FINANCIAL ACCOUNTING: TOOL
9th Edition
ISBN: 9781119598305
Author: Kimmel
Publisher: MCGRAW-HILL HIGHER EDUCATION
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Chapter 3, Problem 3.8EYCT
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Beginning inventory, purchases, and sales for an inventory item are as follows:
Date
Line Item Description
Units and Cost
Sep. 1
Beginning Inventory
23 units @ $15
5
Sale
13 units
17
Purchase
25 units @ $17
30
Sale
17 units
Assuming a perpetual inventory system and the last-in, first-out method:
Determine the cost of goods sold for the September 30 sale.$
Determine the inventory on September 30.
$
Line Item Description
Units and Cost
Beginning inventory
12 units at $48
First purchase
15 units at $53
Second purchase
55 units at $56
Third purchase
13 units at $61
The firm uses the periodic inventory system, and there are 25 units of the commodity on hand at the end of the year.
What is the ending inventory balance of Commodity Z using LIFO?
a. $1,465
b. $1,265
c. $5,244
d. $1,200
Company sells blankets for $40 each. The following information was taken from the inventory records during May. The company had no beginning inventory on May 1. Company uses a perpetual inventory system.
Date
Blankets
Units
Cost
May 3
Purchase
11
$20
10
Sale
4
17
Purchase
10
$17
20
Sale
6
23
Sale
3
30
Purchase
8
$24
Determine the May 31 inventory balance using the FIFO inventory costing method.
a. $328
b. $272
c. $320
d. $384
Chapter 3 Solutions
FINANCIAL ACCOUNTING: TOOL
Ch. 3 - Prob. 1QCh. 3 - Can a business enter into a transaction that...Ch. 3 - Are the followingevents recorded in the accounting...Ch. 3 - Prob. 4QCh. 3 - Prob. 5QCh. 3 - Prob. 6QCh. 3 - Prob. 7QCh. 3 - Misty Reno, a beginning accounting student,...Ch. 3 - Prob. 9QCh. 3 - What is the normal balance for each of these...
Ch. 3 - Prob. 11QCh. 3 - Prob. 12QCh. 3 - Prob. 13QCh. 3 - Prob. 14QCh. 3 - Prob. 15QCh. 3 - (a) When entering a transaction in the journal,...Ch. 3 - (a) Should accounting transaction debits and...Ch. 3 - Journalize these accounting transactions. (a)...Ch. 3 - Prob. 19QCh. 3 - Prob. 20QCh. 3 - Prob. 21QCh. 3 - Prob. 22QCh. 3 - Prob. 3.1BECh. 3 - For each of the following accounts, indicate the...Ch. 3 - Prob. 3.6BECh. 3 - Prob. 3.7BECh. 3 - Prob. 3.9BECh. 3 - Tilton Corporation has the following transactions...Ch. 3 - Prob. 3.11BECh. 3 - Selected transactions for Montes Company are...Ch. 3 - Prob. 3.1DIECh. 3 - Prob. 3.2DIECh. 3 - Prob. 3.3DIECh. 3 - Prob. 3.4DIECh. 3 - Prob. 3.1ECh. 3 - Prob. 3.6ECh. 3 - Prob. 3.7ECh. 3 - Prob. 3.8ECh. 3 - Prob. 3.9ECh. 3 - Prob. 3.10ECh. 3 - Prob. 3.11ECh. 3 - Prob. 3.12ECh. 3 - Prob. 3.15ECh. 3 - Prob. 3.20ECh. 3 - Prob. 3.23ECh. 3 - Prob. 3.1APCh. 3 - Prob. 3.4APCh. 3 - Prob. 3.11APCh. 3 - Prob. 3.2EYCTCh. 3 - Prob. 3.3EYCTCh. 3 - Prob. 3.4EYCTCh. 3 - Prob. 3.7EYCTCh. 3 - Prob. 3.8EYCTCh. 3 - Prob. 3.9EYCTCh. 3 - Prob. 3.11EYCTCh. 3 - Prob. 3.1IFRS
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- On the basis of the following data, what is the estimated cost of the inventory on May 31 using the retail method? Date Line Item Description Cost Retail May 1 Inventory $23,800 $39,670 May 1-31 Purchases 42,600 67,540 May 1-31 Sales 91,090 a. $24,690 b. $19,580 c. $29,564 d. $9,984arrow_forward00000000 The following lots of Commodity Z were available for sale during the year. Line Item Description Units and Cost Beginning inventory 12 units at $48 First purchase 15 units at $53 Second purchase 55 units at $56 Third purchase 13 units at $61 The firm uses the periodic inventory system, and there are 25 units of the commodity on hand at the end of the year. What is the ending inventory balance of Commodity Z using LIFO? a. $1,465 b. $1,265 c. $5,244 d. $1,200arrow_forwardBeginning inventory 8 units at $51 First purchase 17 units at $55 Second purchase 26 units at $58 Third purchase 15 units at $63 The firm uses the periodic inventory system, and there are 23 units of the commodity on hand at the end of the year. What is the ending inventory balance of Commodity Z using FIFO? a. $1,173 b. $1,409 c. $3,773 d. $3,796arrow_forward
- 00000arrow_forwardThe inventory data for an item for November are: Nov. 1 Inventory 4 Sold 19 units at $23 8 units 10 Purchased 32 units at $21 25 units 17 Sold 30 Purchased 21 units at $23 Using a perpetual system, what is the cost of goods sold for November if the company uses LIFO? a. $731 b. $861 c. $962 Od. $709arrow_forwardI got the 3rd incorrect. can you help me go step by step. Date Line Item Description Units and Cost Amount Mar. 1 Inventory 21 units @ $31 $651 June 16 Purchase 29 units @ $33 957 Nov. 28 Purchase 39 units @ $39 1,521 Total 89 units $3,129 There are 13 units of the product in the physical inventory at November 30. The periodic inventory system is used. Determine the inventory cost using the weighted average cost methods. $arrow_forward
- 3arrow_forwardBoxwood Company sells blankets for $31 each. The following information was taken from the inventory records during May. The company had no beginning inventory on May 1. Boxwood uses a perpetual inventory system. Date Blankets Units Cost May 3 Purchase 8 $15 10 Sale 5 17 Purchase 10 $18 20 Sale 7 23 Sale 2 30 Purchase 12 $19 Determine the cost of goods sold for the sale of May 20 using the FIFO inventory costing method. a. $201 b. $114 c. $117 O d. $171arrow_forwardIn the month of March, Horizon Textiles Ltd. had 7,500 units in beginning work in process that were 65% complete. During March, 29,500 units were transferred into production from another department. At the end of March, there were 3,800 units in ending work in process that were 40% complete. Compute the equivalent units of production for materials and conversion costs using the weighted-average method.arrow_forward
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