Compute the cost of the ending inventory

Assignment Help Financial Accounting
Reference no: EM132471703

Problem - The following information is available for Gumbel Company:

Beginning inventory 600 units at $4

First purchase 900 units at $5

Second purchase 500 units at $6

Assume that Gumbel uses a periodic inventory system and that there are 700 units left at the end of the month.

Required -

1. Compute the cost of the ending inventory under the

(a) FIFO method.

(b) LIFO method.

2. Using the information above, compute each of the following under the average cost method:

(a) Cost of the ending inventory.

(b) Cost of goods sold.

Reference no: EM132471703

Questions Cloud

What is the total amount of indirect manufacturing cost : If 7,000 units are produced, the total amount of indirect manufacturing cost incurred is closest to acc to Kesterson Corporation has provided
Compute annual depreciation for the first and second years : Duncan Company purchased a machine at a cost of $60,000. Compute annual depreciation for the first and second years using Straight-line method
What new developments beginning the 1980s : Keynesian and classical economics: what new developments beginning the 1980s have changed macroeconomics thought?
What is the optimal investment that maximizes npv : Consumer A has access to a perfect capital market with interest rate r=0.15 (15%) per period. She has the opportunity to purchase a private asset for price P
Compute the cost of the ending inventory : Assume that Gumbel uses a periodic inventory system and that there are 700 units left at the end of the month. Compute the cost of the ending inventory
Calculate pablo equity in net loss : Prepare working paper to consolidate the trial balances of Pablo and Stabfoot. Label you eliminating entries (C) (I) (E) (R) (O) and (N)
Equilibrium price and quantity of grasslands : Calculate the equilibrium price and quantity of grasslands before the subsidy.
Suppose a union is established in one market : Consider an economy with two labour markets, neither of which is unionized. Now suppose a union is established in one market, (use a diagram)
Prepare the journal entries to record the transactions : Oct. 14 Paid Lang Bicycle Company in full, less discount. Prepare journal entries to record transactions, assuming company uses a perpetual inventory system

Reviews

Write a Review

Financial Accounting Questions & Answers

  Using the double declining balance method

Williams Corporation purchases a machine at a cost of $100,000 on January 1, 2015. The machine has a useful life of 5 years and a salvage value of $25,000 at the end of the fifth year. Williams using the double declining balance method to depreciate ..

  The following data relate to genmet a us based consumer

the following data relate to genmet a u.s. based consumer goods manufacturing firm for the fiscal year ending 31st

  Sunk cost associated with this decision situation

In early July, Mike Gottfried purchased a $70 ticket to the December 15 game of the Chicago Titans. (The Titans belong to the Midwest Football League and play their games outdoors on the shore of Lake Michigan.) Parking for the game was expected to c..

  The pros and cons in business law regarding capital gains

Discuss your understanding of how distributive justice affects a healthcare organization. explain how the restaurant industry innovates without any serious government support. What are the pros and cons in business law regarding capital gains?

  Prepare a multiple step income statement

Prepare a multiple step income statement. The company has 300,000 shares outstanding and a federal tax rate of 30%.

  Explain the basic formats of financial statements

Explain the basic formats of financial statements, such as income statement, balance sheet, statement of cash flows, and statement for retained earnings.

  Show the statement of net assets

Prepare journal entries in good form to record the foregoing transactions for the year ended June 30, 2011 and prepare a statement of net assets for the year ended June 30, 2011.

  Calculate the magnitude of operating leverage

The following income statement was drawn from the records of Butler Company, a merchandising firm: BUTLER COMPANY Income Statement For the Year Ended December 31, 2014 Sales revenue (5,000 units × $162) $ 810,000. Reconstruct the income statement usi..

  Presented below are the closing entries for lee college a

presented below are the closing entries for lee college a private not-for-profit for the year ended december 31

  Record the conversions using the book value method

On January 1, 2014, Gottlieb Corporation issued $4,450,000 of 10-year, 9% convertible debentures at 102. Interest is to be paid semiannually on June 30 and December 31. Each $1,000 debenture can be converted into 9 shares of Gottlieb Corporation $103..

  Use the minus sign to indicate cash outflows-cash payments

Staley Inc. reported the following data: Net income $280,000 Depreciation expense 48,000 Loss on disposal of equipment 19,520 Increase in accounts receivable 17,280 Increase in accounts payable 8,960. Use the minus sign to indicate cash outflows, cas..

  Make the appropriate journal entries-yearend adjustments

On Jan 1, 2009 XYZ Co purchased 12,000 shares of ABC Co for $15 a share. ABC has 100,000 shares outstanding. ABC reported net income of $60,000 and paid dividends of $5,000. On Dec 31, 2009 ABC had a market value of $17 a share. XYZ accounts for this..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd