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    Vulcan Co. uses the perpetual inventory method

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    Please see attached excel worksheet dealing with accounting questions.

    23. Vulcan Co. uses the perpetual inventory method. The inventory records for Vulcan reflected the following:

    1-Jan Beginning Inventory 300 Units @ 2.10
    12-Jan First Purchase 400 Units @ 2.40
    21-Jan Second Purchase 600 Units @ 2.50
    31-Jan Sales 800 Units @ 5.00

    Assuming that Vulcan uses a FIFO cost flow method, the cost of goods sold for January is
    Answer
    A $1590.00
    B $1840.00
    C $1740.00
    D $1680.00

    24. What was Vulcan's gross margin for the month of January assuming a FIFO cost flow method?

    Answer
    A $2160.00
    B $2410.00
    C $2260.00
    D $2320.00

    25. The inventory records for Hugo Co. reflect the following:

    beginning inventory @ May 1 200 Units @ 1.00
    First Purchase @ May 7 300 Units @ 1.10
    Second Purchase @ May 17 500 Units @ 1.30
    Sales @ May 31 900 units @ 2.00

    Determine Hugo's cost of goods sold for May assuming the LIFO cost flow method.
    Answer
    A 1140
    B 1040
    C 1080
    D 940

    26. Determine Hugo's inventory at the end of May assuming the LIFO cost flow method.

    A) $100
    B) $130
    C) $110
    D) $120

    27.) Friday Enterprises started the period with 150 units in beginning inventory that cost $2 each
    Purchase No. of Items Cost
    1 200 $3.00
    2 150 $3.10
    3 50 $3.50
    During the period the company purchased inventory items as follows:

    Friday sold 350 units after purchase 3
    Friday's cost of goods sold assuming the weighted average cost flow method would be:

    A) $525
    B) $980
    C) $700
    D) $1065

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    https://brainmass.com/business/inventory/vulcan-co-perpetual-inventory-method-191955

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    Solution Preview

    First Question:
    Company uses FIFO (first in first out). COGS in January is?
    We have 800 units sold. Beginning with first units in inventory, working toward bottom, we have:
    300 units at $3.10=$630
    400 units at $2.40=$960
    100 units @ $2.50=$250
    630+960+250=$1840
    B) $1840

    #24
    Gross ...

    Solution Summary

    Several accounting questions including change in inventory, effects of LIFO and FIFO on COGS

    $2.19