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

Discussion questions 1 and 2dq 1accounting cyclefinancial

Discussion Questions 1 and 2 DQ #1:Accounting Cycle Financial statements are a product of the accounting cycle. Think about two different companies: a manufacturing company, and a retail company. Why would different comp ...

Kent cpa is a staff auditor participating in the audit

Kent, CPA is a staff auditor participating in the audit engagement of Fort, Inc. Based upon each of the circumstances below, indicate whether or not Kent's actions impair his independence. Explain your response for each ...

Focus of the final paperyouve just been hired onto abc

Focus of the Final Paper You've just been hired onto ABC Company as the corporate controller. ABC Company is a manufacturing firm that specializes in making cedar roofing and siding shingles. The company currently has an ...

Vaughn company reports the following financial information

Vaughn Company reports the following financial information before adjustments.   Dr. Cr. Accounts Receivable $155,400 Allowance for Doubtful Accounts   $3,890 Sales Revenue (all on credit)   800,700 Sales Returns and All ...

Project - case 1davis dry goods distributes silk ties you

Project - Case 1 Davis Dry Goods distributes silk ties. You are in charge of creating Davis' master budget for the upcoming second quarter, April - June 2015. Davis desires a minimum ending cash balance each month of $11 ...

Accounting systems and assurance assessment internal

Accounting Systems and Assurance Assessment: Internal Control and information quality Accounting students learn how to process, analyse and use accounting information. It is also necessary to learn what contributes to th ...

Question 1the collection on an account within the 110 n30

Question 1 The collection on an account within the 1/10 n/30 discount period was recorded using a 10% discount rather than a 1% discount in both the controlling and subsidiary accounts. This error will cause the A. the n ...

Please see the list of stock from a virtual game that

Please see the list of stock from a virtual game that student invested during the period Sep 2016- Dec 2016. The returns are shown as well. Please use this information to write a report 2-4 pages about the project. Your ...

Term paperfirmsteamsanadarko petroleumadams michaelaellis

Term Paper Firms Teams Anadarko Petroleum Adams, Michaela Ellis, Tatiana Jenkins, Jordan Samuel, Brittany Cheniere Energy Amaefule, Frankie Fields, Brittanie Johnson, Brandon Small, Devin Chevron Corporation Brown, Tori ...

Problem 1 mat Problem 1 Mat. Date Rate(%) 1/15/2017 0.5 4/15/2017 0.6 7/15/2017 0.75

Problem 1 Mat. Date Rate(%) 1/15/2017 0.5 4/15/2017 0.6 7/15/2017 0.75 10/15/2017 1.0 1/15/2018 1.25 4/15/2018 1.5 7/15/2018 1.75 10/15/2018 2.0 1/15/2019 2.1 4/15/2019 2.2 7/15/2019 2.3 10/15/2019 2.4 Table 1: Continuou ...

  • 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