Question: If your instructor has assigned the Appendix to this chapter, redo Problem AP7-5 assuming that the company uses a periodic inventory system. In Problem AP4-5

If your instructor has assigned the Appendix to this chapter, redo Problem AP7-5 assuming that the company uses a periodic inventory system.

In Problem AP4-5

The following information relates to Glassworks Ltd€™s inventory transactions during the month of July

All of the units sold were priced at $20 per unit.
a. Glassworks Ltd. uses the perpetual inventory system. Calculate Glassworks€™ cost of goods sold, gross margin, and ending inventory for the month of July using
i. FIFO
ii. weighted-average
b. Which of the cost flow assumptions would produce the higher gross margin?

Units ,000 6,000 6,000 1.500 5,000 3,500 Cost/Unit $12.00 $12.50 Amount $48.000 75.000 July 1 Beginning inventory Purchase Sale Sale Purchase Sale $12.75 63.750

Step by Step Solution

★★★★★

3.45 Rating (171 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

a Periodic i FIFO Units Cost per unit Costs July 1 Beg Inv 4000 12 48000 4 Purchase 6000 1250 75000 ... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Document Format (1 attachment)

468-B-A-V-I (1204).docx

120 KBs Word File

Students Have Also Explored These Related Accounting Questions!

A company uses a periodic inventory system on august 1, the company had 6 items of beginning inventory with a cost of $7 per unit on August 3, the company purchased 16 units at $14 per unit then, on...

If your instructor has assigned the Appendix to this chapter, redo Problem 7-16 assuming that the company uses a periodic inventory system. In problem 7-16 Required: a. Assuming Glassworks uses the...

If your instructor has assigned the Appendix to this chapter, redo Problem 7-19 assuming that the company uses a periodic inventory system. In problem 7-19 Required: a. Calculate the cost of goods...

Hi, Can you check the answers for Periodic and Perpetual style? I have the answer key, however, in the Sales Revenue, in the answer key, they wrote the units sold is 9,000 not 11,000 so I want to...

If your instructor has assigned the Appendix to this chapter, redo Problem AP7-8B assuming that the company uses a periodic inventory system. Round weighted-average per unit cost to two decimal...

If your instructor has assigned the Appendix to this chapter, redo Problem AP7-8A assuming that the company uses a periodic inventory system. Round weighted-average per unit cost to two decimal...

If your instructor has assigned the Appendix to this chapter, redo Problem AP7-6B assuming that the company uses a periodic inventory system. Round weighted-average per unit cost to two decimal...

If your instructor has assigned the Appendix to this chapter, redo Problem AP7-6A assuming that the company uses a periodic inventory system. Round weighted-average per unit cost to two decimal...

If your instructor has assigned the Appendix to this chapter, redo Problem AP7-2B assuming that the company uses the periodic inventory system. Round weighted-average per unit cost to two decimal...

If your instructor has assigned the Appendix to this chapter, redo Problem AP7-1 assuming that the company uses the periodic inventory system. In Problem AP7-1 The Soft Touch Company sells leather...

Compute the following: (1) current ratio, (2) acid-test ratio, (3) days' sales uncollected, (4) inventory turnover, (5) days' sales in inventory, (6) debt-to-equity ratio, (7) times interest earned,...

How do you typically go about gathering research? Is your method effective? Is it thorough? How could it be improved?

Consider the potential impact of gamification and wearable devices on your career. How do you feel about the tracking of employees and the monitoring of your vital functions on the job and outside...

Which of the following is true? (a) Under Traditional Approach, overall cost of capital remains same, (b) Under NI Approach, overall cost of capital remains same, (c) Under NOI Approach, overall cost...

What is the dollar-value method of LIFO inventory valuation? What advantage does the dollar-value method have over the specific goods approach of LIFO inventory valuation? Why will the traditional...

Explain the following terms. (a) LIFO layer. (b) LIFO reserve. (c) LIFO effect.

An example of risk occurs when un investment does not keep up with prices that are increasing in the overall economy. A major cause of mortgage market meltdown in 2007 and 2008 was linked to What is...

Answer 22, 23, and 24 using the following information: Jane plans to open a new business. The equipment will cost $175,000. Jane expects the after-tax cash inflows to be $65,000 annually for 5 years,...

The primary difference between a line of credit and a revolving credit arrangement is the: a. length of the time period covered by the loan agreement b. type of collateral used to secure the loan c....