Question 1 - Calculate cost of goods sold
At the beginning of the year, Bryers Incorporated reports inventory of $6,300. During the year, the company purchases additional inventory for $21,300. At the end of the year, the cost of inventory remaining is $8,300. Calculate cost of goods sold for the year.
Question 2 - Calculate amounts related to the multiple-step income statement
For each company, calculate the missing amount.
|
Company
|
Sales Revenue
|
Cost of Goods Sold
|
Gross Profit
|
Overrating Expenses
|
Net Income
|
|
Lennon
|
$16,400
|
|
$7,200
|
$3,100
|
$4,100
|
|
Harrison
|
17,600
|
10,200
|
|
5,200
|
2,200
|
|
McCartney
|
11,400
|
8,200
|
3,200
|
|
1,100
|
|
Starr
|
14,400
|
5,200
|
9,200
|
6,100
|
|
Question 3 - Calculate ending inventory and cost of goods sold using FIFO
During the year, Wright Company sells 400 remote-control airplanes for $110 each. The company has the following inventory purchase transactions for the year.
|
Date
|
Transaction
|
Number of Units
|
Unit Cost
|
Total Cost
|
|
Jan. 1
|
Beginning inventory
|
60
|
$73
|
$4,380
|
|
May 5
|
Purchase
|
205
|
76
|
15,580
|
|
Nov. 3
|
Purchase
|
155
|
81
|
12,555
|
|
|
|
420
|
|
$32,515
|
Calculate ending inventory and cost of goods sold for the year, assuming the company uses FIFO.
Question 4 - Calculate ending inventory and cost of goods sold using LIFO
During the year, Wright Company sells 475 remote-control airplanes for $120 each. The company has the following inventory purchase transactions for the year.
|
Date
|
Transaction
|
Number of Units
|
Unit Cost
|
Total Cost
|
|
Jan. 1
|
Beginning inventory
|
40
|
$71
|
$2,840
|
|
May 5
|
Purchase
|
255
|
74
|
18,870
|
|
Nov. 3
|
Purchase
|
205
|
79
|
16,195
|
|
|
|
500
|
|
$37,905
|
Calculate ending inventory and cost of goods sold for the year, assuming the company uses LIFO.
Question 5 - Calculate ending inventory and cost of goods sold using specific identification
During the year, Wright Company sells 480 remote-control airplanes for $100 each. The company has the following inventory purchase transactions for the year.
|
Date
|
Transaction
|
Number of Units
|
Unit Cost
|
Total Cost
|
|
Jan. 1
|
Beginning inventory
|
50
|
$70
|
$3,500
|
|
May 5
|
Purchase
|
260
|
73
|
18,980
|
|
Nov. 3
|
Purchase
|
210
|
78
|
16,380
|
|
|
|
520
|
|
$38,860
|
Calculate ending inventory and cost of goods sold for the year, assuming the company uses specific identification. Actual sales by the company include its entire beginning inventory, 230 units of inventory from the May 5 purchase, and 200 units from the November 3 purchase.