Accounting Average cost method, lifo, fifo.?
Number of units, Unit Cost Begining Inventory January 1st 90 $315 Purchases: April 110 $320 August 120 $325 October 95 $327 Ending inventory, December 31 90 Compute the cost of the ending inventory under (1) the average cost method, (2) the FIFO method, and (3) the LIFO method. (Round your intermediate calculations and final answers to 2 decimal places. Omit the "$" sign in your response.) 1. Average Cost Method ____________________ 2.FIFO Method___________________________- 3. LIFO Method_____________________________- Any help would be great thanks!
Accounting, FIFO and LIFO help?
a) FIFO Under FIFO, ending inventory consists of the most recently purchased units. Of the 19 units remaining in inventory, 14 came from the Nov. 23 purchase, and 5 came from the July 7 purchase. Ending inventory (FIFO) 14 @ 54 = . . .756 5 @ 52 . = . . .260 - - - - - - - - - - - - - - - Total , , ,= $ 1,016 --------- b) LIFO Under LIFO, ending inventory consists of the oldest purchases. Of the 19 units remaining in inventory, 9 came from the Jan 1 inventory, and 10 came from the July 7 purchase. Ending Inventory (LIFO) 9 @ 50 . = . . 450 10 @ 52 = . . 520 - - - - - - - - - - - - - - - Total . . .= . $ 970 -------- c) Average cost per unit = ( $ 2,038 / 39 ) = $ 52.256 Ending inventory (average cost method) = ( 19 x $ 52.256 ) = $ 992.86
Accounting Help - FIFO,LIFO, and Average Cost.?
I'd no longer be surprised in any respect in case you have been to get answers helping the 2 specific strategies. There is some thing to be stated for either. Usually although--and i might obviously like to listen to the argument hostile--buck fee averaging is generally an procedure supported by way of proponents of a typical monthly form contribution. I suppose it would make some sense in that context for individuals who should not have the capable cash to invest. However quite often equity values are likely to over the long run consistantly broaden in worth as a rule. And that's specifically actual of mutual money listed or now not. There certainly are exceptions to that as occurred to detailed mutual money and index funds from 2000 to 2003 and it is going to happen again. Maybe even this and next 12 months. I have no idea precisely what you could have in intellect through the time period. However i'll have this to assert. I would not invest it all into mutual dollars presently. But i would put a good percentage in. After all you do need to get the abilities of the long term development. You would reasonably make investments 25% now, 25% in 6 months, 15% in twelve months and 15% in 18 months. The other 20% will have to in my opinion stay within the money market account. Form of a protection valve. Additionally i might warning you about puting all of it into index funds. I know that they are very general today however there are some dangers to them that you must significantly don't forget. One is that some, above all the five hundred index fund, usually are not very varied. 25% of your belongings are invested in about 20 shares. The other 75% within the other 450. Additionally that specified fund is all usaequities. That also is not diversified. Forefront has a more diversifed fund that is not an index fund that you just must give consideration to. It is the international equity Fund. Only 35% of that fund is invested in americaequities.
FIFO, LIFO, and average cost method?
(a) We have a beginning inventory of $480 (16 units * $30 per unit). We purchase 30 units at $33 each, which comes out to $990. Then we make another purchase of 45 units at $37 each, which comes out to $1,665. Our total inventory before selling anything is $480 + $990 + $1,665 = $3,135. If there are 17 units left, that means we sold everything but the last 17 units under the FIFO method. So, we sold 16 units at $30 each ($480). We sold 30 units at $33 each ($990). Finally, we sold 28 units at $37 each ($1,036). That means the cost of goods sold was $480 + $990 + $1,036 = $2,506. But if all you're looking for is the ending inventory cost, then under the FIFO method, you just take 17 units from the last purchase, multiply it by $37 each, and the answer is $629 worth of ending inventory. (b) If it's LIFO, your ending inventory will be your first 17 units. That is 16 units at $30 each ($480) plus 1 unit for $33. This comes out to $513 worth of ending inventory under the LIFO method. (c) We've determined that we already have $3,135 of total inventory before selling anything. We also have 91 units overall. If we're going to take an average of things, we must take our total inventory and divide it by the number of units we have. $3,135 divided by 91 units = $34.45 per unit. If we have only 17 units left in our ending inventory, that means $34.45 * 17 units = $585.65 of ending inventory.
FIFO and LIFO help? please! Accounting101?
Okay I just had this test in my accounting 101 course and I made an A so I'll be a very reliable source for you, FIFO (First In First Out), LIFO (Last In First Out), Average Cost(Total number of units/ Cost of goods available for sale) First we have to determine cost of goods available for sale, you do that by adding up all of the total cost of your inventory purchase, that is $39,100 FIFO (First In First Out) Method= Feb 15 - 200x $2.90 = $580 Apr 30 - 3,500x$2.80 = $9800 July 15 -2,800x$2.70 = $7560 Nov 30 - 2,500x$2.60=+$6500 Ending Inventory = $24440 To determine cost of goods sold you subtract cost of goods available for sale to your ending inventory amount you started, so that's $39,100-24,440 = $14,660 LIFO (Last In First Out) Method BI - 2,200x$3.00=$6,600 Feb 15- 3,000x$2.90=$8,700 Apr 30- 3,500x$2.80=$9,800 July 15- 300x$2.70= +$ 810 Ending Inventory = $25910 $39,100 (BI) - $25910 (EI) = $13190 Cost of goods sold To determine average cost you add up all of your units available for sale (2,200+3,000+3,500+2,800+2,500) and you come up with 14,000 units available for sale and then you divide it by cost of cools available for sale, so it'll look like this. $39,100/ 14,000= $2.80 per unit To determine cost of goods sold you times your average cost by the units you have left, that's 9000x 2.80= $25,200 Cost of good sold Do determine ending inventory, times units available for sale by 5,000 and times that by 2.80 and you get $14,000 Holy crap that took me a long time, lol, I hope this helps
Accounting - LIFO Questions?
Hi. Yes, you're correct LIFO is "last-in, first-out". It is an iventory valuation method. 1. LIFO reduces profit since it assigns the most recent cost to your ending inventory. If your ending inventory cost is high, then it follows that your profit is relatively increased. Inflation is already incorporated in the current prices and it makes the prices of inventory go up. And since your inventory carries the current costs then the profit that you may generate out of selling these inventories is more or less realistic as compared with costing your inventory using historical acquisition costs. 2. Yes, there is deferral of income taxes since your income is generated largely by inflationary prices. The amount of tax being deferred (deferred income tax) is the difference between the historical cost and the current cost multiplied by the tax rate. LIFO, however, is currently not allowed under IAS/IFRS since it creates a "phantom" income.
I need help with FIFO LIFO Accounting Homework?
Please try your best. Thanks. Problem One: VanderMeer Inc. reported the following information for the month of February: Inventory, February 1 ........ 65 Units @ $20 Purchases: February 7 .......... 50 Units @ $22 February 18 ......... 60 Units @ $23 February 27 ........ 45 Units @ $24 During February, VanderMeer sold 140 Units. The Company uses a periodic inventory system. What is the value of ending inventory and cost of goods sold for February under the following assumptions: (Round answers to the nearest dollar.) FIFO: LIFO: Weighted Average: Problem Two: Bitten company's inventory records show 600 units on hand on October 1 with a unit cost of $5 each. The following transactions occured during the month of October: October 4 ..... Unit Sales of 500 @ $10.00 October 8 ..... Unit Purchases of 800 @ $5.40 October 9 ....... Unit Sales of 700 @ $10.00 October 18 ...... Unit Purchases of 700 @ $5.76 October 20 ...... Unit Sales of 800 @ $11.00 October 29 ...... Unit Purchases of 800 @ $5.90 All expenses other than cost of goods sold amounted to $3,000 for the month. The company uses an estimated tax rate of 30% to accrue monthly income taxes. Required: Prepare a chart comparing cost of goods sold and ending inventory using the periodic system and the following costing methods: Weighted Average: For COGS (Seperate Number); Ending Inv. (Seperate Number); Total (Seperate Number) FIFO: Same format as above LIFO: Same Format as above Prepare income statements for each of the three methods. Fill in the amounts for the selected income statement items under each of the inventory costing systems. Gross Profit: Weighted Average Number; FIFO Number; LIFO Number Income B4 Taxes: Wgt. Avg. Number; FIFO #; LIFO # Income Tax Expense: Wgt. Avg. Number; FIFO #; LIFO # Net Income: Wgt. Avg. #; FIFO #; LIFO # Thank you...you can ignore the instructions for preparing an income statements for each of the three methods and you can ignore preparing a chart. By the way the total column represents cost of goods available for sale.
These are all the inventory accounting methods. The choice of inventory method would not be much of an issue if inventory unit cost remained relatively constant from period to period. But because inventory unit costs typically change from period to period , the choice of inventory method does in fact matter to company.The FIFO method assumes that companies sell their oldest purchased inventory units first before selling the next oldest purchased inventory units and so on.The LIFO method assumes that companies sell their most recently purchased inventory units first before selling the next most recently purchased inventory units and so on.Under the average cost method , inventory value and inventory cost recognition are determined by using a average mix of the actual costs incurred for all inventory items available for sale.
FIFO and LIFO accounting?
jeffersons copy center uses laser printers. assume jefferson started the year with 92 containers of ink (average cost of 9.00$ each, FIFO cost of 8.90$ each, LIFO, cost of 8.05$ each). during the year, jefferson purchased 680 containers of ink at 9.80$ and sold 580 units for 20.25$ each. jefferson paid operating expenses throughout the year, a total of 3,750$. jefferson is not subject to income tax. i need to calculate J's net income for the current year ended december 31, under the average, fifo and lifo inventory costing methods answer should be like: net income:___________ fifo:_______________ lifo:______________ average:____________ thank you very much in advance and if you have any helpful sites, it could be helpful together with how you got the answers! thanks in advance