Urmila ben Exercise b-13 (Aigo) Calculate inventory using lower of cost and net realizable value (LUb-b)Down Home Furnishings reports inventory using the lower of cost and net realizable value (NRV). Below is information related to itsyear-end inventory.InventoryFurnitureElectronicsQuantity23053Unit Cost$88430Required:1. Calculate the total recorded cost of ending inventory before any adjustments.2. Calculate ending inventory using the lower of cost and net realizable value.Unit NRV$1033703. Record any necessary adjusting entry for inventory.4. Determine the impact of the adjusting entry in the financial statements.Complete this question by enteringyour answers in the tabs below.RevenuesAssetsRequired 1 Required 2 Required 3Explain the impact of the adjusting entry in the financial statements. (Amounts to be deducted should be entered with minus sign.)Income Statement:Required 4Balance Sheet:PreyExpensesLiabilities1 of 5Next >Net IncomeStockholders)Equity Problem 6-2B (Algo) Calculate ending inventory, cost of goods sold, sales revenue, and gross profit forfour inventory methods (LO6-3, 6-4, 6-5)Bobby's Tennis Shop has the following transactions related to its top-selling Wilson tennis racket for the month of August. Bobby'sTennis Shop uses a periodic inventory system.DateAugust 1August 4August 11August 13August 20August 261August 29TransactionsBeginning inventorySale ($210 each)Purchase.Sale ($225 each)PurchaseSale ($235 each)PurchaseUnita510.101111Unit Cost$157147137127Total Cost$1,2561,4701,3701,397$5,493For the specific identification method, the August 4 sale consists of rackets from beginning inventory, the August 13 sale consists ofrackets from the August 11 purchase, and the August 26 sale consists of one racket from beginning inventory and 10 rackets from theAugust 20 purchaseRequired:1. Calculate ending inventory and cost of goods sold at August 31, using the specific identification method.2. Using FIFO, calculate ending inventory and cost of goods sold at August 31.3. Using LIFO, calculate ending inventory and cost of goods sold at August 31.4. Using weighted-average cost, calculate ending inventory and cost of goods sold at August 31.5. Calculate sales revenue and gross profit under each of the four methods.6. Comparing FIFO and LIFO, which one provides the more meaningful measure of ending inventory?7. If Bobby's chooses to report inventory using LIFO, record the LIFO adjustment.

Hi studentSince there are multiple questions, we will answer only first question.Inventory is one of…

Exercise b-13 (Aigo) Calculate inventory using lower of cost and net realizable value (LUb-b) Down Home Furnishings reports inventory using the lower of cost and net realizable value (NRV). Below is information related to its year-end inventory. Inventory Furniture Electronien Quantity 230 53 Unit Cost $88 430 Required: 1. Calculate the total recorded cost of ending inventory before any adjustments. 2. Calculate ending inventory using the lower of cost and net realizable value. 3. Record any necessary adjusting entry for inventory. 4. Determine the impact of the adjusting entry in the financial statements. Complete this question by entering your answers in the tabs below. Revenues Unit NRV $103 370 Required 1 Required 2 Required 3 Required 4 Explain the impact of the adjusting entry in the financial statements. (Amounts to be deducted should be entered with minus sign.) Income Statement: Assets Balance Sheet: Prev Expenses Liabilities 1 of 5 Next > Net Income Stockholders Equity

Exercise b-13 (Aigo) Calculate inventory using lower of cost and net realizable value (LUb-b) Down Home Furnishings reports inventory using the lower of cost and net realizable value (NRV). Below is information related to its year-end inventory. Inventory Furniture Electronien Quantity 230 53 Unit Cost $88 430 Required: 1. Calculate the total recorded cost of ending inventory before any adjustments. 2. Calculate ending inventory using the lower of cost and net realizable value. 3. Record any necessary adjusting entry for inventory. 4. Determine the impact of the adjusting entry in the financial statements. Complete this question by entering your answers in the tabs below. Revenues Unit NRV $103 370 Required 1 Required 2 Required 3 Required 4 Explain the impact of the adjusting entry in the financial statements. (Amounts to be deducted should be entered with minus sign.) Income Statement: Assets Balance Sheet: Prev Expenses Liabilities 1 of 5 Next > Net Income Stockholders Equity

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter6: Cost Of Goods Sold And Inventory

Section: Chapter Questions

Problem 63E: ( Appendix 6B) Inventory Costing Methods: Periodic Inventory System The inventory accounting records...

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Calculate a) cost of goods sold, b) ending inventory, and c) gross margin for A76 Company, considering the following transactions under three different cost allocation methods and using perpetual inventory updating. Provide calculations for first-in, first-out (FIFO).
Use the last-in, first-out method (LIFO) cost allocation method, with perpetual inventory updating, to calculate (a) sales revenue, (b) cost of goods sold, and c) gross margin for B75 Company, considering the following transactions.
Use the last-in, first-out (LIFO) cost allocation method, with perpetual inventory updating, to calculate (a) sales revenue, (b) cost of goods sold, and c) gross margin for A75 Company, considering the following transactions.
Calculate the cost of goods sold dollar value for A74 Company for the sale on March 11, considering the following transactions under three different cost allocation methods and using perpetual inventory updating. Provide calculations for (a) first-in, first-out (FIFO); (b) last-in, first-out (LIFO); and (c) weighted average (AVG).
Use the weighted-average (AVG) cost allocation method, with perpetual inventory updating, to calculate (a) sales revenue, (b) cost of goods sold, and c) gross margin for A75 Company, considering the following transactions.
Inventory Costing: Average Cost Refer to the information for Filimonov Inc. and assume that the company uses a perpetual inventory system. Required: Calculate the cost of goods sold and the cost of ending inventory using the average cost method. ( Note: Use four decimal places for per-unit calculations and round all other numbers to the nearest dollar.)
Retail Inventory Method The following information relates to the retail inventory method used by Jeffress Company: Required: 1. Compute the ending inventory by the retail inventory method using the following cost flow' assumptions (round the cost-to-retail ratio to 3 decimal places): a. FIFO b. average cost c. LIFO d. lower of cost or market (based on average cost) 2. Next Level What assumptions are necessary for the retail inventory method to produce accurate estimates of ending inventory?
Perpetual and Periodic Inventory Systems Below is a list of inventory systems options. a. Perpetual inventory system b. Periodic inventory system c. Both perpetual and periodic inventory systems Required: Match each option with one of the following: 1. Only revenue is recorded as sales are made during the period; the cost of goods sold is recorded at the end of the period. 2. Cost of goods sold is determined as each sale is made. 3. Inventory purchases are recorded in an inventory account. 4. Inventory purchases are recorded in a purchases account. 5. Cost of goods sold is determined only at the end of the period by subtracting the cost of ending inventory from the cost of goods available for sale. 6. Both revenue and cost of goods sold are recorded during the period as sales are made. 7. The inventory is verified by a physical count.
Uncle Butchs Hunting Supply Shop reports the following information related to inventory: Calculate Uncle Butchs ending inventory using the retail inventory method under the FIFO cost flow assumption. Round the cost-to-retail ratio to 3 decimal places.
( Appendix 6B) Inventory Costing Methods: Periodic LIFO Refer to the information for Filimonov Inc. (p. 337) and assume that the company uses a periodic inventory system. Required: Calculate the cost of goods sold and the cost of ending inventory using the LIFO inventory costing method.
( Appendix 6B) Inventory Costing Methods: Periodic Inventory System The inventory accounting records for Lee Enterprises contained the following data: Required: 1. Calculate the cost of ending inventory and the cost of goods sold using the FIFO, LIFO, and average cost methods. ( Note: Use four decimal places for per-unit calculations and round all other numbers to the nearest dollar.) 2. CONCEPTUAL CONNECTION Compare the ending inventory and cost of goods sold computed under all three methods. What can you conclude about the effects of the inventory costing methods on the balance sheet and the income statement?
Perpetual inventory using LIFO Assume that the business in Exercise 6-3 maintains a perpetual inventory system, costing by the last-in, first-out method. Determine the cost of goods sold for each sale and the inventory balance after each sale, presenting the data in the form illustrated in Exhibit 4.