College Accounting (Book Only): A Career Approach
13th Edition
ISBN: 9781337280570
Author: Scott, Cathy J.
Publisher: South-Western College Pub
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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
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…
Huddell Company, which is both a wholesaler and retailer, purchases merchandise from various suppliers. Thedollar-value LIFO method is used for the wholesale inventories.Huddell determines the estimated cost of its retail ending inventories using the conventional retail inventorymethod, which approximates lower of average cost or market.Required:1. a. What are the advantages of using the dollar-value LIFO method as opposed to the traditional LIFOmethod?b. How does the application of the dollar-value LIFO method differ from the application of the traditionalLIFO method?2. a. In the calculation of the cost-to-retail percentage used to determine the estimated cost of its ending inventories, how should Huddell use∙ Net markups?∙ Net markdowns?b. Why does Huddell’s retail inventory method approximate lower of average cost or market?
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…
Chapter C Solutions
College Accounting (Book Only): A Career Approach
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