Carl\'s Calculator Xpress sells non-programmable calculators. (His target market
ID: 2415254 • Letter: C
Question
Carl's Calculator Xpress sells non-programmable calculators. (His target market: Accounting 209 students who forgot their calculators on Thursday nights.) Carl's has the following information available for the month of November:
# of units
Cost per unit
Beginning inventory, November 1
5
$2.00
Purchase, November 11
8
$2.50
Purchase, November 24
10
$3.00
Ending inventory, November 30
3
What is the total amount of goods available for sale that Carl's must allocate between cost of goods sold and ending inventory?
a.
$20
b.
$23
c.
$50
d.
$60
e.
none of the above
Assume Carl's is using the FIFO cost flow method. What amount will Carl's report as cost of goods sold for November?
$40
$51
$52
$54
none of the above
assume instead that the company uses the LIFO inventory cost flow method. What amount will Carl report as Inventory on the company's November 30 balance sheet?
$6
$9
$51
$54
none of the above
but assume instead that the company uses the weighted average cost flow method. Carl's sells all calculators for $6 each. What amount will Carl's report as gross profit for November? (round cost per unit to 2 decimals, and final answer to whole dollars)
$44
$66
$68
$70
none of the above
# of units
Cost per unit
Beginning inventory, November 1
5
$2.00
Purchase, November 11
8
$2.50
Purchase, November 24
10
$3.00
Ending inventory, November 30
3
Explanation / Answer
Total Amount of goods available for sale :
Opening Stock 5*2 = 10
Purchases on 11-Nov 8*2.5 = 20
Purchases on 11-Nov 10*3 = 30
Total 60
d. $60 Answer
Cost of Goods Sold if Clsoing stock on FIFO basis :
Opening Stock 10
+ Purchaes 50
- Closing Stock 3*3 9
Cost of goods sold 51
b. $51 Answer
Inventory as on November, 30 on LIFO Basis :
3*2 = 6
a. $6 Answer
Amount of GP :
Sales 20*6 = 120
-Opening Stock 10
-Purchases 50
+Closing Stock 60/23*3 = 8
Gross Profit 68
c. $68 Answer