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Required Information (The following information applies to the questions displayed below.) During the year, TRC Corporation...

Question:
Required Information (The following information applies to the questions displayed below.) During the year, TRC Corporation h
Required Information (The following information applies to the questions displayed below.) During the year, TRC Corporation h
Required Information [The following information applies to the questions displayed below.) During the year, TRC Corporation h
12 Chapter 6 Cost flow #1(3.5 pts) READ HINTS 0 Required Information (The following information applies to the questions disp
Required Information (The following information applies to the questions displayed below.) During the year, TRC Corporation has the following Inventory transactions Part 1 of 4 Number of Unit Cont s 33 Date Transaction Jan. 1 Beginning inventory Apr. 7 Purchase Jul.16 Purchase Oct. 6 Purchase Total Cost 1.353 4,235 7.258 3.939 $16,785 points For the entire year, the company sells 410 units of Inventory for $51 each. Required: 1. Using FIFO, calculate ending Inventory, cost of goods sold, sales revenue, and gross profit. FIFO Cost of Goods Sold Ending Inventory Cost of Goods Available for Sale Cost of of units Cost per Goods unit Available for Sale 413 33 1.353 of units Cost per Cost of Goods Sold # of units Cost 0 Ending per unit Inventory unit 4 15 33 $ 1.353 41 $ 33 $ 1,353 20 5 35 700 Beginning inventory Purchases: Apt.7 Jul.16 Oct Total 121S 1915 1017 S 454 35 38 39 S 4.235. 101 7.258 191 3,939 101 16,785393 S $ $ 35 38 39 3,535 7.258 3,939 16,085 $ S 2.053 Sales revenue Gross profit $ S 4,141 20.910
Required Information (The following information applies to the questions displayed below.) During the year, TRC Corporation has the following Inventory transactions. Number of Units Unit Cost Total cost $ 1.353 Date Transaction Jan. 1 Beginning inventory Apr. 7 Purchase Jul.16 Purchase Oct. 6 Purchase 235 3.939 $16.785 For the entire year, the company sells 410 units of Inventory for $51 each. 2. Using LIFO, calculate ending Inventory, cost of goods sold, sales revenue, and gross profit. LIFO Cost of Goods Available for Sale Cost of Goods Sold Ending Inventory # of units cost per unit Cost of Goods Available for Sale Cost of # of units cost per Goods unit Sold of units per unit Inventory Cost Ending Beginning Inventory Purchases Apr 07 Jul 16 Oct 06 Sales revenue Gross profit
Required Information [The following information applies to the questions displayed below.) During the year, TRC Corporation has the following Inventory transactions. Number of Un Unit Total Cost 01 $ 33 Date Transaction JAN. 1 Beginning inventory Apr. 7 Purchase Jul.16 Purchase Oet. Purchase 121 191 $16.785 For the entire year, the company sells 410 units of Inventory for $51 each. 3. Using weighted average cost, calculate ending Inventory, cost of goods sold, sales revenue, and gross profit. (Round "Average Cost per unit" to 4 decimal places and all other answers to the nearest whole number) Cost of Goods Available for Sale Cost of Goods Sold - Weighted Average Cost Ending Inventory - Weighted Average Cost Weighted Average Cost of units cost of Goods elable for Sale Cost per unit of units Sald Cost of Cost per Unit Goods Sold # of units in Ending Inventory Cost per unit Ending Inventory 41 S 1,369 Beginning Inventory Purchases Apr Oy 121 4235 7.258 3.030) 16.785 454 S Sales revenue Gross profit
12 Chapter 6 Cost flow #1(3.5 pts) READ HINTS 0 Required Information (The following information applies to the questions displayed below.) During the year, TRC Corporation has the following Inventory transactions. Number of Units Unte Cost $33 121 Date Transaction Jan. 1 Beginning inventory Apr. 7 Purchase Jul.16 Purchase Oct. 6 Purchase Total Cost $ 1,353 4,235 7.258 3.939 $16,785 101 454 For the entire year, the company sells 410 units of Inventory for $51 each 4. Determine which method will result in higher profitability when Inventory costs are rising. Multiple Choice 0 Weighted-average 0 0
Business Accounting
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Answers

1 FIFO Cost of goods available for sale Cost of goods sold Ending Inventory
# of units    (A) Cost per unit Cost of goods available for sale # of units sold               (B) Cost per unit Cost of goods sold # of units in ending inventory      (A) - (B) Cost per unit Ending Inventory
Beginning Inventory                  41 $              33 $        1,353                  41 $              33 $        1,353                   -   $              33 $               -  
Purchases:
Apr-07                121 $              35 $        4,235                121 $              35 $        4,235                   -   $              35 $               -  
Jul-16                191 $              38 $        7,258                191 $              38 $        7,258                   -   $              38 $               -  
Oct-06                101 $              39 $        3,939                  57 $              39 $        2,223                  44 $              39 $        1,716
               454 $     16,785                410 $     15,069                  44 $        1,716
Sales revenue = $     20,910
(410 X $51)
Gross Profit = $        5,841
($20910 - $15069)
2 LIFO Cost of goods available for sale Cost of goods sold Ending Inventory
# of units    (A) Cost per unit Cost of goods available for sale # of units sold               (B) Cost per unit Cost of goods sold # of units in ending inventory      (A) - (B) Cost per unit Ending Inventory
Beginning Inventory                  41 $              33 $        1,353                   -   $              33 $               -                    41 $              33 $        1,353
Purchases:
Apr-07                121 $              35 $        4,235                118 $              35 $        4,130                    3 $              35 $           105
Jul-16                191 $              38 $        7,258                191 $              38 $        7,258                   -   $              38 $               -  
Oct-06                101 $              39 $        3,939                101 $              39 $        3,939                   -   $              39 $               -  
               454 $     16,785                410 $     15,327                  44 $        1,458
Sales revenue = $     20,910
(410 X $51)
Gross Profit = $        5,583
($20910 - $15327)
3 Weighted Average cost Cost of goods available for sale Cost of goods sold Ending Inventory
# of units    (A) Cost per unit Cost of goods available for sale # of units sold               (B) Cost per unit Cost of goods sold # of units in ending inventory      (A) - (B) Cost per unit Ending Inventory
Beginning Inventory                  41 $        1,353
Purchases:
Apr-07                121 $        4,235
Jul-16                191 $        7,258
Oct-06                101 $        3,939
               454 $   36.9714 $     16,785                410 $   36.9714 $     17,603                  44 $   36.9714 $        1,889
Sales revenue = $     20,910
(410 X $51)
Gross Profit = $        3,307
($20910 - $17603)
*Average Cost = Cost of goods available for sale / No. Of units
= $16785 / 454 units
= $   36.9714
FIFO method will result in higher profitability in case when inventory cost is rising
.

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