Concord Inc. is a retailer using a perpetual inventory system. All sales returns from customers result...
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Concord Inc. is a retailer using a perpetual inventory system. All sales returns from customers result in the goods being returned to inventory. (Assume that the inventory is not damaged.) Assume that there are no credit transactions; all amounts are settled in cash. You are provided with the following information for Concord Inc. for the month of January. Unit Cost or Date Description Quantity Selling Price Dec. 31 Beginning inventory 160 $21 Jan. 2 Purchase 100 22 Jan. Sale 180 40 Jan. Sale return 10 40 Jan. Purchase 75 24 Jan. 10 Purchase return 15 24 Jan. 10 Sale 50 45 Jan. 23 Purchase 100 26 Jan. 30 Sale 120 51 Using FIFO method, calculate (i) cost of goods sold, (ii) ending inventory, and (iii gross profit. (Assume sales returns had a cost of $21 and purchase returns had a cost of $24.) Cost of goods sold $ Ending Inventory 24 Gross Profit 24 Using Average method, calculate (i) cost of goods sold, (ii) ending inventory, and (iii) gross profit. (Round average cost to 3 decimal places, e.g. 5.252 and final answers to 2 decimal places, e.g 5.25.) Cost of goods sold $ Ending Inventory $ Gross Profit $ Compare results for the two cost formulas. (1) In a period of rising costs, the average cost formula results in the cost of goods sold and gross (2) In period of rising costs, on the statement of financial position, FIFO gives the ending inventory (representir Concord Inc. is a retailer using a perpetual inventory system. All sales returns from customers result in the goods being returned to inventory. (Assume that the inventory is not damaged.) Assume that there are no credit transactions; all amounts are settled in cash. You are provided with the following information for Concord Inc. for the month of January. Unit Cost or Date Description Quantity Selling Price Dec. 31 Beginning inventory 160 $21 Jan. 2 Purchase 100 22 Jan. Sale 180 40 Jan. Sale return 10 40 Jan. Purchase 75 24 Jan. 10 Purchase return 15 24 Jan. 10 Sale 50 45 Jan. 23 Purchase 100 26 Jan. 30 Sale 120 51 Using FIFO method, calculate (i) cost of goods sold, (ii) ending inventory, and (iii gross profit. (Assume sales returns had a cost of $21 and purchase returns had a cost of $24.) Cost of goods sold $ Ending Inventory 24 Gross Profit 24 Using Average method, calculate (i) cost of goods sold, (ii) ending inventory, and (iii) gross profit. (Round average cost to 3 decimal places, e.g. 5.252 and final answers to 2 decimal places, e.g 5.25.) Cost of goods sold $ Ending Inventory $ Gross Profit $ Compare results for the two cost formulas. (1) In a period of rising costs, the average cost formula results in the cost of goods sold and gross (2) In period of rising costs, on the statement of financial position, FIFO gives the ending inventory (representir
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Answer Solution Explanation 1 Firstin firstout FIFO cost flow assumption Under FIFO Method Inventory ... View the full answer
Related Book For
Introduction to Accounting An Integrated Approach
ISBN: 978-0078136603
6th edition
Authors: Penne Ainsworth, Dan Deines
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