Financial and Managerial Accounting
7th Edition
ISBN: 9781259726705
Author: John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher: McGraw-Hill Education
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Textbook Question
Chapter 5, Problem 3E
Exercise 5-3 Perpetual: Inventory costing methods P1
Laker Company reported the following January purchases and sales data for its only product.
Date | Activities | Units Acquired at Cost | Units Sold at Retail |
Jan 1 | Beginning inventory……………… | 140 units @ $6.00=$ 840 | |
Jan 10 | Sales …………………………….. | 100 units @ $ 15 | |
Jan 20 | Purchase ……………………….. | 60 units @ $ 5.00 = 300 | |
Jan 25 | Sales ……………………………. | 80 units @ $ 15 | |
Jan 30 | Purchase ……………………….. | 180 units @ $4.50 = 810 | _______ |
Totals ………………………….. | 380 units $1,950 | 180 units |
Required
The company uses a perpetual inventory system. Determine the cost assigned to ending inventory and to cost of goods sold using (a) specific identification, (b) weighted average, (c) FIFO, and (d) LIFO. (Round per unit costs and inventory amounts to cents.) For specific identification, ending inventory consists of 200 units, where 180 are from the January 30 purchase, 5 are from the January 20 purchase, and 15 are from beginning inventory.
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Question Content Area
Trini Company had the following transactions for the month.
Beginning
inventory
Purchased May
31
Purchased Jul. 15
Purchased Nov. 1
Totals (Goods
available)
Number
of Units
1,060 $22
1,020
1,330
1,220
4,630
Cost
per
Unit
A. First-in, First-out (FIFO)
B. Last-in, First-out (LIFO)
C. Weighted Average
(AVG)
23
26
27
?
Total
$23,320
23,460
34,580
32,940
Ending inventory 950
Calculate the cost of goods sold dollar value for the period for each of the following cost allocation
methods, using periodic inventory updating. Round your intermediate calculations to 2 decimal places
and final answers to the nearest dollar amount.
114,300
Cost of Goods
Sold
$fill in the blank 1
$fill in the blank 2
$fill in the blank 3
Date
Units Unit Cost
Jan. 1 Inventory
42 $38.00
63
$40.00
Jan. 3 Purchase
Jan. 7 Sale
70
Jan. 10 Purchase
70
Jan. 20 Sale
70
Jan. 30 Purchase 70
Compute cost of goods sold and ending inventory for the month ending June 30 using:
a. FIFO (periodic inventory system).
b. LIFO (periodic inventory system).
c. FIFO (perpetual inventory system).
d. LIFO (perpetual inventory system).
a. FIFO (periodic) b. LIFO (periodic)
Date
January 1
January 3
January 7
January 10
c. FIFO (perpetual inventory system).
•Note: Do not use negative signs with any of your answers.
•Note: On each date, list the inventory units in chronological order based on their purchase date with beginning inventory, if any, listed first.
January 20
January 30
Units
$41.60
Ending Inventory
Cost of goods sold
$43.20
0 $
Purchases
Unit
Cost
0 $
0 $
FIFO (perpetual)
Cost of goods available for sale $
$
0 $
0
0 $
Total
Cost
0
0
0
0
0
c. FIFO (perpetual)
0
Units
Cost of Sales
Unit
Cost
0 $
0 $
d. LIFO (perpetual)
0 $
0 $
0 $
0 $
0 $…
Chapter 5 Solutions
Financial and Managerial Accounting
Ch. 5 - Prob. 1MCQCh. 5 - Prob. 2MCQCh. 5 - Prob. 3MCQCh. 5 - Prob. 4MCQCh. 5 - Prob. 5MCQCh. 5 - Prob. 6MCQCh. 5 - Describe how costs flow inventory to cost of goods...Ch. 5 - Where is the amount of merchandise inventory...Ch. 5 - Why are incidental costs sometimes ignored in...Ch. 5 - Prob. 4DQ
Ch. 5 - Prob. 5DQCh. 5 - Prob. 6DQCh. 5 - Prob. 7DQCh. 5 - Prob. 8DQCh. 5 - Prob. 9DQCh. 5 - Prob. 10DQCh. 5 - Prob. 11DQCh. 5 - What factors contribute to (or cause) inventory...Ch. 5 - Prob. 13DQCh. 5 - Prob. 14DQCh. 5 - Prob. 15DQCh. 5 - Prob. 16DQCh. 5 - Prob. 17DQCh. 5 - Prob. 1QSCh. 5 - Prob. 2QSCh. 5 - Prob. 3QSCh. 5 - Perpetual: Inventory costing with FIFO P1 A...Ch. 5 - Prob. 5QSCh. 5 - Prob. 6QSCh. 5 - Prob. 7QSCh. 5 - Prob. 8QSCh. 5 - A Periodic: Inventory costing with weighted...Ch. 5 - Prob. 10QSCh. 5 - Prob. 11QSCh. 5 - Perpetual: Inventory costing with weighted average...Ch. 5 - Prob. 13QSCh. 5 - Prob. 14QSCh. 5 - Prob. 15QSCh. 5 - Prob. 16QSCh. 5 - Prob. 17QSCh. 5 - Prob. 18QSCh. 5 - Prob. 19QSCh. 5 - Prob. 20QSCh. 5 - Prob. 21QSCh. 5 - Prob. 22QSCh. 5 - Prob. 23QSCh. 5 - Prob. 1ECh. 5 - Prob. 2ECh. 5 - Exercise 5-3 Perpetual: Inventory costing methods...Ch. 5 - Prob. 4ECh. 5 - Prob. 5ECh. 5 - Prob. 6ECh. 5 - Prob. 7ECh. 5 - Prob. 8ECh. 5 - Prob. 9ECh. 5 - Prob. 10ECh. 5 - Prob. 11ECh. 5 - Prob. 12ECh. 5 - Prob. 13ECh. 5 - Prob. 14ECh. 5 - Prob. 15ECh. 5 - Prob. 16ECh. 5 - Prob. 17ECh. 5 - Prob. 18ECh. 5 - Prob. 1PSACh. 5 - Prob. 2PSACh. 5 - Prob. 3PSACh. 5 - Problem 5-4AA Periodic: Alternative cost flows...Ch. 5 - Prob. 5PSACh. 5 - Prob. 6PSACh. 5 - Prob. 7PSACh. 5 - Prob. 8PSACh. 5 - Prob. 9PSACh. 5 - Prob. 10PSACh. 5 - Prob. 1PSBCh. 5 - Prob. 2PSBCh. 5 - Prob. 3PSBCh. 5 - Prob. 4PSBCh. 5 - Prob. 5PSBCh. 5 - Prob. 6PSBCh. 5 - Prob. 7PSBCh. 5 - Problem 5-8BA Periodic: Income comparisons and...Ch. 5 - Prob. 9PSBCh. 5 - Prob. 10PSBCh. 5 - Prob. 5SPCh. 5 - Prob. 1BTNCh. 5 - Prob. 2BTNCh. 5 - Prob. 3BTNCh. 5 - Prob. 4BTNCh. 5 - Prob. 5BTNCh. 5 - Prob. 6BTNCh. 5 - Prob. 7BTNCh. 5 - Prob. 8BTNCh. 5 - Prob. 9BTN
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