Lecture 19 Review questions_1

# Lecture 19 Review questions_1 - Inventory Rays Farm Store...

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Inventory Ray s Farm Store recorded the following purchases and sales of fertilizer during the past year: Jan.1 Beginning Inventory 250 cases @ \$23 \$5,750 Feb. 25 Purchased 100 cases @ \$23 2,600 June 15 Purchased 400 cases @ \$23 11,200 Aug. 15 Purchased 100 cases @ \$23 2,600 Oct. 15 Purchased 300 cases @ \$23 8,400 Dec. 15 Purchased 200 cases @ \$23 6,000 Total goods available for sale 1,350 cases \$36,550 Total sales 1,000 cases Dec. 31 Ending Inventory 350 cases 1) Determine the Cost of Goods Sold and Ending Inventory under the three cost-flow assumptions: FIFO, LIFO, and Average Cost. 2) Calculate the LIFO reserve ending balance on Dec. 31. High-Low method The company reports the following utility costs for different levels of activity during the first half of the year: Month Machine hours Total utility costs January 470 \$14,900 February 500 15,350 March 570 16,450 April 625 17,300 May 610 16,800 June 525 15,800 Using the high-low method, estimate the variable cost rate.

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CVP analysis SMC, Inc. is a producer of hand-held electronic games. Its 2008 income statement was as follows: SMC, Inc.
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