Kylvia created her own fast fashion retail store as she thought that it was a profitable...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Kylvia created her own fast fashion retail store as she thought that it was a profitable industry and she thought that she could steal market share from some of the major competitors in the industry. To avoid legal issues, she called her retail store Forever 19, in order to avoid using a name that was already taken. The following information relates to the company's inventory during its second year of operations. Her retail store has a fiscal year end of December 31. Jan 1 Mar 26 Jul 19 Oct 31 Dec 25 Beginning Inventory Sale Purchase Purchase Sale 100 units @ $8 each 60 units @ $15 each 80 units @ $9 each 15 units @ $9.50 each 105 units @ $14 each Assume that no other transactions occurred relating to inventory during the year. Round to 2rd decimal place (for example, $110.567 would be $110.57). Required: a. Calculate the value of ending inventory and cost of goods sold under the weighted average cost method (assuming the periodic system). (5 points) b. Calculate the value of ending inventory and cost of goods sold under the moving average cost method. (6 points) c. Calculate the value of ending inventory and cost of goods sold under the FIFO method (assuming the perpetual system) (3 Points) d. If Kylvia later determined that there was a miscount in the number of units of the beginning inventory. The correct units of beginning inventory were more than 100 units. What would be the impact (i.e., overstated or understated) on the following accounts this year if Forever 19 uses the FIFO method: ending inventory, retained earnings, cost of goods sold, and net income? (4 points) Kylvia created her own fast fashion retail store as she thought that it was a profitable industry and she thought that she could steal market share from some of the major competitors in the industry. To avoid legal issues, she called her retail store Forever 19, in order to avoid using a name that was already taken. The following information relates to the company's inventory during its second year of operations. Her retail store has a fiscal year end of December 31. Jan 1 Mar 26 Jul 19 Oct 31 Dec 25 Beginning Inventory Sale Purchase Purchase Sale 100 units @ $8 each 60 units @ $15 each 80 units @ $9 each 15 units @ $9.50 each 105 units @ $14 each Assume that no other transactions occurred relating to inventory during the year. Round to 2rd decimal place (for example, $110.567 would be $110.57). Required: a. Calculate the value of ending inventory and cost of goods sold under the weighted average cost method (assuming the periodic system). (5 points) b. Calculate the value of ending inventory and cost of goods sold under the moving average cost method. (6 points) c. Calculate the value of ending inventory and cost of goods sold under the FIFO method (assuming the perpetual system) (3 Points) d. If Kylvia later determined that there was a miscount in the number of units of the beginning inventory. The correct units of beginning inventory were more than 100 units. What would be the impact (i.e., overstated or understated) on the following accounts this year if Forever 19 uses the FIFO method: ending inventory, retained earnings, cost of goods sold, and net income? (4 points)
Expert Answer:
Answer rating: 100% (QA)
ANSWER a Calculation using the weighted average cost method periodic system To calculate the ending inventory and cost of goods sold using the weighted average cost method we need to calculate the wei... View the full answer
Related Book For
Posted Date:
Students also viewed these finance questions
-
Googles ease of use and superior search results have propelled the search engine to its num- ber one status, ousting the early dominance of competitors such as WebCrawler and Infos- eek. Even later...
-
After the Internet investment bubble burst, the original concept of easyInternetcaf? (eIc) was just not working out. The management decided to retrench, closing and downsizing some of the original...
-
Is it possible to produce an iron-carbon alloy that has a minimum tensile strength of 690 MPa (100,000 psi) and a minimum ductility of 40%RA? If so, what will be its composition and microstructure...
-
Xantra Corp. is a manufacturer of specialty in-line skates. The operating results for 2012 are as follows: Units produced ............................................................. 20,000 pairs...
-
Use a graphing utility to find the derivative of each function at the given number. f(x) = x sinx at /4
-
1 ton of refrigeration is equivalent to (a) \(3.517 \mathrm{~kW}\) (b) \(4.202 \mathrm{~kW}\) (c) \(250 \mathrm{kcal} / \mathrm{min}\) (d) \(50000 \mathrm{kcal} / \mathrm{min}\).
-
Here are the financial statements of YoYo Company. Additional data: 1. Dividends of $36,000 were declared and paid. 2. During the year equipment was sold for $10,000 cash. This equipment cost $15,000...
-
a)Distinguish between different classification of market structures and their prevalence in Tanzania. (20 Marks) b)In 2019, thesales andadvertising expenditureof seven companies weregiven asfollows ;...
-
Two slender rods of negligible weight are pin-connected at C and attached to blocks A and B, each of weight W. Knowing that P = 1.260W and that the coefficient of static friction between the blocks...
-
Wrongful interference select answer select answer select answer with a business relationship requires , that the third party is , with a purpose of . Wrongful interference with a Y. contractual...
-
A \(5.0-\mathrm{kg}\) cart is attached to a horizontal spring for which the spring constant is \(75 \mathrm{~N} / \mathrm{m}\). The system is set in motion when the cart is \(0.32 \mathrm{~m}\) from...
-
Sinusoidal water waves are generated by a 18 -W mechanical motor in an aquarium tank. How much the kinetic energy is in each \(1.25-\mathrm{Hz}\) wave generated? \(\cdot\)
-
In a particle accelerator, the particles in a beam of protons are traveling toward a target at a speed equal to \(0.100 c_{0}\). If the beam has a radius of \(0.100 \mu \mathrm{m}\) and carries a...
-
In a copper wire that has a diameter of \(1.63 \mathrm{~mm}\), the drift velocity is \(7.08 \times 10^{-4} \mathrm{~m} / \mathrm{s}\). If we assume one free electron per copper atom, what are \((a)\)...
-
For each of these changes in a metal, predict whether the average time interval between collisions of an electron with a lattice ion increases or decreases: (a) spatial density of the lattice ions is...
-
Hero Inc., a merchandising company, has begun its business since 1 Jan. 2017. The selected information from the accounting records on 1 Jan. 2021 is as follows. I 5 Jan 16 Jan 18 Jan 29 Jan 2 Feb The...
-
The first national bank pays a 4% interest rate compound continuously. The effective annual rate paid by the bank is __________. a. 4.16% b. 4.20% c. 4.08% d. 4.12%
-
How are marketing and product synergies different in a market-product grid?
-
A producer of microwave ovens has adopted an experience curve pricing approach for its new model. The firm believes it can reduce the cost of producing the model by 20 percent each time volume...
-
Market share is usually fought out before the_________________ stage of the retail life cycle.
-
The median is resistant because it is not affected much by_________________. In Exercises 912, fill in each blank with the appropriate word or phrase.
-
The __________________ is the value in the data set that appears most frequently. In Exercises 912, fill in each blank with the appropriate word or phrase.
-
Every data set contains at least one mode. In Exercises 1316, determine whether the statement is true or false. If the statement is false, rewrite it as a true statement.
Study smarter with the SolutionInn App