FIFO and LIFO Costs Under Perpetual Inventory System The following units of an item were available for sale during the year: Beginning inventory 20 units at $40 Sale 15 units at $62 First purchase 37 units at $43 Sale 22 units at $63 Second purchase 13 units at $46 Sale 25 units at $63 The firm uses the perpetual inventory system, and there are 8 units of the item on hand at the end of the year. a. What is the total cost of the ending inventory according to FIFO? $ b. What is the total cost of the ending inventory according to LIFO?

FIFO and LIFO Costs Under Perpetual Inventory System

The following units of an item were available for sale during the year:

The firm uses the perpetual inventory system, and there are 11 units of the item on hand at the end of the year.

a. What is the total cost of the ending inventory according to FIFO?

b. What is the total cost of the ending inventory according to LIFO?

Below is the variable costing income statement for South Bend Co.

Sales, 6,000 units                                                                        $210,000

Total variable costs:

          Beg. inventory,            680 units              $13,600

          Variable manufacturing cost of

          goods manufactured,       ? units           + 132,000

          Ending inventory,     1,280 units           - (25,600)

          Variable manufacturing cost of goods $120,000

          Variable selling & admin. exp.              + 24,900     ($144,900)

Contribution margin                                                                    $65,100

Total fixed costs:

          Fixed factory overhead                            $19,800

          Fixed selling and admin. expenses       + 15,300       ($35,100)

Operating income                                                                        $30,000

REQUIRED:

1. Prepare an absorption-costing income statement.
2. Reconcile the difference in income.

FIFO and LIFO Costs Under Perpetual Inventory System

The following units of a particular item were available for sale during the year:

The firm uses the perpetual inventory system, and there are 13 units of the item on hand at the end of the year.

a. What is the total cost of the ending inventory according to FIFO?
$

b. What is the total cost of the ending inventory according to LIFO?
$

FIFO and LIFO Costs Under Perpetual Inventory System

The following units of an item were available for sale during the year:

The firm uses the perpetual inventory system, and there are 8 units of the item on hand at the end of the year.

a. What is the total cost of the ending inventory according to FIFO?
$

b. What is the total cost of the ending inventory according to LIFO?
$

You are considering starting a walk-in clinic. Your financial projections for the first year of operations are as follows: Number of visits 10,000 Utilities $ 2,500 Wages and benefits $220,000 Medical supplies $50,000 Rent $ 5,000 Administrative supplies $ 10,000 Depreciation $ 30,000 Assume that all costs are fixed except supplies costs, which are variable. a. What is the clinic’s underlying cost structure? b. What are the clinic’s expected total costs? c. What are the clinic’s estimated total costs at 7,500 visits? At 12,500 visits? d. What is the average cost per visit at 7,500, 10,000, and 12,500 visits?

Tatum Company has four products in its inventory. Information about the December 31, 2018, inventory is as follows: Product Total Cost Total Net Realizable Value 101 $ 154,000 $ 117,000 102 111,000 127,000 103 77,000 67,000 104 47,000 67,000 Required: 1. Determine the carrying value of inventory at December 31, 2018, assuming the lower of cost or net realizable value (LCNRV) rule is applied to individual products. 2. Assuming that inventory write-downs are common for Tatum Company, record any necessary year-end adjusting entry.

FIFO and LIFO Costs Under Perpetual Inventory System

The following units of a particular item were available for sale during the year:

The firm uses the perpetual inventory system, and there are 16 units of the item on hand at the end of the year.

a. What is the total cost of the ending inventory according to FIFO?
$

b. What is the total cost of the ending inventory according to LIFO?
$

Question 41 on chapter 7. Book Cost Management 7th edition.

Required Use 4 or more decimal places in your calculations. Allocate the $4350,000 total departmental costs to all three operating departments using (a) the direct method, (b) the step method, and 9c) the reciprocal method.