Based on the following information, calculate the cost of goods sold and ending inventory using FIFO, LIFO, and weighted average assuming a perpetual inventory system is in place.
Beginning Balance - 90 units at $11
March 3 - Purchase 300 units for $15
April 4 - Sell 240 units for $28
June 30 - Purchase 250 units for $18
August 16 - Sell 180 units for $30

Answers

Answer 1

Answer:

Cost of Sales :

FIFO = $ 6,030

LIFO = $6,840

Weighted Average = $6,354.60

Ending Inventory :

FIFO =  $4,176

LIFO = $3,150

Weighted Average = $3,636.60

Explanation:

FIFO

This method assumes that the first inventory purchased will be the first to be sold

Cost of Goods Sold :

90 units × $11   =  $990

150 units × $15 = $2,250

150 units × $15 = $2,250

30 units × $18  = $540

Total                 = $ 6,030

Ending Inventory :

232 units × $18 = $4,176

LIFO

This method assumes that the last inventory purchased, will be the last to be sold

Cost of Sales :

240 units × $15 =  $3,600

180 units × $18 =  $3,240

Total = $6,840

Ending Inventory :

90 units × $11  = $ 990

60 units × $15 = $ 900

70 units × $18 = $ 1,260

Total = $3,150

Weighted Average

A new average cost per unit is calculated with every purchase made.

New Average Cost = (90 units × $11 + 300 units × $15) ÷ 390 units

                                = $14.08

Cost of Sale , April 4 =  240 units × $14.08

                                  =   $3,379.20

New Average Cost = (150 units × $14.08 + 250 units × $18.00) ÷ 400 units

                               = $16.53

Cost of Sale, Aug 16 = 180 units × $16.53

                                  = $2,975.40

Total Cost of Sales =  $3,379.20 + $2,975.40

                                = $6,354.60

Ending Inventory = 220 units × $16.53

                             = $3,636.60


Related Questions

On Sep 18, Mesa returned $800 of the inventory. On Sep 20, Mesa paid Butte for the inventory. What journal entry did Mesa make on Sep 20

Answers

Answer:

Decrease the trade payables by a debit entry with the amount paid after the return is made. Also decrease the assets of cash by creating a credit entry to depict outflow of economic benefits.

Explanation:

Hi, your question is incomplete, i tried looking for the question online but i could not find it.

Here i will explain the journal entries that are usually made when there is a Purchase, Return and Payment of Inventory assuming the view of the customer or trade receivable.

1. Purchase

Here we have to increase the value of inventory by creating a debit entry and also increase the value of trade payable by creating a credit entry.

2. Return

The value of trade payables has to be decreased to the extent of the amount that would have been paid if the inventory was not returned. Also the inventory value has to decrease with the same amount as for the trade payable.

3. Payment

Decrease the trade payables by a debit entry with the amount paid the after return is made. Also decrease the assets of cash by creating a credit entry to depict outflow of economic benefits.

PATTYCAKE PATTYCAKE PASTAMAN, GIMME PASTA POWER AS FAST AS U CAN

Answers

Answer:

Roll it, put in the oven for me and you

Explanation:

On the variable costing income statement, the figure representing the difference between manufacturing margin and contribution margin is the: a.variable cost of goods sold b.fixed manufacturing costs c.variable selling and administrative expenses d.fixed selling and administrative expenses

Answers

Answer:

c. variable selling and administrative expenses

Explanation:

On the variable costing income statement, the figure representing the difference between manufacturing margin and contribution margin is the variable selling and administrative expenses. Variable cost is comprised of cost of goods sold and selling and administrative expense when we deduct cost of goods sold from sales we get manufacturing margin and when we deduct further selling and administrative expense we get contribution margin.

3. Colloids are used in food preparations like in baking
pastries and cakes.yes or no​

Answers

Yes they colloids are used in food perparations like pastries and cakes

Assuming a 360-day year, when a $49,200, 90-day, 6% interest-bearing note payable matures, the total payment will be ______ .
Round your answer to the nearest whole dollar.
a. $2,952
b. $49,938
c. $52,152
d. $49,200

Answers

Answer:

b. $49,938

Explanation:

The computation of the total payment is shown below:

Total payment is

= Principal + interest amount

where,

The Principal is $49,200

And, the interest is

= $49200 × 6% × 90 days ÷ 360 days  

= $738

Now

Total payment is

= $49,200 + $738

=  $49,938

hence, the correct option is b. $49,938

The same is to be considered

Alex withdrew $500,000 from an account that paid 5 percent annual interest and used the funds to purchase real estate. After one year he sold the property for $550,000. Alex's economic profit on this deal was:__________
a) 25,000
b) Not enough information provided.
c) 50,000
d) 500,000
e) 120,000

Answers

Answer:

a) 25,000

Explanation:

The computation of the economic profit is shown below;

Economic profit is

= Revenue - Explicit cost - Implicit cost

= $550,000 - $500,000 - $500,000 × 5%

= $550,000 - $500,000 - $25000

= $25,000

Hence, the economic profit on this deal was $25,000

Therefore the correct option is a.

We simply applied the above formula so that the correct value could come

And, the same is to be considered  

Professional Properties is considering remodeling the office building it leases to Heartland Insurance. The remodeling costs are estimated at $3.4 million. If the building is remodeled, Heartland Insurance has agreed to pay an additional $820,000 a year in rent for the next 5 years. The discount rate is 15 percent. What is the benefit of the remodeling project to Professional Properties? A) -$651,233 B) -$489,072 C) $5,214 D) $128,399 E) $311,417

Answers

Answer:

A) -$651,233

Explanation:

The computation of the benefit generated of the remodelling project is shown below:

If we considered the discounted rate i.e. 15% for 5 years of $820,000 so its present value would be $2,748,767 ($820,000 × 3.3521)

And, the predicted cost is $3,400,000

So here the cost is there instead of the benefit of

= $2,748,767 - $3,400,000

= -$651,233

Hence, the correct option is A

A car's price is currently $20,000 and is expected to rise by 4% a year. If the interest rate is 6%, how much do you need to put aside today to buy the car one year from now

Answers

Answer:

the amount need to put aside is $19,623

Explanation:

The computation of the amount need to put aside is shown below;

= (Current car price × (1 + expected rise percentage)) ÷ (1 + rate of interest)

= ($20,000 × 1.04) ÷ 1.06

= $19,623

hence, the amount need to put aside is $19,623

We simply applied the above formula so that the correct value could come

And, the same is to be considered

Stormer Company reports the following amounts on its statement of cash flow: Net cash provided by operating activities was $37,500; net cash used in investing activities was $13,800 and net cash used in financing activities was $17,700. If the beginning cash balance is $6,900, what is the ending cash balance?
a) $75,900.
b) $62,100.
c) $40,500.
d) $6,000.
$12,900.

Answers

Answer:

e. $12,900

Explanation:

Given that:

Net Cash provided by operating activities = $37,500

Net Cash used in investing activities = $13,800

Net Cash used in financing activities = $17,700

Beginning cash balance = $6,900

Stormer company's ending balance would be;

= Beginning cash balance + Net cash provided by operating activities - Net cash used in financing activities - Net cash used in investing activities

= $6,900 + $37,500 - $17,700 - $13,800

= $12,900

A user access agreement typically is __________ than the list of employee expected behaviors within an organization.

Answers

Answer:

Narrower

Explanation:

To make sure that all employees that work in an organization know all their responsibilities, that is ethical and legal. They are required to review and to also accept the terms that has been stated in the user access agreement form.

So for this question, the user access agreement is narrower than the list of employees expected behavior in an organization.

How should wildlife species like grouse or deer be valued, and how should that value be balanced against the economic interests of a company like Questar? What, if anything, should Questar be doing differently?

Answers

Answer:

The description is summarized in the clarification section below, according to the particular circumstance.

Explanation:

Mostly with rising economic company's best interest including Questar, maintaining wildlife species including grouse as well as deer protected has become much more important. It is not only just the economic gain but also the ecological advantage that would not affect wildlife animals. Preserving the natural environment seems to be the most fundamental way of evaluating animal habitats. The same as deer, animal species should be covered in their habitat. It may also become extinct by upsetting them. The ecosystem is, thus, an important one that should have been taken note that to value certain native wildlife. But because service providers like Questar, who are rocky mountain oil producers, have quite a several financial advantages by exploration in that field, however, this contributes to mining, etc. in something like a wide coverage of the region which destroyed the habitat.Companies should preserve the balance, such as invading the field which is far less occupied by endangered species, reexhibiting certain organisms to a safer location, or putting the region back into the very same old role.

So quester should do these things completely differently, to protect the ecological balance.

ix company issued 16,000 shares of $10 par value common stock at a market price of $21. as a result of this accounting event, the amount of stockholders equity would

Answers

Answer:

increase by $336,000.

Explanation:

Options are "1. increase by $176,000.  2. increase by $336,000.  3. increase by $160,000.  4. be unaffected."

Common stock will increase by $160,000, the par value, and paid-in capital in excess of par value will increase by $176,000, for a total increase in stockholders' equity of $336,000.

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