Homework Answers
| Ending inventory for Commodity X | 20 units |
| Inventory value per unit at lower of cost ($5 per unit) and net realizable value ($4.75 per unit) | $ 4.75 |
| Value of inventory reported on the balance sheet | $ 95.00 |
- FIFO stands for First In First Out.
- Under this method of inventory valuation, the earliest purchased inventory items are recorded as sold first in the books of accounts. That is, the ending inventory will always reflect the most recent purchase cost.
- However, inventory is valued at lower of cost and net realizable value.
- The options B and D are incorrect because they are per unit
value of inventory, In the balance sheet, the total value of the
inventory is reported.
- B. $5 is the cost per unit.
- D. $4.75 is the net realizable value per unit.
- Option A. $100 is the inventory value at cost which is higher than net realizable value and hence ignored.
Add Answer to:
Ending inventory for Commodity X consists of 20 units. Under the FIFO method, the cost of...
73) Ending inventory for Commodity X consists of 20 units. Under the FIFO method, the cost...
73) Ending inventory for Commodity X consists of 20 units. Under the FIFO method, the cost of the 20 units is $5 each. Current net realizable value is $4.75 per unit. Using the lower-of-cost-and-net -realizable-value rule to value inventory, the balance sheet would show ending inventory of: A) $5.00 B) $4.75 C) $95.00 D) $100.00 74) Piggly Wiggly Sales had six CD players in inventory on December 31. They were purchased in November for $170 each. A quoted price received...
A. perpetual inventory using FiFO B. lower of cost or market method Perpetual Inventory Using FIFO...
A. perpetual inventory using FiFO
B. lower of cost or market method
Perpetual Inventory Using FIFO Beginning Inventory, purchases, and sales for Item Zeta9 are as follows: Oct. 1 Inventory 61 units @ $21 7 Sale 43 units 15 Purchase 59 units @ $22 24 Sale 25 units Assuming a perpetual inventory system and using the first-in, first-out (FIFO) method, determine (a)the cost of goods sold on October 24 and (b) the inventory on October 31. a. Cost of goods...
From the following, calculate the cost of ending inventory and cost of goods sold for the FIFO method, ending inventory...
From the following, calculate the cost of ending inventory and cost of goods sold for the FIFO method, ending inventory is 54 units. (Round your answers to the nearest cent.) Beginning inventory and purchases Units Unit cost January 1 5 $ 3.50 April 10 10 4.00 May 15 12 4.50 July 22 15 4.75 August 19 18 5.50 September 30 20 5.70 November 10 32 5.90 December 15 16 6.30 Cost of ending inventory $ Cost of goods sold $
LO7-17-2,74,7-5 Recording Inventory Transactions, Computing Ending Inventory and Cost of Sales, and Determining the...
LO7-17-2,74,7-5 Recording Inventory Transactions, Computing Ending Inventory and Cost of Sales, and Determining the Effects of LC&NRV Rule on the Inventory Turnover Ratio (P7-8) Chaiz Inc. specializes in importing furniture for commercial use. Chaiz reported the following information (all transactions are on account) for the quarter ending September 30, 2018: AP7-4 Date Transaction Units Amount per Unit July 1 July 13 July 29 August 3 August 16 September 21 Inventory 224 $36.0 Purchase 152 35.5 Sale 242 49.5 Purchase 112...
Computing Cost of Goods Sold and Ending Inventory Under FIFO, LIFO, and Average Cost Assume that...
Computing Cost of Goods Sold and Ending Inventory Under FIFO, LIFO, and Average Cost Assume that Gode Company reports the following initial balance and subsequent purchase of inventory: Beginning inventory, 2017 1,000 units @ $100 each $100,000 Inventory purchased in 2017 2.000 units $150 each 300,000 Cost of goods available for sale in 2017 3.000 units $400,000 Assume that 1,600 units are sold during 2017. Compute the cost of goods sold for 2017 and the balance reported as ending inventory...
Exercise 8-16 (Algo) Comparison of FIFO and LIFO; periodic system (LO8-1, 8-4) Alta Ski Company's inventory...
Exercise 8-16 (Algo) Comparison of FIFO and LIFO; periodic system (LO8-1, 8-4) Alta Ski Company's inventory records contained the following information regarding its latest ski model. The company uses a periodic inventory system. points 1,150 units @ $80 each 2,400 units @ $95 each 2,200 units @ $100 each Beginning inventory, January 1, 2021 Purchases: January 15 January 21 Sales: January 5 January 22 January 29 Ending inventory, January 31, 2021 1,100 units @ $120 each 1,500 units @ $130...
2.75 LO71.7-2.74,75 74 Recording Inventory Transactions. Connutina Ending Inventor and Cost or Determining the Errects or...
2.75 LO71.7-2.74,75 74 Recording Inventory Transactions. Connutina Ending Inventor and Cost or Determining the Errects or LC&NRV Rule on the Inventory Turnover Chaiz Inc. specializes in importing furniture for commercial use es importing furniture for commercial use. Chaiz reported the following information all transactions are on account) for the quarter ending September Date Transaction Units Amount per Unit July 1 Inventory 224 $36.0 July 13 Purchase 152 35.5 July 29 Sale 242 49.5 August 3 Purchase 112 34.5 August 16...
FIFO and LIFO Costs Under Perpetual Inventory System The following units of an item were available...
FIFO and LIFO Costs Under Perpetual Inventory System The following units of an item were available for sale during the year: Beginning inventory 36 units at $47 Sale 14 units at $66 First purchase 23 units at $50 Sale 23 units at $68 Second purchase 17 units at $52 6 units at $68 The firm uses the perpetual inventory system, and there are 33 units of the item on hand at the end of the year a. What is the...
Compute the cost of the ending inventory and the cost of goods sold under FIFO and...
Compute the cost of the ending inventory and the cost of goods sold under FIFO and average-cost. (Round av e.g. NT$45.) FIFO Average cost The cost of the ending inventory NT$U 606,402 NT$1 584,748 The cost of goods sold NT$ 1,732,594 NT$ 1,754,244 Which cost flow method would result in the higher net income? FIFO method would result in the higher net income. SHOW SOLUTION LINK TO TEXT (c) Your answer is correct. Which cost flow method would result yn...
How does the retail inventory method establish the lower-of-cost-or-market valuation for ending inventory? 1. The procedure...
How does the retail inventory method establish the lower-of-cost-or-market valuation for ending inventory? 1. The procedure is applied on a cost basis at the unit level. 2. By excluding net markups from the cost-to-retail ratio. 3. By excluding beginning inventory from the cost-to-retail ratio. 4. By excluding net markdowns from the cost-to-retail ratio. The original cost of an inventory item is above the replacement cost and below the net realizable value. The net realizable value less the normal profit margin...
A. perpetual inventory using FiFO
B. lower of cost or market method
Perpetual Inventory Using FIFO Beginning Inventory, purchases, and sales for Item Zeta9 are as follows: Oct. 1 Inventory 61 units @ $21 7 Sale 43 units 15 Purchase 59 units @ $22 24 Sale 25 units Assuming a perpetual inventory system and using the first-in, first-out (FIFO) method, determine (a)the cost of goods sold on October 24 and (b) the inventory on October 31. a. Cost of goods...
LO7-17-2,74,7-5 Recording Inventory Transactions, Computing Ending Inventory and Cost of Sales, and Determining the Effects of LC&NRV Rule on the Inventory Turnover Ratio (P7-8) Chaiz Inc. specializes in importing furniture for commercial use. Chaiz reported the following information (all transactions are on account) for the quarter ending September 30, 2018: AP7-4 Date Transaction Units Amount per Unit July 1 July 13 July 29 August 3 August 16 September 21 Inventory 224 $36.0 Purchase 152 35.5 Sale 242 49.5 Purchase 112...
Computing Cost of Goods Sold and Ending Inventory Under FIFO, LIFO, and Average Cost Assume that Gode Company reports the following initial balance and subsequent purchase of inventory: Beginning inventory, 2017 1,000 units @ $100 each $100,000 Inventory purchased in 2017 2.000 units $150 each 300,000 Cost of goods available for sale in 2017 3.000 units $400,000 Assume that 1,600 units are sold during 2017. Compute the cost of goods sold for 2017 and the balance reported as ending inventory...
Exercise 8-16 (Algo) Comparison of FIFO and LIFO; periodic system (LO8-1, 8-4) Alta Ski Company's inventory records contained the following information regarding its latest ski model. The company uses a periodic inventory system. points 1,150 units @ $80 each 2,400 units @ $95 each 2,200 units @ $100 each Beginning inventory, January 1, 2021 Purchases: January 15 January 21 Sales: January 5 January 22 January 29 Ending inventory, January 31, 2021 1,100 units @ $120 each 1,500 units @ $130...
2.75 LO71.7-2.74,75 74 Recording Inventory Transactions. Connutina Ending Inventor and Cost or Determining the Errects or LC&NRV Rule on the Inventory Turnover Chaiz Inc. specializes in importing furniture for commercial use es importing furniture for commercial use. Chaiz reported the following information all transactions are on account) for the quarter ending September Date Transaction Units Amount per Unit July 1 Inventory 224 $36.0 July 13 Purchase 152 35.5 July 29 Sale 242 49.5 August 3 Purchase 112 34.5 August 16...
FIFO and LIFO Costs Under Perpetual Inventory System The following units of an item were available for sale during the year: Beginning inventory 36 units at $47 Sale 14 units at $66 First purchase 23 units at $50 Sale 23 units at $68 Second purchase 17 units at $52 6 units at $68 The firm uses the perpetual inventory system, and there are 33 units of the item on hand at the end of the year a. What is the...
Compute the cost of the ending inventory and the cost of goods sold under FIFO and average-cost. (Round av e.g. NT$45.) FIFO Average cost The cost of the ending inventory NT$U 606,402 NT$1 584,748 The cost of goods sold NT$ 1,732,594 NT$ 1,754,244 Which cost flow method would result in the higher net income? FIFO method would result in the higher net income. SHOW SOLUTION LINK TO TEXT (c) Your answer is correct. Which cost flow method would result yn...
Most questions answered within 3 hours.
-
in a perfectly elastic collision what is the velocity of ball A
if the original direction...
asked 16 minutes ago -
PLEASE ANSWER ALL
1) The pressure of the atmosphere decreases with increasing
altitude in the
Choose...
asked 30 minutes ago -
A simple random sample of 25,000 individuals are surveyed in
order to determine the prevalence of...
asked 32 minutes ago -
People who do very detailed work close up, such as jewelers,
often can see objects clearly...
asked 35 minutes ago -
14 years ago, Blue Lake Corp. issued 30 year to maturity
zero-coupon bonds with a par...
asked 26 minutes ago -
Warnerwoods Company uses a perpetual inventory system. It
entered into the following purchases and sales transactions...
asked 23 minutes ago -
Equivalent Units of Conversion Costs
The Rolling Department of Oak Ridge Steel Company had 6,842 tons...
asked 27 minutes ago -
what does the concept of "core competence" mean? why
is this concept important? How would you...
asked 30 minutes ago -
__________ is a type of visualization that is linked to strategy
and used within a formal...
asked 31 minutes ago -
A national magazine stated that at most,12% of millennials
have a pool membership. Formulate an appropriate...
asked 43 minutes ago -
Can
you provide the mechanism for enamine hydrolysis. Any example will
work, thank you.
asked 52 minutes ago -
Three of the compounds have ionic bonds (difference in
electronegativity is greater or equal to 2,...
asked 45 minutes ago