Please can you help me answer these question for ACCOUNTING 1 ??????
Tri-State Bank and Trust is considering giving Wilfred Company a loan. Before doing so, management decides that further discussions with Wilfred’s accountant may be desirable. One area of particular concern is the inventory account, which has a year-end balance of $338,000. Discussions with the accountant reveal the following.
Determine the correct inventory amount on December 31.
Correct inventory $.
Exericse 6-3
Calculate the cost of goods sold using the FIFO periodic inventory method assuming that two of the three players were sold by the end of December, Kiyak Electronics’ year-end.
Cost of goods sold $
If Kiyak Electronics used the specific identification method instead of the FIFO method, how might it alter its earnings by “selectively choosing” which particular players to sell to the two customers? What would Kiyak’s cost of goods sold be if the company wished to minimize earnings? Maximize earnings?
Cost of goods sold would be $ if it wished to minimise the earnings.
Cost of goods sold would be $ if it wished to maximise the earnings.
Exercise 6-7
Shawn Company had 294 units in beginning inventory at a total cost of $29,400. The company purchased 588 units at a total cost of $82,320. At the end of the year, Shawn had 221 units in ending inventory.
Compute the cost of the ending inventory and the cost of goods sold under FIFO, LIFO, and average-cost. (Round average-cost per unit and final answers to 0 decimal places, e.g. 1,250.)
The cost of the ending inventory $. _____FIFO, LIFO______$, AVERAGE-COST______$
The cost of goods sold $_____FIFO, LIFO______$, AVERAGE-COST______$
Which cost flow method would result in the highest net income?_________
Which cost flow method would result in inventories approximating current cost in the balance sheet?______
Which cost flow method would result in Shawn paying the least taxes in the first year?__________
Brief Exercise 6-4
In its first month of operations, Weatherall Company made three purchases of merchandise in the following sequence: (1) 190 units at $6, (2) 440 units at $7, and (3) 150 units at $8.
Calculate the average unit cost. $__________
Compute the cost of the ending inventory under the average-cost method, assuming there are 300 units on hand.
The cost of the ending inventory $__________
Exerecise 6-6a
You are provided with the following information for Gobler Inc. Gobler Inc. uses the periodic method of accounting for its inventory transactions.
March1Beginning inventory 1,900 liters at a cost of 58¢ per liter.March3Purchased 2,550 liters at a cost of 63¢ per liter.March5Sold 2,300 liters for $1.00 per liter.March10Purchased 4,200 liters at a cost of 72¢ per liter.March20Purchased 2,500 liters at a cost of 78¢ per liter.March30Sold 5,300 liters for $1.30 per liter.
Calculate the value of ending inventory that would be reported on the balance sheet, under each of the following cost flow assumptions.
Specific identification method assuming:(i)The March 5 sale consisted of 1,000 liters from the March 1 beginning inventory and 1,300 liters from the March 3 purchase; and(ii)The March 30 sale consisted of the following number of units sold from beginning inventory and each purchase: 500 liters from March 1; 600 liters from March 3; 2,850 liters from March 10; 1,350 liters from March 20
(2)FIFO
(3)LIFO
Ending inventory
Specific identification $_______
FIFO$_______
LIFO $_______
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