Part 3: What are the inventoriable costs for 2018 for the following 5 items? Required: What costs, if any, should be included in inventory? 1. Kim Co. purchased goods with a list price of $175,000, subject to trade discounts of 20%. How much should Kim Co. record as the cost of these goods? Amount included in inventory 2. Keillor Company's inventory of $1,100,000 at December 31, 2017, was based on a physical count of goods priced at cost and before any year-end adjustments relating to the following items. (a)Goods shipped from a vendor f.o.b. shipping point on December 24, 2017, at an invoice cost of $69,000 to Keillor Company were received on January 4, 2018. (b)The physical count included $29,000 of goods billed to Sakic Corp. f.o.b. shipping point on December 31, 2017. The carrier picked up these goods on January 3, 2018. What amount should Keillor report as inventory on its balance sheet? Amount included in inventory 3. Zimmerman Corp. had 1,500 units of part M.O. on hand May 1, 2017, costing $21 each. Purchases of part M.O. during May were as follows. Units Unit Cost May 9 2,000 17 3,500 26 1,000 A physical count on May 31, 2017, shows 2,000 units of part M.O. on hand. Using the FIFO method, what is the cost of part M.O. inventory at May 31, 2017? Using the LIFO method, what is the inventory cost? Using the average-cost method, what is the inventory cost? FIFO LIFO Average $22.00 23.00 24.00 Amount included in inventory
Part 3: What are the inventoriable costs for 2018 for the following 5 items? Required: What costs, if any, should be included in inventory? 1. Kim Co. purchased goods with a list price of $175,000, subject to trade discounts of 20%. How much should Kim Co. record as the cost of these goods? Amount included in inventory 2. Keillor Company's inventory of $1,100,000 at December 31, 2017, was based on a physical count of goods priced at cost and before any year-end adjustments relating to the following items. (a)Goods shipped from a vendor f.o.b. shipping point on December 24, 2017, at an invoice cost of $69,000 to Keillor Company were received on January 4, 2018. (b)The physical count included $29,000 of goods billed to Sakic Corp. f.o.b. shipping point on December 31, 2017. The carrier picked up these goods on January 3, 2018. What amount should Keillor report as inventory on its balance sheet? Amount included in inventory 3. Zimmerman Corp. had 1,500 units of part M.O. on hand May 1, 2017, costing $21 each. Purchases of part M.O. during May were as follows. Units Unit Cost May 9 2,000 17 3,500 26 1,000 A physical count on May 31, 2017, shows 2,000 units of part M.O. on hand. Using the FIFO method, what is the cost of part M.O. inventory at May 31, 2017? Using the LIFO method, what is the inventory cost? Using the average-cost method, what is the inventory cost? FIFO LIFO Average $22.00 23.00 24.00 Amount included in inventory
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Topic Video
Question
Transcribed Image Text:Part 3: What are the inventoriable costs for 2018 for the following 5 items?
Required: What costs, if any, should be included in inventory?
1. Kim Co. purchased goods with a list price of $175,000, subject to trade discounts of 20%. How
much should Kim Co. record as the cost of these goods?
Amount included in inventory
2. Keillor Company's inventory of $1,100,000 at December 31, 2017, was based on a physical count of
goods priced at cost and before any year-end adjustments relating to the following items.
(a)Goods shipped from a vendor f.o.b. shipping point on December 24, 2017, at an invoice cost
of $69,000 to Keillor Company were received on January 4, 2018.
(b)The physical count included $29,000 of goods billed to Sakic Corp. f.o.b. shipping point on
December 31, 2017. The carrier picked up these goods on January 3, 2018.
What amount should Keillor report as inventory on its balance sheet?
Amount included in inventory
3. Zimmerman Corp. had 1,500 units of part M.O. on hand May 1, 2017, costing $21 each. Purchases
of part M.O. during May were as follows.
Units
May 9
2,000
17
3,500
26 1,000
Unit Cost
$22.00
23.00
24.00
A physical count on May 31, 2017, shows 2,000 units of part M.O. on hand. Using the FIFO method,
what is the cost of part M.O. inventory at May 31, 2017? Using the LIFO method, what is the
inventory cost? Using the average-cost method, what is the inventory cost?
FIFO
LIFO
Average
Amount included in inventory
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education