Question

Assume that Martinez Company has the following transactions in its first month of operations. Date Purchases...

Assume that Martinez Company has the following transactions in its first month of operations.

Date Purchases Sold Balance
Feb. 1 2,100 @ $3.60 2,100 units
Feb. 10 6,200 @ $3.95 8,300 units
Feb. 21 4,400 units 3,900 units
Feb. 28 2,100 @ $4.30 6,000 units


Martinez uses a perpetual inventory system.

(a)

Compute cost of goods sold and ending inventory at February 28, assuming Martinez uses the FIFO cost flow assumption.

Cost of goods sold $
Ending inventory $
Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

FIFO

Units Available for Sale = 2100 + 6200 + 2100 =10400
Units Sold = 4400 = 4400
Units in Ending Inventory = 10400− 4400 = 6000
Purchases Sales Balance
Units Unit Cost Total Units Unit Cost Total Units Unit Cost Total
2100 $3.60 $7,560
6200 3.95 $24490 2100 $3.60 $7,560
6200 $3.95 $24,490
2100 $3.60 $7560 3900 $3.95 $15,405
2300 $3.95 $9085
2100 $4.30 $9030 3900 $3.95 $15,405
2100 $4.30 $9030

Ending inventory = 3900+2100 = 6000

Value of ending inventory = 15405+9030 = $24435

cost of goods sold = opening stock + purchases - closing stock

2100+6200+2100-6000 = 4400 in units

In value = 7560+24490+9030 - 24435 =16645

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Mitchell Company’s record of transactions for the month of June was as follows. Purchases: Date                 Units         &nbs
Mitchell Company’s record of transactions for the month of June was as follows. Purchases: Date                 Units               Unit Cost June 1              600       @         3.00€ 4                        1,500    @         3.04 8                        800       @         3.20 13                     1,200     @        3.25 21                     700        @        3.30 29                     500        @        3.13                          -------                          5,300 Sales: Date              Units                Unit Cost June 3           500       @          5.00€ 9                    1,300     @          5.00 11                  600        @          5.50 23                  1,200     @          5.50 27                  900        @          6.00                      ----------                       4,500 Instructions (a) Assuming...
A company reports the following beginning inventory and two purchases for the month of January. On...
A company reports the following beginning inventory and two purchases for the month of January. On January 26, the company sells 450 units. Ending inventory at January 31 totals 170 units. Units Unit Cost Beginning inventory on January 1 410 $ 4.00 Purchase on January 9 90 4.20 Purchase on January 25 120 4.30 Required: Assume the perpetual inventory system is used. Determine the costs assigned to ending inventory when costs are assigned based on the FIFO method. Perpetual FIFO:...
A company had the following purchases and sales during its first year of operations: Purchases Sales...
A company had the following purchases and sales during its first year of operations: Purchases Sales January: 10 units at $120 6 units February: 20 units at $125 5 units May: 15 units at $130 9 units September: 12 units at $135 8 units November: 10 units at $140 13 units On December 31, there were 26 units remaining in ending inventory. Using the perpetual FIFO inventory costing method, what is the value of cost of goods sold? (Assume all...
Martinez Company had the following information for the year ending December 31: Additional Resources Units Unit...
Martinez Company had the following information for the year ending December 31: Additional Resources Units Unit Cost Beginning inventory 290 $45 Purchase: April 6 340 43 Sale: May 4 240 Purchase: July 19 590 40 Sale: September 9 450 Purchase: October 10 100 35 Martinez uses the perpetual inventory system and the FIFO method. Required: Using FIFO (a) Compute the cost of ending inventory. (b) Compute the cost of goods sold for the year.
In its first month of operations, Concord Company made three purchases of merchandise in the following...
In its first month of operations, Concord Company made three purchases of merchandise in the following sequence: (1) 350 units at $7, (2) 410 units at $8, and (3) 240 units at $9. Assuming there are 360 units on hand, compute the cost of the ending inventory under the FIFO method and LIFO method. Concord uses a periodic inventory system. Cost of the ending inventory: FIFO $
In its first month of operations, Bethke Company made three purchases of merchandise in the following...
In its first month of operations, Bethke Company made three purchases of merchandise in the following sequence: (1) 155 units at $6, (2) 510 units at $7, and (3) 100 units at $8. Assuming there are 360 units on hand, compute the cost of the ending inventory under the FIFO method and LIFO method. Bethke uses a periodic inventory system. FIFO LIFO Cost of the ending inventory $ $   
A company had the following purchases and sales during its first year of operations: Purchases Sales...
A company had the following purchases and sales during its first year of operations: Purchases Sales January: 10 units at $120 6 units February: 20 units at $125 5 units May: 15 units at $130 9 units September: 12 units at $135 8 units November: 10 units at $140 13 units On December 31, there were 26 units remaining in ending inventory. Using the periodic FIFO inventory costing method, what is the value of cost of goods sold? (Assume all...
Hemming Co. reported the following current-year purchases and sales for its only product. Date Activities Units...
Hemming Co. reported the following current-year purchases and sales for its only product. Date Activities Units Acquired at Cost Units Sold at Retail Jan. 1 Beginning inventory 255 units @ $12.20 = $ 3,111 Jan. 10 Sales 210 units @ $42.20 Mar. 14 Purchase 410 units @ $17.20 = 7,052 Mar. 15 Sales 350 units @ $42.20 July 30 Purchase 455 units @ $22.20 = 10,101 Oct. 5 Sales 430 units @ $42.20 Oct. 26 Purchase 155 units @ $27.20...
In its first month of operations, Oriole Company made three purchases of merchandise in the following...
In its first month of operations, Oriole Company made three purchases of merchandise in the following sequence: (1) 306 units at NT$171, (2) 418 units at NT$181, and (3) 217 units at NT$200. Oriole uses a periodic inventory system. A) Assuming there are 467 units on hand, compute the cost of the ending inventory under the FIFO method. B) Assuming there are 467 units on hand, compute the cost of the ending inventory under the average-cost method.
In its first month of operations, Swifty Company made three purchases of merchandise in the following...
In its first month of operations, Swifty Company made three purchases of merchandise in the following sequence: (1) 310 units at $7, (2) 470 units at $8, and (3) 230 units at $9. Assuming there are 360 units on hand, compute the cost of the ending inventory under the FIFO method and LIFO method. Swifty uses a periodic inventory system.
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT