PROBLEM 20 Cayden Company provided the following information: Inventory, January1 Cost Retail P350,000 650,000 Purchases during the year Cost 2,900,000 Retail 4,800,000 Freight in Purchase Returns 230,000 Cost 100,000 Retail 175,000 Purchase Discount 210,000 Sales 5,000,000 Sales Discount 115,000 Sales Returns Markups Markups cancellation Markdown 200,000 150,000 70,000 60,000 Estimated normalshrinkage Shoplifting losses (abnormal) 2% of sales 50,000 Requirements: Compute the ending inventory using the 1 LCNRV approach 2. Average approach 3. FIFO approach

PROBLEM 20 Cayden Company provided the following information: Inventory, January1 Cost Retail P350,000 650,000 Purchases during the year Cost 2,900,000 Retail 4,800,000 Freight in Purchase Returns 230,000 Cost 100,000 Retail 175,000 Purchase Discount 210,000 Sales 5,000,000 Sales Discount 115,000 Sales Returns Markups Markups cancellation Markdown 200,000 150,000 70,000 60,000 Estimated normalshrinkage Shoplifting losses (abnormal) 2% of sales 50,000 Requirements: Compute the ending inventory using the 1 LCNRV approach 2. Average approach 3. FIFO approach

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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A company began January with 6,000 units of its principal product. The cost of each unit is $8. Inventory transactions fo the month of January are as follows: Date of Purchase January 10 January 18 Totals Total Date of Sale January 5 January 12 January 20 Total Sales Units * Includes purchase price and cost of freight. Average Cost Beginning Inventory Purchases: 5,000 6,000 11,000 Problem 8-5 (Static) Part 4 January 10 January 18 Units 3,000 2,000 4,000 9,000 8,000 units were on hand at the end of the month. 4. Calculate January's ending inventory and cost of goods sold for the month using Average cost, periodic system. Unit Cost* Purchases Number Unit of units Cost $9 10 Cost of Goods Available for Sale Cost of Goods Available for Sale 48,000 6,000 $8.00 $ 5,000 $9.00 6,000 $10.00 17,000 $ Total Cost $ 45,000 60,000 $ 105,000 45,000 60,000 153,000 Cost of Goods Sold - Average Cost Average Cost per Unit Number of units sold Cost of Goods Sold 0 Ending Inventory - Average Cost Number of…
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Required information [The following information applies to the questions displayed below.] Ferris Company began January with 6,000 units of its principal product. The cost of each unit is $8. Merchandise transactions for the month of January are as follows: Date of Purchase Jan. 10 Jan. 18 Totals Sales Units 5,000 6,000 11,000 Date of Sale Jan. 5 Jan. 12 Jan. 20 Total Purchases Includes purchase price and cost of freight. Units 3,000 2,000 4,000 9,000 Unit Cost* $9 10 8,000 units were on hand at the end of the month. Total Cost $ 45,000 60,000 $105,000 4. Calculate January's ending inventory and cost of goods sold for the month using Average cost, periodic system.