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Business Math Homework 18
LIFO
was designed to protect cash flow in
industries where prices increase rapidly.
It has been used for both tax and financial statement reporting since the 1930s. The higher cost of goods sold under LIFO in these circumstances results in lower reported profit than under FIFO. In the 2012 budget, President Obama has threatened to repeal LIFO. If Exxon uses FIFO for its inventory valuation, calculate the cost of ending inventory and cost of goods sold if ending inventory is 110 barrels of crude oil:
Cost of ending inventory $10,550 Cost of goods sold $24,645. Marvin Company has a beginning inventory of 12 sets of paints at a cost of $1.50 each. During the year, the store purchased 4 sets at $1.60, 6 sets at $2.20, 6 sets at $2.50, and 10 sets at $3.00. By the end of the year, 25 sets were sold. a. Calculate the number of paint sets in ending inventory. b. Calculate the cost of ending inventory under LIFO, FIFO, and the weighted average methods. (Round your answers to the nearest cent.) a. Number of paint sets 13. b. Cost of ending inventory under LIFO $19.60 Cost of ending inventory under FIFO $37.50 Cost of ending inventory under Weighted Average $28.21 Better Finance, based in San Francisco, California, provides leasing and credit solutions to consumers. and small businesses. If Better Finance wants to distribute $45,000 worth of overhead by sales. New customer sales $5,120,000 Current customer new sales $4,480,000 Current customer loan extension sales $3,200,000 Total: $12,800,000 Calculate the overhead expense for each department. New customer sales $18,000 Current customer new sales $15,750 Current customer loan extension sales $11,250 If Comcast is upgrading its cable boxes and has 500 obsolete boxes in ending inventory.
What is the cost of ending inventory using FIFO, LIFO, and the weighted-average method? (Round your intermediate calculations to 2 decimal places and final answers to the nearest dollar amount.) FIFO $16,000 LIFO $7,500 Weighted-average $8,390 May's Dress Shop's inventory at cost on January 1 was $39,000. Its retail value was $59,000. During the year, May, purchased additional merchandise at a cost of $195,000 with a retail value of $395,000. The net sales at retail for the year were $348,000. Calculate May's inventory at cost by the retail method. (Round the "cost ratio" to the nearest whole percent.) Name Cost Retail Beginning inventory $39,000 $59,000 Purchases $195,000 $395,000 Cost of goods available for sale $? $? Less net sales for year $348,000 Ending inventory at retail $? Cost ratio. ?% Ending inventory at cost $? Cost of goods available for sale | $234,00 | $454,000 Ending inventory at retail | | $106,000 Cost ratio - 52% Ending inventory at cost | | $55120 A sneaker outlet has made the following wholesale purchases of new running shoes: 12 pairs at $45, 18 pairs at $40, and 20 pairs at $50. An inventory taken last week indicates that 23 pairs are still in stock. Calculate the cost of this inventory by FIFO. Cost of ending inventory $1,120 Calculate cost of goods sold and ending inventory for Emergicare's bandages orders using FIFO, LIFO and average cost. There are 35 units in ending inventory. (Do not round intermediate calculations, such as average cost per unit values. Round your answers to the nearest cent.) Date | Units purchased | Cost per unit | Total Jan. 1 | 50 | $7.50 | $375.00 Apr. 1 | 45 | $6.75 | $303.75 Jun. 1 | 60 | $6.50 | $390.00 Sept. 1 | 55 | $7.00 | $385.00 Total | 210 | | $1,453.75 type | Cost of goods sold Ending inventory FIFO | $1208.75 $245 LIFO | $1,191.25 $262.50 Average cost $1211.46 $242.29 Chapter Tests 01 02 03 04 05
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Homework Chapter 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 Need A Tutor? Need Homework Help? Monroe Company had a beginning inventory of 350 cans of paint at $12 each on January 1 at a cost of $4,200. During the year, the following purchases were made: February 15 280 cans at $14.00 April 30 110 cans at $14.50 July 1 100 cans at $15.00 Monroe marks up its goods at 40% on cost. At the end of the year, ending inventory showed 105 units remaining. Calculate the amount of sales assuming a FIFO flow of inventory. (Round your answer to the nearest cent.) Amount of sales $13,499.50 Logan Company uses a perpetual inventory system on a FIFO basis. Assuming inventory on January 1 was 800 units at $8 each. Date Quantity Cost Date Quantity Apr. 15 220 $5 Mar. 8 500 Nov. 12 1,900 9 Oct. 5 200 What is the cost of ending inventory at the end of October 5? Ending inventory $1900 If Exxon uses FIFO for its inventory valuation, calculate the cost of ending inventory and cost of goods sold if ending inventory is 110 barrels of crude oil. Ending inventory: 50 units from Dec. 1 purchased at $103 = $ 5,150 60 units from Sep. 1 purchased at $90 = $ 5,400 110 $10,550 Cost of goods sold: $35,195 - $10,550 = $24,645
Marvin Company
has a
beginning inventory of 12 sets of paints at a cost of $1.50 each.
During the year, the store purchased 4 sets at $1.60, 6 sets at $2.20, 6 sets at $2.50, and 10 sets at $3.00. By the end of the year, 25 sets were sold. Calculate the cost of ending inventory under LIFO, FIFO, and the weighted-average methods. Round to nearest cent for the weighted average. Calculate the cost of ending inventory under LIFO. LIFO: b. 38 sets - 25 sets sold. 13 ending inventory (in units). 12 × $1.50 = $18.00 1 × $1.60 = 1.60 Cost of ending inventory $19.60
Marvin Company
has a
beginning inventory of 12 sets of paints at a cost of $1.50 each.
During the year, the store purchased 4 sets at $1.60, 6 sets at $2.20, 6 sets at $2.50, and 10 sets at $3.00. By the end of the year, 25 sets were sold. Calculate (a) the number of paint sets in ending inventory and (b) the cost of ending inventory under LIFO, FIFO, and the weighted-average methods. Round to nearest cent for the weighted average. (b) Calculate the cost of ending inventory under FIFO and the weighted-average methods. FIFO: 10 × $3.00 = $30.00 3 × $2.50 = + 7.50 Cost of ending inventory $37.50 Weighted average: $82.60 38 units $2.17 × 13 = $28.21 (cost of ending inventory) If Comcast is upgrading its cable boxes and has 500 obsolete boxes in ending inventory, what is the cost of ending inventory using FIFO, LIFO, and the weighted-average methods? FIFO: 500 × 32 = $16,000 LIFO: 500 × 15 = $7,500 Weighted average: $453,000/27,000 = $16.78 × 500 = $8,390 May’s Dress Shop’s inventory at cost on January 1 was $39,000. Its retail value was $59,000. During the year, May purchased additional merchandise at a cost of $195,000 with a retail value of $395,000. The net sales at retail for the year were $348,000. Calculate May’s inventory at cost by the retail method. Round the cost ratio to the nearest whole percent. Ending inventory at cost (.52 × $106,000) $ 55,120 Over the past 3 years, the gross profit rate for Jini Company was 35%. Last week a fire destroyed all Jini’s inventory. Using the gross profit method, estimate the cost of inventory destroyed in the fire, given the following facts that were recorded in a fireproof safe: LU 18-2(2) Beginning inventory $ 6,000 Net purchases 64,000 Net sales at retail 49,000 Estimated ending inventory $38,150. |
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