Business, 29.10.2020 16:40 ladybugys

Sales during December were 500 units. The cost of inventory at December 31, Year 1 under the FIFO method would be closest to:

Answers: 3

Show answers

Answers

Answer from: jay9251

b. $104,000

Explanation:

Note: This question is not complete. The complete question is therefore provided before answering the question as follows:

The Loyd Company had 150 units of product Omega on hand at December 1, Year 1, costing $400 each. Purchases of product Omega during December were as follows:

Date Units Unit Cost

December 7 100 $440

December 14 200 $460

December 29 300 $500

Sales during December were 500 units on December 30. Assume that a perpetual inventory system is used. The cost of inventory at December 31, Year 1, under the LIFO method would be:

a. $100,000

b. $104,000

c. $75,000

d. $125,000

The explanation to the answer is now provided as follows:

The Last In First Out (LIFO) refers to an inventory accounting method in which inventory items purchased last are sold first while the ones purchased first are sold last.

Based on the explanation above, the 300 units of inventory purchased on December 29 is sold first followed by the 200 units of inventory purchased on December 14. This gives 500 units of inventory that were sold. That is,

Units of inventory sold = Units of inventory purchased on December 29 + Units of inventory purchased on December 14 = 300 + 200 = 500 units

Inventory remaining unsold at December 31, Year 1 are the 150 units of product Omega on hand at December 1 and the 100 units purchased on December 7. The addition of the costs of these items give the cost of inventory at December 31, Year 1 under LIFO as follows:

Cost of inventory at December 31 = (Units of product Omega on hand at December 1 * Cost per unit of units of product Omega on hand at December 1) + (Units purchased on December 7 * Cost per unit of units purchased on December 7)

Cost of inventory at December 31 = (150 * $400) + (100 * $440)

Cost of inventory at December 31 = $60,000 + $44,000

Cost of inventory at December 31 = $104,000

Therefore, the correct option is b. $104,000.

Answer from: Quest

what types of rivers

Answer from: Quest

explanation:

Another question on Business

Business, 22.06.2019 03:30

He aldermanalderman company has prepared a sales budget of 42 comma 00042,000 finished units for a 3-month period. the company has an inventory of 10 comma 00010,000 units of finished goods on hand at december 31 and has a target finished goods inventory of 11 comma 00011,000 units at the end of the succeeding quarter. it takes 44 gallons of direct materials to make one unit of finished product. the company has inventory of 64 comma 00064,000 gallons of direct materials at december 31 and has a target ending inventory of 53 comma 00053,000 gallons at the end of the succeeding quarter. how many gallons of direct materials should aldermanalderman company purchase during the 3 months ending march 31? select the labels and enter the amounts to calculate the direct materials (gallons) to be purchased.

Answers: 3

Answer

Business, 22.06.2019 04:30

Required prepare the necessary adjusting entries in the general journal as of december 31, assuming the following: on september 1, the company entered into a prepaid equipment maintenance contract. birch company paid $3,400 to cover maintenance service for six months, beginning september 1. the payment was debited to prepaid maintenance. supplies on hand at december 31 are $3,900. unearned commission fees at december 31 are $7,000. commission fees earned but not yet billed at december 31 are $3,500. (note: debit fees receivable.) birch company's lease calls for rent of $1,600 per month payable on the first of each month, plus an annual amount equal to 1% of annual commissions earned. this additional rent is payable on january 10 of the following year. (note: be sure to use the adjusted amount of commissions earned in computing the additional rent.)

Answers: 1

Answer

Business, 22.06.2019 19:00

Consider the following information on stocks a, b, c and their returns (in decimals) in each state: state prob. of state a b c boom 20% 0.27 0.22 0.16 good 45% 0.16 0.09 0.07 poor 25% 0.03 0 0.03 bust 10% -0.08 -0.04 -0.02 if your portfolio is invested 25% in a, 40% in b, and 35% in c, what is the standard deviation of the portfolio in percent? answer to two decimals, carry intermediate calcs. to at least four decimals.

Answers: 2

Answer

Business, 22.06.2019 21:20

Label each of the following statements true, false, or uncertain. explain your choice carefully. a. workers benefit equally from the process of creative destruction. b. in the past two decades, the real wages of low-skill u.s. workers have declined relative to the real wages of high-skill workers. c. technological progress leads to a decrease in employment if, and only if, the increase in output is smaller than the increase in productivity. d. the apparent decrease in the natural rate of unemployment in the united states in the second-half of the 1990s can be explained by the fact that productivity growth was unexpectedly high during that period.

Answers: 3

Answer

You know the right answer?

Sales during December were 500 units. The cost of inventory at December 31, Year 1 under the FIFO me...

Questions