Calculate the cost of ending inventory

Assignment Help Accounting Basics
Reference no: EM131884391

Question - The following information is taken from the records of West End Distribution Inc. for the month ended May 31.

 

 

Units

Unit Cost

May 1

Purchase #1

100

$1

May 6

Purchase #2

200

1

May 12

Purchase #3

125

2

May 19

Purchase #4

350

2

May 29

Purchase #5

150

3

At May 31, 200 units remain unsold, for specific identification purposes, items on hand at May 31 were:

100 units of Purchase #1

100 units of Purchase #4

The other units were sold on May 31 for $2 each.

Required -

1. Calculate the cost of ending inventory under each of the following costing methods:

a. FIFO

b. Specific identification

c. Weighted average

2. Compute the following calculations:

  • Sales
  • Cost of goods sold
  • Gross profit

3. One of the company's strategies is to minimize income taxes and its accounting policies will reflect this. Which inventory cost method should they adopt and why?

Reference no: EM131884391

Questions Cloud

What are the two major divisions of kingdom protista : What did you notice about the size of protista as compared to bacteria? What are the 2 major divisions of Kingdom Protista?
What is the company estimated net cost of benefits : The estimated medical costs are expected to be $9,000 during an employee's retirement. The retiree is expected to pay 20% of the cost and Medicare is expected.
Discuss case law that established the legality of traffic : Discuss case law that established the legality of individual traffic stops and traffic check points.
List four differences between arteries and veins : List 4 differences between arteries and veins. List 3 types of skeletons and give 2 examples of an animal for each skeleton type.
Calculate the cost of ending inventory : Calculate the cost of ending inventory under each of the following costing methods: Specific identification and Weighted average
What is the present value of investment : At the end of the period you will recieve a lump sum payment of $87,500 and the proprty reverts to the lessee. what is the present value of the investment?
What is the amo Goods Sold on the income statement : A company purchased 200 units for $40 each on January 31. It purchased 165 units for $50 each on February 28. It sold 225 units for $65 each from March 1.
Explain the aspects of policy development and implementation : Explain the aspects of policy development and implementation, and share any concerns that you have identified, along with how those can be addressed.
Describe the problems associated with the prisons : Create a presentation using PowerPoint® in which you describe the prison where your prisoner was incarcerated and the outcome of their time in prison.

Reviews

Write a Review

Accounting Basics Questions & Answers

  Prepare a statement showing the net amount gained or lost

In 1955, A set up in business as a sole trader. On 1st January, 1956, B. joined him as a partner taking one-third of the profits and paying £1,200 as a premium.

  Find what is balance in investment in harrison account found

Find what is the balance in the Investment in Harrison account found in Puckett's financial records as of December 31?

  How much will each partnerreceive before paying liabilities

If the Other Assets are sold for $10,000, how much will each partnerreceive before paying liabilities and distributing the remainingassets?

  Record the payroll entry and payroll tax entry for the pay

Record the payroll entry and payroll tax entry for the pay of the week ended June 5 ( his year to date pay is $31,500). Use a General Journal

  If you are doing a depreication expense using a straight

if you are doing a depreication expense using a straight line or declining method would you add a surveyor fees in with

  Prepare general journal entries to record these transactions

The company purchased $5,300 of additional office equipment on credit. Requirement 1: Prepare general journal entries to record these transactions

  The management of the esquire oil company believes

The management of the Esquire Oil Company believes that the wholesale price of heating oil that they sell to homeowners will increase again as the result of increased political problems in the Middle East.

  The manufacture of each door requires 20 lbs of steel and

a company produces doors. the following information wasgathered to prepare budgets for the upcoming year beginning

  What should apple do to improve its cash position and why

Acc 206- What should Apple do to improve its cash position and why? What trends does the cash flow statement reveal? Does the cash flow statement reveal any major cash flow changes?

  Explain why you feel these are risks and support them

Explain why you feel these are risks and support them with facts. You will need to include resources and site them on your responses

  Development of riordan inventory management system

The following is a set of five (5) user stories, comprised of information acquired from Riordan Manufacturing employees. These user stories will assist our team with the development of Riordan's Inventory Management System, which is currently in t..

  Amount of cash payments for income tax

If income tax expense for the current year was $46,000 and income tax payable decreased by $5,200 during the year, what was the amount of cash payments for income tax?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd