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Cost of Inventory

The beginning inventory and purchases of an item for the period were as follows: Beginning inventory 6 units at $73 each First purchase 10 units at $72 each Second purchase 18 units at $74 each Third purchase 10 units at $75 each The company uses the periodic system, and there were 15 units in the inventory at the end

Perpetual and Periodic Inventory Systems

1/1 Beginning Inventory 1,000 Units @ $10 per Unit 3/15 Purchase of Inventory 3,500 Units @ $12 Per Unit 7/21 Sale of Inventory 4,000 units 9/12 Purchase of Inventory 1,600 Units @ $14 per unit 10/31 Sale of Inventory 1,200 Units. A. Using LIFO, what is the Cost of Goods Sold using the Perpetual Method? What is t

FIFO and LIFO Inventory Methods: changes to item 27

During June, the following changes in inventory item 27 took place: 01-Jun Balance 1,400 units @ $24 14 Purchased 800 units @ $36 24 Purchased 700 units @ $30 8 Sold 400 units @ $50 10 Sold 1,000 units @ $40 29 Sold 500 units @ $44 Perpetual inventori

FIFO and LIFO inventory systems

During June, the following changes in inventory item 27 took place: June 1 Balance 1,400 units @ $24 14 Purchase 800 units @ $35 24 Purchase 700 units @ $30 8 Sold 400 units @ $50 10 Sold 900 units @ $40 29 Sold 600 units @ $44 Perpetual inventories are maintained. What is the cost of

Calculating the current ratio and adjusting for the LIFO reserve

I need help in understanding how to calculate the current ratio based on inventory as reported using LIFO and calculating the current ratio after adjusting for the LIFO reserve based on the information below. (in millions) 2004 Beginning inventory $ 10,960 Ending inventory 11,717 LIFO reserve 1,442 Curre

Explaining Production Costs Using Equivalent Units in Ending Inventory

Scenario: Mary Mahr (Larry Lair) has recently been promoted to production manager, and so she has just started to receive various managerial reports. One of the reports she has received is the production cost report that you prepared. It showed that her department had 1,000 equivalent units in ending inventory. Her department ha

EOQ, Reorder point, and Safety stock

Alexis Co. uses 800 units of a product per year on a continuous basis. The product has a fixed cost of $50 per order, and its carrying cost is $2 per unit per year. It takes 5 days to receive a shipment after an order is placed, and the firm wishes to hold 10 days' usage in inventory as a safety stock. a) calculate the EOQ

Trucking Company: Inventories with known demand; monthly carrying cost

1) A trucking company maintains an inventory of trucks that varies monthly. The ending inventory of trucks during the first 8 months of the year (January to August) were 26, 38, 31, 22, 13, 9, 16, 5, respectively. The monthly inventory holding cost is proportional to the monthly ending inventory. Trucks incur the followin

Bondholder exchange, Beehive inventory entries, Rerun Company dividends

1. Convertibility allows a bondholder to exchange: a)subordinated debentures for unsubordinated debentures b)debentures for secured debt c)bonds for common stock d)All of these answers are correct. 2. The Beehive Company acquired merchandise inventory costing $10,000 on September 1. The company will n

Georgia Company: inventory, common stock, increase cash, cash flows

1. Georgia Company's beginning and ending inventory amounts were $150,000 and $140,000, respectively. Cost of goods sold was $670,000. Georgia Company purchased ________ of inventory. a)$680,000 b)$670,000 c)$660,000 d)an indeterminable amount 2. Which of the following could be used as account ti

Valuation of inventories

1. During 2007, which was the first year of operations, Luther Company had merchandise purchases of $985,000 before cash discounts. All purchases were made on terms of 2/10, n/30. Three-fourths of the items purchased were paid for within 10 days of purchase. All of the goods available had been sold at year end. Which of the f

Inventory and costs classification, discounts, interest

1. Which of the following is correct? a. Selling costs are product costs. b. Manufacturing overhead costs are product costs. c. Interest costs for routine inventories are product costs. d. All of these. 2. All of the following costs should be charged against revenue in the period in which costs are incurred except for

Calculate Quantity Discount for Inventory and EOQ

The inventory manager has typically ordered a quantity of 800 each time an order is needed for one of their popular tires to take advantage of the discount provided by the supplier and save the company money. The following discount schedule has just been received reflecting recent changes in the discount percentages. The manag

Understanding Financial Statements

Explain the importance of understanding inventory valuation methods in determining the quality of the profit numbers. If you compared two different companies that used two different valuation methods, how might the quality of the results differ? Also, comment on the difficulty in making comparisons between two firms that use

Kumari Corporation: Cost of ending work in process inventory

Question 5: Kumari Corporation uses the weighted-average method in its process costing system. Data concerning the first processing department for the most recent month are listed below: Beginning work in process inventory: Units in beginning work in process inventory 190 Materials costs $3,300 Conversion costs $6,6

Units completed and transferred

Health Beverage Company uses a process costing system to collect costs related to the production of its celery flavored cola. The cola is first processed in a Mixing Department at Health and is then transferred out and finished up in the Bottling Department. The finished cases of cola are then transferred to Finished Goods Inven

Managerial accounting: manufacturing costs, process, inventory, WIP, variable

See Attached 1. Cost of goods manufactured during a period is obtained by taking the total manufacturing costs incurred during the period and adding and subtracting the following inventories: Adding Subtracting a. Beginning finished goods inventory Ending finished goods inventory b. Beginning work in proces

Inventory Systems and Calculating Revenues, Expenses, and Income

QS 5-8 Identify whether each description best applies to a periodic or a perpetual inventory system. a. Provides more timely information to managers. b. Requires an adjusting entry to record inventory shrinkage. c. Markedly increased in frequency and popularity in business within the past decade. d. Records cost of

Estimated cost of burned inventory

On December 31, 2007 Carr Company's inventory burned. Sales and purchases for the year had been $1,4000,000 and $980,000, respectively. The beginning inventory (Jan. 1, 2007) was $170,000,in the past Carr's profit has averaged 40% of selling price. Compute the estimated cost of inventory burned, and give entries as of Decembe

Cost of Goods Sold for Wolfson Corporation assuming FIFO inventory accounting.

On December 31st of last year, Wolfson Corporation had in inventory 400 units of its product, which cost $21 per unit to produce. During January, the company produced 800 units at a cost of $24 per unit. Assuming Wolfson Corporation sold 700 units in January, what was the cost of goods sold for the units sold in January (assum

Perpetual inventory and a physical inventory

Explain what the difference is between a perpetual inventory and a physical inventory. When an organization uses a perpetual inventory system, will the physical inventory on any date be equal to the amount shown by the perpetual inventory account? Why or why not?

Managerial accounting: Coronet Co, Presidente Co: inventory purchases

Please see attached file. 13. Coronet Company provided the following information related to its inventory sales and purchases for December 2007 and the first quarter of 2008: Desired ending inventory levels are 25% of the following month's projected cost of goods sold. Budgeted purchases of inventory in February 200