Periodic Inventory by Three Methods
The beginning inventory for Dunne Co. and data on purchases and
sales for a three-month period are as follows:
| Date | Transaction | Number of Units |
Per Unit | Total | ||
|---|---|---|---|---|---|---|
| Apr. 3 | Inventory | 25 | $1,200 | $30,000 | ||
| 8 | Purchase | 75 | 1,240 | 93,000 | ||
| 11 | Sale | 40 | 2,000 | 80,000 | ||
| 30 | Sale | 30 | 2,000 | 60,000 | ||
| May 8 | Purchase | 60 | 1,260 | 75,600 | ||
| 10 | Sale | 50 | 2,000 | 100,000 | ||
| 19 | Sale | 20 | 2,000 | 40,000 | ||
| 28 | Purchase | 80 | 1,260 | 100,800 | ||
| June 5 | Sale | 40 | 2,250 | 90,000 | ||
| 16 | Sale | 25 | 2,250 | 56,250 | ||
| 21 | Purchase | 35 | 1,264 | 44,240 | ||
| 28 | Sale | 44 | 2,250 | 99,000 | ||
Required:
1. Determine the inventory on June 30 and the cost of goods sold for the three-month period, using the first-in, first-out method and the periodic inventory system. Round the weighted average unit cost to the nearest cent.
| Inventory, June 30 | $ |
| Cost of goods sold | $ |
2. Determine the inventory on June 30 and the cost of goods sold for the three-month period, using the last-in, first-out method and the periodic inventory system.
| Inventory, June 30 | $ |
| Cost of goods sold | $ |
3. Determine the inventory on June 30 and the cost of goods sold for the three-month period, using the weighted average cost method and the periodic inventory system.
Note: Round the weighted average unit cost to the nearest dollar and final answers to the nearest dollar.
| Inventory, June 30 | $ |
| Cost of goods sold | $ |
4. Compare the gross profit and June 30 inventories using the following column headings. Enter all amounts as positive numbers.
| FIFO | LIFO | Weighted Average | |
|---|---|---|---|
| Sales | $ | $ | $ |
| Cost of goods sold | |||
| Gross profit | $ | $ | $ |
| Inventory, June 30 | $ | $ | $ |
In: Accounting
Periodic inventory by three methods
The beginning inventory for Midnight Supplies and data on purchases and sales for a three-month period are shown below:
| Date | Transaction | Number of Units |
Per Unit | Total | ||
| Jan. 1 | Inventory | 7,500 | $75.00 | $562,500 | ||
| 10 | Purchase | 22,500 | 85.00 | 1,912,500 | ||
| 28 | Sale | 11,250 | 150.00 | 1,687,500 | ||
| 30 | Sale | 3,750 | 150.00 | 562,500 | ||
| Feb. 5 | Sale | 1,500 | 150.00 | 225,000 | ||
| 10 | Purchase | 54,000 | 87.50 | 4,725,000 | ||
| 16 | Sale | 27,000 | 160.00 | 4,320,000 | ||
| 28 | Sale | 25,500 | 160.00 | 4,080,000 | ||
| Mar. 5 | Purchase | 45,000 | 89.50 | 4,027,500 | ||
| 14 | Sale | 30,000 | 160.00 | 4,800,000 | ||
| 25 | Purchase | 7,500 | 90.00 | 675,000 | ||
| 30 | Sale | 26,250 | 160.00 | 4,200,000 | ||
1. Determine the inventory on March 31 and the cost of goods sold for the three-month period, using the first-in, first-out method and the periodic inventory system.
| Inventory, March 31 | $ |
| Cost of goods sold | $ |
2. Determine the inventory on March 31 and the cost of goods sold for the three-month period, using the last-in, first-out method and the periodic inventory system.
| Inventory, March 31 | $ |
| Cost of goods sold | $ |
3. Determine the inventory on March 31 and the cost of goods sold for the three-month period, using the weighted average cost method and the periodic inventory system. Round the weighted average unit cost to the nearest cent.
| Inventory, March 31 | $ |
| Cost of goods sold | $ |
4. Compare the gross profit and the March 31 inventories, using the following column headings. For those boxes in which you must enter subtracted or negative numbers use a minus sign.
| FIFO | LIFO | Weighted Average | |
| Sales | $ | $ | $ |
| Cost of goods sold | |||
| Gross profit | $ | $ | $ |
| Inventory, March 31 | $ | $ | $ |
In: Accounting
Financial Statements of a Manufacturing Firm The following events took place for Digital Vibe Manufacturing Company during January, the first month of its operations as a producer of digital video monitors:
a. Purchased $48,700 of materials
b. Used $37,500 of direct materials in production.
c. Incurred $56,000 of direct labor wages.
d. Incurred $78,900 of factory overhead.
e.Transferred $131,000 of work in process to finished goods.
f .Sold goods for $234,200.
g. Sold goods with a cost of $104,200.
h. Incurred $59,900 of selling expenses.
i. Incurred $26,300 of administrative expense.
Using the information given, complete the following: a. Prepare the January income statement for Digital Vibe Manufacturing Company. Digital Vibe Manufacturing Company Income Statement For the Month Ended January 31 $ $ Operating expenses: $ Total operating expenses $
b. Determine the Materials Inventory, Work in Process Inventory, and Finished Goods Inventory balances at the end of the first month of operations. Digital Vibe Manufacturing Company Inventory Balances For the Month Ended January 31 Inventory balances on January 31: Materials $ Work in process Finished goods
In: Finance
Exercise 7-4 Direct Labor Budget [LO7-5]
|
The production manager of Rordan Corporation has submitted the following forecast of units to be produced by quarter for the upcoming fiscal year: |
| 1st Quarter | 2nd Quarter | 3rd Quarter | 4th Quarter | |
| Units to be produced | 10,200 | 7,500 | 8,100 | 10,400 |
| Each unit requires 0.45 direct labor-hours, and direct laborers are paid $14.00 per hour. |
| Required: | |
| 1. |
Complete the company’s direct labor budget for the upcoming fiscal year, assuming that the direct labor workforce is adjusted each quarter to match the number of hours required to produce the forecasted number of units produced. (Round "Direct labor time per unit (hours)" answers to 2 decimal places.) |
| 2. |
Complete the company’s direct labor budget for the upcoming fiscal year, assuming that the direct labor workforce is not adjusted each quarter. Instead, assume that the company’s direct labor workforce consists of permanent employees who are guaranteed to be paid for at least 4,500 hours of work each quarter. If the number of required direct labor-hours is less than this number, the workers are paid for 4,500 hours anyway. Any hours worked in excess of 4,500 hours in a quarter are paid at the rate of 1.5 times the normal hourly rate for direct labor. (Input all amounts as positive values.) |
In: Accounting
As of December 31, 2020 Big USA Company owns a foreign subsidiary (Taco) based in Mexico. Big is in the process of preparing consolidated financial statements and must translate the trial balance of Taco to U.S. Dollars. Selected financial information of Taco in pesos is presented below.
Pesos
Inventory 12/31/20 300,000
Purchases in 2020 2,600,000
Inventory 12/31/19 420,000
Equipment purchased as follows
1/1/18 250,000
Purchases during 2018 150,000
Purchases during 2019 350,000
Purchases during 2020 620,000
All equipment is depreciated over 8 years on a straight-line basis with a full year taken in year of acquisition.
The inventory turnover rate is 90 days.
Relevant Exchange Rates Pesos per dollar
1/1/18 8.0
Average Rates 2018 8.5
Average Rate 2019 9.3
Average Rate 2020 9.8
Rate 4th quarter 2019 8.9
Rate 4th quarter 2020 9.6
Current rate 12/31/18 8.9
Current Rate 12/31/19 9.2
Current Rate 12/31/20 9.9
REQUIRED (In US Dollars)
Cost Goods Sold for 2020
Balance in Equipment 12/31/20
Balance in Accumulated Depreciation 12/31/20
Depreciation Expense – 2020
Cost Goods Sold for 2020
Balance in Equipment 12/31/20
Balance in Accumulated Depreciation 12/31/20
Depreciation Expense – 2020
In: Accounting
The following data relate to the operations of Shilow Company, a wholesale distributor of consumer goods:
| Current assets as of March 31: | ||
| Cash | $ |
7,000 |
| Accounts receivable | $ |
18,000 |
| Inventory | $ |
36,600 |
| Building and equipment, net | $ |
121,200 |
| Accounts payable | $ |
21,675 |
| Common stock | $ |
150,000 |
| Retained earnings | $ |
11,125 |
The gross margin is 25% of sales.
Actual and budgeted sales data:
| March (actual) | $ | 45,000 |
| April | $ | 61,000 |
| May | $ | 66,000 |
| June | $ | 91,000 |
| July | $ | 42,000 |
Sales are 60% for cash and 40% on credit. Credit sales are collected in the month following sale. The accounts receivable at March 31 are a result of March credit sales.
Each month’s ending inventory should equal 80% of the following month’s budgeted cost of goods sold.
One-half of a month’s inventory purchases is paid for in the month of purchase; the other half is paid for in the following month. The accounts payable at March 31 are the result of March purchases of inventory.
Monthly expenses are as follows: commissions, 12% of sales; rent, $1,800 per month; other expenses (excluding depreciation), 6% of sales. Assume that these expenses are paid monthly. Depreciation is $909 per month (includes depreciation on new assets).
Equipment costing $1,000 will be purchased for cash in April.
Management would like to maintain a minimum cash balance of at least $4,000 at the end of each month. The company has an agreement with a local bank that allows the company to borrow in increments of $1,000 at the beginning of each month, up to a total loan balance of $20,000. The interest rate on these loans is 1% per month and for simplicity we will assume that interest is not compounded. The company would, as far as it is able, repay the loan plus accumulated interest at the end of the quarter.
Required: Prepare the budget assumptions for the quarter.
In: Finance
A CDS works the same way as an insurance on default
| True |
| False |
If an equity swap is signed at time 0, promising to exchange a fixed rate against the gains of the Dow Jones index, and the index starts falling, the value of the swap ______ (decreases/increases) for the investor who promised to pay the fixed rate.
In: Finance
A ladder is leaning against a vertical wall, and both ends of the ladder are at the point of slipping. The coefficient of friction between the ladder and the horizontal surface is μ1 = 0.205 and the coefficient of friction between the ladder and the wall is μ2 = 0.153. Determine the maximum angle with the vertical the ladder can make without falling on the ground.
In: Physics
A ladder is leaning against a vertical wall, and both ends of the ladder are at the point of slipping. The coefficient of friction between the ladder and the horizontal surface is ?1 = 0.215 and the coefficient of friction between the ladder and the wall is ?2 = 0.203. Determine the maximum angle with the vertical the ladder can make without falling on the ground.
In: Physics
A meteorite with mass 1.127E+3 kg has a speed of 123. m/s when 854. km above the Earth. It is falling vertically (ignore air resistance) and strikes a bed of sand in which it is brought to rest in 6.33 m. What is the average force (in N) exerted by the sand on the meteorite?
In: Physics