Extra assignment 2.docx - P1 Gray Company uses the periodic inventory system to account for inventories Information related to Gray Company's inventory

# Extra assignment 2.docx - P1 Gray Company uses the periodic...

• Homework Help
• 3

This preview shows page 1 - 3 out of 3 pages.

P1. Gray Company uses the periodic inventory system to account for inventories. Information related to Gray Company's inventory at October 31 is given below: October 1 Beginning inventory 400 units @ \$9.80 = \$ 3,920 8 Purchase 800 units @ \$10.40 = 8,320 16 Purchase 600 units @ \$10.80 = 6,480 24 Purchase 200 units @ \$11.80 = 2,360 Total units and cost 2,000 units \$21,080 Instructions 1. Show computations to value the ending inventory using the FIFO cost assumption if 550 units remain on hand at October 31. [email protected] 11.80 =2360 [email protected] 10.80 = 3780 Remaining Inventory: 6140 2. Show computations to value the ending inventory using the weighted-average cost method if 550 units remain on hand at October 31. 21080/2000=10.54 [email protected] 10.54= 5797 Remaining inventory: 5797 3. Show computations to value the ending inventory using the LIFO cost assumption if 550 units remain on hand at October 31. 400 @ 9.80=3920 [email protected] 10.40=1560 Remaining inventory: 5480
P2. Compute the lower-of-cost-or-market valuation for Gantner Company's total inventory based on the following: Inventory Categories Cost Data Market Data A \$18,000 \$16,900 B 13,900 14,600 C 21,000 20,500 Lower-of-cost: 16,900 13,900 20,500 Total realizable value: \$51,300
P3. Molina Company had a \$700 credit balance in Allowance for Doubtful Accounts at

#### You've reached the end of your free preview.

Want to read all 3 pages?

• Fall '18
• SandraH.Pelfrey

### What students are saying

• As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

Kiran Temple University Fox School of Business ‘17, Course Hero Intern

• I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

Dana University of Pennsylvania ‘17, Course Hero Intern

• The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

Jill Tulane University ‘16, Course Hero Intern