User Account

All Pages

What the value of the ending inventory on december is

Assignment Help Financial Accounting
Reference no: EM132964983

Hansen Company uses the periodic inventory method and had the following inventory information available:
 

                                        Units                   Unit Cost                     Total Cost

1/1 Beginning Inventory  100                  $3                            $ 300

1/20 Purchase                  500                $4                              2,000

7/25 Purchase                     100               $5                              500

10/20 Purchase                   300                 $6                           1,800

                                        1,000                                              $4,600

A physical count of inventory on December 31 revealed that there were 380 units on hand.

Instructions

Answer the following independent questions and show computations supporting your answers.

Problem 1. Assume that the company uses the FIFO method. The value of the ending inventory at December 31 is $__________.

Problem 2. Assume that the company uses the average cost method. The value of the ending inventory on December 31 is $__________.

Problem 3. Assume that the company uses the LIFO method. The value of the ending inventory on December 31 is $__________.

Problem 4. Determine the difference in the amount of income that the company would have reported if it had used the FIFO method instead of the LIFO method. Would income have been greater or less?

Reference no: EM132964983

Questions Cloud

What is the interest expense : Assume that US Steel uses the effective interest method to amortize the bond discount or premium for the annual interest payments, what is the interest expense
Comment on the relative solvency of the companies : Comment on the relative solvency of the companies by computing the debt to assets ratio and the free cash flow for each company for 2017.
Determine the amount of money he receives from the bank now : He must pay the bank R30,000 in eight months from now. Determine the amount of money he receives from the bank now
What would be the percentage change in price of each bond : If the yield to maturity of each bond were to immediately increase to 11%, what would be the percentage change (including the correct sign)
What the value of the ending inventory on december is : Hansen Company, Assume that the company uses the average cost method. The value of the ending inventory on December 31 is
Indicate the accounts required to be increased to update : Indicate the accounts required to be increased/decreased to update depreciation and record the sales of the two assets in 2017.
Show the percentage change for each balance sheet item : Using horizontal analysis, show the percentage change for each balance sheet item using 2016 as a base year. Prepare a common size comparative balance sheet
What the approximate real interest rate is : According to the Fisher Equation, given an expected inflation rate of 1.5% and a nominal interest rate of 4.5%, the approximate real interest rate is
What is the annual coupon yield on the bond : Assume that it is now April 28th, 2024 and the current yield on this bond is 7%. What is the annual Coupon Yield on this bond?

Reviews

Write a Review

Financial Accounting Questions & Answers

  Prepare your excel amortization tables to support decision

You need to prepare your own excel amortization tables to support your explanation and decision. Entering the numbers in the boxes in different websites and using those to get your answers cannot be accepted.

  What kind of planning that company probably performed

What kind of planning that company probably performed to be able to successfully start or expand its business. Use, as an example

  Face value note as payment

On January 1, 2018, Jerry's sold land to ASP, Inc. and accepted a 2 year, $500,000 face value note as payment. 6% interest is due each December 31. ASP's market rate of borrowing is 12%. Jerry's originally purchased the land for $80,000 in 2011. Show..

  How to calculate times interest earned ratio

How to calculate times interest earned ratio? Carla Vista reported net income for 2022 of $15,360, income tax expense of $3,072

  Which salesperson who just started selling in new territory

Which a salesperson who just started selling in a new territory and needed to build business quickly should? Try to get more business from existing customers

  How will you do its due diligence

XYZ Ltd is a beekeeping company and it comes your bank for Term Loan of Rs 10 crores. How will you do its due diligence

  Compute the predicted break even point in dollar sales

Astro Co. sold 20.000 units of its only product and incurred a $50.000 loss (ignoring taxes) for the current year as shown here. During a planning session for year 2016's activities,  compute the break even point in dollar sales for year 2015. comput..

  Calculate what is the highest possible payment on the arm

Fin 331- You are to evaluate 4 financing scenarios for them. What is the highest possible payment on the ARM (Loan D) when the interest rate adjusts at the end of 5 years?

  Use differential analysis to arrive at decision

Pretend you are a manager of Ford Motor Company. You have been asked to determine whether a product (one of your choosing) should be manufactured in-house or outsourced to another vendor. Discuss the relevant costs you would consider for this decisio..

  Prepare the relevant financial statement extracts as at

During 2018, the entity incurred research cost of $750 million. Prepare relevant financial statement extracts as at and for the period ended December 31, 2018.

  Provide the journal entries necessary at dates to account

Provide the journal entries necessary at the 01/07/2015 dates to account for the above transactions and events. (Ignore narrations).

  Uses the fifo method for internal reporting purposes

Black Corporation uses the FIFO method for internal reporting purposes and LIFO for external reporting purposes. The balance in the LIFO Reserve account at the end of 2017 was $280,000. The balance in the same account at the end of 2018 is $420,000. ..

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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