QUESTION..
Road Bikes manufactures off-road bicycles. In 2021, the company's accountant recorded the following costs into the inventory account. (Click the icon to view the data.) The company had no work in process at the end of both 2020 and 2021. Finished goods at the end of 2020 amounted to 7,000 bikes at $220.00/bike. Production was 55,000 bikes, and 5,500 bikes remained in the inventory at December 31, 2021. The company uses a periodic inventory system and the FIFO cost flow assumption. Required Requirement a. Of the $13, 130,000, how much should have been capitalized into inventories? The cost that should be capitalized into inventory would amount to. Requirement b. Compute the ending value of inventory and the cost of goods sold for 2021. Compute the ending inventory value assuming that the company uses a periodic inventory system and the FIFO method of valuing inventory. (Round your cost per unit to two decimals and your total cost to the nearest whole dollar. Use a minus sign or parentheses for subtracting numbers that are typically shown enclosed in parentheses in your calculations.) # Units Cost per units Total cost Beginning inventory Cost of goods manufactured Cost of goods available for sale Ending inventory Cost of goods sold Requirement c. If the error in inventory costing had not been corrected as per requirement a, by how much would inventory be overstated at the end of 2021? (Enter your answer in whole dollars.) The inventory would have been overstated by Requirement d. Record the journal entry to correct the error in inventory costing.Road Bikes manufactures off-road bicycles. In 2021, the company's accountant recorded the following costs into the inventory account. (Click the icon to view the data.) The company had no work in process at the end of both 2020 and 2021. Finished goods at the end of 2020 amounted to 7,000 bikes at $220.00/bike. Production was 55,000 bikes, and 5,500 bikes remained in the inventory at December 31, 2021. The company uses a periodic inventory system and the FIFO cost flow assumption. Required Requirement d. Record the journal entry to correct the error in inventory costing. Journalize the corrections made on the inventory. Journal Entry Accounts Debit Credit Requirement e. If the company uses the weighted-average cost method, how much would be the ending value of inventory and cost of goods sold for 2021? Compute the ending inventory value assuming that the company uses a periodic inventory system and the weighted-average method of valuing inventory. (Round your cost per unit to two decimals and your total costs to the nearest whole dollar. Use a minus sign or parentheses for subtracting numbers that are typically shown enclosed in parentheses in your calculations.) # Units Cost per units Total cost Beginning inventory Cost of goods manufacturedRoad Bikes manufactures offmad bicycles. In 2021, the company's accountant recorded the following costs into the inventory account. (Click the icon to View the data.) The company had no work in process at the end of both 2020 and 2021. Finished goods at the end of 2020 amounted to 7,000 bikes at $220.00/bike. Production was 55,000 bikes, and 5,500 bikes remained in the inventory at December 31, 2021. The company uses a periodic inventory system and the FIFO cost ow assumption. R_equired Roqulrement o. If the company uses the weightedaverage cost method, how much would be the ending value of inventory and cost of goods sold for 2021'? Compute the ending inventory value assuming that the company uses a periodic inventory system and the weighted-average method of valuing inventory. (Round your cost per unit to two decimals and your total costs to the nearest whole dollar. Use a minus sign or parentheses for subtracting numbers that are typically shown enclosed in parentheses in your calculations.) Cost of goods manufactured Ending inventory I I
