ACCT 211 Chapter 5 Exercises.pdf - Question#1 Walberg...

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Question #1 Question #2 Walberg Associates, antique dealers, purchased the contents of an estate for $38,200. Terms of the purchase were FOB shipping point, and the cost of transporting the goods to Walberg Associates's warehouse was $1,550. Walberg Associates insured the shipment at a cost of $220. Prior to putting the goods up for sale, they cleaned and refurbished them at a cost of $560. Determine the cost of the inventory acquired from the estate. Cost of inventory (estate's contents) '!=>rice . $ 38,200 irransportation-in . 1,550 lnsurance on shipment . 220 Cleaning and refurbishing . 560 Total cost of inventory o S 40,530 Required information {The following Information applies to the questions displayed below.} Laker Company reported the following January purchases and sales data for its only product Date Activities Unit s Acquired at Cost Unit s sold at Retail Jan. 1 Beginning inventory 150 uni [email protected] $7. 50 $1,125 Jan. 10 Sales 110 uni ts @ $16.50 Jan. 20 Purchase 80 [email protected] $6. 50 = 520 Jan. 25 Sales 90 units (cl $16.50 Jan. 30 Purchase 200 uni [email protected] $6. 00 = 1,200 Totals 430 uni ts $2,845 200 units The Company uses a perpetual inventory system. For specific identification, ending inventory consists of 230 units, where 200 are from the January 30 purchase, 5 are from the January 20 purchase, and 25 are from beginning inventory. Required: 1. Complete the table to determine the cost assigned to ending inventory and cost of goods sold using specific identification. 2. Determine the cost assigned to ending inventory and to cost of goods sold using weighted average. 3. Determine the cost assigned to ending inventory and to cost of goods sold using FIFO. 4. Determine the cost assigned to ending inventory and to cost of goods sold using LIFO.
Required 1 Required 2 Required 3 Required 4 ----------------------~----~~----~---------------------------Complete the table to determine the cost assigned to ending inventory and cost of goods sold using specific identification. Si:iecific Identification Available for Sale Cost of Goods Sold Ending Inventory Purchase Date Jan. 1 Jan.20 Jan.30 Explanation 1. Activity Beginning inventory Purchase Purchase Specific i dentification I'll Unit Units Cost 150 $ 7.50 80 $ 6.50 200 $ 6.00 430 (200 X $6.00) + (5 X $6.50) + (25 X $7.50) Units Sold 125 75 Ill 200 Ending Cost Per Unit Cost COGS Inventory-Unit Units I'll $ 7.50 GI$ 938 25 Ill$ 7.50 n $ 6.50 GI$ 488 5lll$ 6.50 Iii Iii 200 Iii$ 6.00 n S 1,426 Ill 230 Required 2 > Ending Cost of Inventory Goods Sold $1,420.00 $2,845[Total Goods Available] -$1,420[Ending I nventory] $1,425.00 Required 1 Required 2 Required 3 Required 4 Determine the cost ass

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