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 10.3E
Moving Average, FIFO, LIFO. Zoola, Inc. provided the following information regarding its inventory for the current year, its second year of operations.
| Transaction | Units | Unit Cost |
| Beginning inventory 1/1 | 3,000 | $17.00 |
| Purchases. January 23 | 4,500 | 16.00 |
| Purchases. February 14 | 1,200 | 16.50 |
| Purchases. March 17 | 2,300 | 17.00 |
| Units sold - April 13 at $20 | 9,600 | |
| Purchases. May 5 | 5,600 | 15.00 |
| Purchases. July 4 | 3,200 | 16.00 |
| Units sold - October 31 at $19 | 8,700 | |
| Purchases. November 22 | 1,400 | 15.00 |
Compute Zoola’s ending inventory and cost of goods sold under each of the following cost-flow methods assuming that the company uses a perpetual inventory system (round your answer for cost per unit to two decimal places)
Required
- a. Moving Average
- b. FIFO
- c. LIFO
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Zoola, Inc. provided the following information regarding its inventory for the current year, its second yearof operations.Transaction Units Unit CostBeginning inventory1/1 3,000 17.00Purchases, January 23 4,500 16.00Purchases, February 14 1,200 16.50Purchases, March 17 2,300 17.00 Units Sold-April 13 at 20 9,600Purchases, May 5 5,600 15.00Purchases, July 4 3,200 16.00 Unit Sold-October 31 at 19 8,700Purchases, November 22 1,400 15.00Instruction :1.1 Compute Zoola’s ending inventory and cost of goods sold under the following cost-flow assumptions assuming a perpetual inventory…
nkt.1
The beginning inventory for Dunne Co. and data on purchases and sales for a three-month period are shown in Problem 7-1B.
Date
Transaction
Number of units
Per unit ($)
Total ($)
April
3
Inventory
25
1.200
30.000
8
Purchase
75
1.240
93.000
11
Sale
40
2.000
80.000
30
Sale
30
2.000
60.000
May
8
Purchase
60
1.260
76.500
10
Sale
50
2.000
100.000
19
Sale
20
2.000
40.000
28
Purchase
80
1.260
100.800
June
5
Sale
40
2.250
90.000
16
Sale
25
2.250
56.250
21
Purchase
35
1.264
44.240
28
Sale
44
2.250
99.000
Instructions1. Determine the inventory on June 30, 2014, and the cost of goods sold for the threemonth period, using the first-in, first-out method and the periodic inventory system.2. Determine the inventory on June 30, 2014, and the cost of goods sold for the threemonth period, using the last-in, first-out method and the periodic inventory system.3. Determine the inventory on June 30, 2014, and the cost of goods sold for the threemonth period,…
Chapter 10 Solutions
Intermediate Accounting
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