Intermediate Accounting
1st Edition
ISBN: 9780132162302
Author: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella
Publisher: PEARSON
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Textbook Question
Chapter 10, Problem 10.1E
Moving Average, FIFO, LIFO. Arthur Lloyd Associates provided the following information regarding its inventory for the current year its second year of operations.
| Transaction | Units | Sales in Units | Unit Cost | Total Cost |
| Beginning inventory 1/1 | 10.000 | $18 | $ 180,000 | |
| Purchases | ||||
| February 8 | 23,000 | 20 | 460,000 | |
| March 15 | 18,600 | 22 | 409,200 | |
| Subtotal | 51,600 | $1,049,200 | ||
| Units sold - April 2 at $41 | 49,500 | |||
| April 30 | 37,000 | 28 | 1,036,000 | |
| July 15 | 12,400 | 31 | 384,400 | |
| Subtotal | 101,000 | $2,469,600 | ||
| Units sold - September 1 at $47 | 26,000 | |||
| November 9 | 34,500 | 29 | 1,000,500 | |
| Total available for sale | 135,500 | $3,470,100 | ||
| Total units sold | (75,500) | |||
| Ending inventory | 60,000 |
Required
Compute Arthur Lloyd’s ending inventory and cost of goods sold under each of the following cost-flow methods assuming that the company uses a perpetual inventory system (round your answer for cost per unit to two decimal places):
- a. Moving Average
- b. FIFO
- c. LIFO
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Chapter 10 Solutions
Intermediate Accounting
Ch. 10 - How is inventory tracked under a perpetual...Ch. 10 - Barbara Wight is Chief Financial Officer at Taylor...Ch. 10 - What costs should be included in the unit cost of...Ch. 10 - When does the inventory allocation problem arise?Ch. 10 - Explain the difference between the FIFO method of...Ch. 10 - Which method of inventory results in an inventory...Ch. 10 - If unit costs are rising and inventory levels are...Ch. 10 - How can financial statements be converted from the...Ch. 10 - Explain the unit of measure under the dollar-value...Ch. 10 - What do firms use as the market value when...
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