Financial Accounting
4th Edition
ISBN: 9781259307959
Author: J. David Spiceland, Wayne M Thomas, Don Herrmann
Publisher: McGraw-Hill Education
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Chapter 8, Problem 8.6BE
Record deferred revenues (LO8–4)
On December 18, Intel receives $260,000 from a customer toward a cash sale of $2.6 million for computer chips to be completed on January 23. The computer chips had a total production cost of $1.6 million. What
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Nash Company's record of transactions concerning part X for the month of April was as follows.
Purchases
April 1 (balance on hand)
4
11
18
26
30
Sales
210 @ $5.20
510 @ 5.30
410 @ 5.50
April 5
27
5.60 28
310 @
710 @ 5.80
310 @ 6.00
12
410
310
1,020
150
If the perpetual inventory record is kept in dollars, and costs are computed at the time of each
withdrawal, what amount would be shown as ending inventory under (1) FIFO, (2) LIFO and (3)
Average-cost? (Round average cost per unit to 4 decimal places, e.g. 2.7621 and final answers to 0
decimal places, e.g. 6,548.) Make a simple formula to find the FIFO, LIFO, & Average-Cost (nothing
complicated)
Brief Exercise 6-5 (Algo) Calculate ending inventory and cost of goods sold using FIFO (LO6-3)
During the year, Wright Company sells 520 remote-control airplanes for $120 each. The company has the following inventory purchase
transactions for the year.
Date
January 1
May 5
November 3
FIFO
Beginning Inventory
Purchases:
May 5
November 3
Transaction
Beginning inventory
Purchase
Purchase
Total
Calculate ending inventory and cost of goods sold for the year, assuming the company uses FIFO.
Number
of units
Cost of Goods Available for Sale
40
300
250
590
Cost per
unit
$
62
65
70
Number of
Units
40
300
250
590
$
Cost of Goods
Available for Sale
2,480
$
Unit
Cost
$62
65
70
19,500
17,500
39,480
Total Cost
$2,480
19,500
17,500
$39,480
Number
of units
Cost of Goods Sold
Cost per Cost of Goods
unit
Sold
Ending Inventory
Number Cost per
of units
Ending
unit Inventory
The following merchandise transactions occured in december. Both companies use a perpetual inventory system
Dec. 3 Blue Spruce Ltd. Sold goods to swifty corp. For $77,800,terms n/15, FOB shipping point. The inventory had cost blue spruce $41,400. Blue Spruce's management expected a return rate of 3% based on prior experience.
Dec. 7 Shipping costs of $1,080 were paid by the appropriate company
Dec. 8 Swifty returned unwanted merchandise to blue spruce. The returned merchandise has a sales price of $2,400, and a cost of $1,280. It was restored to inventory.
Dec 11 Blue Spruce received the balance due from swifty.
Chapter 8 Solutions
Financial Accounting
Ch. 8 - Prob. 1RQCh. 8 - Prob. 2RQCh. 8 - Prob. 3RQCh. 8 - Provide examples of current liabilities in the...Ch. 8 - Prob. 5RQCh. 8 - Prob. 6RQCh. 8 - How does commercial paper differ from a normal...Ch. 8 - Prob. 8RQCh. 8 - Prob. 9RQCh. 8 - Prob. 10RQ
Ch. 8 - Prob. 11RQCh. 8 - Prob. 12RQCh. 8 - Prob. 13RQCh. 8 - Prob. 14RQCh. 8 - Prob. 15RQCh. 8 - Prob. 16RQCh. 8 - Prob. 17RQCh. 8 - Prob. 18RQCh. 8 - Prob. 19RQCh. 8 - Prob. 20RQCh. 8 - Prob. 21RQCh. 8 - Prob. 22RQCh. 8 - Prob. 23RQCh. 8 - Record notes payable (LO82) Flip Side of BE82 On...Ch. 8 - Prob. 8.2BECh. 8 - Record notes receivable (LO82) Flip Side of BE81...Ch. 8 - Determine interest expense (LO82) Record...Ch. 8 - Prob. 8.5BECh. 8 - Record deferred revenues (LO84) On December 18,...Ch. 8 - Prob. 8.7BECh. 8 - Prob. 8.8BECh. 8 - Prob. 8.9BECh. 8 - Prob. 8.10BECh. 8 - Prob. 8.11BECh. 8 - Prob. 8.12BECh. 8 - Prob. 8.13BECh. 8 - Prob. 8.14BECh. 8 - Prob. 8.15BECh. 8 - Determine proper classification of liabilities...Ch. 8 - Prob. 8.2ECh. 8 - Prob. 8.3ECh. 8 - Prob. 8.4ECh. 8 - Determine interest expense (LO82) OS Environmental...Ch. 8 - Record a line of credit (LO82) The following...Ch. 8 - Calculate payroll withholdings and payroll taxes...Ch. 8 - Record payroll (LO83) During January, Luxury...Ch. 8 - Prob. 8.9ECh. 8 - Prob. 8.10ECh. 8 - Analyze and record a contingent liability (LO85)...Ch. 8 - Prob. 8.12ECh. 8 - Prob. 8.13ECh. 8 - Prob. 8.14ECh. 8 - Prob. 8.15ECh. 8 - Complete the accounting cycle using current...Ch. 8 - Prob. 8.1APCh. 8 - Prob. 8.2APCh. 8 - Prob. 8.3APCh. 8 - Record Payroll (LOS3) Vacation Destinations offers...Ch. 8 - Prob. 8.5APCh. 8 - Prob. 8.6APCh. 8 - Prob. 8.7APCh. 8 - Prob. 8.8APCh. 8 - Selected financial data regarding current assets...Ch. 8 - Prob. 8.1BPCh. 8 - Prob. 8.2BPCh. 8 - Prob. 8.3BPCh. 8 - Record Emily Turnbull, president of Aerobic...Ch. 8 - Prob. 8.5BPCh. 8 - Logins Roadhouse opened a new restaurant in...Ch. 8 - Record contingencies (LO85) Compact Electronics is...Ch. 8 - Prob. 8.8BPCh. 8 - Calculate and analyze rates (LO86) Selected...Ch. 8 - Great AdventuresContinuing Problem (This is a...Ch. 8 - Prob. 8.2APFACh. 8 - Prob. 8.3APFACh. 8 - Comparative Analysis American Eagle Outfitters,...Ch. 8 - Prob. 8.5APECh. 8 - Written Communication Western Manufacturing is...Ch. 8 - Earnings Management Quattro Technologies, a...
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