Homework Answers
| a) 1) | FIRST IN FIRST OUT METHOD | ||||||
| Date | Purchases | Purchase return | Cost of goods sold | sales return (cost) | balance | ||
| Jan-01 | Beginning inventory | 100U*$14 = $1400 | |||||
| Jan-05 | 150U * $17 = $2550 | 100U * $14 = $1400 | |||||
| 150U * $17 = $2550 | |||||||
| Jan-08 | 110 UNITS | ||||||
| 100U * $14 = $1400 | |||||||
| 10U * $17 = $170 | 140U * $17 = $2380 | ||||||
| Jan-10 | 10 UNITS | ||||||
| 10U * $17 = $170 | 150U * $17 = $2550 | ||||||
| Jan-15 | 55U * $19 = $1045 | 150U * $17 = $2550 | |||||
| 55U *$19 = $1045 | |||||||
| Jan-16 | 5U * $19 = $95 | 150U * $17 = $2550 | |||||
| 50U * $19 = $950 | |||||||
| Jan-20 | 80 UNITS | ||||||
| 80U * $17 = $1360 | 70U* $17 = $1190 | ||||||
| 50U * $19 = $950 | |||||||
| Jan-25 | 30U * $22 = $660 | 70U* $17 = $1190 | ENDING INVENTORY | ||||
| 50U * $19 = $950 | ENDING INVENTORY | ||||||
| 30U * $22 = $660 | ENDING INVENTORY | ||||||
| TOTAL UNITS PURCHASED = 230 UNITS ( EXCLUDING RETURN UNITS ) | |||||||
| TOTAL PURCHASE COSTS = $ 3860 ( EXCLUDING RETURN ) | |||||||
| TOTAL UNITS SOLD = 180 UNITS ( EXCLUDING RETURN UNITS ) | |||||||
| COGS = $2760 ( EXCLUDING RETURN ) | |||||||
| CALCULATION OF GROSS PROFIT | |||||||
| SALE | COGS | GP= SALE - COGS | |||||
| 100U*$28 = 2800 | 100U * $14 = $1400 | $1400 | |||||
| 80U*$32= $2560 | 80U * $17 = $1360 | $1200 | |||||
| $2600 | |||||||
| a)2) | AVERAGE COST METHOD | ||||||
| DATE | PURCHASE | PURCHASE RETURN | COGS | SALE RETURN | INVENTORY BALANCE | AVERAGE COST | |
| Jan-01 | Beginning inventory | 100u*$14=$1400 | $14 | ||||
| Jan-05 | 150U*$17=$2550 | 250U =$3950 | $15.8 (3950/250) | ||||
| Jan-08 | 110U*$15.8=1738 | 140U = $ 2212 | $15.8 (2212/140) | ||||
| Jan-10 | 10U*$15.8=158 | 150U=$2370 | $15.8 (2370/150) | ||||
| Jan-15 | 55U*$19=$1045 | 205 U = $3415 | $16.66(3415/205) | ||||
| Jan-16 | 5U*$19=$95 | 200U= 3320 | $16.6 (3320/200) | ||||
| Jan-20 | 80U *16.6=$1328 | 120U=$1992 | $16.6(1992/120) | ||||
| Jan-25 | 30U*$22=$660 | 150U=$2652 | $17.68(2652/150) | ||||
| COGS = 1738-158+1328 = | $2908 | ||||||
| ENDING INVENTORY | 150U*$17.68=$2652 | ||||||
| GROSS PROFIT = SALES - COGS | |||||||
| SALES : | 100U*$28 = 2800 | ||||||
| 80U*$32= $2560 | 5360-2908 = | 2452 |
b)COMPARISON:
COGS is higher in average cost method as compared to FIFO method.
The gross profit from FIFO method is higher than Average method due the less cost of goods sold.
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0 Required information The following selected account balances are provided for Delray Mfg. Sales Raw materials...
0 Required information The following selected account balances are provided for Delray Mfg. Sales Raw materials inventory, Dec. 31, 2016 Work in process inventory, Dec. 31, 2016 Finished goods inventory, Dec. 31, 2016 Raw materials purchases Direct labor Factory computer supplies used Indirect labor Repairs-Factory equipment Rent cost of factory building Advertising expense General and administrative expenses Raw materials inventory, Dec. 31, 2017 Work in process inventory, Dec. 31, 2017 Finished goods inventory, Dec. 31, 2017 $ 1,367,000 44,000 57,600...
Required information The following selected account balances are provided for Delray Mfg. Sales $ 1,250,000 Raw...
Required information
The following selected
account balances are provided for Delray Mfg.
Sales
$
1,250,000
Raw materials
inventory, Dec. 31, 2016
37,000
Work in process
inventory, Dec. 31, 2016
53,900
Finished goods
inventory, Dec. 31, 2016
62,750
Raw materials
purchases
175,600
Direct
labor
225,000
Factory computer
supplies used
17,840
Indirect
labor
47,000
Repairs—Factory
equipment
5,250
Rent cost of
factory building
57,000
Advertising
expense
94,000
General and
administrative expenses
129,300
Raw materials
inventory, Dec. 31, 2017
42,700
Work in process
inventory,...
Required information The following selected account balances are provided for Delray Mfg. Sales Raw materials inventory,...
Required information The following selected account balances are provided for Delray Mfg. Sales Raw materials inventory, Dec. 31, 2016 Work in process inventory, Dec. 31, 2016 Finished goods inventory, Dec. 31, 2016 Raw materials purchases Direct labor Factory computer supplies used Indirect labor Repairs-Factory equipment Rent cost of factony building Advertising expense General and administrative expenses Raw materials inventory, Dec- 31, 2017 Work in process inventory, Dec. 31, 2017 Finished goods inventory, Dec. 31, 2017 1,028,000 37,000 54,600 61,900 193,400...
Required information The following selected account balances are provided for Delray Mfg. Sales Raw materials inventory,...
Required information The following selected account balances are provided for Delray Mfg. Sales Raw materials inventory, Dec. 31, 2016 Work in process inventory, Dec. 31, 2016 Finished goods inventory, Dec. 31, 2016 Raw materials purchases Direct labor Factory computer supplies used Indirect labor Repairs-Factory equipment Rent cost of factory building Advertising expense General and administrative expenses Raw materials inventory, Dec. 31, 2017 Work in process inventory, Dec. 31, 2017 Finished goods inventory, Dec. 31, 2017 $ 1,297,000 36,000 50,800 67,600...
A company reports the following beginning inventory and two purchases for the month of January. On...
A company reports the following beginning inventory and two purchases for the month of January. On January 26, the company sells 260 units Ending Inventory at January 31 totals 120 units. Inventory on January 1 Purchase on January 9 Purchase on January 25 Units Unit Cost 230 $ 2.10 2.30 Required: Assume the perpetual inventory system is used. Determine the costs assigned to ending inventory when costs are assigned based on the FIFO method Perpetual FIFO: Goods purchased Cost per...
! ! Required information The following selected account balances are provided for Delray Mfg. Sales Raw...
! ! Required information The following selected account balances are provided for Delray Mfg. Sales Raw materials inventory, Dec. 31, 2016 Work in process inventory, Dec. 31, 2016 Finished goods inventory, Dec. 31, 2016 Raw materials purchases Direct labor Factory computer supplies used Indirect labor Repairs-Factory equipment Rent cost of factory building Advertising expense General and administrative expenses Raw materials inventory, Dec. 31, 2017 Work in process inventory, Dec. 31, 2017 Finished goods inventory, Dec. 31, 2017 $ 1,367,000 44,000...
16 Required information The following selected account balances are provided for Delray Mfg. Sales $1,302,000 Raw...
16
Required information The following selected account balances are provided for Delray Mfg. Sales $1,302,000 Raw materials inventory, Dec. 31, 2016 41,000 Work in process inventory, Dec. 31, 55,900 2016 Finished goods inventory, Dec. 31, 2016 60,300 Raw materials purchases 160,200 Direct labor 238,000 Factory computer supplies used 18,300 Indirect labor 53,000 Repairs-Factory equipment 5,250 Rent cost of factory building 59,000 Advertising expense 84,000 General and administrative expenses 143,000 Raw materials inventory, Dec. 31, 2017 47,600 Work in process inventory,...
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Jed Berhad is a manufacturer of Product A and provides the following information for their budgeting purpose. You as an accountant is needed to prepare the budgets for top management review and planning: The opening bank balance was at unfavorable situation of RM 164,000. The company have the plan to produce the following number of unit corresponding with month and year Aug 33,200 Sept 37.400 2019 Oct 41.600 Nov 44,000 Dec 48,000 Jan Feb 52,000 51.200 2020 Apr 42.800 Mar...
Use the following information for the Exercises below. The following selected account balances are provided for Delray Mfg. Sales Raw materials inventory, Dec. 31, 2016 Work in process inventory, Dec. 31, 2016 Finished goods inventory, Dec. 31, 2016 Raw materials purchases Direct labor Factory computer supplies used Indirect labor Repairs-Factory equipment Rent cost of factory building Advertising expense General and administrative expenses Raw materials inventory, Dec. 31, 2017 Work in process inventory, Dec. 31, 2017 Finished goods inventory, Dec. 31,...
0 Required information The following selected account balances are provided for Delray Mfg. Sales Raw materials inventory, Dec. 31, 2016 Work in process inventory, Dec. 31, 2016 Finished goods inventory, Dec. 31, 2016 Raw materials purchases Direct labor Factory computer supplies used Indirect labor Repairs-Factory equipment Rent cost of factory building Advertising expense General and administrative expenses Raw materials inventory, Dec. 31, 2017 Work in process inventory, Dec. 31, 2017 Finished goods inventory, Dec. 31, 2017 $ 1,367,000 44,000 57,600...
Required information
The following selected
account balances are provided for Delray Mfg.
Sales
$
1,250,000
Raw materials
inventory, Dec. 31, 2016
37,000
Work in process
inventory, Dec. 31, 2016
53,900
Finished goods
inventory, Dec. 31, 2016
62,750
Raw materials
purchases
175,600
Direct
labor
225,000
Factory computer
supplies used
17,840
Indirect
labor
47,000
Repairs—Factory
equipment
5,250
Rent cost of
factory building
57,000
Advertising
expense
94,000
General and
administrative expenses
129,300
Raw materials
inventory, Dec. 31, 2017
42,700
Work in process
inventory,...
Required information The following selected account balances are provided for Delray Mfg. Sales Raw materials inventory, Dec. 31, 2016 Work in process inventory, Dec. 31, 2016 Finished goods inventory, Dec. 31, 2016 Raw materials purchases Direct labor Factory computer supplies used Indirect labor Repairs-Factory equipment Rent cost of factony building Advertising expense General and administrative expenses Raw materials inventory, Dec- 31, 2017 Work in process inventory, Dec. 31, 2017 Finished goods inventory, Dec. 31, 2017 1,028,000 37,000 54,600 61,900 193,400...
Required information The following selected account balances are provided for Delray Mfg. Sales Raw materials inventory, Dec. 31, 2016 Work in process inventory, Dec. 31, 2016 Finished goods inventory, Dec. 31, 2016 Raw materials purchases Direct labor Factory computer supplies used Indirect labor Repairs-Factory equipment Rent cost of factory building Advertising expense General and administrative expenses Raw materials inventory, Dec. 31, 2017 Work in process inventory, Dec. 31, 2017 Finished goods inventory, Dec. 31, 2017 $ 1,297,000 36,000 50,800 67,600...
A company reports the following beginning inventory and two purchases for the month of January. On January 26, the company sells 260 units Ending Inventory at January 31 totals 120 units. Inventory on January 1 Purchase on January 9 Purchase on January 25 Units Unit Cost 230 $ 2.10 2.30 Required: Assume the perpetual inventory system is used. Determine the costs assigned to ending inventory when costs are assigned based on the FIFO method Perpetual FIFO: Goods purchased Cost per...
! ! Required information The following selected account balances are provided for Delray Mfg. Sales Raw materials inventory, Dec. 31, 2016 Work in process inventory, Dec. 31, 2016 Finished goods inventory, Dec. 31, 2016 Raw materials purchases Direct labor Factory computer supplies used Indirect labor Repairs-Factory equipment Rent cost of factory building Advertising expense General and administrative expenses Raw materials inventory, Dec. 31, 2017 Work in process inventory, Dec. 31, 2017 Finished goods inventory, Dec. 31, 2017 $ 1,367,000 44,000...
16
Required information The following selected account balances are provided for Delray Mfg. Sales $1,302,000 Raw materials inventory, Dec. 31, 2016 41,000 Work in process inventory, Dec. 31, 55,900 2016 Finished goods inventory, Dec. 31, 2016 60,300 Raw materials purchases 160,200 Direct labor 238,000 Factory computer supplies used 18,300 Indirect labor 53,000 Repairs-Factory equipment 5,250 Rent cost of factory building 59,000 Advertising expense 84,000 General and administrative expenses 143,000 Raw materials inventory, Dec. 31, 2017 47,600 Work in process inventory,...
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