PB7-1 Analyzing the Effects of Four Alternative Inventory Me, Financial Accounting

PB7-1 Analyzing the Effects of Four Alternative Inventory Me, Financial Accounting

Assignment Help:

Mojo Industries tracks the number of units purchased and sold throughout each accounting period but applies its inventory costing method at the end of each period, as if it uses a periodic inventory system. Assume its accounting records provided the following information at the end of the accounting period, January 31, 2009. The inventory’s selling price is $9 per unit.

Transactions: UnitCost Units Total cost
Inventory,Jan 1 $2.50 250 $650
Sale, Jan 10 (200)
Purchase Jan 12 $3.00 300 900
Sale, Jan 17 (150)
Purchase, Jan 26 $4.00 80 320

Required:
Compute the amount of goods available for sale, ending inventory, and cost of goods sold at January 31, 2009, under each of the following inventory costing methods:
Weighted average cost.
First-in, first-out.
Last-in, first-out.
Specific identification, assuming that the January 10 sale was from the beginning inventory and the January 17 sale was from the January 12 purchase.
2.Of the four methods, which will result in the highest gross profit? Which will result in the lowest income taxes?

Related Discussions:- PB7-1 Analyzing the Effects of Four Alternative Inventory Me

Bad debts, how to do the calsulations for bad debts

how to do the calsulations for bad debts

Can you show me how to solve these problems, Can you show me how to solve t...

Can you show me how to solve these problems? PLEASE!!! I can't figure out how to solve these. :-( 1.Briarcrest Condiments is a spice-making firm. Recently, it developed a new

What is backup withholding, Q. What is Backup Withholding? Backup Withh...

Q. What is Backup Withholding? Backup Withholding -Payers of interest, dividends and other reportable payments shouldwithhold income tax equal at a rate equal to the fourth low

What is net income, Q. Given the following data, what is net income? (Note...

Q. Given the following data, what is net income? (Note: Not all items shown below will be included in income.) Cost of Goods Sold 8 Accoun

Jj, liabilities and its types

liabilities and its types

Npv cash flow model, As discussed earlier, the base case public sector comp...

As discussed earlier, the base case public sector comparator (PSC) will be a benchmark for different project bidding proposals when choosing the preferred bidder to provide the bes

Explain about credit-worthiness, Q. Explain about Credit-worthiness? Th...

Q. Explain about Credit-worthiness? There are a numerous ways in which Fenton Security plc could ensure that customers are subjected to tighter credit appraisal checks before g

The notes to the accounts-financial statement, THE NOTES TO THE ACCOUNTS ...

THE NOTES TO THE ACCOUNTS The notes to the accounts provide additional information on the a/c policies that the company has adopted the make-up of some of the items appearing on

State the benefits of accounting information, State the Benefits of account...

State the Benefits of accounting information Benefits of accounting information ultimately decline. Cost of providing information, though, will rise with every additional piec

Average firm in the industry, Suppose that the average firm in your company...

Suppose that the average firm in your company's industry is expected to grow at a constant rate of 4% and that its dividend yield is 8%. Your company is about as risky as the avera

Write Your Message!

Name

Email id

Message

Verfication Code

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

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