Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Accounting Basics Expert

Determine the amounts for COGS on the income statement and the ending inventory (at cost) on the balance sheet given the following inventory purchase and sale information of Orange Corporation. Assume a perpetual inventory system.

Beginning Inventory 100 units @ $30
2/10/13 Purchase 200 units @ $35
4/15/13 Purchase 300 units @ $40
6/18/13 Purchase 250 units @ $45
9/22/13 Purchase 125 units @ $50

Sales:

3/1/13 Sale 250 units
4/30/13 Sale 100 units
8/2/13 Sale 325 units

1) Determine COGS and Ending Inventory (at cost) under FIFO perpetual
2) Determine COGS and Ending Inventory (at cost) under LIFO perpetual
3) Determine COGS and Ending Inventory (at cost) under Moving Average

Extra Problems (Using the information above):

1) Assume Orange Corporation uses FIFO perpetual for internal accounting purposes throughout the year, but reports using LIFO perpetual for external reporting. Assume a zero ($0) balance in the Allowance to reduce inventory to LIFO at the beginning of the year. What is the journal entry needed to establish the LIFO reserve for Orange Corporation?

2) Assuming Orange Corporation reports using perpetual LIFO, apply the Lower of Cost or Market (LCM) rules to determine what value Orange Corporation should report in its 12/31/13 financial statements for ending inventory. Replacement costs for the inventory at 12/31/13 are $11,000; the projected selling price for the inventory on hand at 12/31/13 is $15,000 with estimated selling related costs of $2,000. Orange Corporation estimates a 10% gross profit percentage on sales.

Hint: find out the following values and then apply the LCM rules to determine the value that should be reported for ending inventory on Orange Corporation's 12/31/13 balance sheet:

 

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M947329

Have any Question? 


Related Questions in Accounting Basics

Garner company began operations on january 1 2010 and uses

Garner Company began operations on January 1, 2010, and uses the average cost method of pricing inventory. Management is contemplating a change in inventory methods for 2013. The following information is available for th ...

Ginos restaurant is a popular restaurant in boston

Gino's Restaurant is a popular restaurant in Boston, Massachusetts. The owner of the restaurant has been trying to better understand costs at the restaurant and has hired a student intern to conduct an activity-based cos ...

Maher inc reported income from continuing operations before

Maher Inc. reported income from continuing operations before taxes during2014 of $790,000. $790,000 Additional transactions occurring in 2014 but not considered in the $790,000 are as follows. 1. The corporation experien ...

Assignment managerial accountingbackgroundperformance

Assignment: Managerial Accounting Background: Performance Drinks, LLC is owned by Dave N. Port. Performance Drinks produces a variety of sports centered drinks. They began operations in 1993 shortly after Mr. Port gradua ...

Gasbvisit the website of the governmental accounting

G.A.S.B Visit the website of the Governmental Accounting Standards Board (G.A.S.B.) at http://gasb.org. Review the website to learn about the organization, its act ivies, and its goals. Review one or more of the "Plain-L ...

This assignment will assess the following learning

This assignment will assess the following learning outcomes: - Demonstrate the impact on the financial statements and the implication for different users of accounts of alternative ways of treating controversial accounti ...

On the cash dividends become a liability of a

On the ________, cash dividends become a liability of a corporation. declaration date date of record end of the fiscal year payment date ________ are equity securities in which the investor owns 20% or more, but less tha ...

Develop a powerpoint presentation that answers the

Develop a PowerPoint presentation that answers the following questions: Prepare a financial analysis of Warehouse Distribution, Inc.(I will upload the income statements for Warehouse Distribution), comparing the firm's f ...

Construct a time series plot what type of pattern exists in

Construct a time series plot. What type of pattern exists in the data? Quarter Year 1 Year 2 Year 3 1 923 1112 1243 2 1056 1156 1301 3 1124 1124 1254 4 992 1078 1198 Use a multiple regression model with dummy variables a ...

Discussionpart 1 please respond the following question no

Discussion PART 1 PLEASE RESPOND THE FOLLOWING QUESTION NO LESS THEN 350 WORDS (ORIGINAL WORK, NO PLAGIARISM, 1 Reference "Negative Cash Flow" Please respond to the following: • Assess how the free cash-flow method can b ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro

Describe what you learned about the impact of economic

Describe what you learned about the impact of economic, social, and demographic trends affecting the US labor environmen