Class 8 Inventory Practice Solutions - Problem 8 1 Penn...

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Problem 8 - 1Penn Company uses a periodic inventory system. At the end of the annual accounting period, December 31, 2015, the accounting records provided the following information for product 1:UnitsUnit CostBeginning Inventory (Jan 1 2015)2000510,000For the year 2015:Purchase, March 215000630,000Purchase, August 13000824,000Inventory, December 31, 20154000 Units Available for Sale in 201510,000Ending Inventory4000Total Cost of Goods Avail forSale$64,000Units Sold6000FIFOENDING INVENTORYCOGS3000*8=240001000*6=6000=300002000*5=100004000*6=24000=34000LIFOENDING INVENTORYCOGS2000*5=100002000*6=12000=220003000*8=240003000*6=18000=42000WEIGHTED AVERAGECost of Goods Avail forSale= 64000= 6.40Number of Goods Avail forSale10000ENDING INVENTORYCOGS$1
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Problem 8 -2Quickie Grocery acquired the following five bottles of Corporate-Cola soft drink:DateJan. 2Jan. 10Jan. 12Jan. 16Jan. 25Cost$1.00$2.00$3.00$4.00$5.00A January 31 inventory count revealed that two bottles remained on the shelf.How many bottles were sold in January?

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