Principles of Financial Accounting.
24th Edition
ISBN: 9781260158601
Author: Wild
Publisher: MCG
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Textbook Question
Chapter 6, Problem 4QS
A company reports the following beginning inventory and two purchases for the month of January. On January 26, the company sells 350 units. Ending inventory at January 31 totals 150 units.
Units | Unit Cost | |
Beginning inventory on January 1............. | 320 | $3.00 |
Purchase on January 9...................... | 80 | 3.20 |
Purchase on January 25.................... | 100 | 3.34 |
Required
Assume the perpetual inventory system is used and then determine the costs assigned to ending inventory when costs are assigned based on the FIFO method. (Round per unit costs and inventory amounts to cents.)
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Hatfield Company, which has only one product, has provided the following data concerning its most recent month of operations:
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Units in beginning inventory ............. 0
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Hatfield Company, which has only one product, has provided the following data concerning its most recent month of operations:
Selling price ............................ $123
Units in beginning inventory ............. 0
Units produced ........................... 6,400
Units sold ............................... 6,100
Units in ending inventory ................ 300
Variable costs per unit:
Direct materials ....................... $45
Direct labor ........................... 30
Variable manufacturing overhead ........ 1
Variable selling and administrative .... 8
Fixed costs:
Fixed manufacturing overhead ........... $140,800
Fixed selling and administrative ....... 91,500
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Chapter 6 Solutions
Principles of Financial Accounting.
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