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Xelga [282]
3 years ago
5

Determine the inventory cost using the (a) first-in, first-out (FIFO) method; (b) last-in, first-out (LIFO) method; and (c) weig

hted average cost method (round per-unit cost to two decimal places and your final answer to the nearest whole dollar).
Business
1 answer:
masha68 [24]3 years ago
6 0

Answer:

(a) Cost of inventory sold using FIFO method = $179,280

(b) Cost of inventory sold using LIFO method = $188,700

(c) Cost of inventory sold using weighted average cost method = $186,000

Explanation:

Note: This question is not complete. The complete question is therefore provided before answering the question. See the attached pdf file for the complete question.

The explanation of the answers is now provided as follows:

Units of inventory sold = Units available for sale - Ending physical inventory units = 45 – 14 = 31

(a) first-in, first-out (FIFO) method

Under FIFO, inventory purchased first is sold first. Therefore, we have:

Cost of inventory sold using FIFO = 12 units at $5,400 each from Jan. 1 + 18 units at $6,000 each from Aug. 7 Purchase + 1 unit at $6,480 from Dec. 11 Purchase = (12 * $5,400) + (18 * $6,000) + (1 * $6,480) = $64,800 + $108,000 + $6,480 = $179,280

(b) last-in, first-out (LIFO) method

Under LIFO, inventory purchased last is sold first. Therefore, we have:

Cost of inventory sold using LIFO = 15 unit at $6,480 each from Dec. 11 Purchase + 16 units at $6,000 each from Aug. 7 Purchase = (15 * $6,480) + (16 * $6,000) = $97,200 + $96,000 = $188,700

(c) weighted average cost method (round per-unit cost to two decimal places and your final answer to the nearest whole dollar).

Under the weighted average cost method, the cost of goods available for sale is divided by the number of units available for sale to obtain average cost per unit. This is then used to multiply the total units sold to obtain the cost of inventory sold as follows:

Weighted average cost per unit = Cost of goods available for sale / Units available for sale = $270,000 / 45 = $6,000

Cost of inventory sold using weighted average cost method = Units of inventory sold * Weighted average cost per unit = 31 * $6,000 = $186,000

Download pdf
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Answer:

achieve economies of scope

Explanation:

Economies of scope  -

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4 0
2 years ago
Ben and Jerry were shareholders of Water Ice Inc., an S corp. On Jan. 1, 1998, Ben owned 40 shares and Jerry owned 60 shares. Be
expeople1 [14]

Answer: $15,060

Explanation:

From the question, we are informed that Ben and Jerry were shareholders of Water Ice Inc., an S corp. On Jan. 1, 1998, Ben owned 40 shares and Jerry owned 60 shares.

We are further told that Ben sold his shares to Joe for $10,000 on March 31, 1998 and that the corp. reported a $50,000 loss at the end of 1998. The loss that will be allocated to Joe will be:

= $50,000 × 40% × 9/12

= $50,000 × 0.4 × 0.75

= $15,000

The closest figure we have close to that is $15,060 which is option B

7 0
3 years ago
On November 1, Wright Co. borrowed $20,000 cash from Third Bank by signing a 90-day, 6% interest-bearing note.
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On January 30, the due date of the note, Wright will record the payment with a debit to Interest Expense in the amount of $100.

Explanation:

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  • On December 31, it was recorded an adjusting entry to interest expense of $200.
  • On January 30, which is the due date of the note, Wright will record the payment with a debit to Interest Expense in the amount of $100.
  • Interest expense is an expense which is known as a non-operating expense which is shown on the income statement. It also represents interest payable amount when it is borrowed. For Example,
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  • The main difference between the interest expense and the interest paid is that the discount amount and this difference changes the net amount of bond liability.
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3 years ago
Southwest airlines' "ding" widget pops up on your computer desktop to let you know of lower fares to cities you want to visit. t
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8 0
3 years ago
Price Manufacturing assigns overhead based on machine hours. The Milling Department logs 1,800 machine hours and Cutting Departm
kifflom [539]

Answer and Explanation:

The Journal entry is shown below:-

Work in progress Dr, $24,000

        To Manufacturing Overhead $24,000

(Being the overhead assigned is recorded)

For recording this we debited the work in process as it increased the assets and credited the manufacturing overhead for assigning the overhead

Working note

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= $4,800 × $5

= $24,000

5 0
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