Marlow Company uses a perpetual inventory system. It entered into the following calendar-year 2011 purchases and sales transactions. Date Activities Units Acquired at Cost Units Sold at Retail Jan. 1 Beginning inventory 660 units @ $ 45.20 /unit Feb. 10 Purchase 260 units @ $ 41.20 /unit Mar. 13 Purchase 130 units @ $ 21.20 /unit Mar. 15 Sales 490 units @ $ 76.20 /unit Aug. 21 Purchase 220 units @ $ 61.20 /unit Sept. 5 Purchase 250 units @ $ 49.20 /unit Sept. 10 Sales 170 units @ $ 76.20 /unit Totals 1,520 units 660 units Required: 1. Compute cost of goods available for sale and the number of units available for sale. (Omit the "$" sign in your response.) Cost of goods available for sale $ Number of units available for sale units 2. Compute the number of units in ending inventory. Ending inventory units 3. Compute the cost assigned to ending inventory using (a) FIFO, (b) specific identification-units sold consist of 530 units from beginning inventory and 130 units from the March 13 purchase, and (c) weighted average cost. (Due to rounding, the sum of Cost of Goods Sold and Ending inventory may not equal the Cost of Good available for sales. Round your per unit costs to 2 decimal places. Round your final answers to the nearest dollar amount. Omit the "$" sign in your response.) Ending inventory (a) FIFO $ (b) Specific identification $ (c) Weighted average cost $

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Marlow Company uses a perpetual inventory system. It entered into the following calendar-year 2011 purchases and sales transactions.

Date		Activities	Units Acquired at Cost	Units Sold at Retail
Jan.	1		Beginning inventory	660	units	@	$	45.20	/unit
Feb.	10		Purchase	260	units	@	$	41.20	/unit
Mar.	13		Purchase	130	units	@	$	21.20	/unit
Mar.	15		Sales							490	units	@	$	76.20	/unit
Aug.	21		Purchase	220	units	@	$	61.20	/unit
Sept.	5		Purchase	250	units	@	$	49.20	/unit
Sept.	10		Sales							170	units	@	$	76.20	/unit

			Totals	1,520	units					660	units

Required:
1.	Compute cost of goods available for sale and the number of units available for sale. (Omit the "$" sign in your response.)


Cost of goods available for sale	$
Number of units available for sale		units

2.	Compute the number of units in ending inventory.

Ending inventory

units

Compute the cost assigned to ending inventory using (a) FIFO, (b) specific identification-units sold consist of 530 units from beginning inventory and 130 units from the March 13 purchase, and (c) weighted average cost. (Due to rounding, the sum of Cost of Goods Sold and Ending inventory may not equal the Cost of Good available for sales. Round your per unit costs to 2 decimal places. Round your final answers to the nearest dollar amount. Omit the "$" sign in your response.)

	Ending inventory
(a) FIFO	$
(b) Specific identification	$
(c) Weighted average cost	$

4.	Compute gross profit earned by the company for each of the three costing methods. (Round your per unit costs to 2 decimal places and inventory balances and final answer to the nearest dollar amount.Omit the "$" sign in your response.)

	Gross profit
(a) FIFO	$
(b) Specific identification	$
(c) Weighted average cost	$

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