College Accounting (Book Only): A Career Approach
13th Edition
ISBN: 9781337280570
Author: Scott, Cathy J.
Publisher: South-Western College Pub
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Textbook Question
Chapter C, Problem 3P
Use the information presented in Problem C-1 to solve this problem.
Required
Find the cost of the ending inventory by the last-in, first-out method.
PROBLEM C-1 Bean Nursery sells bark to its customers at retail. Bean buys bark from a plywood mill in bulk and transports the bark in its own trucks. Information relating to the beginning inventory and purchases of bark is as follows:
Required
Find the cost of 1,200 cubic yards in the ending inventory by the weighted-average-cost method. Carry average cost per cubic yard to four decimals.
Check Figure
Cost of ending inventory, $480
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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
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Total
Unit
Cost Quantity Cost
Total
Cost
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Unit
Quantity Cost
C
Total
Cost
More info
Dec. 1 Beginning merchandise inventory
Dec. 11 Purchase
Dec. 23…
Assume that Whitewall Tire Store completed the following perpetual inventory transactions for a line of tires:
(Click the icon to view the transactions.)
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.)
Cost of Goods Sold
Date Quantity
Dec. 1
11
23
26
29
Totals
Purchases
Unit
Cost
Total
Unit
Cost Quantity Cost
Total
Cost
Inventory on Hand
Unit
Cost
Quantity
C
Total
Cost
1.
Requirements
More info
Dec. 1
Beginning merchandise inventory
Dec. 11 Purchase
Dec. 23 Sale
Dec. 26…
A home improvement store, like Lowe’s, carries the following items:Required:1. Compute the total cost of inventory.2. Determine whether each inventory item would be reported at cost or net realizable value. Multiply the quantity of each inventory item by the appropriate cost or NRV amount and place the total in the “Lower of Cost and NRV” column. Then determine the total of that column.3. Compare your answers in requirement 1 and requirement 2 and then record any necessary adjustment to write down inventory from cost to net realizable value.4. Discuss the financial statement effects of using lower of cost and net realizable value to report inventory.
Chapter C Solutions
College Accounting (Book Only): A Career Approach
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- Use the information presented in Problem C-1 to solve this problem. Bean Nursery sells bark to its customers at retail. Bean buys bark from a plywood mill in bulk and transports the bark in its own trucks. Information relating to the beginning inventory and purchases of bark is as follows: Required Find the cost of the ending inventory by the first-in, first-out method. Check Figure Cost of ending inventory, $562arrow_forwardBean Nursery sells bark to its customers at retail. Bean buys bark from a plywood mill in bulk and transports the bark in its own trucks. Information relating to the beginning inventory and purchases of bark is as follows: Required Find the cost of 1,200 cubic yards in the ending inventory by the weighted-average-cost method. Carry average cost per cubic yard to four decimals. Check Figure Cost of ending inventory, 519.24arrow_forwardConfused on how to Determine the cost assigned to ending inventory and to cost of goods sold using FIFO.and how to Determine the cost assigned to ending inventory and to cost of goods sold using LIFO.arrow_forward
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