpetual inventory system and calculates the cost of merchandise sold and ending inventory using Weighted-Average.? Weighted Average
Selected transactions completed by ATV Discount Corporation during the current fiscal year are as follows: Jan....
Selected transactions completed by ATV Discount Corporation during the current fiscal year are as follows: Jan. 5. Split the common stock 3 for 1 and reduced the par from $75 to $25 per share. After the split, there were 1,279,500 common shares outstanding. Mar. 10. Purchased 39,200 shares of the corporation’s own common stock at $27, recording the stock at cost. Apr. 30. Declared semiannual dividends of $0.90 on 75,000 shares of preferred stock and $0.15 on the common stock...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT