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jonny [76]
3 years ago
14

Shawn Company had 130 units in beginning inventory at a total cost of $13,650. The company purchased 260 units at a total cost o

f $41,600. At the end of the year, Shawn had 98 units in ending inventory.
Required:
Compute the cost of the ending inventory and the cost of goods sold under FIFO, LIFO, and average-cost.
Business
1 answer:
Katarina [22]3 years ago
3 0

Answer:

FIFO

cost of the ending inventory = $15,680

cost of goods sold  = $39,570

LIFO

cost of the ending inventory  = $10,290

cost of goods sold  = $44,960

Average Cost Method

cost of the ending inventory = $13,883.37

cost of goods sold  = $41,336.76

Explanation:

The cost of the ending inventory and the cost of goods sold under FIFO, LIFO, and average-cost are calculated as follows :

Step 1 : Determine the Number of units sold

Number of units sold = Total units available for sale - Ending units

                                   = 390 units - 98 units

                                   = 292 units

Step 2 : Determine the Number of units in inventory

Number of units in inventory = 98 units (given)

Step 3 : Use the appropriate principles to calculate required values

<u>FIFO</u>

cost of the ending inventory = 98 x $160 = $15,680

cost of goods sold = 130 units x $105 + 162 units x $160 = $39,570

<u>LIFO</u>

cost of the ending inventory = 98 x $105 = $10,290

cost of goods sold = 260 units x $160 + 32 units x $105 = $44,960

<u>Average Cost Method</u>

Unit Cost = ($13,650 + $41,600) ÷ 390 units = $141.667

therefore,

cost of the ending inventory = 98 x $141.667 = $13,883.37

cost of goods sold = 292 units x $141.667 = $41,336.76

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Answer:

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Par Value (at $5)  = B

Additional Paid in capital in excess of Par = C

Dividend  = D

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Jan 1 balance               90,500       $452,500          $0

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Add: Issued Apr 1         21,000         $105,000   $294000

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Add: Dec 1 Issued       2,500 shares $12,500      $32,500

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Journal Entries based on above

Date         Accounts Titles          Debit            Credit

15-Jun     Dividends                 $111,500

                    Dividends payable                     $111,500

10-Jun      Cash                         $111,500

                     Dividends                                 $111,500

15-Dec      Dividends                   $490,200

                     Dividends payable                   $490,200

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3 years ago
Jasper makes a $31,000, 90-day, 6.5% cash loan to Clayborn Co. The amount of interest that Jasper will collect on the loan is:__
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Answer:

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The computation of the amount of interest that is collected is shown below:

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Hence, the amount of interest that is collected is $503.75

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