Quality Hardware Pty Ltd provides the following information regarding purchases of inventory item number SA238 for...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Quality Hardware Pty Ltd provides the following information regarding purchases of inventory item number SA238 for October 2021. Quality Hardware uses the periodic inventory system to record inventory transactions. Date 1 October Inventory on hand Count 600 Unit cost $5.50 Total cost $3,300 6 October 14 October 24 October 28 October Purchases Purchases Purchases Purchases 240 280 620 70 $6.40 $5.90 $6.20 $6.50 $1,536 $1,652 $3,844 $455 An inventory count on 31 October 2021 revealed 720 units on hand. Required: Calculate the: A. Cost of stock on hand at 31 October 2021 using the First-In-First-Out (FIFO) cost flow method. marks) B. Cost of goods sold for October 2021 using the Weighted Average Cost method. (4 marks) C. What circumstances would cause Quality Hardware Pty Ltd to re-value the items of inventory on hand at 31 October 2021? (1.5 marks) D. How will the re-valuation of the inventory on hand impact on the profit? (1.5 marks) Quality Hardware Pty Ltd provides the following information regarding purchases of inventory item number SA238 for October 2021. Quality Hardware uses the periodic inventory system to record inventory transactions. Date 1 October Inventory on hand Count 600 Unit cost $5.50 Total cost $3,300 6 October 14 October 24 October 28 October Purchases Purchases Purchases Purchases 240 280 620 70 $6.40 $5.90 $6.20 $6.50 $1,536 $1,652 $3,844 $455 An inventory count on 31 October 2021 revealed 720 units on hand. Required: Calculate the: A. Cost of stock on hand at 31 October 2021 using the First-In-First-Out (FIFO) cost flow method. marks) B. Cost of goods sold for October 2021 using the Weighted Average Cost method. (4 marks) C. What circumstances would cause Quality Hardware Pty Ltd to re-value the items of inventory on hand at 31 October 2021? (1.5 marks) D. How will the re-valuation of the inventory on hand impact on the profit? (1.5 marks)
Expert Answer:
Answer rating: 100% (QA)
A Cost of stock on hand at 31 October 2021 using the FirstInFirstOut FIFO cost flow method To calculate the cost of stock on hand using the FIFO method we assume that the first units purchased are the ... View the full answer
Related Book For
Accounting concepts and applications
ISBN: 978-0538745482
11th Edition
Authors: Albrecht Stice, Stice Swain
Posted Date:
Students also viewed these accounting questions
-
A bakery with a December 31 st year end purchased new equipment on October 31 st 2000 for $10,000. This was their first equipment purchase. Required: What are the tax consequences if the equipment is...
-
The Outsider Company, Inc. provided the following information regarding its inventory for the year ended December 31, 2015. It made all of the purchases before any sales transactions for the year....
-
The Editors Report in the November 2003 issue of Technometrics provides the following information regarding the length of time taken to review articles that were submitted for publication during the...
-
Abbie Young is the manager of the customer-service division of an electrical appliance store. Abbie is considering buying a machine at a cost of $10,000 on December 31, 2019. The machine will last...
-
An insulating spherical shell with inner radius 25.0 cm and outer radius 60.0 cm carries a charge of + 150.0 C uniformly distributed over its outer surface (see Exercise 23.43). Point a is at the...
-
Two tractors pull on the tree with the forces shown. Represent each force as a Cartesian vector and then determine the magnitude and coordinate direction angles of the resultantforce. ac = 100 Ib Faa...
-
Are there organizations that provide a list of potential arbitrators and mediators in your area? What types of disputes are subject to arbitration?
-
Go to the books companion website and use information found there to answer the following questions related to The Coca-Cola Company and PepsiCo, Inc. (a) What employee stock-option compensation...
-
1. Specific heat of Al is twice of that Fe. (a) If Al and Fe have same mass and the same amount of heat is added to Al and Fe individually, which one will end up having a higher temperature if...
-
The cash receipts journal of Silver Plastics follows. Silver s general ledger includes the following selected accounts, along with their account numbers: Indicate whether each posting reference (a)...
-
Find a second-order differential equation for i. (15 pts) Find i(t) for t > 0, if i (0) = 0A, and V (0) = 1V. (20 pts) v
-
Assume that an exploratory well is drilled and hydrocarbons are indicated. However, there is substantial uncertainty regarding whether the oil or gas is sufficient to justify recognition of proved...
-
What does a high (or low) lifting cost per BOE indicate? When does lifting cost per BOE indicate that costs are effectively being controlled at the field level?
-
If a contract contains a provision that requires one party to perform retirement activities when the asset is retired, but it is more likely than not that the requirement will be waived, should an...
-
Support equipment and facilities that service a particular field or other area constituting a cost center should be capitalized and depreciated using the _________ method over the proved developed...
-
If the expected cash flow approach is used to estimate the fair value of an ARO, what discount rate should be used? a. Weighted average cost of capital b. Credit-adjusted risk-free rate c....
-
The following are officers and staff of Plains & Prints Apparel ragio Manufacturing Company. The company uses normal cost system. Employees Jennifer Lopez Bernadette Alonzo Gloria Romero Rachel Ramos...
-
The Heese Restaurant Group manufactures the bags of frozen French fries used at its franchised restaurants. Last week, Heeses purchased and used 101,000 pounds of potatoes at a price of $ 0.70 per...
-
Amity Construction Company registered $100,000 of 6% bonds on July 1, 2012. The maturity date of the bonds is January 1, 2022. Interest is payable January 1 and July 1. The bonds were sold at 105.7...
-
On their issuance date, Salina Company purchased thirty-five $1,000, 10%, six-year bonds of AF Corporation as a long-term investment for $38,285. Interest payments are made semiannually. Prepare a...
-
The interest rate is 16% compounded quarterly for six years. Compute the interest rate per compounding period.
-
Calculate the change in entropy for the conversion of \(1 \mathrm{~mol}\) of ice to liquid at \(273 \mathrm{~K}\) and \(1 \mathrm{~atm}\). The latent heat of fusion is \(6500 \mathrm{~J} /...
-
Calculate the change in entropy when 5 moles of an ideal gas expands from a volume of \(5 \mathrm{~L}\) to \(50 \mathrm{~L}\) at \(27^{\circ} \mathrm{C}\).
-
Calculate the entropy change when \(96 \mathrm{~g}\) of methane is heated from \(35^{\circ} \mathrm{C}\) to \(200^{\circ} \mathrm{C}\) at constant volume. Assume \(C_{V}=1.735 \mathrm{~kJ} /...
Study smarter with the SolutionInn App