Cengagenowv2, 1 Term Printed Access Card For Wahlen/jones/pagach’s Intermediate Accounting: Reporting And Analysis, 2017 Update, 2nd
2nd Edition
ISBN: 9781337912259
Author: James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher: Cengage Learning
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Chapter 8, Problem 7RE
Uncle Butch’s Hunting Supply Shop reports the following information related to inventory:
Calculate Uncle Butch’s’ ending inventory using the retail inventory method under the FIFO cost flow assumption. Round the cost-to-retail ratio to 3 decimal places.
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MusicMagic specializes in sound equipment. Company records indicate the following data for a line of speakers:
(Click the icon to view the data.)
Read the requirements.
Co
Requirement 1. Determine the amounts that MusicMagic should report for cost of goods sold and ending inventory two ways: a. FIFO and b. LIFO. (MusicMagic uses a perpetual inventory
system.)
Start by determining the amounts that MusicMagic should report for cost of goods sold and ending inventory under a. FIFO.
FIFO method cost of goods sold =
FIFO method ending inventory =
Data table
Date
Mar 1
Mar 2
Mar 7
Mar 13
Item
Balance
Purchase
Sale
Sale
Print
Quantity
14
5
7
6
Unit Cost
$
Done
41
48
Sale Price
$
109
102
X
Assume that Whitewall Tire Store completed the following perpetual inventory transactions for a line of tires:
i (Click the icon to view the transactions.)
Read the requirements.
Requirement 1. Compute cost of goods sold and gross profit using the FIFO inventory costing method.
Begin by computing the cost of goods sold and cost of ending merchandise inventory using the FIFO inventory costing method. Enter the transactions in chronological order, calculating new inventory on hand balances after each transaction. Once all of the transactions have
been entered into the perpetual record, calculate the quantity and total cost of merchandise inventory purchased, sold, and on hand at the end of the period. (Enter the oldest inventory layers first.)
Date Quantity
Dec. 1
11
23
261
29
Totals
Purchases
Unit
Cost
Cost of Goods Sold
Total
Unit
Cost Quantity Cost
Total
Cost
Inventory on Hand
Unit
Quantity Cost
C
Total
Cost
More info
Dec. 1 Beginning merchandise inventory
Dec. 11 Purchase
Dec. 23…
MusicPlace specializes in sound equipment. Company records indicate the following data for a line of speakers
(Click the icon to view the data)
Read the requirements
Requirement 1. Determine the amounts that MusicPlace should report for cost of goods sold and ending inventory two ways: a. FIFO and b. LIFO (MusicPlace uses a perpetual inventory system.)
Start by determining the amounts that MusicPlace should report for cost of goods sold and ending inventory under a FIFO
FIFO method cost of goods sold
FIFO method ending inventory
Determinie the amounts that MusicPlace should report for cost of goods sold and ending inventory under b. LIFO.
LIFO method cost of goods sold
LIFO method ending inventory
Requirement 2. MusicPlace uses the FIFO method. Prepare the company's income statement for the month ended March 31, 2021, reporting gross profit. Operating expenses totaled $280, and the
income tax rate was 40%. (Round answers to the nearest dollar)
MusicPlace
Income Statement
Month Ended…
Chapter 8 Solutions
Cengagenowv2, 1 Term Printed Access Card For Wahlen/jones/pagach’s Intermediate Accounting: Reporting And Analysis, 2017 Update, 2nd
Ch. 8 - Prob. 1GICh. 8 - Define the upper and lower constraints used in the...Ch. 8 - How may a company apply the lower of cost or a...Ch. 8 - What is the major criticism of the lower of cost...Ch. 8 - Prob. 5GICh. 8 - Prob. 6GICh. 8 - Prob. 7GICh. 8 - Prob. 8GICh. 8 - What is the basic assumption underlying the gross...Ch. 8 - Prob. 10GI
Ch. 8 - Explain the meaning of the following terms:...Ch. 8 - Prob. 12GICh. 8 - Prob. 13GICh. 8 - The retail inventory method indicated an inventory...Ch. 8 - Prob. 15GICh. 8 - Indicate the effect of each of the following...Ch. 8 - Sienna Company uses the FIFO cost flow assumption....Ch. 8 - Prob. 2MCCh. 8 - Prob. 3MCCh. 8 - Prob. 4MCCh. 8 - Prob. 5MCCh. 8 - Under the retail inventory method, freight-in...Ch. 8 - The retail inventory method would include which of...Ch. 8 - Prob. 8MCCh. 8 - Estimates of price-level changes for specific...Ch. 8 - A company forgets to record a purchase on credit...Ch. 8 - The following information is available regarding...Ch. 8 - Each unit of Black Corporations inventory has a...Ch. 8 - Prob. 3RECh. 8 - Prob. 4RECh. 8 - Prob. 5RECh. 8 - Kays Beauty Supply uses the gross profit method to...Ch. 8 - Uncle Butchs Hunting Supply Shop reports the...Ch. 8 - Use the information in RE8-7. Calculate Uncle...Ch. 8 - Use the information in RE8-7. Calculate Uncle...Ch. 8 - Use the information in RE8-7. Calculate Uncle...Ch. 8 - Johnson Corporation had beginning inventory of...Ch. 8 - Prob. 12RECh. 8 - Prob. 13RECh. 8 - Prob. 14RECh. 8 - Lower of Cost or Market Stiles Corporation uses...Ch. 8 - Prob. 2ECh. 8 - Prob. 3ECh. 8 - Prob. 4ECh. 8 - Prob. 5ECh. 8 - Prob. 6ECh. 8 - Prob. 7ECh. 8 - Gross Profit Method: Estimation of Theft Loss You...Ch. 8 - Retail Inventory Method Harmes Company is a...Ch. 8 - Prob. 10ECh. 8 - Retail Inventory Method The following information...Ch. 8 - Prob. 12ECh. 8 - Prob. 13ECh. 8 - Prob. 14ECh. 8 - Errors A company that uses the periodic inventory...Ch. 8 - Prob. 16ECh. 8 - Prob. 17ECh. 8 - Lower of Cost or Market Palmquist Company has five...Ch. 8 - Prob. 2PCh. 8 - Prob. 3PCh. 8 - Prob. 4PCh. 8 - Prob. 5PCh. 8 - Prob. 6PCh. 8 - Prob. 7PCh. 8 - Prob. 8PCh. 8 - Retail Inventory Method Weber Corporation uses the...Ch. 8 - Prob. 10PCh. 8 - Prob. 11PCh. 8 - Prob. 12PCh. 8 - Errors As controller of Lerner Company, which uses...Ch. 8 - Prob. 14PCh. 8 - (Appendix 8.1) Lower of Cost or Market The...Ch. 8 - Prob. 16PCh. 8 - Prob. 1CCh. 8 - Sandberg Paint Company, your client, manufactures...Ch. 8 - Prob. 3CCh. 8 - Prob. 4CCh. 8 - Prob. 5CCh. 8 - Prob. 6CCh. 8 - Prob. 7CCh. 8 - Various Inventory Issues Hudson Company, which is...Ch. 8 - Prob. 10CCh. 8 - Prob. 11C
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