Financial Accounting
3rd Edition
ISBN: 9780133791129
Author: Jane L. Reimers
Publisher: Pearson Higher Ed
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Chapter 5, Problem 9SEA
The following information pertains to item #007SS of inventory of Marine Aquatic Sales, Inc.:
The physical inventory indicates 2,000 units of item #007SS on hand. What amount will be reported on the Marine Aquatic Sales, Inc.’s
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The Ogale Equipment Corporation maintains a general ledger account for each class of inventory, debiting the individual accounts
for increases during the period and crediting them for decreases. The transactions that follow are for the Raw Materials inventory
account, which is debited for materials purchased and credited for materials requisitioned for use.
1.
2.
3.
4.
5.
6.
7.
An invoice for $8,100, terms f.o.b. destination, was received and entered on January 2, 2021. The receiving report shows
that the materials were received on December 28, 2020.
Materials costing $7,300 were returned to the supplier on December 29, 2020, on f.o.b. shipping point terms. The returns
were entered into Ogale's general ledger on December 28, even though the returned items did not arrive at the vendor's
office until January 6, 2021.
Materials costing $28,000, shipped f.o.b. destination, were not entered by December 31, 2020, because they were in a
railroad car on the company's siding on that date and…
s
The records of Cordova Corp. showed the following transactions, in the order given, relating to the major inventory item:
Unit
Cost
Units
4,800 $7.80
9,600 8.10
6,700
8,600 8.40
14,400
16,400 8.56
14,400
9,600 8.70
1.
2.
3.
4.
5.
6.
7. Sale (at $19.80)
8.
Purchase
Inventory
Purchase
Sale (at $16.80)
Purchase
Sale (at $16.80)
Purchase
Required:
Complete the following schedule for each independent assumption. (Round unit costs to the nearest cent.)
Independent Assumptions
a. FIFO
b. Weighted average, periodic inventory system
c. Moving average, perpetual inventory system
Ending Inventory
Units and Amounts
Cost of Goods
Sold
Gross Margin
Chapter 5 Solutions
Financial Accounting
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