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.
Cost of Goods Available for Sale COGS - Periodic LIFO Ending Inventory - Periodic LIFO # of units Cost per unit Cost of Goods Available # of units sold Cost per unit Cost of Goods Sold # of units in ending inventory Cost per unit Ending Inventory Beginning Inventory Purchases Total
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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Related questions
Periodic Inventory Method | |||||||||
Better Bottles, Inc. uses a PERIODIC inventory system and has the following information available: | |||||||||
Description | # of Units | Cost per Unit | Total Cost | ||||||
Beginning inventory | 20 | $20.00 | $400 | ||||||
Jan 5 sold | 15 | ||||||||
Jan 15 purchase | 27 | $22.00 | 594 | ||||||
Jan 18 sold | 21 | ||||||||
Jan 20 purchase | 33 | $30.00 | 990 | ||||||
Total goods available for sale | 80 | $1,984 | |||||||
Total goods sold | 36 | ||||||||
Required: | |||||||||
1 | Calculate both Cost of goods sold and Ending inventory using the Periodic FIFO Method. | ||||||||
2 | Calculate both Cost of good sold and Ending Inventory using Periodic LIFO Method. | ||||||||
3 | Use your calculations from 1-2 and complete the Income Statement. | ||||||||
The company income tax rate: | 0.25 | ||||||||
1 | FIFO Cost of Goods Sold - PERIODIC | ||||||||
Units Sold Taken From: | # of Units | Cost per Unit | Total Cost | ||||||
Total Cost of Goods Sold FIFO | |||||||||
FIFO Ending Inventory - PERIODIC | |||||||||
Inventory Available | # of Units | Cost per Unit | Total Cost | ||||||
Beginning inventory | |||||||||
+Purchase | |||||||||
+Purchase | |||||||||
(Less Cost of Goods Sold) | |||||||||
Ending Inventory FIFO | |||||||||
2 | LIFO Cost of Goods Sold - PERIODIC | ||||||||
Units Sold Taken From: | # of Units | Cost per Unit | Total Cost | ||||||
Total Cost of Goods Sold LIFO | |||||||||
LIFO Ending Inventory - PERIODIC | |||||||||
Inventory Available | # of Units | Cost per Unit | Total Cost | ||||||
Beginning inventory | |||||||||
+Purchase | |||||||||
+Purchase | |||||||||
(Less Cost of Goods Sold) | |||||||||
Ending Inventory LIFO | |||||||||
3 | Income Statement - Periodic Inventory Method | ||||||||
FIFO | LIFO | ||||||||
Sales revenue, net | 25,000 | 25,000 | |||||||
Cost of goods sold | |||||||||
Gross profit | |||||||||
Operating expenses | 8,000 | 8,000 | |||||||
Operating income before tax | |||||||||
Income tax expense | |||||||||
Net income | |||||||||
Altira Corporation uses a periodic inventory system. Thefollowing information related to its merchandise inventory duringthe month of August 2018 is available:
Aug.1 | Inventory on handâ2,000 units;cost $6.10 each. |
8 | Purchased 10,000 units for $5.50each. |
14 | Sold 8,000 units for $12.00each. |
18 | Purchased 6,000 units for $5.00each. |
25 | Sold 7,000 units for $11.00each. |
31 | Inventory on handâ3,000 units |
Determine the inventory balance Altira would report in itsAugust 31, 2018, balance sheet and the cost of goods sold it wouldreport in its August 2018 income statement using each of thefollowing cost flow methods.
FIFO
LIFO
Average Cost
Determine the inventory balance Altira would report in itsAugust 31, 2018, balance sheet and the cost of goods sold it wouldreport in its August 2018 income statement using the FIFO method.(Round "Cost per Unit" to 2 decimal places.)
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Determine the inventory balance Altira would report in itsAugust 31, 2018, balance sheet and the cost of goods sold it wouldreport in its August 2018 income statement using LIFO method.(Round "Cost per Unit" to 2 decimal places.)
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Determine the inventory balance Altira would report in itsAugust 31, 2018, balance sheet and the cost of goods sold it wouldreport in its August 2018 income statement using Average costmethod. (Round "Average Cost per Unit" to 2 decimal places.)
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Alta Ski Company's inventory records contained the following information regarding its latest ski model. The company uses a periodic inventory system.
Beginning inventory, January 1, 2018 | 1,250 | units @ $90 each | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Purchases: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
January 15 | 2,600 | units @ $105 each | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
January 21 | 2,400 | units @ $110 each | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Sales: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
January 5 | 1,200 | units @ $130 each | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
January 22 | 1,600 | units @ $140 each | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
January 29 | 1,050 | units @ $145 each | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ending inventory, January 31, 2018 | 2,400 | units | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Compute cost of goods sold for January and the ending inventory using both the FIFO and LIFO methods. Please fill in the answer in all the spaces I put an "A" in. Will give good feedback, thanks!
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