Exercise 6-41 Inventory Costing Methods Crandall Distributors uses a perpetual inventory system and has the following...
Exercise 6-41
Inventory Costing Methods
Crandall Distributors uses a perpetual inventory system and has
the following data available for inventory, purchases, and sales
for a recent year:
1. Compute the cost of ending inventory and the cost of goods sold using the specific identification method. Assume the ending inventory is made up of 40 units from beginning inventory, 30 units from purchase 1, 80 units from purchase 2, and 40 units from purchase 3.
| Cost of ending inventory | $ |
| Cost of goods sold | $ |
2. Compute the cost of ending inventory and cost of goods sold using the FIFO inventory costing method.
| Cost of ending inventory | $ |
| Cost of goods sold | $ |
3. Compute the cost of ending inventory and cost of goods sold using the LIFO inventory costing method.
| Cost of ending inventory | $ |
| Cost of goods sold | $ |
4. Compute the cost of ending inventory and cost of goods sold using the average cost inventory costing method. (Note: Use four decimal places for per-unit calculations and round all other numbers to the nearest dollar.)
| Cost of ending inventory | $ |
| Cost of goods sold | $ |
5. Conceptual Connection: Compare the ending inventory and cost of goods sold computed under all four methods. What can you conclude about the effects of the inventory costing methods on the balance sheet and the income statement?
The input in the box below will not be graded, but may be reviewed and considered by your instructor.
Homework Answers
Add Answer to:
Exercise 6-41
Inventory Costing Methods
Crandall Distributors uses a perpetual inventory system and has
the following...
Exercise 6-50 Inventory Costing Methods Crandall Distributors uses a perpetual inventory system and has the following d...
Exercise 6-50 Inventory Costing Methods Crandall Distributors uses a perpetual inventory system and has the following data available for inventory, purchases, and sales for a recent year: Sale Price (per unit) Activity Units Purchase Price (per unit) $7.10 7.20 110 Beginning inventory Purchase 1, Jan. 18 Sale 1 $12.00 12.00 Sale 2 7.50 Purchase 2, Mar. 10 Sale 3 Sale 4 Purchase 3, Sept. 30 12.00 12.50 7.70 Sale 5 12.50 Required: 1. Compute the cost of ending inventory and...
Exercise 6-49 Effects of Inventory Costing Methods Borgia Enterprises has the following statement of earnings data...
Exercise 6-49 Effects of Inventory Costing Methods Borgia Enterprises has the following statement of earnings data available for 2018: Sales revenue Operating expenses Interest expense $737,200 243,700 39,500 34% Income tax rate Borgia uses a perpetual inventory accounting system and the weighted average cost method. Borgia is considering adopting the FIFO method for costing inventory. Borgia's accountant prepared the following data: If Weighted Average Cost Used $ 61,850 403,150 If FIFO Used $ 80,200 384,800 Ending inventory Cost of goods...
Problem 6-68BInventory Costing Methods Objective 3Apply the four inventory costing methods to compute ending inventory and...
Problem 6-68BInventory Costing Methods Objective 3Apply the four inventory costing methods to compute ending inventory and cost of goods sold under a perpetual inventory system. 4Analyze the financial reporting and tax effects of the various inventory costing methods. 6Evaluate inventory management using the gross profit and inventory turnover ratios. Terpsichore Company uses a perpetual inventory system. For 2018 and 2019, Terpsichore has the following data: Activity Units Purchase Price (per unit) Sale Price (per unit) 2018 Beginning inventory 100 $45...
Montoure Company uses a perpetual Inventory system. It entered into the following calendar-year purchases and sales...
Montoure Company uses a perpetual Inventory system. It entered into the following calendar-year purchases and sales transactions Units sold at Retail Unite Aequired at Cost 680 units 540 per unit 320 units @ $35 per unit 100 units $23 per unit Date Activities Jan. Beginning inventory Feb. 10 Purchase Mar. 13 Purchase Mar. 15 Sales Aug. 21 Purchase Sept. 5 Purchase Sept. 10 Sales Totals 720 unitse $75 per unit 130 units 490 units $45 per unit $41 per unit...
Exercise 6-7 Perpetual: Inventory costing methods-FIFO and LIFO LO P1 Required: Hemming uses a perpetual inventory...
Exercise 6-7 Perpetual: Inventory costing methods-FIFO and LIFO
LO P1
Required:
Hemming uses a perpetual inventory system.
1. Determine the costs assigned to ending
inventory and to cost of goods sold using FIFO.
2. Determine the costs assigned to ending
inventory and to cost of goods sold using LIFO.
3. Compute the gross margin for FIFO method and
LIFO method.
Units Sold at Retail Units Acquired at Cost 245 units @ $11.80 = $ 2,891 190 units @ $41.80...
Warnerwoods Company uses a perpetual inventory system. It entered into the following purchases and sales transactions...
Warnerwoods Company uses a perpetual inventory system. It entered into the following purchases and sales transactions for March Units Sold at Retail Units Acquired at Cost 100 units @ $50.00 per unit 400 units @ $55.00 per unit 420 units @ $85.00 per unit Date Activities Mar. 1 Beginning inventory Mar. 5 Purchase Mar. 9 Sales Mar. 18 Purchase Mar. 25 Purchase Mar. 29 Sales Totals 120 units @ $60.00 per unit 200 units @ $62.00 per unit 160 units...
Problem 6-1A Perpetual: Alternative cost flowsP Warnerwoods Company uses a perpetual inventory system. It entered into...
Problem 6-1A Perpetual: Alternative cost flowsP Warnerwoods Company uses a perpetual inventory system. It entered into the following purchases and sales transactions for March. (For specific identification, the March 9 sale consisted of 80 units from beginning inventory and 340 units from the March 5 purchase; the March 29 sale consisted of 40 units from the March 18 purchase and 120 units from the March 25 purchase.) Units Acquired at Cost Date Activities Units Sold at Retail Beginning inventory 100...
Warnerwoods Company uses a perpetual inventory system. It entered into the following purchases and sales transactions for March
Warnerwoods Company uses a perpetual inventory system. It entered into the following purchases and sales transactions for March. (For specific identification, the March 9 sale consisted of 80 units from beginning inventory and 340 units from the March 5 purchase; the March 29 sale consisted of 40 units from the March 18 purchase and 120 units from the March 25 purchase.) Required 1. Compute cost of goods available for sale and the number of units available for sale. 2. Compute the number of...
Problem 6-1B Perpetual: Alternative Cost Flows: Ming Company uses a perpetual inventory system.
Screen Shot 2020-10-10 at 6.03.50 PM.pngMing Company uses a perpetual inventory system. It entered into the following purchases and sales transactions for April. (For specific identification, the April 9 sale consisted of 8 units from beginning inventory and 27 units from the April 6 purchase; the April 30 sale consisted of 12 units from beginning
inventory, 3 units from the April 6 purchase, and 10 units from the April 25 purchase.)Compute cost of goods available for sale and the number...
Exercise 5-7 Perpetual: Inventory costing methods-FIFO and LIFO LO P1
Exercise 5-7 Perpetual: Inventory costing methods-FIFO and LIFO LO P1 Required: Hemming uses a perpetual inventory system. 1. Determine the costs assigned to ending inventory and to cost of goods sold using FIFO. 2. Determine the costs assigned to ending inventory and to cost of goods sold using LIFO. 3. Compute the gross margin for FIFO method and LIFO method.
Exercise 6-50 Inventory Costing Methods Crandall Distributors uses a perpetual inventory system and has the following data available for inventory, purchases, and sales for a recent year: Sale Price (per unit) Activity Units Purchase Price (per unit) $7.10 7.20 110 Beginning inventory Purchase 1, Jan. 18 Sale 1 $12.00 12.00 Sale 2 7.50 Purchase 2, Mar. 10 Sale 3 Sale 4 Purchase 3, Sept. 30 12.00 12.50 7.70 Sale 5 12.50 Required: 1. Compute the cost of ending inventory and...
Exercise 6-49 Effects of Inventory Costing Methods Borgia Enterprises has the following statement of earnings data available for 2018: Sales revenue Operating expenses Interest expense $737,200 243,700 39,500 34% Income tax rate Borgia uses a perpetual inventory accounting system and the weighted average cost method. Borgia is considering adopting the FIFO method for costing inventory. Borgia's accountant prepared the following data: If Weighted Average Cost Used $ 61,850 403,150 If FIFO Used $ 80,200 384,800 Ending inventory Cost of goods...
Montoure Company uses a perpetual Inventory system. It entered into the following calendar-year purchases and sales transactions Units sold at Retail Unite Aequired at Cost 680 units 540 per unit 320 units @ $35 per unit 100 units $23 per unit Date Activities Jan. Beginning inventory Feb. 10 Purchase Mar. 13 Purchase Mar. 15 Sales Aug. 21 Purchase Sept. 5 Purchase Sept. 10 Sales Totals 720 unitse $75 per unit 130 units 490 units $45 per unit $41 per unit...
Exercise 6-7 Perpetual: Inventory costing methods-FIFO and LIFO
LO P1
Required:
Hemming uses a perpetual inventory system.
1. Determine the costs assigned to ending
inventory and to cost of goods sold using FIFO.
2. Determine the costs assigned to ending
inventory and to cost of goods sold using LIFO.
3. Compute the gross margin for FIFO method and
LIFO method.
Units Sold at Retail Units Acquired at Cost 245 units @ $11.80 = $ 2,891 190 units @ $41.80...
Warnerwoods Company uses a perpetual inventory system. It entered into the following purchases and sales transactions for March Units Sold at Retail Units Acquired at Cost 100 units @ $50.00 per unit 400 units @ $55.00 per unit 420 units @ $85.00 per unit Date Activities Mar. 1 Beginning inventory Mar. 5 Purchase Mar. 9 Sales Mar. 18 Purchase Mar. 25 Purchase Mar. 29 Sales Totals 120 units @ $60.00 per unit 200 units @ $62.00 per unit 160 units...
Problem 6-1A Perpetual: Alternative cost flowsP Warnerwoods Company uses a perpetual inventory system. It entered into the following purchases and sales transactions for March. (For specific identification, the March 9 sale consisted of 80 units from beginning inventory and 340 units from the March 5 purchase; the March 29 sale consisted of 40 units from the March 18 purchase and 120 units from the March 25 purchase.) Units Acquired at Cost Date Activities Units Sold at Retail Beginning inventory 100...
Exercise 5-7 Perpetual: Inventory costing methods-FIFO and LIFO LO P1 Required: Hemming uses a perpetual inventory system. 1. Determine the costs assigned to ending inventory and to cost of goods sold using FIFO. 2. Determine the costs assigned to ending inventory and to cost of goods sold using LIFO. 3. Compute the gross margin for FIFO method and LIFO method.
Most questions answered within 3 hours.
-
Assume that capital markets are competitive and that the
international Fisher hypothesis holds. The one-year interest...
asked 12 minutes ago -
Solid potassium phosphate is slowly added to 150 mL of a 0.0518
M calcium nitrate solution....
asked 26 minutes ago -
(CO 2) A field can be added to a report to
values for two or more...
asked 2 hours ago -
Identify 3 research scenarios that might provide a low,
medium, and high degree of variability in...
asked 2 hours ago -
how
does gravity affect the trajectory of projectile? what would be the
shape of the trajactory...
asked 3 hours ago -
Two small plastic spheres are given positive electrical charges.
When they are a distance of 15.4...
asked 3 hours ago -
An acidic solution containing gold ions is
electrolyzed, producing gaseous oxygen (from water) at the anode...
asked 3 hours ago -
Assume that the population of Mexico is 128
million and that the population increases 1.01
percentannually....
asked 4 hours ago -
Can someone please help me add appropriate descriptive
comments to each line of code in the...
asked 4 hours ago -
Romeo wishes to throw a bouquet of flowers to Juliet, who is on
a second-story balcony,...
asked 5 hours ago -
Why is QE a controversial monetary policy tool.
A. It may lead to excessive inflation.B. By...
asked 6 hours ago -
Principles of Programming midterm study guide help!
1.)
______ Which of the following would reference the...
asked 5 hours ago