Aircard Corporation tracks the number of units purchased and sold throughout each accounting period but applies...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Aircard Corporation 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 perpetual inventory system. The following are the transactions for the month of July. Unit Units Cost Beginning Inventory $ 40 July 1 July 5 July 13 July 17 July 25 July 27 2,000 1,000 6,000 3,000 8,000 5,000 Sold Purchased 44 Sold Purchased 50 Sold Required: Calculate the cost of ending inventory and cost of goods sold assuming a perpetual inventory system is used in combination with (a) FIFO and (b) LIFO. Required A Required B Calculate the cost of ending inventory and cost of goods sold assuming a perpetual inventory system is used in combination with FIFO. FIFO (Perpetual) Cost Units Total per Unit Beginning Inventory 2,000 2$ 40 80,000 Purchases July 13 6,000 2$ 44 July 25 8,000 2$ 50 Total Purchases 664,000 Goods Available for Sale Cost of Goods Sold Units from Beginning Inventory 2,000 $ 40 Units from July 13 Purchase 6,000 2$ 44 Units from July 25 Purchase 2$ 50 Total Cost of Goods Sold 344,000 Ending Inventory Required A Required B Calculate the cost of ending inventory and cost of goods sold assuming a perpetual inventory system is used in combination with LIFO. LIFO (Perpetual) Cost per Units Total Ünit Beginning Inventory Purchases July 13 July 25 Total Purchases Goods Available for Sale Cost of Goods Sold Units from Beginning Inventory Units from July 13 Purchase Units from July 25 Purchase Total Cost of Goods Sold Ending Inventory Aircard Corporation 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 perpetual inventory system. The following are the transactions for the month of July. Unit Units Cost Beginning Inventory $ 40 July 1 July 5 July 13 July 17 July 25 July 27 2,000 1,000 6,000 3,000 8,000 5,000 Sold Purchased 44 Sold Purchased 50 Sold Required: Calculate the cost of ending inventory and cost of goods sold assuming a perpetual inventory system is used in combination with (a) FIFO and (b) LIFO. Required A Required B Calculate the cost of ending inventory and cost of goods sold assuming a perpetual inventory system is used in combination with FIFO. FIFO (Perpetual) Cost Units Total per Unit Beginning Inventory 2,000 2$ 40 80,000 Purchases July 13 6,000 2$ 44 July 25 8,000 2$ 50 Total Purchases 664,000 Goods Available for Sale Cost of Goods Sold Units from Beginning Inventory 2,000 $ 40 Units from July 13 Purchase 6,000 2$ 44 Units from July 25 Purchase 2$ 50 Total Cost of Goods Sold 344,000 Ending Inventory Required A Required B Calculate the cost of ending inventory and cost of goods sold assuming a perpetual inventory system is used in combination with LIFO. LIFO (Perpetual) Cost per Units Total Ünit Beginning Inventory Purchases July 13 July 25 Total Purchases Goods Available for Sale Cost of Goods Sold Units from Beginning Inventory Units from July 13 Purchase Units from July 25 Purchase Total Cost of Goods Sold Ending Inventory
Expert Answer:
Answer rating: 100% (QA)
Weighted Average Unit Cost 36400016000 22750 FIFO LIFO Avera... View the full answer
Related Book For
Fundamentals of Financial Accounting
ISBN: 978-0078025914
5th edition
Authors: Fred Phillips, Robert Libby, Patricia Libby
Posted Date:
Students also viewed these accounting questions
-
Aircard Corporation 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...
-
Aircard Corporation 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...
-
Oahu Kiki tracks the number of units purchased and sold throughout each accounting period but applies its inventory costing method at the end of each month, as if it uses a periodic inventory system....
-
With the company expanding into several new markets in the coming months, Cable & Moore was anticipating a large increase in sales revenue. The future looked bright for this provider of...
-
When processing payroll, Kayla Company gives employees the option of receiving their paychecks in the mail or having a direct deposit made to their bank accounts. 1. Identify agents. 2. Identify...
-
What has to be done to the bus system of Fig. 4-3 to be able to transfer information from any register to any other register? Specifically, show the connections that must be included to provide a...
-
Find the probability density function of the random variable \(Z\) in terms of the known density function \(p_{U}(u)\) when (a) \(z=a u+b\), where \(a\) and \(b\) are real constants. (b)...
-
Jane, Jon, and Clyde incorporate their respective businesses and form Starling Corporation. On March 1 of the current year, Jane exchanges her property (basis of $50,000 and value of $150,000) for...
-
Read the three factual scenarios and discuss whether the actions were done under color of state law. Please give reasons in support of your conclusion. Two New York City police officers removed...
-
On December 31, 2015, Berclair Inc. had 200 million shares of common stock and 3 million shares of 9%, $100 par value cumulative preferred stock issued and outstanding. On March 1, 2016, Berclair...
-
A building was built on land purchased last year at a cost of $315,000. Construction began on February 1 and was completed on November 1. Payments to the contractor were as follows. Payment Date 2/1...
-
Why is multi-stage compression required? Write advantages of the multi-staging compression.
-
Enumerate the various components used in a refrigerator and explain their working.
-
Derive the expression for heat flow in steady state conduction without heat generation using Fourier Law.
-
What are the different bases for classification of an internal combustion engine? Explain with a neat sketch of various types of the engines.
-
Write advantages and disadvantages of air refrigeration cycle.
-
if you were in charge of raising tax revenue, which are some of the goods or services (name at least three) that you would concentrate on? would you increase or decrease the tax rate? Why
-
You are thinking of investing in one of two companies. In one annual report, the auditors opinion states that the financial statements were prepared in accordance with generally accepted accounting...
-
FedEx Corporation reports the cost of its aircraft in a single category called Flight Equipment. What impact would IFRS have on this aspect of FedExs accounting?
-
Cheese Factory Incorporated reported the following information for the fiscal year ended August 31, 2015. Other cash flow information: Additional investments by stockholders $ 34,000 Cash paid to...
-
Use the financial calculator app shown in the appendix to answer MC- 3. Round to the nearest dollar.
-
The treatment of outflows on account of dividend and interest is highly debatable as to their activity classification. Give a serious thought to the issue and express your opinion about the best...
-
Reliance Industries Ltd. is the biggest private sector company in India. The following fact sheet about the company and its peer group, as extracted from Capitaline Plus database is reproduced in the...
-
Consider the same setting as Problem 18, but suppose instead 80% of the shareholders redeem their shares, and no warrants are exercised. Data from problem 18 a. What is the amount of cash per share...
Study smarter with the SolutionInn App