9th Edition

ISBN: 9781266418211

Author: Wild

Publisher: INTER MCG

Concept explainers

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 & MANAGERIAL ACCT. CONNECT

Ch. 5 - Prob. 1QS Ch. 5 - Prob. 2QS Ch. 5 - Prob. 3QS Ch. 5 - Prob. 4QS Ch. 5 - Perpetual: Inventory costing with FIFO P1 A...Ch. 5 - Prob. 6QS Ch. 5 - Prob. 7QS Ch. 5 - Prob. 8QS Ch. 5 - Prob. 9QS Ch. 5 - A Periodic: Inventory costing with weighted...

Ch. 5 - Prob. 11QS Ch. 5 - Prob. 12QS Ch. 5 - Perpetual: Inventory costing with weighted average...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 - Prob. 20QS Ch. 5 - Prob. 21QS Ch. 5 - Prob. 22QS Ch. 5 - Prob. 23QS Ch. 5 - Prob. 24QS Ch. 5 - Prob. 25QS Ch. 5 - Prob. 26QS 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. 19E Ch. 5 - Prob. 20E Ch. 5 - Prob. 21E 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 - Problem 5-8BA Periodic: Income comparisons and...Ch. 5 - Prob. 9PSB Ch. 5 - Prob. 10PSB Ch. 5 - Prob. 5SP Ch. 5 - Prob. 1.1AA Ch. 5 - Prob. 1.2AA Ch. 5 - Prob. 1.3AA Ch. 5 - Prob. 1.4AA Ch. 5 - Prob. 2.1AA Ch. 5 - Prob. 2.2AA Ch. 5 - Prob. 2.3AA Ch. 5 - Prob. 3.1AA Ch. 5 - Prob. 3.2AA Ch. 5 - Prob. 3.3AA Ch. 5 - Describe how costs flow inventory to cost of goods...Ch. 5 - Where is the amount of merchandise inventory...Ch. 5 - Prob. 3DQ Ch. 5 - Prob. 4DQ Ch. 5 - Prob. 5DQ Ch. 5 - Prob. 6DQ Ch. 5 - What factors contribute to (or cause) inventory...Ch. 5 - Prob. 8DQ Ch. 5 - Prob. 1BTN Ch. 5 - Prob. 2BTN Ch. 5 - Prob. 3BTN Ch. 5 - Prob. 5BTN

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