Home » Need Help on Accounting Homework course scholar

Need Help on Accounting Homework course scholar

Exercise 6-4 Income effects of inventory methods L.O. A1

Save Time On Research and Writing
Hire a Pro to Write You a 100% Plagiarism-Free Paper.
Get My Paper
Park Company reported the following March purchases and sales data for its only product.

  

Date Activities Units Acquired at Cost Units Sold at Retail
  Mar. 1   Beginning inventory   150  units  @ $7.00 = $ 1,050          
  Mar. 10   Sales                 90  units @$15  
  Mar. 20   Purchase   220  units  @ $6.00 =   1,320          
  Mar. 25   Sales                 145  units @$15  
  Mar. 30   Purchase   90  units  @ $5.00 =   450          
           

   

 

   
          Totals   460  units     $ 2,820   235  units    
           



   



 



   

  

Park uses a perpetual inventory system. For specific identification, ending inventory consists of 225 units, where 90 are from the March 30 purchase, 80 are from the March 20 purchase, and 55 are from beginning inventory.

  

Save Time On Research and Writing
Hire a Pro to Write You a 100% Plagiarism-Free Paper.
Get My Paper
1.

Complete comparative income statements for the month of March for Park Company for the four inventory methods. Assume expenses are $1,600, and that the applicable income tax rate is 30%.(Round per unit costs to three decimal places. Round your answers to the nearest dollar amounts. Input all amounts as positive values. Omit the “$” sign in your response.)

  

PARK COMPANY
Income Statements
For Month Ended March 31
  Specific
Identification
Weighted
Average
FIFO LIFO
  Sales

Problem 6-1A Part 1

Required:
1.

Compute cost of goods available for sale and the number of units available for sale. (Omit the “$” sign in your response.)

  

     
  Cost of goods available for sale

Problem 6-1A Part 2

2. Compute the number of units in ending inventory.
  Ending inventory

Problem 6-1A Part 3

3.

Compute the cost assigned to ending inventory using (a) FIFO, (b) LIFO, (c) weighted average, and (d)specific identification. For specific identification, the March 9 sale consisted of 40 units from beginning inventory and 170 units from the March 5 purchase; the March 29 sale consisted of 20 units from the March 18 purchase and 60 units from the March 25 purchase. (Due to rounding, the sum of Cost of Goods Sold and Ending inventory may not equal the Cost of Good available for sales. Round your weighted average cost to 3 decimal places. Round your final answers to nearest whole dollar amount. Omit the “$” sign in your response.)

  

    Ending
Inventory
(a) FIFO

Problem 6-1A Part 4

4.

Compute gross profit earned by the company for each of the four costing methods. (Round your per unit costs to 3 decimal places and inventory balances and final answer to the nearest dollar amount. Omit the “$” sign in your response.)

   

  Gross profit
  FIFO

Problem 6-5AA Part 1

Required:
1. Compute the number and total cost of the units available for sale in year 2011. (Omit the “$” sign in your response.)

 

     
  Number of units available for sale

Problem 6-5AA Part 2

2.

Compute the amounts assigned to the 2011 ending inventory and the cost of goods sold. (Input all amounts as positive values. Round per unit costs to 3 decimal places. Round your final answers to the nearest dollar amount. Omit the “$” sign in your response.)

 

(a) FIFO periodic
   
  Total cost of units available for sale $ [removed]  
  Less ending inventory on a FIFO basis [removed]  
 
  Cost of units sold $ [removed]  
 


 

(b) LIFO periodic
   
  Total cost of units available for sale $ [removed]  
  Less ending inventory on a LIFO basis [removed]  
 
  Cost of units sold $ [removed]  
 


 

(c) Weighted average periodic
   
  Total cost of units available for sale $ [removed]  
  Less ending inventory on a weighted average [removed]  
 
  Cost of units sold $ [removed]  
 


    • 7 years ago


    • 15

    Answer(1)

    Purchase the answer to view it

    NOT RATED


      Bids(1)










      Place your order
      (550 words)

      Approximate price: $22

      Calculate the price of your order

      550 words
      We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
      Total price:
      $26
      The price is based on these factors:
      Academic level
      Number of pages
      Urgency
      Basic features
      • Free title page and bibliography
      • Unlimited revisions
      • Plagiarism-free guarantee
      • Money-back guarantee
      • 24/7 support
      On-demand options
      • Writer’s samples
      • Part-by-part delivery
      • Overnight delivery
      • Copies of used sources
      • Expert Proofreading
      Paper format
      • 275 words per page
      • 12 pt Arial/Times New Roman
      • Double line spacing
      • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

      Our guarantees

      Delivering a high-quality product at a reasonable price is not enough anymore.
      That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

      Money-back guarantee

      You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

      Read more

      Zero-plagiarism guarantee

      Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

      Read more

      Free-revision policy

      Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

      Read more

      Privacy policy

      Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

      Read more

      Fair-cooperation guarantee

      By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

      Read more
      Live Chat+1 763 309 4299EmailWhatsApp

      We Can Handle your Online Class from as low as$100 per week