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Given the following information for Maynor Company in 2011, calculate the compan

ID: 2449973 • Letter: G

Question

Given the following information for Maynor Company in 2011, calculate the company's ending inventory, cost of goods sold and gross profit, using the following inventory costing methods, assuming the company uses a periodic inventory system: (Note: The sum of cost of goods sold and ending inventory might not add up due to rounding.)

Weighted Average. (Round your intermediate calculations and final answers to 2 decimal places. Omit the "$" sign in your response.)

Specific Identification. (The ending inventory consisted of 20 @ $66; 19 @ $70; and 9 @ $76.) (Omit the "$" sign in your response.)

  2011 Units Unit Cost Total Cost   Jan 1 Beginning Inventory 28 $ 60 $ 1,680   Purchases   March 28 Purchase 20 66 1,320   Aug 22 Purchase 38 70 2,660   Oct 14 Purchase 43 76 3,268   Goods Available for Sale 129 $ 8,928   Sales Unit Sales Price Revenue   May 1 Sales 43 $ 100 $ 4,300   October 28 Sales 38 100 3,800   Total Revenue 81 $ 8,100 a)

Weighted Average. (Round your intermediate calculations and final answers to 2 decimal places. Omit the "$" sign in your response.)

  Ending inventory $      Cost of goods sold $      Gross profit $    (b) FIFO. (Omit the "$" sign in your response.)   Ending inventory $      Cost of goods sold $      Gross profit $    (c) LIFO. (Omit the "$" sign in your response.)   Ending inventory $      Cost of goods sold $      Gross profit $    (d)

Specific Identification. (The ending inventory consisted of 20 @ $66; 19 @ $70; and 9 @ $76.) (Omit the "$" sign in your response.)

  Ending inventory $      Cost of goods sold $      Gross profit $   

Explanation / Answer

Answer a.

Cost of Goods available for Sale = $8,928
Number of units available for sale = 129

Cost per unit = Cost of Goods available for Sale / Number of units available for sale
Cost per unit = $8,928 / 129
Cost per unit = $69.21

Cost of Goods Sold = Cost per unit * Number of units sold
Cost of Goods Sold = $69.21 * 81
Cost of Goods Sold = $5,606.01

Ending Inventory = Cost of Goods available for sale - Cost of Goods Sold
Ending Inventory = $8,928 - $5,606.01
Ending Inventory = $3,321.99

Gross Profit = Sales Revenue - Cost of Goods Sold
Gross Profit = $8,100 - $5,606.01
Gross Profit = $2,493.99

Answer b.

Cost of Goods Sold = 28 * $60 + 20 * $66 + 33 * $70
Cost of Goods Sold = $5,310

Ending Inventory = Cost of Goods available for sale - Cost of Goods Sold
Ending Inventory = $8,928 - $5,310
Ending Inventory = $3,618

Gross Profit = Sales Revenue - Cost of Goods Sold
Gross Profit = $8,100 - $5,310
Gross Profit = $2,790

Answer c.

Cost of Goods Sold = 43 * $76 + 38 * $70
Cost of Goods Sold = $5,928

Ending Inventory = Cost of Goods available for sale - Cost of Goods Sold
Ending Inventory = $8,928 - $5,928
Ending Inventory = $3,000

Gross Profit = Sales Revenue - Cost of Goods Sold
Gross Profit = $8,100 - $5,928
Gross Profit = $2,172

Answer d.

Ending Inventory = 20 * $66 + 19 * $70 + 9 * $76
Ending Inventory = $3,334

Cost of Goods Sold = $8,928 - $3,334
Cost of Goods Sold = $5,594

Gross Profit = Sales Revenue - Cost of Goods Sold
Gross Profit = $8,100 - $5,594
Gross Profit = $2,506

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