# Unland Company uses a periodic inventory system. Details for the inventory account for the month of January 2017 are as follows: Units Per unit price Total Balance, 1/1/2017 290 \$5.00 \$1450 Purchase, 1/15/2017 140 ..5.10 714 Purchase, 1/28/2017 140 ..5.30 742 An end of the month (1/31/2017) inventory showed that 230 units were on hand. If the company uses LIFO, what is the value of the ending inventory?

Ending inventory= \$1706

Explanation:

Giving the following information:

Units Per unit price Total

1/1/2017: 290 *\$5.00=  \$1450

1/15/2017: Purchase,  140*\$5.10= \$714

1/28/2017: Purchase,  140*\$5.30= \$742

At the end of the month (1/31/2017) inventory showed that 230 units. If the company uses LIFO (last-in, first-out)

Ending inventory= 140*5.30+140*5.10+50*5= \$1706

## Related Questions

The following information pertains to Lightning Inc., at the end of the year:Credit Sales \$75,000
Accounts Payable 13,900
Accounts Receivable 8,200
Allowance for Uncollectible Accounts \$900 credit
Cash Sales 24,000
Lightning uses the percentage-of-credit-sales method and estimates 4% of sales are uncollectible. What is the ending balance of the allowance account after the year-end adjustment?
\$3,900
\$4,860
\$3,000
\$2,100

\$3900

Explanation:

Calculation to determine the ending balance of the allowance account after the year-end adjustment

Balance in allowance for uncollectible account\$ 900

(\$75,000*4%)

Ending Balance in allowance for uncollectible account\$ 3,900

(\$900+\$3,000)

Therefore the ending balance of the allowance account after the year-end adjustment is \$3900

A company wishes to raise \$27 million by issuing 15-year semi-annual coupon bonds with face value of \$1,000 and coupon rate of 6.60 percent. The bonds will have a yield to maturity of 7.70 percent. Determine the minimum number of these bonds the company needs to issue to raise the desired amount of money.

We first need to find out the present value of each \$1,000 bond and then we can figure out how many of these bonds we require to raise \$27 million

The n of payments is 15*2 because semi annual payments for 15 years so our N will be 30

The YTM is 7.70/2 because of semi annual payments = 3.85

The Face value is of 1,000 so FV= 1,000

The payments our 1000*0.066=66 divided by 2 because semi annual payments so PMT= 33

We will put these values in a financial calculator to compute the PV of a \$1000 bond.

PV= 903

So now we know that the company can get \$903 for each \$1,000 bond as the bonds present value is 903.

Now in order to find out how many bonds need to be issued to raise 27 million we will divide 27 million by 903, as 903 is the amount we can raise by issuing a single bond.

27,000,000/903=29,900.3 so 29,901

The company will have to issue 29,901 bonds of face value \$1,000 to raise \$27 million

Explanation:

Chambers, Inc. uses flexible budgets. At normal capacity of 16,000 units, budgeted manufacturing overhead is: \$64,000 variable and \$180,000 fixed. If Chambers had actual overhead costs of \$250,000 for 18,000 units produced, what is the difference between actual and budgeted costs?Chambers, Inc. uses flexible budgets. At normal ca

\$2,000 unfavorable.

\$2,000 favorable.

\$8,000 favorable.

\$6,000 unfavorable.

Explanation:

Giving the following information:

At the normal capacity of 16,000 units, budgeted manufacturing overhead is \$64,000 variable and \$180,000 fixed. If Chambers had actual overhead costs of \$250,000 for 18,000 units produced.

Overhead variance= 250,000 - (4*18,000 + 180,000)= 250,000 - 252,000= 2,000 favorable

Sunland Company uses the FIFO method for internal reporting purposes and LIFO for external reporting purposes. The balance in the LIFO Reserve account at the end of 2020 was \$277000. The balance in the same account at the end of 2021 is \$419000. Sunland’s Cost of Goods Sold account has a balance of \$2110000 from sales transactions recorded during the year. What amount should Sunland report as Cost of Goods Sold in the 2021 income statement?

\$2,252,000

Explanation:

Calculation to determine what amount should Sunland report as Cost of Goods Sold in the 2021 income statement

Using this formula

2021 income statement Cost of Goods Sold =Cost of Goods Sold account+(2021 LIFO Reserve account ending balance-2020 LIFO Reserve account ending balance)

Let Plug in the formula

2021 income statement Cost of Goods Sold =\$2110000+(\$419000-\$277000)

2021 income statement Cost of Goods Sold =\$2110000+\$142,000

2021 income statement Cost of Goods Sold =\$2,252,000

Therefore The amount that Sunland should report as Cost of Goods Sold in the 2021 income statement is \$2,252,000

john Hayes and Lynn Magosian, auditors for a public accounting firm, went to lunch at the Bay View Restaurant in San Francisco. John left his raincoat with a coatroom attendant, but Lynn took her new raincoat with her to the dining room, where she hung it on a coat hook near her booth. When leaving the restaurant, Lynn discovered that someone had taken her raincoat. When John sought to claim his raincoat at the coatroom, it could not be found. The attendant advised that it might have been taken while he was on his break. John and Lynn sued the restaurant, claiming that the restaurant was a bailee of the raincoats and had a duty to return them. Are both John and Lynn correct

John is correct but Lynn isn't

Explanation:

John is correct because he left his coat with the coatroom attendant under the premise that it would be properly looked after and returned to him when he was done having lunch at the restaurant. However, Lynn just left her coat lying around under no ones care or supervision, there wasn't a predetermined agreement that anyone would be responsible for watching it on her behalf, therefore I don't think she is has the right to sue.

1. How is inflation measured? Fill in the blanks to complete the passage about the CPI and the GDP deflator. The Consumer Price Index (CPI) and the GDP deflator are both price indices, so they both serve as measures of inflation. However, the CPI uses a smaller basket of goods. The GDP deflator aims to take into account all final goods and services, whereas the CPI only includes goods and services sold to –. So, for instance, prices on farm equipment are included in the – but not in the –.

First blank: Consumers

Second blank: GDP

Third blank: CPI

Explanation:

The Consumer Price Index is used to measure the basic basket of services and goods that a normal person often buys in order to have a decent quality of life, the GDP includes all goods and services produced, for example all the office equipment, or farm equipment that was produced by a countries economy, the average customer doesn´t need farm equipment nor office equipment that is why it is not taken into account in the Costumer Price Index.

Inflation is measured using the Consumer Price Index (CPI) and the GDP deflator. The CPI measures price changes for a specific basket of goods and services bought by the typical consumer, while the GDP deflator considers all domestically produced final goods and services.

### Explanation:

Inflation is typically measured using two indices known as the Consumer Price Index (CPI) and the GDP deflator. The CPI measures the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services. Not all goods and services are included in the CPI, it primarily focuses on those sold to typical urban consumers.

On the other hand, the GDP deflator is a measure of the price of all domestically produced final goods and services in an economy including items like farm equipment, which are not included in the CPI. The GDP deflator takes a broader approach and doesn't restrict itself to a fixed basket of goods and services, rather reflects the current composition of output and the prices of all the goods and services currently produced domestically.