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...

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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
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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
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P3. Molina Company had a $700 credit balance in Allowance for Doubtful Accounts at
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  • Fall '18
  • SandraH.Pelfrey

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