Spelling Company had the following transactions in connection with their inventory account during the month of...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Spelling Company had the following transactions in connection with their inventory account during the month of August. Purchases Sales Aug. 1 Aug. 3 Aug. 7 Aug. 11 Aug. 16 Aug. 16 (Goods on 650 $8.40 Aug. 4 280 @ $12.60 350 8.00 Aug. 12 12.60 @ 1,250 770 8.20 Aug. 10 900 13.00 Aug. 17 Aug. 20 Aug. 25 650 8.50 650 13.00 500 8.70 860 13.50 750 8.60 700 13.50 4570 3740 Assuming that the company keeps periodic records in units only; compute the inventory at August 31, using LIFO. Assuming that the company keeps periodic records in units only; compute the inventory at August 31, using average cost. B. Calculate the cost of goods sold and gross profit Spelling Company should record for the month of August assuming FIFO and periodic inventory procedures. Spelling Company had the following transactions in connection with their inventory account during the month of August. Purchases Sales Aug. 1 Aug. 3 Aug. 7 Aug. 11 Aug. 16 Aug. 16 (Goods on 650 $8.40 Aug. 4 280 @ $12.60 350 8.00 Aug. 12 12.60 @ 1,250 770 8.20 Aug. 10 900 13.00 Aug. 17 Aug. 20 Aug. 25 650 8.50 650 13.00 500 8.70 860 13.50 750 8.60 700 13.50 4570 3740 Assuming that the company keeps periodic records in units only; compute the inventory at August 31, using LIFO. Assuming that the company keeps periodic records in units only; compute the inventory at August 31, using average cost. B. Calculate the cost of goods sold and gross profit Spelling Company should record for the month of August assuming FIFO and periodic inventory procedures.
Expert Answer:
Answer rating: 100% (QA)
Answer A Inventory at August 31 using LIFO 714600 B Inventory at August 31 using Average cost 692200 ... View the full answer
Related Book For
Intermediate Accounting
ISBN: 978-0132162302
1st edition
Authors: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella
Posted Date:
Students also viewed these accounting questions
-
During Year 1, Brianna Company had the following transactions related to its financial operations: Payment for the retirement of long- term bonds payable ( carrying value $ 740,000) $ 750,000...
-
During year 1, Brianna Company had the following transactions related to its financial operations: Payment for the retirement of long-term bonds payable (carrying value $ 740,000) $ 750,000...
-
The Greenley Company had the following transactions in July: a. Paid $18,000 cash for rent for the next 6 months on July1. b. Paid $2,000 cash for supplies on July3. c. Paid $4,000 cash for an...
-
While a CEO may put pressure on a management accountant to present the financial statement which presents the company in the "best possible light", the management accountant has an obligation to...
-
President Reagan negotiated a voluntary import quota on Japanese cars sold in the United States in the early 1980s. Some of his advisers had recommended that he impose a higher import tax (tariff)...
-
Vanguard seems too good. There must be a downside. Discuss.
-
The Arcadia Company is uncertain whether it should utilize the first-in, first-out (FIFO) method, the last-in, first-out (LIFO) method, or the weighted-average method to account for its inventory....
-
Firemaster BBQ produces stainless steel propane gas grills. The company has been in operation for three years, and sales have declined each year due to increased competition. The following...
-
The recorded Week 7 Quiz 3 - LumoSum or Installmentsprovides a good overview on calculating this problem. Use the "A Number of Useful Financial Spreadsheets" to find a sample template you can use to...
-
In Figure P3-53, calculate the temperatures at points 1, 2, 3, and 4 using the numerical method. Figure P3-53 700 C 100 C 400 C 3 500 C
-
You are Given sample: n-1 observations Let the average be: Xn-1. Now assume nth observation is added, value Xn New average is xn Prove that: xn Xn-1 [xn-Xn-1. n
-
If the best solution to solving the positive externality problem of education is to provide a subsidy, explain why educational systems in all countries are government entities.
-
Discuss the argument that education should be subsidized because it creates a positive externality.
-
Explain why the governments bailout of some banks in 2008 caused a moral hazard.
-
Discuss the claim that social regulation is unnecessary. Does the claim depend on whether the structure of a market is primarily one of perfect competition or of oligopoly?
-
Which of the three types of government policiesantitrust, social regulation, or economic regulationis the basis for each of the following? Which market failure would provide a theoretical basis for...
-
Three major federal laws that govern higher education. Three state laws that regulate higher education in your state. Federal and state laws that apply to the administration of higher education...
-
Find the reduced echelon form of each of the matrices given in Problems 120. c 1 26 + 4
-
How are transactions recorded under accrual accounting?
-
Can firms group all property, plant, and equipment for purposes of performing an impairment test? Explain.
-
Why are the notes to the financial statements an integral part of the financial statements?
-
Dominick Portet Wines Inc. began operations to import fine wines from Australia to the United States. Sales and purchase information is pZro vided below. Assume that Portet Wines uses the LIFO method...
-
Santiago, Inc., began operations as an importer of fine Chilean wine the United States. Sales and purchase information is provided below. Santiago, Inc., uses the LIFO method of inventory valuation....
-
Presented below are the financial statements of two companies that are identical in every respect except the method of valuing their inventories. The method of valuing inventory is LIFO for the LIFO...
Study smarter with the SolutionInn App