ACCT1006 tut4.docx - Chapter 5 Q9 u201cWhen perpetual...

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Chapter 5Q9.“When perpetual inventory records are kept, the results under the FIFO and LIFO methods are the same they would be in a periodic inventory system.” Do you agree? Explain.Q10.Peta Ltd discovers in 2017 that its ending inventory at 30 June 2016 was $5000 understated. What effect will this error have on (a) 2016 profit, (b) 2017 profit, and (c) the combined profit for the 2 years.BE5.4.Olynda Garden Centre accumulates the following data at 30 June:Calculate the lower of cost and net realisable value for Olynda’s total inventory.
E5.6.SurfsUp Ltd sells a snowboard, Xpert, that is popular with snowboard enthusiasts. Below is information relating to SurfsUp’s purchases of Xpert snowboards during May. During the same month, 124 Xpert snowboards were sold. SurfsUp uses a periodic inventory system.Required:(a) Calculate the ending inventory at 31 May using the FIFO and LIFO methods. Prove the amount allocated to cost of sales under each method.(b) For both FIFO and LIFO, calculate the sum of ending inventory and cost of sales. What do you notice about the answers you found for each method?

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