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ACTG 2011 Study Guide - Final Guide: Financial Statement, Accounting Information System, Cash Flow

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olivesardine643
25 Mar 2016
School
York University
Department
Accounting
Course
ACTG 2011
Professor
Laura Simeoni

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Document Summary

Count at the end of the fiscal period. Count with each inventory: fifo, average cost/ weighted average, specific identification. January 1st purchase of 100 units at each. February 3rd make a sale of 50 units at each. March 5th purchase of 200 units at . Ending inventory = + 600 + 400 - 100 = 1100. Perpetual and period remain the same in this case. Average cost = $ of units on hand/ # of units on hand. Avg. cost = / 500 = . 4. Ending inventory = - = . Specific identification used for inventory that is more expensive (not homogenous / the same) Future value is what it can be purchased in the future. Understand that accounting information an entity presents is affected by the accounting environment. Interests of people can conflict with the interests of those who use it. Different sets of accounting standards that are used in canada.

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Related Questions


Montoure Companyuses a perpetual inventory system. It entered into the followingcalendar-year 2013 purchases and sales transactions.


Date Activities Units Acquired at Cost Units Sold at Retail
Jan. 1 Beginning inventory 700 units @ $ 50 /unit
Feb. 10 Purchase 300 units @ $ 46 /unit
Mar. 13 Purchase 100 units @ $ 40 /unit
Mar. 15 Sales 780 units @ $ 70 /unit
Aug. 21 Purchase 110 units @ $ 55 /unit
Sept. 5 Purchase 570 units @ $ 52 /unit
Sept. 10 Sales 680 units @ $ 70 /unit
Totals 1,780 units 1,460 units

1.

Compute cost ofgoods available for sale and the number of units available forsale.


2. Compute the number of units in ending inventory.



3.

Compute the costassigned to ending inventory using (a) FIFO, (b) LIFO, (c) weighted average, and (d) specific identification. Forspecific identification units sold consist of 700 units frombeginning inventory, 200 from the February 10 purchase, 100 fromthe March 13 purchase, 60 from the August 21 purchase, and 400 fromthe September 5 purchase. (Round your average cost per unit to 2 decimal places.)

4.

Compute grossprofit earned by the company for each of the four costing methods.(Round your average cost per unit to 2 decimalplaces.)


Required information

Problem 6-1A Perpetual: Alternative cost flows LO P1

[The following information applies to the questionsdisplayed below.]

Warnerwoods Company uses a perpetual inventory system. It enteredinto the following purchases and sales transactions forMarch.

Date

Activities

Units Acquired at Cost

Units Sold at Retail

Mar.

1

Beginning inventory

100

units

@ $50.00 per unit

Mar.

5

Purchase

400

units

@ $55.00 per unit

Mar.

9

Sales

420

units

@ $85.00 per unit

Mar.

18

Purchase

120

units

@ $60.00 per unit

Mar.

25

Purchase

200

units

@ $62.00 per unit

Mar.

29

Sales

160

units

@ $95.00 per unit

Totals

820

units

580

units

3. Compute the cost assigned to endinginventory using (a) FIFO, (b) LIFO, (c)weighted average, and (d) specific identification. Forspecific identification, the March 9 sale consisted of 80 unitsfrom beginning inventory and 340 units from the March 5 purchase;the March 29 sale consisted of 40 units from the March 18 purchaseand 120 units from the March 25 purchase.

Complete this questions by entering your answers in thebelow tabs.

Perpetual FIFO

Perpetual LIFO

Weighted Average

Specific Id

Compute the cost assigned to ending inventory using FIFO.

Perpetual FIFO:

Goods Purchased

Cost of Goods Sold

Inventory Balance

Date

# of units

Cost per unit

# of units sold

Cost per unit

Cost of Goods Sold

# of units

Cost per unit

Inventory Balance

March 1

100

@

$50.00

=

$5,000.00

March 5

March 9

March 18

March 25

March 29

Totals

$0.00

$0.00

Complete this questions by entering your answers in thebelow tabs.

Perpetual FIFO

Perpetual LIFO

Weighted Average

Specific Id

Compute the cost assigned to ending inventory using LIFO.

Perpetual LIFO:

Goods Purchased

Cost of Goods Sold

Inventory Balance

Date

# of units

Cost per unit

# of units sold

Cost per unit

Cost of Goods Sold

# of units

Cost per unit

Inventory Balance

March 1

100

@

$50.00

=

$5,000.00

March 5

March 9

March 18

March 25

March 29

Totals

$0.00

Perpetual FIFO

Weighted

Complete this questions by entering your answers in thebelow tabs.

Perpetual FIFO

Perpetual LIFO

Weighted Average

Specific Id

Compute the cost assigned to ending inventory using weightedaverage. (Round your average cost per unit to 2 decimalplaces.)

Weighted Average Perpetual:

Goods Purchased

Cost of Goods Sold

Inventory Balance

Date

# of units

Cost per unit

# of units sold

Cost per unit

Cost of Goods Sold

# of units

Cost per unit

Inventory Balance

March 1

100

@

$50.00

=

$5,000.00

March 5

Average

March 9

March 18

Average

March 25

March 29

Totals

$0.00

Perpetual LIFO

Compute the cost assigned to ending inventory using specificidentification. For specific identification, the March 9 saleconsisted of 80 units from beginning inventory and 340 units fromthe March 5 purchase; the March 29 sale consisted of 40 units fromthe March 18 purchase and 120 units from the March 25 purchase.

Specific Identification:

Goods Purchased

Cost of Goods Sold

Inventory Balance

Date

# of units

Cost per unit

# of units sold

Cost per unit

Cost of Goods Sold

# of units

Cost per unit

Inventory Balance

March 1

100

@

$50.00

=

$5,000.00

March 5

March 9

March 18

March 25

March 29

Totals

$0.00

Weighted Average

Sp

Anthony Company uses a perpetual inventory system. It enteredinto the following purchases and sales transactions forMarch.

Date Activities Units Acquired at Cost Units Sold at Retail
Mar. 1 Beginning inventory 50 units @ $50/unit
Mar. 5 Purchase 200 units @ $55/unit
Mar. 9 Sales 210 units @ $85/unit
Mar. 18 Purchase 60 units @ $60/unit
Mar. 25 Purchase 100 units @ $62/unit
Mar. 29 Sales 80 units @ $95/unit
Totals 410 units 290 units
Information given:

Compute the cost of goods available for sale and the number ofunites available for sale.

Compute the cost assigned to ending inventory using (a) FIFO,(b) LIFO, (c) weighted average, and (d) specific identification.For specific identification, the March 9 sale consisted of 40 unitsfrom beginning inventory and 170 units from the March 5 purchase;the March 29 sale consisted of 20 units from the March 18 purchaseand 60 units from the March 25 purchase. (Due to rounding, the sumof Cost of Goods Sold and Ending inventory may not equal the Costof Good available for sales. Round your per unit costs to 3 decimalplaces and inventory balances to the nearest dollar amount. Omitthe "$" sign in your response.)

Ending
Inventory
(a) FIFO $ 7400
(b) LIFO $ 6840
(c) Weighted average $ 7176
(d) Specific identification $ 7030

Now I need to compute gross profit earned by the company for eachof the four costing methods.

LIFO is 8990
I can't figure out the FIFO, Weighted Average, and SpecificIdentification.
I really appreciate any help. Thanks.