0WCre skipped FOB ship- () On Fehruay 28 Pit packaged goods and had them ready for shipping to a customer ecination The invoice rice was $350 plus $25 for freight; the cost of the items recaivinuRreooct indicates that the goods were received by the customer 1L eDniar, vit received the goods on March 1. (B 1 siaaged goods set aside in the warehouse because they are no longer salea- p0ods orginally cost $400 and, originally, Pitt expected to sell these items or $600. Instructionns For each of the above transactions, specify whether the item in question should be included in ending inventory, and if so, at what amount. For each item that is not included in ending inventory, indicate who owns it and what account, if any, it should have been recorded in. of goods sold and y using FIFO, P6-2A Mullins Distribution markets CDs of numerous performing artists. At the begin- ning of March, Mullins had in beginning inventory 2,500 CDs with a unit cost of $7. Dur- ing March, Mullins made the following purchases of CDs. ge-cost with 5,000@ $10 2,000 @ $11 March 5 2,000@ $8 3,500@ $9 March 21 XLS March 13 March 26 During March 12,000 units were sold. Mullins uses a periodic inventory system. 50 000 s sold: $105,000 $115,500 %24109,601 Instructions 000,22 (a) Determine the cost of goods available for sale. (b) Determine (1) the ending inventory and (2) the cost of goods sold under each of the assumed cost flow methods (FIFO, LIF0, and average-cost). Prove the accuracy of the Problems: Set A 3 cost of goods sold under the FIFO and LIFO methods. (Note: For average-cost, round cost per unit to three decimal places.) (c) Which cost flow method results in (1) the highest inventory amount for the balance sheet and (2) the highest cost of goods sold for the income statement?
0WCre skipped FOB ship- () On Fehruay 28 Pit packaged goods and had them ready for shipping to a customer ecination The invoice rice was $350 plus $25 for freight; the cost of the items recaivinuRreooct indicates that the goods were received by the customer 1L eDniar, vit received the goods on March 1. (B 1 siaaged goods set aside in the warehouse because they are no longer salea- p0ods orginally cost $400 and, originally, Pitt expected to sell these items or $600. Instructionns For each of the above transactions, specify whether the item in question should be included in ending inventory, and if so, at what amount. For each item that is not included in ending inventory, indicate who owns it and what account, if any, it should have been recorded in. of goods sold and y using FIFO, P6-2A Mullins Distribution markets CDs of numerous performing artists. At the begin- ning of March, Mullins had in beginning inventory 2,500 CDs with a unit cost of $7. Dur- ing March, Mullins made the following purchases of CDs. ge-cost with 5,000@ $10 2,000 @ $11 March 5 2,000@ $8 3,500@ $9 March 21 XLS March 13 March 26 During March 12,000 units were sold. Mullins uses a periodic inventory system. 50 000 s sold: $105,000 $115,500 %24109,601 Instructions 000,22 (a) Determine the cost of goods available for sale. (b) Determine (1) the ending inventory and (2) the cost of goods sold under each of the assumed cost flow methods (FIFO, LIF0, and average-cost). Prove the accuracy of the Problems: Set A 3 cost of goods sold under the FIFO and LIFO methods. (Note: For average-cost, round cost per unit to three decimal places.) (c) Which cost flow method results in (1) the highest inventory amount for the balance sheet and (2) the highest cost of goods sold for the income statement?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:0WCre skipped FOB ship-
() On Fehruay 28 Pit packaged goods and had them ready for shipping to a customer
ecination The invoice rice was $350 plus $25 for freight; the cost of the items
recaivinuRreooct indicates that the goods were received by the customer
1L
eDniar,
vit received the goods on March 1.
(B
1
siaaged goods set aside in the warehouse because they are no longer salea-
p0ods orginally cost $400 and, originally, Pitt expected to sell these items
or $600.
Instructionns
For each of the above transactions, specify whether the item in question should be included
in ending inventory, and if so, at what amount. For each item that is not included in
ending inventory, indicate who owns it and what account, if any, it should have been
recorded in.
of goods sold and
y using FIFO,
P6-2A Mullins Distribution markets CDs of numerous performing artists. At the begin-
ning of March, Mullins had in beginning inventory 2,500 CDs with a unit cost of $7. Dur-
ing March, Mullins made the following purchases of CDs.
ge-cost with
5,000@ $10
2,000 @ $11
March 5
2,000@ $8
3,500@ $9
March 21
XLS
March 13
March 26
During March 12,000 units were sold. Mullins uses a periodic inventory system.
50
000
s sold:
$105,000
$115,500
%24109,601
Instructions
000,22
(a) Determine the cost of goods available for sale.
(b) Determine (1) the ending inventory and (2) the cost of goods sold under each of the
assumed cost flow methods (FIFO, LIF0, and average-cost). Prove the accuracy of the
Transcribed Image Text:Problems: Set A
3
cost of goods sold under the FIFO and LIFO methods. (Note: For average-cost, round
cost per unit to three decimal places.)
(c) Which cost flow method results in (1) the highest inventory amount for the balance
sheet and (2) the highest cost of goods sold for the income statement?
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