## Answers

Solution

(a)

Under FIFO Method, the valuation would be as follows,

Date | Particulars | Purchase/Sales | Balance | ||||||

Units | Rate | Cost Value | Selling Rate | Sales Value | Units | Rate | Value | ||

Jun-01 | Opening Balance | 5000 | $ 21.00 | $ 1,05,000.00 | |||||

Jun-08 | Sales | 1500 | $ 21.00 | $ 31,500.00 | $ 45.00 | $ 67,500.00 | -1500 | $ 21.00 | $ -31,500.00 |

3500 | $ 21.00 | $ 73,500.00 | |||||||

Jun-10 | Sales | 2000 | $ 21.00 | $ 42,000.00 | $ 50.00 | $ 1,00,000.00 | -2000 | $ 21.00 | $ -42,000.00 |

1500 | $ 21.00 | $ 31,500.00 | |||||||

Jun-14 | Purchases | 1000 | $ 25.00 | $ 25,000.00 | 1000 | $ 25.00 | $ 25,000.00 | ||

2500 | $ - | $ 56,500.00 | |||||||

Jun-24 | Purchases | 1000 | $ 22.00 | $ 22,000.00 | 1000 | $ 22.00 | $ 22,000.00 | ||

3500 | $ - | $ 78,500.00 | |||||||

Jun-29 | Sales | 3000 | (1500 x $ 21.00) | $ 31,500.00 | |||||

(1000 x $ 25.00) | $ 25,000.00 | ||||||||

(500 x $ 22.00) | $ 11,000.00 | ||||||||

$ 67,500.00 | $ 52.00 | $ 1,56,000.00 | -3000 | $ - | $ -67,500.00 | ||||

Closing Balance | 500 | $ - | $ 11,000.00 |

Therefore,

Closing Balance of Inventory (500 units) = $ 11,000.00

and, Cost of Goods Sold = $ (31,500 + 42,000 + 67,500) = $ 141,000

Under LIFO Basis,

Date | Particulars | Purchase/Sales | Balance | ||||||

Units | Rate | Cost Value | Selling Rate | Sales Value | Units | Rate | Value | ||

Jun-01 | Opening Balance | 5000 | $ 21.00 | $ 1,05,000.00 | |||||

Jun-08 | Sales | 1500 | $ 21.00 | $ 31,500.00 | $ 45.00 | $ 67,500.00 | -1500 | $ 21.00 | $ -31,500.00 |

3500 | $ 21.00 | $ 73,500.00 | |||||||

Jun-10 | Sales | 2000 | $ 21.00 | $ 42,000.00 | $ 50.00 | $ 1,00,000.00 | -2000 | $ 21.00 | $ -42,000.00 |

1500 | $ 21.00 | $ 31,500.00 | |||||||

Jun-14 | Purchases | 1000 | $ 25.00 | $ 25,000.00 | 1000 | $ 25.00 | $ 25,000.00 | ||

2500 | $ - | $ 56,500.00 | |||||||

Jun-24 | Purchases | 1000 | $ 22.00 | $ 22,000.00 | 1000 | $ 22.00 | $ 22,000.00 | ||

3500 | $ - | $ 78,500.00 | |||||||

Jun-29 | Sales | 3000 | (1000 X $ 22.00) | $ 22,000.00 | |||||

(1000 x $ 25.00) | $ 25,000.00 | ||||||||

(1000 x $ 21.00) | $ 21,000.00 | ||||||||

$ 68,000.00 | $ 52.00 | $ 1,56,000.00 | -3000 | $ - | $ -68,000.00 | ||||

Closing Balance | 500 | $ - | $ 10,500.00 |

Therefore,

Closing Balance of Inventory (500 units) = $ 10,500.00

and, Cost of Goods Sold = $ (31,500 + 42,000 + 68,000) = $ 141,500

(b)

Assuming the sales made for cash under LIFO basis,

Cash A/c .................... Dr. 156,000

To, Sales A/c 156,000

Sales A/c ................... Dr. 156,000

To, Cost of Goods Sold A/c 68,000

To, Profit and Loss A/c

(156,000 - 141,500) 14,500

Sales Tax A/c .............

Dr.

(156,000 x 5%) 7,800

To, Cash A/c 7,800

Profit and Loss A/c ..... Dr. 7,800

To, Sales Tax A/c 7,800

#### Similar Solved Questions

1 answer

##### A solution of alcohol contains 40 ml of acetone in 460 ml of water . calculate the concentration of the solution?

A solution of alcohol contains 40 ml of acetone in 460 ml of water . calculate the concentration of the solution?...

1 answer

##### QUESTION 11 Consider the following information: ni=100, xl=60, n2 100, and X2 = 40, The statistics...

QUESTION 11 Consider the following information: ni=100, xl=60, n2 100, and X2 = 40, The statistics analyst wants to know if there is evidence of a significant differences between the two population proportions? Which one of the following statements is incorrect? 1. p0.60 and p2 0.40 2. The pooled pr...

1 answer

##### QUESTION 5 Which of the following statements regarding electrons, shielding, and Zeff are true? O Core...

QUESTION 5 Which of the following statements regarding electrons, shielding, and Zeff are true? O Core electrons shield valence electrons, lowering the Zeff experienced by the valence electrons. Valence electrons shield core electrons, lowering the Zeff experienced by the valence electrons O Core el...

1 answer

##### In order to win a prize, Heather randomly draws two balls from a basket of 40....

In order to win a prize, Heather randomly draws two balls from a basket of 40. There are 25 blue balls, and the rest are green balls. Of the blue balls, 12% are winning balls. Of the green balls, 20% are winning balls. Calculate the expected number of winning balls that Heather draws. A 0.16 B 0.20 ...

1 answer

##### Amber Company produces iron table and chair sets. During October, Amber's costs were as follows: Actual...

Amber Company produces iron table and chair sets. During October, Amber's costs were as follows: Actual purchase price Actual direct labor rate Standard purchase price Standard quantity for sets produced Standard direct labor hours allowed Actual quantity purchased in October Actual direct labor...

1 answer

##### How did railroads influence the growth of western territories?

How did railroads influence the growth of western territories?...

1 answer

##### Claim: The mean pulse rate (in beats per minute) of adult males is equal to 69...

Claim: The mean pulse rate (in beats per minute) of adult males is equal to 69 bpm. For a random sample of 148 adult males, the mean pulse rate is 67.9 bpm and the standard deviation is 10.6 bpm. Find the value of the test statistic. The value of the test statistic is...

1 answer

##### During December, Rainey Equipment made a $634,000 credit sale. The state sales tax rate is 6%...

During December, Rainey Equipment made a $634,000 credit sale. The state sales tax rate is 6% and the local sales tax rate is 1.5%. Prepare the appropriate journal entry. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View tr...

1 answer

##### An annuity with a cash value of $13,500 earns 7% compounded semi-annually. End-of-period semi-annual payments are...

An annuity with a cash value of $13,500 earns 7% compounded semi-annually. End-of-period semi-annual payments are deferred for 7 years, and then continue for 8 years. How much is the amount of each payment? Answer: Each payment is $ _1806.86___ NOTE*: i would like to know how to get to that answer t...

1 answer

##### Help plz asap c) true statement (5) about basal ables) involuntary activities hody composition (e. muscle...

help plz asap c) true statement (5) about basal ables) involuntary activities hody composition (e. muscle Which of the following is a (ar) it supports enables it is influenced by bed ir increases with age bok Secrets of Feeding Her as she prepares for her son w althy Family. Which of the follow ...

1 answer

##### Please answer exercise questions 2 & 7 and explain how you got the answers. 132 Homework...

Please answer exercise questions 2 & 7 and explain how you got the answers. 132 Homework 3 Due Tuesday January 29 (if possible...) Read sections 10-1 through 10-5. Chapter 10 Questions: 2, Exercise 2: A circular suction cup with a radius of 4.50cm has one atmosphere pushing down on one side, a ...

1 answer

##### 9.Synthesize the transfer function 100 Vn (s) s2 +100s +10 using the circuit below. Let Yı...

9.Synthesize the transfer function 100 Vn (s) s2 +100s +10 using the circuit below. Let Yı = 1/R, , Y,-1/R, , Y,-sC, , Y,-sC2 . choose R.-I k Ω and determine C1 , C2 , and R2 Yi Y....

1 answer

##### .6.29. Show that the following pairs of sets have the same cardinality. a) Integers divisible by...

.6.29. Show that the following pairs of sets have the same cardinality. a) Integers divisible by 3, and the even positive integers (b) R, and the interval (0, oo). (c) The interval [0,2), and the set [5,6)U7,8) (d) The intervals (-oo,-1) and (-1,0)...

1 answer

##### Use the sample data and confidence level given below to complete parts a through d. A...

Use the sample data and confidence level given below to complete parts a through d. A research institute poll asked respondents if they felt vulnerable to identity theft. In the poll, n=1069 and x=557 who said yes. Use a 99% confidecne level. A. find the best point of estimate of the population of p...