Determine the cost of goods sold

Assignment Help Financial Accounting
Reference no: EM132906364

 

Question - In a professional report prepare the required inventory information below. On January 1, Parker Limited had a beginning inventory of 30 toilet seats which had cost the company $11 each.

During the year, the following purchase transactions took place:

March 21 Purchased 10 units for $11

August 7 Purchased 20 units for $12

November 18 Purchased 30 units for $13

December 23 Purchased 10 units for $13

The company sold 60 units over the course of the year.  The two sales occurred on March31, and August 30. On March 31 the company sold 30 units. On August 30 the company sold 30 units.  The price of the units was $20.

Instructions -

(a) Determine the cost of goods available for sale, assuming that the company is using a periodic inventory system.

(b) Determine (1) the cost of goods sold and (2) the cost of the ending inventory under each of the three cost flow assumptions (FIFO, weighted average, and LIFO).

Action Plan - The cost of goods available for sale is the same under all cost flow assumptions. It is calculated as beginning inventory plus net purchases (quantity X unit price). · The number of units sold is the same under all methods. To determine the Cost of Goods Sold under the FIFO (first-in, first-out) method, start counting forward from the beginning inventory (if any) until you reach the number of units sold; under the LIFO (last-in, first-out) method, start counting backwards from the last purchase date; and under the weighted average method, divide total goods available for sale in dollars by the total goods available for sale in units. · The quantity (number of units) in ending inventory is the same under all methods. To determine the total cost under the FIFO method, start from the last unit purchased; under the LIFO method, start from beginning inventory; and under the weighted average method calculate and apply the weighted average unit cost.

 

Reference no: EM132906364

Questions Cloud

Raise the opposition of protectionists : Trade deficits often raise the opposition of protectionists who think that imports are "bad" and export are "good".
Describe lululemon athletica company : A Canadian company that has operated internationally. - Lululemon Athletica
What is the formal structure of an organization : What is the formal structure of an organization? How are the organization's structure and design a reflection of its environment, goals, and competencies
Difference between commodity money and fiat money : To get the idea of thinking about the difference between commodity money and fiat money, do you know what item is used as money in prison
Determine the cost of goods sold : Determine (1) the cost of goods sold and (2) the cost of the ending inventory under each of the three cost flow assumptions (FIFO, weighted average, and LIFO)
Describe gm primary and secondary stakeholders : General Motors Sustainability Reportgo to the website to answer the questions listed below.
Advantage of benefits of international trade and business : In your opinion, among the different trade theories, what do you think is the best theory for our country in order to take advantage of the benefits of internat
Determining the average real risk-free rate : You've observed the following returns on crash-n-burn computer's stock over the past five years: 13 percent, -8 percent, 16 percent, 16 percent, and 10 percent.
Determining the average real risk premium : You've observed the following returns on crash-n-burn computer's stock over the past five years: 13 percent, -8 percent, 16 percent, 16 percent, and 10 percent.

Reviews

Write a Review

Financial Accounting Questions & Answers

  How can the affect the currency markets

In addition what are the differences among a spot contract, a forward contract, and a futures contract? Why are they important? When are they initiated?

  Prepare the journal entry to record the first coupon payment

Prepare the journal entry to record the first coupon payment on March 31, 2021 (assuming reversing entries are not used)

  How much have to deposit at the beginning of three - year

You want to receive $250 at the end of every six months for 3 years. How much would you have to deposit at the beginning of the 3-year period?

  Discuss inequalities based on sexual orientation

How are issues of race, class, gender, and age intertwined with inequalities based on sexual orientation

  1 audiofile products ltd is a retailer that sells sound

1. audiofile products ltd. is a retailer that sells sound systems.nbsp the company is planning its cash needs for the

  Why companies change accounting methods

the?Wall Street Journal has indicated that many companies have changed their accounting principles. What major reasons why companies change accounting methods?

  Why managers of various functional areas in the company

Why managers of various functional areas in the company should be concerned about internal controls. Identify the principles of internal control violated

  How does cochlear care for employees and customers

How does Cochlear care for employees and customers, and the broader community and the environment? What is your opinion of these measures?

  What amount would be allocated to the equipment

Gome Inc. uses the relative fair values method to allocates the purchase price. What amount would be allocated to the Equipment?

  Determine how much does need to place in a saving account

Determine How much does she need to place in a saving account today that earns 5.51 percent per year (compounded quarterly) to accumulate this amount?

  What should the fed do if the economy grows rapidly

What should the Fed do if the economy grows rapidly while inflation also rises to an annual rate of 7.5%? Tighten to increase interest rates.

  Summarize the major types of colleges and universities

Summarize the major types of colleges and universities. Identify the accounting standards that these educational institutions are required to follow.

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