The following information for Dorado Corporation relates to the three-month period ending September 30. Units Price...
The following information for Dorado Corporation relates to the three-month period ending September 30.
| Units | Price per Unit | |||||
| Sales | 500,000 | $ | 51 | |||
| Beginning inventory | 50,000 | 33 | ||||
| Purchases | 475,000 | 39 | ||||
| Ending inventory | 25,000 | ? | ||||
Dorado expects to purchase 225,000 units of inventory in the fourth quarter of the current calendar year at a cost of $40 per unit, and to have on hand 75,000 units of inventory at year-end. Dorado uses the last-in, first-out (LIFO) method to account for inventory costs.
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Determine the cost of goods sold and gross profit amounts Dorado should record for the three months ending September 30.
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Prepare journal entries to reflect these amounts.
Homework Answers
The expectation of purchase of
the goods in the fourth quarter and inventory is not to be
considered for the third quarter i.e thee month ending September
30.
Add Answer to:
The following information for Dorado Corporation relates to the
three-month period ending September 30.
Units
Price...
The following information for Dorado Corporation relates to the three-month period ending September 30. Units Price...
The following information for Dorado Corporation relates to the three-month period ending September 30. Units Price per Unit Sales 445,000 $ 40 Beginning inventory 39,000 22 Purchases 420,000 28 Ending inventory 14,000 ? Dorado expects to purchase 170,000 units of inventory in the fourth quarter of the current calendar year at a cost of $29 per unit, and to have on hand 53,000 units of inventory at year-end. Dorado uses the last-in, first-out (LIFO) method to account for inventory costs....
The following information for Dorado Corporation relates to the three-month period ending September 30. Units Price...
The following information for Dorado Corporation relates to the three-month period ending September 30. Units Price per Unit Sales 515,000 $ 54 Beginning inventory 53,000 36 Purchases 490,000 42 Ending inventory 28,000 ? Dorado expects to purchase 240,000 units of inventory in the fourth quarter of the current calendar year at a cost of $43 per unit, and to have on hand 81,000 units of inventory at year-end. Dorado uses the last-in, first-out (LIFO) method to account for inventory costs....
The following information for Urbanski Corporation relates to the three months ending June 30, 2018: Units...
The following information for Urbanski Corporation relates to the three months ending June 30, 2018: Units Price per unit Beginning inventory 11,000 $ 10 Purchases 75,000 $ 16 Sales 80,000 $ 25 Ending inventory 6,000 Urbanski uses the LIFO method to account for inventory, and expects at least 15,000 units to be on hand in the ending inventory at year-end. Purchases made in the last six months are expected to cost an average of $18 per unit. Compute cost of...
Question 4 (30%) Bean Company reports the following for the month of September. Explanation Units Unit...
Question 4 (30%) Bean Company reports the following for the month of September. Explanation Units Unit Cost Total Cost Inventory 12 Purchase 23 Purchase 30 Inventory 225 525 750 280 $1,125 3,150 5,250 Sept 1 7 Instructions: (a) Compute the cost of the ending in ventory and the cost of goods sold under (1) FIFO. (2) LIFO, and (3) average cost Why? inventory and cost of goods sold for FIFO and LIFO? (b) Which costing method gives the highest ending...
Shellhammer Company's inventory records show the following data for the month of September: Units Unit Cost...
Shellhammer Company's inventory records show the following data
for the month of September:
Units
Unit Cost
Inventory,
September 1
100
$3.34
Purchases:
September 8
450
3.50
September 18
350
3.70
A physical inventory on September 30 shows 200 units on hand.
Calculate the value of ending inventory and cost of goods sold if
the company uses LIFO inventory costing and a periodic inventory
system.
Ending inventory
$
Cost of goods sold
$
Bramble Company's inventory records show the following data for the month of September: Units Unit Cost...
Bramble Company's inventory records show the following data for
the month of September:
Units
Unit Cost
Inventory,
September 1
100
$2.85
Purchases:
September 8
440
3.50
September 18
300
4.00
A physical inventory on September 30 shows 160 units on hand.
Calculate the value of ending inventory and cost of goods sold if
the company uses LIFO inventory costing and a periodic inventory
system.
Ending inventory
$enter a value of ending inventory in dollars
Cost of goods sold
$enter a...
Bridgeport Company's inventory records show the following data for the month of September: Units Unit Cost...
Bridgeport Company's inventory records show the following data for the month of September: Units Unit Cost Inventory, September 1 90 $2.85 Purchases: September 8 460 $3.50 September 18 300 $3.90 A physical inventory on September 30 shows 160 units on hand. Calculate the value of ending inventory and cost of goods sold if the company uses LIFO inventory costing and a periodic inventory system. Ending inventory: $ enter a value of ending inventory in dollars Cost of goods sold: $...
Clare purchases a single product for $15 and sells it for $30. Forecasted sales for the...
Clare purchases a single product for $15 and sells it for $30. Forecasted sales for the next three months are July 4,000 units, August 6,000 units, September 7,500 units. Clare's policy is to have an ending inventory of 40 % of the next month's sales needs on hand. July 1 inventory is projected to be 1,500 units. What are budgeted purchases in units for August? Multiple Cholce 10,400 units 6,600 units 5,400 units 600 units Parker Corp., which operates on...
Required information [The following information applies to the questions displayed below.] Beech Corporation is a merchandising...
Required information
[The following information applies to the questions
displayed below.]
Beech Corporation is a merchandising company that is preparing a
master budget for the third quarter of the calendar year. The
company’s balance sheet as of June 30th is shown below:
Beech Corporation
Balance Sheet
June 30
Assets
Cash
$
73,000
Accounts receivable
125,000
Inventory
56,000
Plant and equipment, net of depreciation
221,000
Total assets
$
475,000
Liabilities and Stockholders’
Equity
Accounts payable
$
82,000
Common stock
309,000
Retained...
Tremont, Inc. sells tire rims. Its sales budget for the nine months ended September 30, 2018,...
Tremont, Inc. sells tire rims. Its sales budget for the nine months ended September 30, 2018, and additional information follow: Quarter Ended Nine-Month March 31 June 30 September 30 Total Cash sales, 20% $20,000 $30,000 $25,000 $75,000 Credit sales, 80% 80,000 120,000 100,000 300,000 Total sales $100,000 $150,000 $125,000 $375,000 Prepare an inventory, purchases, and cost of goods sold budget for each of the first three quarters of the year. Compute cost of goods sold for the entire nine-month...
Question 4 (30%) Bean Company reports the following for the month of September. Explanation Units Unit Cost Total Cost Inventory 12 Purchase 23 Purchase 30 Inventory 225 525 750 280 $1,125 3,150 5,250 Sept 1 7 Instructions: (a) Compute the cost of the ending in ventory and the cost of goods sold under (1) FIFO. (2) LIFO, and (3) average cost Why? inventory and cost of goods sold for FIFO and LIFO? (b) Which costing method gives the highest ending...
Shellhammer Company's inventory records show the following data
for the month of September:
Units
Unit Cost
Inventory,
September 1
100
$3.34
Purchases:
September 8
450
3.50
September 18
350
3.70
A physical inventory on September 30 shows 200 units on hand.
Calculate the value of ending inventory and cost of goods sold if
the company uses LIFO inventory costing and a periodic inventory
system.
Ending inventory
$
Cost of goods sold
$
Bramble Company's inventory records show the following data for
the month of September:
Units
Unit Cost
Inventory,
September 1
100
$2.85
Purchases:
September 8
440
3.50
September 18
300
4.00
A physical inventory on September 30 shows 160 units on hand.
Calculate the value of ending inventory and cost of goods sold if
the company uses LIFO inventory costing and a periodic inventory
system.
Ending inventory
$enter a value of ending inventory in dollars
Cost of goods sold
$enter a...
Clare purchases a single product for $15 and sells it for $30. Forecasted sales for the next three months are July 4,000 units, August 6,000 units, September 7,500 units. Clare's policy is to have an ending inventory of 40 % of the next month's sales needs on hand. July 1 inventory is projected to be 1,500 units. What are budgeted purchases in units for August? Multiple Cholce 10,400 units 6,600 units 5,400 units 600 units Parker Corp., which operates on...
Required information
[The following information applies to the questions
displayed below.]
Beech Corporation is a merchandising company that is preparing a
master budget for the third quarter of the calendar year. The
company’s balance sheet as of June 30th is shown below:
Beech Corporation
Balance Sheet
June 30
Assets
Cash
$
73,000
Accounts receivable
125,000
Inventory
56,000
Plant and equipment, net of depreciation
221,000
Total assets
$
475,000
Liabilities and Stockholders’
Equity
Accounts payable
$
82,000
Common stock
309,000
Retained...
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