Solution-At what amount should they record as cost of goods

At what amount should they record as cost of goods sold

Assignment Help Accounting Basics

Reference no: EM133177815

Question - Double Dipper Ice Cream company uses the LIFO method to account for their inventory. Inventory transactions for the first quarter of 2020 were as follows:

January 1: Beginning Inventory 1,000 lbs. @ $ 3.50 / lb.

February 5: Manufactured 500 lbs. @ $ 4.00 / lb.

March 26: Sold 1,200 lbs. @ $ 6.00 / lb.

Double Dipper expects to manufacture 2,200 lbs. during the remaining three quarters of the fiscal year, at a cost of $ 4.50 per pound.

A. Assuming that Double Dipper follows the integral theory of financial reporting, and incorporates any estimates of transactions anticipated to occur prior to the end of the fiscal year, at what amount should they record as "Cost of Goods Sold" for the first quarter?

B. Would your answer change if you assumed that 1,700 lbs. of inventory would be sold during the last three fiscal quarters? If so, in what way?

Reference no: EM133177815

Questions Cloud

Nine stages of the classic view of a career : 1. Schein's career life cycle is well known; discuss two of the nine stages of the classic view of a career. Explain why you selected these two out of the nine.

Explain traditional view of society : The traditional view of society is that its members are beholden to it because they entirely depend on it. Therefore, justice is primarily conceived in terms of

What is the yield to maturity of the bond : Question - A 20-year, 8% bond of P 20,000 each was purchased at P 100. What is the yield to maturity of the bond

What benefit plans to look for in a company : What benefit plans to look for in a company when searching or a new job? What facts are important and help attract and retain individuals?

At what amount should they record as cost of goods sold : Double Dipper expects to manufacture 2,200 lbs. At what amount should they record as "Cost of Goods Sold" for the first quarter

Reach the success of amazon : Although it may never reach the success of Amazon. Do you believe Jumia Nigeria can become the "Amazon" of Africa? Can they reach beyond the shores of Africa an

Determine the year gross profit : The actual costs for Year 1 are $900,000 and Year 2's actual costs are $1,100,000. Under the percentage of completion method Year 1's gross profit is

How much is the loss on change in the fair value of bonds : The entity elected the fair value option. On December 31, 2021, the fair value of the bonds is P108. How much is the loss on change in the fair value of bonds

Evaluate the effectiveness of project management : Critically analyse and evaluate the effectiveness of project management approaches and tools within the context of a specific project

User Account

All Pages

At what amount should they record as cost of goods sold

Reference no: EM133177815

Reference no: EM133177815

Questions Cloud

Reviews

Write a Review

Accounting Basics Questions & Answers

How much control does fed have over this longer real rate

Coures:- fundamental accounting principles

Accounting problems

Theory of interest - term structure of interest rates

Write a report on internal controls

Prepare the bank reconciliation for company

Cost-benefit analysis

Theory of interest

Liquidity and profitability

What is the expected risk premium on the portfolio

Simple interest and compound interest

Capm and venture capital

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT