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NNADVOKAT [17]
3 years ago
7

Kirtland Corporation uses a periodic inventory system. At the end of the annual accounting period, December 31, the accounting r

ecords for the most popular item in inventory showed the following: Transactions Units Unit Cost Beginning inventory, January 1 370 $4.00 Transactions during the year: a. Purchase, January 30 270 3.10 b. Purchase, May 1 430 5.00 c. Sale ($6 each) (130) d. Sale ($6 each) (670) Required: a. Compute the amount of goods available for sale. b. & c. Compute the amount of ending inventory and cost of goods sold at December 31, under Average cost, First-in, first-out, Last-in, first-out and Specific identification inventory costing methods. For Specific identification, assume that the first sale was selected two-fifths from the beginning inventory and three-fifths from the purchase of January 30. Assume that the second sale was selected from the remainder of the beginning inventory, with the balance from the purchase of May 1.
Business
1 answer:
Lina20 [59]3 years ago
6 0

Answer:

a. Using average cost method,

i. Goods available for sale will be  at December 31 is 1070 units

ii. Ending inventory at December 31 is 270 units

iii. Cost of goods sold at December 31 is  $3,320

b. Using FIFO method,

i. Goods available for sale will be  at December 31 is 1070 units

ii. Ending inventory at December 31 is 270 units

iii. Cost of goods sold at December 31 is  $ 3,090

c. Using LIFO method,

i. Goods available for sale will be  at December 31 is 1070 units

ii. Ending inventory at December 31 is 270 units

iii. Cost of goods sold at December 31 is  $  3,360

d. Using Specific Identification method,

i. Goods available for sale will be  at December 31 is 1070 units

ii. Ending inventory at December 31 is 270 units

iii. Cost of goods sold at December 31 is  $ 3,474  

Explanation:

a. The average cost method is used by finding out the average cost of all available inventory just before a 1st sales (total purchase cost /total quantity available before sales).In this case it is ($4,440/1,070)= $4.14953271. 1st and 2d sales is then carried out based on this price. The price changes as new purchases are made. if this is done using excel the result will be as file attached;

b. Under the FIFO method, goods that are purchased into store first must be completely sold before recently stock goods are disposed. See attached file. See attached file.

c. Under the LIFO method, goods that are most recently purchased are sold out first.

d. In applying specific  identification, the instruction on where to sale for is strictly followed. See attached file.

Download xlsx
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Judd Company has a beginning inventory in year one of $1,400,000 and an ending inventory of $1,694,000. The price level has incr
kotykmax [81]

Answer:

The ending inventory under the dollar-value LIFO method is $1,554,000.

Explanation:

The dollar-value LIFO method can be described as a variation on the last in, first out (LIFO) method which focuses on the estimation of a conversion price index that can be employed to compare the year-end inventory to the base year cost.

The ending inventory under the dollar-value LIFO method can be calculated as follows:

Beginning inventory at begining price level = $1,400,000

Ending inventory at ending price level = $1,694,000

Beginning price level = 100

Ending price level = 110

Beginning price index = Beginning price level / Beginning price level = 100 / 100 = 1.0

Ending price index = Ending price level / Beginning price level = 110 / 100 = 1.1

Ending inventory at base year prices = Ending inventory at ending price level / Ending price index = $1,694,000 / 1.1 = $1,540,000

Real-dollar quantity increase in inventory = Ending inventory at base year prices - Beginning inventory = $1,540,000 - $1,400,000 = $140,000

Value of real dollar quantity increase in inventory = Real dollar quantity increase in inventory * Ending price index = $140,000 * 1.1 = $154,000

Dollar value LIFO Ending inventory = Beginning inventory at begining price level + Value of real dollar quantity increase in inventory = $1,400,000 + $154,000 = $1,554,000

Therefore, the ending inventory under the dollar-value LIFO method is $1,554,000.

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3 years ago
Nick has a policy that the insurer can cancel when he turns 65. Which type of policy is it?
Shkiper50 [21]

Answer: Conditionally renewable

Explanation:

Conditionally renewable is the type of policy offered by companies to their clients to not renew upon reasons that are stated in the contract.

8 0
3 years ago
Which of the following is a nonmanufacturing business where process costing would most likely be used? An auto body shop. A furn
solmaris [256]

All of them are the non-manufacturing business where process costing would most likely be used.

Explanation:

  • All are non-manufacturing business which are as follows,
  • An auto body shop.
  • A furniture repair shop.
  • A laboratory that tests water samples for lead A tailoring shop.
  • A beauty shop.
  • Non-manufacturing business costs refers to those business where it is incurred outside the factory or production unit
  • Non-manufacturing costs includes,
  • selling expenses
  • general expenses
  • Selling Expenses
  • It is also called as selling and distribution expenses.
  • Non-manufacturing expenses have no impact on the production cost of the company due to their period costs.
7 0
3 years ago
A wool​ suit, discounted by 60 % for a clearance​ sale, has a price tag of $ 620. What was the​ suit's original​ price?
never [62]

Answer:

$1,550

Explanation:

Given that

Price tag = $620

Discount percentage = 60%

By taking the information,

The computation of the suit original price equal to

= Price tag ÷ (1 - discount percentage)

= $620 ÷ (1 - 0.60)

= $620 ÷ 0.40

= $1,550

Therefore, the suit original price is $1,550 after considering the discount percentage and the price tag.

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3 years ago
If a client is moderately risk averse and has an investment objective of capital preservation, what types and allocation of inve
Elis [28]

I would recommend for this customer a mix of investment grade bonds and cash or cash equivalents.

An individual with an investment objective of capital preservation should be investing in a mix of investment grade bonds and cash or cash equivalents lower risk capital appreciation vehicles, such as large-cap common stock, should also be considered. The other choices noted are too risky for a risk-averse investor.

Fixed earnings is a funding method focused on the maintenance of capital and earnings. It commonly includes investments like government and corporate bonds, CDs, and cash marketplace finances. fixed income can offer a consistent stream of earnings with less risk than stocks.

Learn more about Investment here:-brainly.com/question/20159917

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1 year ago
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