[The following information applies to the questions displayed below.]Hemming Company reported the following current-year purchases and sales for its only product.ActivitiesBeginning inventorySalesPurchaseSalesPurchaseSalesPurchaseTotalsDateJanuary 1January 10March 14March 15July 30October 5October 26Required:Hemming uses a perpetual inventory system.Required 1 Required 2 Required 3DateJanuary 1January 10March 14Total March 14March 15Complete this question by entering your answers in the tabs below.Goods PurchasedUnits Acquired at Cost@ $11.60240 units# of units370 unitsCost perunit440 units140 units1,190 unitsDetermine the costs assigned to ending inventory and to cost of goods sold using FIFO.Perpetual FIFO:Cost of Goods SoldCost perunit1. Determine the costs assigned to ending inventory and to cost of goods sold using FIFO.2. Determine the costs assigned to ending inventory and to cost of goods sold using LIFO.3. Compute the gross profit for FIFO method and LIFO method.@ $16.60 =@ $21.60# of units sold==@ $26.60 =$ 2,7846,1429,5043,724$ 22,154Cost of Goods SoldUnits Sold at Retail# of units180 units330 units415 units925 units@ $41.60@ $41.60@ $41.60Inventory BalanceCost perunitInventoryBalance

FIFO stands for first in and first out. Using FIFO, the older inventory is sold out and newer…

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Financial Accounting

15th Edition

ISBN:9781337272124

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter6: Accounting For Merchandising Businesses

Section: Chapter Questions

Problem 36E: The following data were extracted from the accounting records of Harkins Company for the year ended...

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Beginning inventory, purchases, and sales for WCS12 are as follows: Assuming a perpetual inventory system and using the weighted average method, determine (a) the weighted average unit cost after the October 22 purchase, (b) the cost of the merchandise sold on October 29, and (c) the inventory on October 31.
Lower-of-cost-or market inventory Data on the physical inventory of Moyer Company as of December 31, 20Y9, are presented below. Quantity and cost data from the last purchases invoice of the year and the next-to-the-last purchases invoice are summarized as follows: Instructions Determine the inventory at cost and at the lower of cost or market, using the first-in, first-out method. Record the appropriate unit costs on an inventory sheet and complete the pricing of the inventory. When there are two different unit costs applicable to an item, proceed as follows: 1. Draw a line through the quantity, and insert the quantity and unit cost of the last purchase. 2. On the following line, insert the quantity and unit cost of the next-to-the-last purchase. 3. Total the cost and market columns and insert the lower of the two totals in the LCM column. The first item on the inventory sheet has been completed below as an example.
Refer to the information for Morgan Inc. above. If Morgan uses a perpetual inventory system, what is the cost of ending inventory under FIFO at April 30? a. $32,500 b. $38,400 c. $63,600 d. $69,500
The following data were extracted from the accounting records of Harkins Company for the year ended April 30, 2019: a. Prepare the cost of merchandise sold section of the income statement for the year ended April 30, 2019, using the periodic inventory system. b. Determine the gross profit to be reported on the income statement for the year ended April 30, 2019. c. Would gross profit be different if the perpetual inventory system was used instead of the periodic inventory system?
Basga Company uses the periodic inventory system. Beginning inventory amounted to 241,072. A physical count reveals that the latest inventory amount is 256,339. Record the adjusting entries, using T accounts.
Beginning inventory, purchases, and sales for WCS12 are as follows: Assuming a perpetual inventory system and using the weighted average method, determine (a) the weighted average unit cost after the October 22 purchase, (b) the cost of goods sold on October 29, and (c) the inventory on October 31.
Beginning inventory, purchases, and sales for Item ProX2 are as follows: Assuming a perpetual inventory system and using the first-in, first-out (FIFO) method, determine (a) the cost of merchandise sold on January 25 and (b) the inventory on January 31.
Using the information provided in RE8-4, prepare the journal entry to record the write-down of inventory for Paul Corporation assuming that it uses the allowance method instead of the direct method. Paul Corporation uses FIFO and reports the following inventory information: Assuming Paul uses a perpetual inventory system and the direct method, prepare the journal entry to record the write-down if inventory.
Sandhill Corporation had the following items in inventory as at December 31, 2023: Unit Item No. Quantity Cost NRV A1 160 $3.25 $4.90 B4 140 2.65 2.05 C2 125 2.25 10.45 D3 95 8.25 8.05 Assume that Sandhill uses a perpetual inventory system, and that none of the inventory items can be grouped together for accounting purposes. (a1) Prepare the year-end adjusting entry required to adjust to the lower of cost or net realizable value on an item-by-item basis using the direct method. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List debit entry before credit entry.)
Cullumber Corporation had the following items in inventory as at December 31, 2020: Item No. Quantity UnitCost NRV A1 140 $3.00 $3.10 B4 120 1.50 0.90 C2 190 9.20 10.40 D3 130 6.60 6.10 Assume that Cullumber uses a periodic inventory system, and that none of the inventory items can be grouped together for accounting purposes. The opening inventory on January 1, 2020, was $3,200 in total. 1. Prepare the year-end adjusting entries required to adjust to the lower of cost or net realizable value using the direct method. 2. Prepare the year-end adjusting entries required to adjust to the lower of cost or net realizable value using the indirect method.
Cullumber Corporation had the following items in inventory as at December 31, 2020: Item No. Quantity UnitCost NRV A1 140 $3.00 $3.10 B4 120 1.50 0.90 C2 190 9.20 10.40 D3 130 6.60 6.10 Assume that Cullumber uses a periodic inventory system, and that none of the inventory items can be grouped together for accounting purposes. The opening inventory on January 1, 2020, was $3,200 in total. 1. Prepare the year-end adjusting entries required to adjust to the lower of cost or net realizable value using the direct method. A. Dec.31.2020 (To transfer out beginning inventory balance) B. Dec.31.2020 (To record ending inventory at LC and NRV) 2. Prepare the year-end adjusting entries required to adjust to the lower of cost or net realizable value using the indirect method. a) Dec.31.202 To transfer out beginning inventory balance) B) Dec.31.202To record ending inventory at cost c) Dec.31.202 To…
Required:a. Complete a subsidiary ledger record for the computer using each of the three inventory valuation methods listed below 1. Average cost.2. FIFO.3. LIFO. Your inventory records should show both purchases of this product, the sale on Mar 31, and the balance on hand on Mar 31, 2020. b. Which of the three cost flow assumptions will result in reporting the lowest net income for the current year? Explain

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