2.1 REQUIRED Use the information given below to calculate the net value of issues to production for May 2023 and value of closing inventory as at 31 May 2023 using the following methods of inventory valuation: 2.1.1 First-in-first-out 2.1.2 Last-in-first-out 2.1.3 Weighted average cost. (Express the average cost per unit in rands and cents.) INFORMATION The following information for May 2023 was extracted from the records of Kens Limited, a manufacturing company, for a component used in production: Date Transaction details 01 03 16 23 04 Opening inventory: 3 000 units at R17 each Purchased from a supplier: 46 000 units at R18 each 37 000 units at R19 each 15 000 units at R20 each Returned to the supplier: 1000 damaged units (purchased 03 May) Transferred to the production department: 80 000 units during May 2023

2.1 REQUIRED Use the information given below to calculate the net value of issues to production for May 2023 and value of closing inventory as at 31 May 2023 using the following methods of inventory valuation: 2.1.1 First-in-first-out 2.1.2 Last-in-first-out 2.1.3 Weighted average cost. (Express the average cost per unit in rands and cents.) INFORMATION The following information for May 2023 was extracted from the records of Kens Limited, a manufacturing company, for a component used in production: Date Transaction details 01 03 16 23 04 Opening inventory: 3 000 units at R17 each Purchased from a supplier: 46 000 units at R18 each 37 000 units at R19 each 15 000 units at R20 each Returned to the supplier: 1000 damaged units (purchased 03 May) Transferred to the production department: 80 000 units during May 2023

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter7: Inventories: Cost Measurement And Flow Assumptions

Section: Chapter Questions

Problem 11P: Olson Company adopted the dollar-value LIFO method for inventory valuation at the beginning of 2015....

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Olson Company adopted the dollar-value LIFO method for inventory valuation at the beginning of 2015. The following information about the inventory at the end of each year is available from Olsons records: Required: 1. Calculate the dollar-value LIFO inventory at the end of each year. 2. Prepare the appropriate disclosures for the 2021 annual report if Olson uses current cost internally and LIFO for financial reporting.
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( Appendix 6B) Inventory Costing Methods Grencia Company uses a periodic inventory system. For 2018 and 2019, Grencia has the following data (assume all purchases and sales are for cash): Required: 1. Compute cost of goods sold, the cost of ending inventory, and gross margin for each year using FIFO. 2. Compute cost of goods sold, the cost of ending inventory, and gross margin for each year using LIFO. 3. Compute cost of goods sold, the cost of ending inventory, and gross margin for each year using the average cost method. ( Note: Use four decimal places for per unit calculations and round all other numbers to the nearest dollar.) 4. CONCEPTUAL CONNECTION Which method would result in the lowest amount paid for taxes? 5. CONCEPTUAL CONNECTION Which method produces the most realistic amount for income? For inventory? Explain your answer. 6. CONCEPTUAL CONNECTION What is the effect of purchases made later in the year on the gross margin when LIFO is employed? When FIFO is employed? Be sure to explain why any differences occur. 7. CONCEPTUAL CONNECTION If you worked Problem 6-68B, compare your answers. What are the differences? Be sure to explain why any differences occurred.
Beginning inventory, purchases, and sales for Meta-B1 are as follows: Assuming a perpetual inventory system and using the weighted average method, determine (a) the weighted average unit cost after the July 23 purchase, (b) the cost of the merchandise sold on July 26, and (c) the inventory on July 31.
Ret Exercise 8-27 (Algo) Dollar-value LIFO (LO8-8] Mercury Company has only one inventory pool. On December 31, 2021, Mercury adopted the dollar-value LIFO inventory method. The inventory on that date using the dollar-value LIFO method was $201,000. Inventory data are as follows: Ending Inventory at Ending Inventory at Year Year-End Costs Base Year Costs 2022 2023 $233,100 302,450 303,600 $222,000 263,000 253,000 2024 Required: Compute the inventory at December 31, 2022, 2023, and 2024, using the dollar-value LIFO method. (Round "Year end cost index" to 2 decimal places.) X Answer is not complete. Inventory Layers Converted to Base Year Cost Inventory DVL Cost Inventory Layers Converted to Cost Inventory at Year-End Cost Year- End Cost Index Inventory Layers at Base Year Inventory Layers at Base Year Cost Year- Inventory Layers Converted to Cost Date End Cost Index Cost 12/31/2021 220,000 X 273,000 X I$ 1 220,000 X Base IS 220,000 8 220,000 S 220,000 12/31/2022 1.05 $ 260,000 Base…
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