Table 1 Assume the following data for ABC Company Sales for November 2023: Beginning inventory: 10 units at $7 each Nov. 1 purchase: 15 units at $9 each Sale: 20 units at $15 each Nov. 2 purchase: 20 units at $10 each Sale: 12 units at $15 each Nov. 3 purchase: 12 units at $11 each Sale: 10 units at $16 each On November 30, a physical count reveals 15 units on hand. 2) Refer to Table 1. Calculate ending inventory for ABC Company Sales assuming the perpetual moving-weighted-average-cost method is being used. 3) Refer to Table 1. Calculate gross margin for ABC Company Sales assuming the perpetual moving-weighted-average-cost method is being used. 4) Refer to Table 1. Calculate ending inventory for ABC Company Sales assuming the perpetual FIFO cost method is being used. 5) Refer to Table 1. Calculate gross margin for ABC Company Sales assuming the perpetual FIFO cost method is being used.
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Ontario, Inc.'s inventory records for a particular development program show the following at December 31: (Click the icon to view the accounting records.) At December 31, 11 of these programs are on hand. Requirements: 1. Compute cost of goods sold and ending inventory, using each of the following methods: a. Specific unit cost, with seven $170 units and four $180 units still on hand at the end. b. Average cost. c. First-in, first-out. d. Last-in, first-out. 2. Which method produces the highest cost of goods sold? Which method produces the lowest cost of goods sold? What causes the difference in cost of goods sold? Requirement 1: Compute cost of goods sold and ending inventory, using each of the following four inventory methods: Begin by entering the number of units sold and number of units in ending inventory. Then calculate cost of goods sold and ending inventory using: a. Specific unit cost. b. Average cost. c. FIFO. d. LIFO. Round the average cost per unit to the nearest cent. Round all final answers to the nearest whole dollar. Number 1 Data Table of units: Cost of goods sold: Ending inventory: Dec 1 Beginning inventory: 8 units @ $170 = $1,360 5 units @ $171 = $855 15 Purchase: 12 units @ $180 = $2,160 26 Purchase: Check Answer 6-20A (similar to) Questionnaire Big Fish, Inc.'s inventory records for a particular development program show the following at March 31: (Click the icon to view the accounting records.) Requirement: Sales revenue is $10,080, operating expenses are $1,600, and the income tax rate is 35%. How much in taxes would Big Fish, Inc., save by using the LIFO method versus FIFO? Round your answer to the nearest whole dollar. Data Table: Difference in methods x Income tax rate: Tax savings using LIFO: Mar 1 Beginning inventory: 10 units @ $160 = $1,600 5 units @ $161 = $805 15 Purchase: 14 units @ $170 = $2,380 26 Purchase
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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 $300 $27,000 8 Purchase 180 360 64,800 11 Sale 120 1,000 120,000 30 Sale 75 1,000 75,000 May 8 Purchase 150 400 60,000 10 Sale 90 1,000 90,000 19 Sale 45 1,000 45,000 28 Purchase 150 440 66,000 June 5 Sale 90 1,050 94,500 16 Sale 120 1,050 126,000 21 Purchase 270 480 129,600 28 Sale 135 1,050 141,750 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 Apr. 3 $ $ Apr. 8 $ $ Apr. 11 $ $ Apr. 30 May 8 May 10 May 19 May 28 June 5 June 16 June 21 June 28 June 30 Balances $ $ 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?
Gladstone Company tracks the number of units purchased and sold throughout each accounting period but applies its inventory costing method at the end of each period, as if it uses a periodic inventory system. Assume its accounting records provided the following information at the end of the annual accounting period, December 31. Transactions Units Unit Cost Beginning inventory, January 1 2,700 $45 Transactions during the year: a. Purchase, January 30 3,050 60 b. Sale, March 14 ($100 each) (2,350) c. Purchase, May 1 1,750 75 d. Sale, August 31 ($100 each) (2,000) Assuming that for Specific identification method (item 1d) the March 14 sale was selected two-fifths from the beginning inventory and three-fifths from the purchase of January 30. Assume that the sale of August 31 was selected from the remainder of the beginning inventory, with the balance from the purchase of May 1. Required: 1. Compute the amount of goods available for sale, ending inventory, and cost of goods sold at December 31 under each of the following inventory costing methods: (Round intermediate calculations to 2 decimal places and final answers to the nearest whole dollar amount.) Amount of Goods Available for Sale Ending Inventory Cost of Goods Sold a. Last-in, first-out $ 435,750 b. Weighted average cost $ 435,750 c. First-in, first-out $ 435,750 d. Specific identification $ 435,750
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