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Tutorial QuestionsChapter 5BE5.3(a), Ex5.8, PSA5.3 (not LIFO)Additional Problems 14, 15, 16 ,17 &34 from this document. BE5.3 Calculate ending inventory using FIFO and LIFO.LO5In its first month of operations, Cushion Ltd made three purchases of inventory in the following sequence: (1) 300 units at$12, (2) 400 units at $14, and (3) 500 units at $18. Assuming there are 400 units on hand, calculate the cost of the ending inventory under (a) the FIFO method and (b) the LIFO method. Cushion Ltd uses a periodic inventory system.E5.8 Calculate and explain the lower of cost and net realisable value basis of accounting for inventories.LO7The following data are available for Fashionista Hair Accessories Pty Ltd at 31 December:CostNet realisable valueSilk ribbons$25 200$21 420Gold-plated hair clips18 90019 950Crystal hair jewels29 40026 880Requireda.Calculate the lower of cost and net realisable value for Fashionista Hair Accessories total inventory.b.Why is it important to account for inventory using the lower of cost and net realisable value basis?
PSA5.3 Determine cost of sales and ending inventory using FIFO, LIFO, and average cost.LO5, 6Modelmania Ltd sells model cars. At the beginning of March, Modelmania Ltd had in beginning inventory 90 model cars with a unit cost of $35. During March Modelmania Ltd made the following purchases of model cars.March 5210 @ $40March 21240 @ $50March 13330 @ $45March 2690 @ $55During March, 810 units were sold. Modelmania Ltd uses a periodic inventory system.Requireda.Determine the cost of goods available for sale.