Intermediate Accounting (2nd Edition)
2nd Edition
ISBN: 9780134730370
Author: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella
Publisher: PEARSON
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Textbook Question
Chapter 10, Problem 10.1P
Moving Average, FIFO, LIFO. Morocco Imports 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 January 1 | 35,000 | $3.50 | $ 122,500 | |
| Purchases | ||||
| February 8 | 45,500 | 3.60 | 163.800 | |
| March 15 | 100.250 | 3.80 | 380.950 | |
| April 10 | 62.000 | 4.10 | 254.200 | |
| Subtotal | 242.750 | $ 921,450 | ||
| Units sold April 22 at $12 May 9 | 81.000 | 155.000 | 4.35 | 352,350 |
| June 19 | 28.000 | 4.56 | 127,680 | |
| Subtotal | 351,750 | $1,401,480 | ||
| Units sold August 11 at $14 September 20 | 15,000 | 115.500 | 4.75 | 71,250 |
| October 30 | 41..000 | 4.85 | 198,850 | |
| November 17 | 8.000 | 4.90 | 39,200 | |
| Subtotal | 415.750 | $1,710,780 | ||
| Units sold December 21 at $16 | 21.500 | |||
| Total available for sale | 415,750 | |||
| Total units sold | (292.0001 | |||
| Ending inventory | 123,750 |
Compute Morocco’s ending inventory and cost of goods sold under each of the following cost-flow assumptions assuming a perpetual inventory system. (Round your answer for cost per unit to two decimal places.)
Required
- a. Moving Average
- b. FIFO
- c. LIFO
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Imports provided the following information regarding its inventory for the current year, its second year of operations.
Sales in
Transaction
Units
Units
Unit Cost
Total Cost
Beginning inventory January 1
36,000
$3.40
$122,400
Purchases
February 8
51,000
4.10
209,100
March 15
101,000
4.80
484,800
April 10
67,000
4.90
328,300
Subtotal
255,000
$1,144,600
Units sold April 22 at $7
153,000
May 9
85,000
5.10
433,500
June 19
25,000
5.20
130,000
Subtotal
365,000
$1,708,100
Units sold August 11 at $10
115,000
September 20
13,000
5.30
68,900
October 30
42,000
5.40
226,800
November 17
4,000
5.60
22,400
Subtotal
424,000
$2,026,200
Units sold December 21 at $12
24,000
Total available for sale
424,000…
Specific Identification, FIFO, LIFO, and Weighted-Average
Boyce Company's beginning inventory and purchases during the fiscal year ended September 30, 20-2, are shown.
Units Unit Price Total Cost
October 1, 20-1
Beginning inventory
400
$15.00
$6,000
October 18
1st purchase
300
16.50
4,950
November 25
2nd purchase
600
17.00
10,200
January 12, 20-2 3rd purchase
700
17.25
12,075
March 17
4th purchase
800
18.00
14,400
June 2
5th purchase
400
19.00
7,600
August 21
6th purchase
300
21.00
6,300
September 27
7th purchase
500
21.75
10,875
4,000
$72,400
Use the following information for the specific identification method.
There are 900 units of inventory on hand on September 30, 20-2. Of these 900 units:
50 are from October 18, 20-1
1st purchase
300 are from January 12, 20-2
3rd purchase
100 are from March 17
4th purchase
200 are from June 2
5th purchase
50 are from August 21
6th purchase
200 are from September 27
7th purchase
Specific Identification, FIFO, LIFO, and Weighted-Average
Swing Company's beginning inventory and purchases during the fiscal year ended September 30, 20-2, were as shown.
Units
Unit Price
Total Cost
October 1, 20-1
Beginning inventory
430
$20.50
$8,815
October 18
1st purchase
490
21.00
10,290
November 25
2nd purchase
200
22.00
4,400
January 12, 20-2
3rd purchase
300
23.50
7,050
March 17
4th purchase
900
25.00
22,500
June 2
5th purchase
830
25.50
21,165
August 21
6th purchase
200
26.50
5,300
September 27
7th purchase
690
27.50
18,975
4,040
$98,495
Use the following information for the specific identification method.
There are 1,300 units of inventory on hand on September 30, 20-2. Of these 1,300 units:
100 are from October 18, 20-1
1st purchase
200 are from January 12, 20-2
3rd purchase
100 are from March 17
4th purchase
400 are from June 2
5th purchase
200 are from August 21
6th purchase
300…
Chapter 10 Solutions
Intermediate Accounting (2nd Edition)
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