FIFO Perpetual Inventory
The beginning inventory at Dunne Co. and data on purchases and sales for a three-month period ending June 30 are as follows:
| Date | Transaction | Number of Units |
Per Unit | Total | ||||
|---|---|---|---|---|---|---|---|---|
| Apr. 3 | Inventory | 90 | $450 | $40,500 | ||||
| 8 | Purchase | 180 | 540 | 97,200 | ||||
| 11 | Sale | 120 | 1,500 | 180,000 | ||||
| 30 | Sale | 75 | 1,500 | 112,500 | ||||
| May 8 | Purchase | 150 | 600 | 90,000 | ||||
| 10 | Sale | 90 | 1,500 | 135,000 | ||||
| 19 | Sale | 45 | 1,500 | 67,500 | ||||
| 28 | Purchase | 150 | 660 | 99,000 | ||||
| June 5 | Sale | 90 | 1,575 | 141,750 | ||||
| 16 | Sale | 120 | 1,575 | 189,000 | ||||
| 21 | Purchase | 270 | 720 | 194,400 | ||||
| 28 | Sale | 135 | 1,575 | 212,625 | ||||
Required:
1. Record the inventory, purchases, and cost of merchandise sold data in a perpetual inventory record similar to the one illustrated in Exhibit 3, using the first-in, first-out method. Under FIFO, if units are in inventory at two different costs, enter the units with the LOWER unit cost first in the Cost of Goods Sold Unit Cost column and in the Inventory Unit Cost column.
| Dunne Co. Schedule of Cost of Goods Sold FIFO Method For the Three Months Ended June 30 |
|||||||||
|---|---|---|---|---|---|---|---|---|---|
| Purchases | Cost of Goods Sold | Inventory | |||||||
| Date | Quantity | Unit Cost | Total Cost | Quantity | Unit Cost | Total Cost | Quantity | Unit Cost | Total Cost |
2. Determine the total sales and the total cost of goods sold for the period. Journalize the entries in the sales and cost of goods sold accounts. Assume that all sales were on account.
| Record sale | |||
| Record cost | |||
3. Determine the gross profit from sales for the period. $
4. Determine the ending inventory cost as of June 30. $
5. Based upon the preceding data, would you expect the
ending inventory using the last-in, first-out method to be higher
or lower?
In: Accounting
A long, thin solenoid has 600 turns per meter and radius 2.6 cm.
The
current in the solenoid is increasing at a uniform rate
dI/dt. The induced
electric eld at a point near the center of the solenoid and 3.80 cm
from
its axis is 8.00 10 -5 V/m. Calculate
dI/dt
In: Physics
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please answer both questions
In: Biology
White light falls in, near the normal direction, against a thin oil film lying on a glass plate. Two colors with wavelengths of 525nm and 650nm clearly dominate the reflected light. Assume that the refractive index of the oil is 1.25 and the refractive index of the glass is 1.5.
Determine the thickness of the film and the order of interference for the dominant colors.
In: Physics
One positive and one negative charges identical in magnitude are place near each other. At halfway between the two charges...
| the electric field is zero and the potential is zero. |
| the electric filed is not zero and the potential is positive. |
| the electric field is not zero and the potential is zero. |
| None of these statements is true. |
| the electric field is not zero and the potential is negative. |
In: Physics
All else equal, firms with higher leverage (D/E ratio) tend to have higher betas. However, when firms are heavily levered (near the “zone of insolvency” or bankruptcy), their betas tend to drop significantly. Without mentioning anything about the equation for beta, briefly explain why this phenomenon might occur.
In: Finance
This is really a business ethics question
Some would say that given the rash of ethical scandals in the last 20 years, that ethical business behavior is waning. Given what you now know about corporate governance, do you think that ethics will be more or less important to business in the near future? In the distant future?
In: Operations Management
Mears Production Company makes several products and sells them for
an average price of $85. Mears' accountant is considering two
different approaches to estimating the firm's total monthly cost
function, account analysis and high-low. In both cases, she used
units of production as the independent variable. For the account
analysis approach, she developed the cost function by analyzing
each cost item in June, when production was 1,750 units. The
following are the results of that analysis:
| Cost Item |
Total Cost |
Variable Cost |
Fixed Cost |
| Direct materials |
$7,700 |
$7,700 |
$0 |
| Direct labor |
$8,400 |
$8,400 |
$0 |
| Factory overhead |
$9,215 |
$6,125 |
$3,090 |
| Selling expenses |
$6,895 |
$2,975 |
$3,920 |
| Administrative expenses |
$4,150 |
$0 |
$4,150 |
| Total expenses |
$36,360 |
$25,200 |
$11,160 |
For the high-low method, she developed the cost function using the
same data from June and data from May, when production was 2,450
units and total costs were $47,722.
After developing the two cost functions, the accountant used them to make predictions for the month of December, when production was expected to be 2,275 units.
REQUIRED [ROUND UNIT COSTS TO THE NEAREST CENT AND
TOTAL COSTS TO THE NEAREST DOLLAR.]
Part A (5 tries; 5 points)
1. Using account analysis, what was the accountant's estimate of
total fixed costs for December?
2. Using account analysis, what was the accountant's estimate of
variable costs per unit for December?
| Tries 0/5 |
Part B (5 tries; 5 points)
1. Using the high-low method, what was the accountant's estimate of
total fixed costs for December?
2. Using the high-low method, what was the accountant's estimate of
total variable costs for December?
In: Accounting
Mears Production Company makes several products and sells them
for an average price of $85. Mears' accountant is considering two
different approaches to estimating the firm's total monthly cost
function, 1) account analysis, and 2) high-low. In both cases, she
used units of production as the independent variable. For the
account analysis approach, she developed the cost function by
analyzing each cost item in February, when production was 1,700
units. The following are the results of that analysis:
| Cost Item |
Total Cost |
Fixed Cost |
Variable Cost |
| Direct materials |
$7,480 |
$0 |
$7,480 |
| Direct labor |
$8,840 |
$0 |
$8,840 |
| Factory overhead |
$7,780 |
$3,360 |
$4,420 |
| Selling expenses |
$7,100 |
$3,700 |
$3,400 |
| Administrative expenses |
$3,100 |
$3,100 |
$0 |
| Total expenses |
$34,300 |
$10,160 |
$24,140 |
For the high-low method, she developed the cost function using the
data from February above and data from May, when production was
2,500 units and total costs were $46,928.
After developing the two cost functions, the accountant used them to make predictions for the month of October, when production was expected to be 2,250 units.
REQUIRED [ROUND UNIT COSTS TO THE NEAREST CENT AND
TOTAL COSTS TO THE NEAREST DOLLAR.]
Part A (5 tries; 5 points)
1. Using account analysis, what was the accountant's estimate of
total fixed costs for October?
2. Using account analysis, what was the accountant's estimate of
total variable costs for October?
Part B (5 tries; 5 points)
1. Using the high-low method, what was the accountant's estimate of
total fixed costs for October?
2. Using the high-low method, what was the accountant's estimate of
variable costs per unit for October?
In: Accounting
Mears Production Company makes several products and sells them for
an average price of $90. Mears' accountant is considering two
different approaches to estimating the firm's total monthly cost
function, 1) account analysis, and 2) high-low. In both cases, she
used units of production as the independent variable. For the
account analysis approach, she developed the cost function by
analyzing each cost item in June, when production was 1,550 units.
The following are the results of that analysis:
| Cost Item |
Total Cost |
Fixed Cost |
Variable Cost |
| Direct materials |
$5,580 |
$0 |
$5,580 |
| Direct labor |
$7,285 |
$0 |
$7,285 |
| Factory overhead |
$7,145 |
$2,960 |
$4,185 |
| Selling expenses |
$5,585 |
$3,880 |
$1,705 |
| Administrative expenses |
$4,900 |
$4,900 |
$0 |
| Total expenses |
$30,495 |
$11,740 |
$18,755 |
For the high-low method, she developed the cost function using the
data from June above and data from August, when production was
2,350 units and total costs were $41,263.
After developing the two cost functions, the accountant used them to make predictions for the month of December, when production was expected to be 1,725 units.
REQUIRED [ROUND UNIT COSTS TO THE NEAREST CENT AND
TOTAL COSTS TO THE NEAREST DOLLAR.]
Part A (5 tries; 5 points)
1. Using account analysis, what was the accountant's estimate of
total fixed costs for December?
2. Using account analysis, what was the accountant's estimate of
total variable costs for December? (This is the main one I need
help with)
Part B (5 tries; 5 points)
1. Using the high-low method, what was the accountant's estimate of
total fixed costs for December?
2. Using the high-low method, what was the accountant's estimate of
variable costs per unit for December?
In: Accounting