Question: Study Appendix 16A. The inventory of the West Virginia Coal Company on June 30 shows 500 tons at $62 per ton. A physical inventory on

Study Appendix 16A. The inventory of the West Virginia Coal Company on June 30 shows 500 tons at $62 per ton. A physical inventory on July 31 shows a total of 600 tons on hand. Revenue from sales of coal for July totals $105,000. The following purchases were made during July: July 5, 1,000 tons at $64 per ton; July 15, 250 tons at $66 per ton; July 25, 300 tons at $69 per ton.

1. Compute the inventory value as of July 31, using (a) FIFO and (b) LIFO.

2. Compute the gross profit using each method.

Step by Step Solution

★★★★★

3.43 Rating (156 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

1 T accounts not required are 2 FIFO LIFO Revenue 1... 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)

345-B-A-G-F-A (4787).docx

120 KBs Word File

Students Have Also Explored These Related Accounting Questions!

H, age 45, and W, age 43, are married with a 5-month-old son. H and W always file jointly. H is the vice president of a local bank and is paid a salary of $95,000. W is registered nurse at a large...

The shareholders' equity of Core Technologies Company on June 30, 2010, included the following: Common stock , $1 par; authorized, 8 million shares; issued and outstanding, 3 million shares...

Coal is carried from a mine in West Virginia to a power plant in New York in hopper cars on a long train. The automatic hopper car loader is set to put 75 tons of coal into each car. The actual...

A coal producer in West Virginia pays its Chief Executive Officer more than 100 times the amount that it pays a typical coal miner. The CEO works in an air-conditioned office that overlooks a...

16-56 Study appendix 16A. The inventory of the West Virginia Coal Company on June 30 shows 500tons at$62 per ton. A physical inventory on July 31shows a total of 600tons on hand. Revenue from sales...

still need both FIFO and LIFO and compute the gross profit using each method Do Homework - Yucheng GaoGoogle Chrome mathx.com/Student/Player Homework.aspx?homeworkide...

please do all requirements The inventory of the Cadwallader Coal Company on June 30 shows 750 tons at $63 per ton. A physical inventory on July 31 shows a total of 850 tons on hand. Revenue from...

E Homework: CHAPTER 16 HOME ASSIGNMENT Question 6, E16-56 (similar to) HW Score: 35.19%, 7.04 of 20 points Save Part 1 of 4 O Points: 0 of 2 The inventory of the Flathead Coal Company on June 30...

Scenario Today is 30 June 20XX. You work as an accounting assistant at XYZ Company, a manufacturing firm. As part of your role, you are responsible for making general journal and general ledger...

The nventory of the Cadwellder Coal Company on June 30 shows 900 tons of 361 perton. A physical inventory on July 31 shows a total of 1.000 tons on hand. Revenue from sales of coal for July totals...

Question 4 ( 1 5 pts ) The inventory of the Flathead Coal Company on June 3 0 shows 7 5 0 tons at \ ( \ $ 6 1 \ ) per ton. A physical inventory on July 3 1 shows a total of 8 5 0 tons on hand....

In the following examples, use the statutory and case law presented in the hypothetical at the beginning of the chapter, that is, 96-25-16 and Karl v. Herald. The client seeks redress for the other...

REQUIRED a. Compute the quick ratio on December 31 for each year. b. Is the quick ratio improving or declining? INFORMATION Dec. 31, 20Y4 Dec. 31, 20Y3 Cash $1,030 $850 Temporary investments 1,200...

*1288. Determine the minimum initial velocity v0 and the corresponding angle u0 at which the ball must be kicked in order for it to just cross over the 3-m high fence. 6 m Prob. 12-88 3 m

Describe a way to use recursion to compute the sum of all the elements in an nn (two-dimensional) array of integers.

Have you ever been the victim of a software error? Whom did you blame? Now that you know more about the reliability of computer systems, do you still feel the same way?

You are given a two-dimensional array of values that give the height of a terrain at different points in a square. Write a method. that prints out a flood map, showing which of the points in the...

The theoretical relationship between heat flux and temperature gradient for homogeneous materials is well known and described by a Fourier equation. However, this relationship does not hold for...

Refer to the Chemicial Engineering Progress (Jan. 2005) study of the rate at which a spilled volatile liquid will spread across a surface, Exercise 10.10. a. Find a 90% confidence interval for the...

Suppose that the bank also owned CMOs with an estimated life of 4.5 years that currently produced 8 percent coupon interest. At current interest rates the prepayment speed was 25 percent faster than...

Each of us regularly uses budgets and benchmarks to evaluate how we are doing or what we could do to improve. Can you list three examples from everyday life?

Some argue that making the master budget hard to achieve or tight can help eliminate waste and make organizations more efficient. Others argue that master budgets should be loose because they provide...

Can you list some examples of variances that you calculate in everyday life? Think about getting a test back or analyzing other peoples actions (e.g., we often say things like I cant believe they did...

A convertible bond has a 6.5 percent coupon, paid semiannually, and will mature in 10 years. If the bond were not convertible, it would be priced to yield 5.5 percent. The conversion ratio on the...

Word Problem 20-24 [LU 20-3(1)] A local Dunkin' Donuts franchise must buy a new piece of equipment in 6 years that will cost $95,000. The company is setting up a sinking fund to finance the purchase....

An insurance company must make payments to a customer of $ 1 2 million in one year and $ 6 million in three years. The yield curve is flat at 8 % . a . If it wants to fully fund and immunize its...