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Boston Galleries uses the specific identification method for inventory valuation




;;;1. Specific identification method. Boston Galleries uses the specific identification method for inventory valuation. Inventory information for several oil paintings follows.;Painting;Cost;1/2 Beginning inventory;Woods;$11,000;4/19 Purchase;Sunset;21,800;6/7 Purchase;Earth;31,200;12/16 Purchase;Moon;4,000;Woods and Moon were sold during the year for a total of $35,000. Determine the firm?s;a. cost of goods sold.;b. gross profit.;c. ending inventory.;2. Inventory valuation methods: basic computations. The January beginning inven?tory of the White Company consisted of 300 units costing $40 each. During the first quarter, the company purchased two batches of goods: 700 Units at $44 on February 21 and 800 units at $50 on March 28. Sales during the first quarter were 1,400 units at $75 per unit. The White Company uses a periodic inventory system. Using the White Company data, fill in the following chart to compare the results obtained under the FIFO, LIFO, and weighted-average inventory methods.;FIFO;LIFO;Weighted Average;Goods available for sale;$;$;$;Ending inventory, March 31;Cost of goods sold;;;3. Perpetual inventory system: journal entries. At the beginning of 20X3, Beehler Company implemented a computerized perpetual inventory system. The first transactions that occurred during 20X3 follow;? 1/2/20X3 Purchases on account: 500 units @ $4 = $2,000;? 1/15/20X3 Sales on account: 300 units @ $8.50 = $2,550;? 1/20/20X3 Purchases on Account: 200 units @ $5 = $1,000;? 1/25/20X3 Sales on Account: 300 units @ $8.50 = $2,550;The company president examined the computer-generated journal entries for these transactions and was confused by the absence of a Purchases account.;a. Duplicate the journa


Paper#77300 | Written in 18-Jul-2015

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