ACC 311 Lecture Notes - Lecture 16: Net Income, Income Tax
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Brief Exercise 8-8 LIFO method [LO8-4]
Esquire Inc. uses the LIFO method to value its inventory. Inventory at January 1, 2018, was $500,000 (25,000 units at $20 each). During 2018, 90,000 units were purchased, all at the same price of $27 per unit. 95,000 units were sold during 2018. Esquire uses a periodic inventory system.
Complete the below table to calculate the December 31, 2018, ending inventory and cost of goods sold for 2018.
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The following balances are from the accounts of CrabtreeMachining Company:
January 1 (Beginning) | December 31 (Ending) | |||||
Direct materials inventory | $ | 98,500 | $ | 110,700 | ||
Work-in-process inventory | 107,200 | 105,100 | ||||
Finished goods inventory | 43,100 | 46,400 | ||||
Direct materials purchased during the year amount to $513,400,and the cost of goods sold for the year was $1,870,000.
Required:
Prepare a cost of goods sold statement.
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************I HAVE FIGURED OUT EVERY NUMBER BESIDES THE OTHERMANUFACTURING COST!!!! HOW DO I FIGURE OUT THATNUMBER???????????????????? ONCE I FIGURE OUT THAT NUMBER IT WILLCHANGE THE OTHER NUMBERS, SO THE PROBLEM WILL BE CORRECT.
Yang Corporation uses the periodic inventory system. Thefollowing sales and purchases of the same product were made during20x1 at Yang Corporation. The opening inventory consisted of 50units at $2 each.
Purchases | Sales | ||||||
Date | Units | $ per unit | Date | Units | Unit $Price | Total | |
March 15 | 200 | 3 | April 25 | 250* | 5 | ||
June 15 | 600 | 5 | June 30 | 500** | 6 |
*for specific identification, sold 50 units of opening inventoryand 200 units of March 15 purchase
**for specific identification, sold 500 units of June 15purchase
Requirements:
1. Calculate cost of goods sold and the cost of ending inventoryunder FIFO, LIFO, specific identification, and weighted averageinventory cost flow assumptions. Use the student template #1
2. Calculate and compare the effect on profit of the fourinventory cost flow assumptions.
ACT300 Principlesof Accounting I | |||||||||||||
Module 4: Critical ThinkingTemplate Option #1 | |||||||||||||
FIFO | Units | Cost per unit | Sale per Unit | Totals | |||||||||
Beginning Inventory | - | $0.00 | $0.00 | $0 | |||||||||
Purchases and Sales | |||||||||||||
Mar 15-Purchase | - | $0.00 | $0.00 | $0 | Data from the problem | ||||||||
April 25-Sale | - | $0.00 | $0.00 | 0 | The opening inventory consisted of 50 units at $2each. | ||||||||
Jun 15-Purchase | - | $0.00 | $0.00 | 0 | |||||||||
Jun 30-Sale | - | $0.00 | $0.00 | 0 | Purchases | Sales | |||||||
Cost of Goods Available for Sale | - | $0.00 | $0.00 | $0 | Date | Units | $ per unit | Date | Units | Unit $Price | |||
Cost of Goods Sold (COGS) | - | $0.00 | $0.00 | 0 | 15-Mar | 200 | 3 | 25-Apr | 250* | 5 | |||
Ending Inventory | - | $0.00 | $0.00 | $0 | 15-Jun | 600 | 5 | 30-Jun | 500** | 6 | |||
COGS Calculation | Units | COGS | SalesTotals | Gross Profit | |||||||||
Beginning Inventory | - | $0.00 | $0.00 | $0 | |||||||||
Purchases - Mar 15 | - | $0.00 | $0.00 | $0 | |||||||||
Sale - April 25 | - | $0.00 | $0.00 | $0 | |||||||||
Purchases - June 15 | $0.00 | $0.00 | $0 | ||||||||||
Sale - June 30 | $0.00 | $0.00 | $0 | ||||||||||
. | . | ||||||||||||
Totals | - | $0.00 | $0.00 | $0 |