Yount Company reports the following for the month of June Yount uses periodic in
ID: 2450606 • Letter: Y
Question
Yount Company reports the following for the month of June
Yount uses periodic inventory system.
Calculate
LIFO EB
and
LIFO COGS
Suppose this company uses
average cost system (periodic). Round the average unit cost to two decimal points. The company found that if it replaces 350 units on June 30, it will cost $26 per unit. According to Lower-of-Cost-or-Market method, ending balance should be?
Show your work clearly.
Lebo Hardware reported the cost of goods sold as follows:
Lebo made one error - purchase made on December 31, 2009 ($2,500) is not
recorded, and not counted in ending inventory. What is correct cost of goods sold in 2009?
Show your work clearly.
At December 31, 2007, Braddock Company had a credit balance of $200 in
the Allowance for Doubtful Accounts. During 2008, Braddock wrote off accounts
totaling $300. One of those accounts ($50
) was later collected.
The ledger of Braddock Company at the end of 2008 shows that Sales, $1,500
and Sales discount of $100. And among net sales, 60% is credit net sales.
Bad
debt expense
is expected to 3% of
credit net sales
. What is ending balance of
allowance for doubtful accounts after you record bad debt expense?
Show your
work clearly.
On January 1, 2006, the Vasquez Company ledger shows Equipment $41,000
and Accumulated Depreciation $14,000. The depreciation resulted from using
the straight-line method with a useful life of 10 years and salvage value of
$1,000. On this date, the company concludes that its
useful life is only 7
years
with the new salvage value of $3,000.
Determine the revised annual dpereciation for year 2006
Beka Company owns equipment that cost $50,240 in 2007. It has been
depreciated using the straight-line method based on estimated salvage value
of $3,470 and an estimated useful life of 5 years. As of January 1, 2011, the
accumulated depreciation related to the equipment is $32,739. It sold the
equipment on
June 1, 2011
for $8,670. Determine the gains or losses from the
sale of the equipment.
Show your work clearly.
Date Explanation Units Unit Cost 6/1 Inventory 200 23 6/12 Purchases 250 25 6/23 Purchases 300 27 6/30 Inventory 350Explanation / Answer
LIFO
Cost of goods available for sale 750 units = $18,950
Ending inventory 350 @23 = 8,050
COGS = $10,950
According to LCM ending balance should be $8050( 350 @23)
LEBO
This means ending inventory is understated hence COGS are higher than actual that is overstated
hence COGS = $172,100 - $2500 = $169,600
3( Allowance
Estimated bad debts = 3% of net credit sales = $25.20
net sales = $1500 - $100 = $1400
Credit sales = 1400 @ 60% = $840
hence debit balance of $24.80
4) Depreciation expense = 41,000 - 1000/ 10 = $4000
cost today $41,000 - 14000 = $27,000
Dep = Cost - new salavage value / total life - years passed
= $27,000 -3000/ ( 7 - 3.5)
=$5333
5)Dep for the year = $50,240 - 3470 /5 = $9354
Deprecation for the half year = $4677
Total depreciation = $32,739 + $4677 = $37,416
Inventory 200 @23 $4600 6/1 purchase 250 @25 $6250 6/23 purchase 300 @27 $8,100 Total 750 units $18,950Related Questions
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