Financial and Managerial Accounting: Information for Decisions

6th Edition

ISBN: 9780078025761

Author: John J Wild, Ken Shaw Accounting Professor, Barbara Chiappetta Fundamental Accounting Principles

Publisher: McGraw-Hill Education

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Inventory Valuation

Before discussing the topic inventory valuation let’s discuss the meaning of inventory. In accounting, inventory is also known as stock. Inventory means all the finished goods, materials, merchandise that a business holds for the purpose of selling it in…

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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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Chapter 5, Problem 2E

Chapter 5, Problem 4E

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Chapter 5 Solutions

Financial and Managerial Accounting: Information for Decisions

Ch. 5 - Prob. 1MCQ Ch. 5 - Prob. 2MCQ Ch. 5 - Prob. 3MCQ Ch. 5 - Prob. 4MCQ Ch. 5 - Prob. 5MCQ Ch. 5 - Prob. 6MCQ Ch. 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. 5DQ Ch. 5 - Prob. 6DQ Ch. 5 - Prob. 7DQ Ch. 5 - Prob. 8DQ Ch. 5 - Prob. 9DQ Ch. 5 - Prob. 10DQ Ch. 5 - Prob. 11DQ Ch. 5 - What factors contribute to (or cause) inventory...Ch. 5 - Prob. 13DQ Ch. 5 - Prob. 14DQ Ch. 5 - Prob. 15DQ Ch. 5 - Prob. 16DQ Ch. 5 - Prob. 17DQ Ch. 5 - Prob. 1QS Ch. 5 - Prob. 2QS Ch. 5 - Prob. 3QS Ch. 5 - Perpetual: Inventory costing with FIFO P1 A...Ch. 5 - Prob. 5QS Ch. 5 - Prob. 6QS Ch. 5 - Prob. 7QS Ch. 5 - Prob. 8QS Ch. 5 - A Periodic: Inventory costing with weighted...Ch. 5 - Prob. 10QS Ch. 5 - Prob. 11QS Ch. 5 - Perpetual: Inventory costing with weighted average...Ch. 5 - Prob. 13QS Ch. 5 - Prob. 14QS Ch. 5 - Prob. 15QS Ch. 5 - Prob. 16QS Ch. 5 - Prob. 17QS Ch. 5 - Prob. 18QS Ch. 5 - Prob. 19QS Ch. 5 - QS 5-20 Inventory errors A2 In taking a...Ch. 5 - Prob. 21QS Ch. 5 - Prob. 22QS Ch. 5 - Prob. 23QS Ch. 5 - Prob. 1E Ch. 5 - Prob. 2E Ch. 5 - Exercise 5-3 Perpetual: Inventory costing methods...Ch. 5 - Prob. 4E Ch. 5 - Prob. 5E Ch. 5 - Prob. 6E Ch. 5 - Prob. 7E Ch. 5 - Prob. 8E Ch. 5 - Prob. 9E Ch. 5 - Prob. 10E Ch. 5 - Prob. 11E Ch. 5 - Prob. 12E Ch. 5 - Prob. 13E Ch. 5 - Prob. 14E Ch. 5 - Prob. 15E Ch. 5 - Prob. 16E Ch. 5 - Prob. 17E Ch. 5 - Prob. 18E Ch. 5 - Prob. 1PSA Ch. 5 - Prob. 2PSA Ch. 5 - Prob. 3PSA Ch. 5 - Problem 5-4AA Periodic: Alternative cost flows...Ch. 5 - Prob. 5PSA Ch. 5 - Prob. 6PSA Ch. 5 - Prob. 7PSA Ch. 5 - Prob. 8PSA Ch. 5 - Prob. 9PSA Ch. 5 - Prob. 10PSA Ch. 5 - Prob. 1PSB Ch. 5 - Prob. 2PSB Ch. 5 - Prob. 3PSB Ch. 5 - Prob. 4PSB Ch. 5 - Prob. 5PSB Ch. 5 - Prob. 6PSB Ch. 5 - Prob. 7PSB Ch. 5 - Prob. 8PSB Ch. 5 - Prob. 9PSB Ch. 5 - Prob. 10PSB Ch. 5 - Prob. 5SP Ch. 5 - Prob. 1BTN Ch. 5 - Prob. 2BTN Ch. 5 - Prob. 3BTN Ch. 5 - Prob. 4BTN Ch. 5 - Prob. 5BTN Ch. 5 - Prob. 6BTN Ch. 5 - Prob. 7BTN Ch. 5 - Prob. 8BTN Ch. 5 - Prob. 9BTN

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