**Serial Problem: Kate's Cards** (Note: This is a continuation of the Serial Problem: Kate’s Cards from Chapters 1 through 5.) SP6. As expected, the holiday season was very busy for Kate and her greeting card company. In fact, most of her supplies were fully depleted by year-end, necessitating a restocking of inventory. Assume that Kate uses the periodic method of accounting for inventory and that her January beginning inventory was $0. The following transactions occurred for Kate’s Cards during January of the New Year: **Purchases** | Date | Units | Unit Cost | Total Cost | |---------|-------|--------------|------------| | Jan. 10 | 400 | $3.00 per unit | $1,200 | | Jan. 17 | 500 | $3.50 per unit | $1,750 | | Jan. 23 | 300 | $4.00 per unit | $1,200 | | **Total** | 1,200 | | **$4,150** | **Sales** | Date | Units | |---------|-------| | Jan. 15 | 360 | | Jan. 21 | 420 | | Jan. 27 | 380 | | **Total** | 1,160 | **Required** Calculate the company’s cost of goods sold and value of ending inventory for the month of January using (1) FIFO, (2) LIFO, and (3) the weighted-average cost method. Round the cost per unit to 3 decimal places and round your final answers to the nearest dollar. If the net realizable value of Kate’s inventory is $4.00 per unit on January 31, what value should be reported for her ending inventory on the January 31 balance sheet under each of the three inventory costing methods?
**Serial Problem: Kate's Cards** (Note: This is a continuation of the Serial Problem: Kate’s Cards from Chapters 1 through 5.) SP6. As expected, the holiday season was very busy for Kate and her greeting card company. In fact, most of her supplies were fully depleted by year-end, necessitating a restocking of inventory. Assume that Kate uses the periodic method of accounting for inventory and that her January beginning inventory was $0. The following transactions occurred for Kate’s Cards during January of the New Year: **Purchases** | Date | Units | Unit Cost | Total Cost | |---------|-------|--------------|------------| | Jan. 10 | 400 | $3.00 per unit | $1,200 | | Jan. 17 | 500 | $3.50 per unit | $1,750 | | Jan. 23 | 300 | $4.00 per unit | $1,200 | | **Total** | 1,200 | | **$4,150** | **Sales** | Date | Units | |---------|-------| | Jan. 15 | 360 | | Jan. 21 | 420 | | Jan. 27 | 380 | | **Total** | 1,160 | **Required** Calculate the company’s cost of goods sold and value of ending inventory for the month of January using (1) FIFO, (2) LIFO, and (3) the weighted-average cost method. Round the cost per unit to 3 decimal places and round your final answers to the nearest dollar. If the net realizable value of Kate’s inventory is $4.00 per unit on January 31, what value should be reported for her ending inventory on the January 31 balance sheet under each of the three inventory costing methods?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
If the new realizable value of Kate's inventory is $4.00 per unit on January 31, what value should be reported for her ending inventory on the January 31st balance sheet under each of the three inventory costing methods ?
Transcribed Image Text:**Serial Problem: Kate's Cards**
(Note: This is a continuation of the Serial Problem: Kate’s Cards from Chapters 1 through 5.)
SP6.
As expected, the holiday season was very busy for Kate and her greeting card company. In fact, most of her supplies were fully depleted by year-end, necessitating a restocking of inventory. Assume that Kate uses the periodic method of accounting for inventory and that her January beginning inventory was $0. The following transactions occurred for Kate’s Cards during January of the New Year:
**Purchases**
| Date | Units | Unit Cost | Total Cost |
|---------|-------|--------------|------------|
| Jan. 10 | 400 | $3.00 per unit | $1,200 |
| Jan. 17 | 500 | $3.50 per unit | $1,750 |
| Jan. 23 | 300 | $4.00 per unit | $1,200 |
| **Total** | 1,200 | | **$4,150** |
**Sales**
| Date | Units |
|---------|-------|
| Jan. 15 | 360 |
| Jan. 21 | 420 |
| Jan. 27 | 380 |
| **Total** | 1,160 |
**Required**
Calculate the company’s cost of goods sold and value of ending inventory for the month of January using (1) FIFO, (2) LIFO, and (3) the weighted-average cost method. Round the cost per unit to 3 decimal places and round your final answers to the nearest dollar.
If the net realizable value of Kate’s inventory is $4.00 per unit on January 31, what value should be reported for her ending inventory on the January 31 balance sheet under each of the three inventory costing methods?
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