ACCT 211 Homework 5 Inventories and Cost of Sales Exercises Assignment solutions complete answers
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Walberg Associates, antique dealers, purchased goods for $38,900. Terms of the purchase were FOB shipping point, and the cost of transporting the goods to Walberg Associates's warehouse was $1,900. Walberg Associates insured the shipment at a cost of $290. Prior to putting the goods up for sale, they cleaned and refurbished them at a cost of $630.
Determine the cost of inventory.
Laker Company reported the following January purchases and sales data for its only product. The Company uses a perpetual inventory system. For specific identification, ending inventory consists of 400 units from the January 30 purchase, 5 units from the January 20 purchase, and 15 units from beginning inventory.
Date
Activities
Units Acquired at Cost
Units sold at Retail
January 1
Beginning inventory
230
units
@
$ 15.50
=
$ 3,565
January 10
Sales
180
units
@
$ 24.50
January 20
Purchase
190
units
@
$ 14.50
=
2,755
January 25
Sales
220
units
@
$ 24.50
January 30
Purchase
400
units
@
$ 14.00
=
5,600
Totals
820
units
$ 11,920
400
units
Required:
1. Complete the table to determine the cost assigned to ending inventory and cost of goods sold using specific identification.
2. Determine the cost assigned to ending inventory and to cost of goods sold using weighted average.
3. Determine the cost assigned to ending inventory and to cost of goods sold using FIFO.
4. Determine the cost assigned to ending inventory and to cost of goods sold using LIFO.
Hemming Company reported the following current-year purchases and sales for its only product.
Date
Activities
Units Acquired at Cost
Units Sold at Retail
January 1
Beginning inventory
205
units
@ $10.20
=
$ 2,091
January 10
Sales
160
units
@ $40.20
March 14
Purchase
300
units
@ $15.20
=
4,560
March 15
Sales
250
units
@ $40.20
July 30
Purchase
400
units
@ $20.20
=
8,080
October 5
Sales
375
units
@ $40.20
October 26
Purchase
105
units
@ $25.20
=
2,646
Totals
1,010
units
$ 17,377
785
units
Required:
Hemming uses a perpetual inventory system.
1. Determine the costs assigned to ending inventory and to cost of goods sold using FIFO.
2. Determine the costs assigned to ending inventory and to cost of goods sold using LIFO.
3. Compute the gross profit for FIFO method and LIFO method.
Ending inventory consists of 45 units from the March 14 purchase, 75 units from the July 30 purchase, and all 105 units from the October 26 purchase. Using the specific identification method, calculate the following.
Martinez Company's ending inventory includes the following items.
Product
Units
Cost per Unit
Market per Unit
Helmets
32
$ 60
$ 64
Bats
25
114
82
Shoes
46
105
101
Uniforms
50
46
46
Compute the lower of cost or market for ending inventory applied separately to each product.
