Question

Wilson shows the following inventory activity (in chronological order). The company uses the net price method...

Wilson shows the following inventory activity (in chronological order). The company uses the net price method for purchases, but the amounts shown below are the gross prices. All purchases are made with terms of 2/10, n/30. The selling price per unit is $7. Other operating expenses are $20 and the tax rate is 30 percent.

Activity Number of Units        Gross Purchase Price

Beginning balance 11 $4

Sale 6

Purchase 9 $4.50

Sale 3

Sale 7

Purchase 5 $5.00

Sale 3

Required:       Determine cost of goods sold, gross margin net income, and ending inventory using FIFO. Then, repeat using LIFO.

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

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
The Sandhill Shop shows the following data related to an item of inventory: Inventory, January 1...
The Sandhill Shop shows the following data related to an item of inventory: Inventory, January 1 310 units @ $4.00 Purchase, January 9 910 units @ $4.50 Purchase, January 19 210 units @ $5.00 Inventory, January 31 310 units (a) What value should be assigned to the ending inventory using FIFO? Value assigned to the ending inventory $
PROBLEM III The Pins Shop shows the following data related to an item of inventory. Inventory,...
PROBLEM III The Pins Shop shows the following data related to an item of inventory. Inventory, January 1          100 units @ $5.00 Purchases, January 9        300 units @ $5.40 Purchases, January 19      70 units @ $6.00 Ending Inventory for the period, January 31:           120 units REQUIRED: What value should be assigned to the ending inventory and cost of goods sold using FIFO, using the periodic system? What value should be assigned to the ending inventory and cost of goods sold...
ABC Corp. engaged in the following transactions: Beginning inventory 100x $15 purchase price September 5 purchase...
ABC Corp. engaged in the following transactions: Beginning inventory 100x $15 purchase price September 5 purchase 50x $20 purchase price September 11 Sale 110@ $40 sale price Calculate 1) the cost of good sold for the month of September using LIFO, 2) the ending inventory using LIFO and 3) Gross profit for the month using LIFO
ABC Company had the following purchases and sales in June. What is the ending June inventory...
ABC Company had the following purchases and sales in June. What is the ending June inventory balance using the periodic FIFO and perpetual LIFO methods? Date                   Action                      Units          Cost June 1             Beg. Inventory           100               $2 June 6             Sale                                50 June 9             Purchase                      200              $4 June 15           Sale                               175 June 20           Purchase                      100              $5 June 25           Sale                               125 ABC Company had the following purchases and sales in June. What is the ending June inventory balance using the periodic FIFO and perpetual...
The Rock Shop shows the following data related to an item of inventory: Inventory, January 1...
The Rock Shop shows the following data related to an item of inventory: Inventory, January 1 300 units @ $5.00 Purchase, January 9 900 units @ $5.40 Purchase, January 19 210 units @ $6.00 Inventory, January 31 300 units Required: Please show all calculations (a) What value should be assigned to the ending inventory using FIFO? (b) What value should be assigned to cost of goods sold using LIFO? (c) What value should be assigned to the ending inventory using...
Question 4 a.) Use the following data to calculate cost of merchandise sold under FIFO method....
Question 4 a.) Use the following data to calculate cost of merchandise sold under FIFO method. September 1 Beginning Inventory 15 units @ $20 September 10 Purchases 20 units @ $25 September 20 Purchases 25 units @ $28 September 30 Ending Inventory 30 units Select one: $825 $750 $675 $600 b.)Use the following data to calculate the cost of ending inventory under LIFO using the method. September 1 Beginning Inventory 15 units @ $20 September 10 Purchases 20 units @...
Carolina Company uses the LIFO method for valuing its ending inventory. The following financial statement information...
Carolina Company uses the LIFO method for valuing its ending inventory. The following financial statement information is available for its first year of operation: Carolina Company Income Statement For the year ended December 31 Sales    60,000 Cost of Goods sold   23,000 Gross Profit   37,000 Expenses 13,000 Income before taxes $ 24,000 Carolina's ending inventory using the LIFO method was $8,700. Carolina's accountant determined that had the company used FIFO, the ending inventory would have been $9,100. a. Determine what...
Assume that Wake Up Coffee Shop completed the following periodic inventory transactions for a line of...
Assume that Wake Up Coffee Shop completed the following periodic inventory transactions for a line of merchandise inventory Jun. 1 Beginning merchandise inventory 20 units @ $19 each 12 Purchase 9 units @ $20 each 20 Sale 14 units @ $40 each 24 Purchase 18 units @ $21 each 29 Sale 19 units @ $40 each Requirements 1. Compute ending merchandise inventory, cost of goods sold, and gross profit using the FIFO inventory costing method. 2. Compute ending merchandise inventory,...
Salisbury Company uses the perpetual inventory system and had the following inventory & sales activity for...
Salisbury Company uses the perpetual inventory system and had the following inventory & sales activity for the month of May 2019: Date Activity Quantity Unit Price 5/1 Beginning Inventory 175 $11.00 5/5 Purchase 200 $10.50 5/10 Sales 300 $25 5/15 Purchase 200 $13.50 5/20 Sales 250 $28 5/25 Purchase 150 $13.00 Using the LIFO method, determine the dollar value for Ending Inventory at the end of month of May. Round to the nearest cent.
Salisbury Company uses the perpetual inventory system and had the following inventory & sales activity for...
Salisbury Company uses the perpetual inventory system and had the following inventory & sales activity for the month of May 2019: Date Activity Quantity Unit Price 5/1 Beginning Inventory 175 $11.00 5/5 Purchase 200 $11.50 5/10 Sales 300 $25 5/15 Purchase 200 $13.00 5/20 Sales 250 $28 5/25 Purchase 150 $13.00 Using the LIFO method, determine the dollar value for Ending Inventory at the end of month of May. Round to the nearest cent.
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT