Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. big fish tackle co. ltd. reports the following inv

Big Fish Tackle Co. Ltd. reports the following inventory transactions for its fishing rods for...

90.2K

Verified Solution

Question

Accounting

Big Fish Tackle Co. Ltd. reports the following inventory transactions for its fishing rods for the month of April. The company uses a perpetual inventory system.

Date

Explanation

Units

Unit Cost/Price

Total Cost

Apr.

1

Beginning inventory

50

$230

$11,500

6

Purchases

35

240

8,400

9

Sales

(55)

350

14

Purchases

40

245

9,800

20

Sales

(50)

360

28

Purchases

30

250

7,500

Instructions

  1. Using FIFO, determine the cost of goods sold and the cost of ending inventory.
  2. Record journal entries for the sales transactions on April 9 and April 20.
  3. Assume that Big Fish Tackle wants to change to the average cost formula. Explain what guidelines the company must consider before making this change.
  4. If the company does change to the average cost formula and prices continue to rise, explain whether you expect the cost of goods sold and ending inventory amounts to be higher or lower than these amounts when using FIFO.

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

Contradiction proof conception Prove: If A is true, then B is true Contradiction: If A is true,...

Advance Math
Q

I was a moderate reformer I believed that it was best to improve the economic...

Biology
Q

The mammalian trachea and esophagus both connect to the rectum large intestine stomach pharynx small...

Biology
Q

Bens Corporation has three service departments (Repairs, HR, and IT) and two production departments (M1...

Accounting
Q

Rosario Company, which is located in Buenos Aires, Argentina, manufactures a component used in farm...

Accounting
Q

22. Which of the following is included in the cost of constructing a building? A....

Accounting
Q

Instructions Furman Corporation entered into an assignment agreement with a finance company whereby Furman would...

Accounting
Q

(Financial Accounting 8th Edition) BTN 11-1 Refer to Apple's financial statements in appendix A to...

Accounting
Q

Hall Corporation is involved in the business of injection molding of plastics. It is considering...

Accounting
Q

7) On January 1,2019, Climax Corporation signed a $10,000,000,6%,10-year mortgage note to finance the ...

Accounting
Q

Which of the following statements is not true? O a. If the discount...

Finance
Q

The adjusting entry to record the amortization of a premium on bonds payable an interest...

Accounting