Calculate the Cost of Goods Sold and Ending Inventory

Reference no: EM132462953

Problem -

Part I - Jason Company uses a perpetual inventory system and reported the following transactions involving inventory during the month of December 2018:

December 1	Beginning inventory	100 units	@ $8.00
December 4	Purchases	200 units	@ $8.25
December 13	Sales	150 units	@ $11.20
December 21	Purchases	300 units	@ $8.50
December 26	Sales	375 units	@ $11.20
December 30	Purchases	400 units	@ $8.75

Required - Show all workings and rounded amounts to one decimal place of a dollar.

a. Calculate the Cost of Goods Sold and Ending Inventory as of December 31, 2018 using First-In-First-Out (FIFO) method.

b. Calculate the Cost of Goods Sold and Ending Inventory as of December 31, 2018 using Weighted Average Cost method.

Part II - Financial analysts and investors are very interested in how quickly a company is turning over its inventory as quick turnover yields higher profits. There are events that may have an effect on the inventory turnover ratio.

Required - For each of the following two events, indicate and explain whether inventory turnover would increase, decrease or not be affected.

a. Change from Weighted Average Cost method to First-In, First-Out method during an inflationary environment.

b. Cut sales prices in order to increase sale.

Reference no: EM132462953

Questions Cloud

Prepare the general journal entries for the sale of truck : On January 1, 2016, Super Cleaner purchased a truck costing $200,000, Prepare the general journal entries for the sale of the truck

Describe some ways that emergency response guidebook : Describe some ways that the Emergency Response Guidebook is used when responding to incidents involved the release of hazardous materials

What do see as the cause for plastic pollution : What do you see as the cause for plastic pollution? What specifically are the effects of plastic pollution on these resources? discuss in detail

Discuss the four characteristics of a hazardous waste : Discuss the four characteristics of a hazardous waste, of which ignitability is one; the four lists of hazardous waste, of which one is the P list

Calculate the Cost of Goods Sold and Ending Inventory : Calculate the Cost of Goods Sold and Ending Inventory as of December 31, 2018 using First-In-First-Out (FIFO) method

How is meiosis related to genetic diversity : Female copperhead snakes have the ability to reproduce both sexually and asexually. In your opinion, which method is best for the species in general and why?

What is the theoretical framework for the dissertation : Does this make your dissertation instantly recognisable to the reader, does it capture the theory and the context of your study?

Explain briefly the approach and aim of the muckrakers : Explain briefly the approach and aim of the "muckrakers" and that of F. W. Taylor. Compare their approaches and describe your feelings about them.

Why does jefferson focus more on the king than parliament : Compare the backgrounds of Jefferson and Paine; did Paine have an advantage or disadvantage by not being born in the colonies? Explain. Examine the language.

User Account

All Pages