Exercises 6-2A Inventory Costing Methods—Periodic Method. The Lippert Company uses the periodic inventory system. The following July data are for an item in Lippert’s Inventory: July 1 Beginning Inventory 30 units @$9 per unit 10 Purchased 50 units @$ 10 per unit 15 Sold 60 units 26 Purchased 25 Units @$11 per unit Calculate the cost of goods sold for July and ending inventory on July 31 using (a) first-in, first out, (b) last-in, first out, and (c) the weighted average cost methods. Round your final answers to the nearest dollar.
Exercises 6-2A
Inventory Costing Methods—Periodic Method.
The Lippert Company uses the periodic inventory system. The following July data are for an item in Lippert’s Inventory:
July 1 Beginning Inventory 30 units @$9 per unit
10 Purchased 50 units @$ 10 per unit
15 Sold 60 units
26 Purchased 25 Units @$11 per unit
Calculate the cost of goods sold for July and ending inventory on July 31 using (a) first-in, first out, (b) last-in, first out, and (c) the weighted average cost methods. Round your final answers to the nearest dollar.
Exercises 6-3 A
Year-end Physical Inventory
The December 31 Inventory for the Hayes Company included five products. The year-end physical count revealed the following:
Product Quantity Available
A 26
B 50
C 64
D 75
E 55
The related unit costs were: A, $10; B, $6; C, $9; D, $8; and E, $7.
Required: Calculate the total cost of the December 31 Physical Inventory.
Exercises 6-5A
Errors in Inventory Counts
The following information was taken from the records of Taylor Enterprises:
Beginning Inventory $60,000 $50,000
Cost of Goods Purchased 420,000 400,000
Cost of Goods Available for Sale 480,000 450,000
Ending Inventory 55,000 60,000
Cost of Goods Sold $425,000 $390,000
The following two errors were made in the physical inventory counts:
- 2015 ending inventory was understated by $7,000
- 2016 ending inventory was overstated by $3, 000
Compute the correct cost of goods sold for both 2015 and 2016.
Exercises 6-9A
Applying IFRS LVMH is a Paris-based manufacturer of luxury goods that prepares its financial statements using IFRS. During the year, the management of the company undertook a review of the fair value of its inventory and found that the inventory had appreciated above its book value of 12 million euros. According to the company’s management, the inventory was undervalued by 2 million euros. Prepare the
Exercises 6-11A
Inventory Turnover and Days’ Sales in Inventory
The Southern Company installed a new inventory management system at the beginning of 2015. Shown below are data from the company’s accounting records as reported out by the new system:
Sales Revenue $8, 000, 000 $11, 000, 000
Cost of Goods Sold 4, 000, 000 4, 800, 000
Beginning Inventory 510, 000 530, 000
Ending Inventory 530, 000 600, 000
Calculate the company’s (a) inventory turnover and (b) days’ sales in inventory for 2015 and 2016.
Problems P6-2A
Inventory Costing Methods---Periodic Method
Fortune Stores uses the periodic inventory system for its merchandise inventory. The April 1 Inventory for one of the items in the merchandise inventory consisted of 120 units with a unit cost of $330. Transactions for this item during April were as follows:
April 9 Purchased 40 Units @ $345 per unit
14 Sold 80 Units @ $550 per unit
23 Purchased 20 Units @ $350 per unit
29 Sold 40 Units @ $550 per unit
Required
- Calculate the cost of goods sold and the ending inventory cost for the month of April using the weighted-cost method.
- Calculate the cost of goods sold and the ending inventory cost for the month of April using the first-in, first-out method.
- Calculate the cost of goods sold and the ending inventory cost for the month of April using the last in, first out method.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 images
