Mgmt_200_Spring_2008_Extracredit_1_solution(3,3)

Mgmt_200_Spring_2008_Extracredit_1_solution(3,3) - and...

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NAME: ___________________________ PUID _________________ Please write your name in BLOCK letters and in the format: Last name, First name. Management 200 – Introductory Financial Accounting– Spring 2008 Krannert School of Management - Purdue University Extra Credit 1 – due Monday, March 3, 2008 – 10 points - SOLUTION IMPORTANT: This assignment must be turned in on this page. The grade for this assignment may be based on the correctness of a partial portion of the assignment – the full assignment will not necessarily be graded. Please print your name and PUID clearly and legibly in the spaces above. Roma Imports was formed in late 2005 to sell a single product, the Mafissio, which is imported from Italy. Due to unfavorable exchange rates the cost of this product increased dramatically during 2006 and 2007. Sales for 2006 totaled $476,000 or 34,000 units. Sales for 2007 totaled $756,000 or 42,000 units. Roma uses a periodic inventory system
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Unformatted text preview: and provides the following information about cost of goods purchased during the last two years: Opening Inventory (12/31/05) 4,000 units @ $7.50 $30,000 Purchase, February 16, 2006 20,000 units @ $9.00 $180,000 Purchase, June 23, 2006 16,000 units @ $10.00 $160,000 Purchase, March 20, 2007 18,000 units @ $12.50 $225,000 Purchase, July 13, 2007 26,000 units @ $13.00 $338,000 A physical inventory count at year-end, December 31, 2007 reveals 8,000 units still on hand. Required: Compute Cost of Goods Sold and Ending Inventory for both 2006 and 2007 for Roma Imports for each of the three inventory methods: Weighted average (WAVE), FIFO, and LIFO. WAVE FIFO LIFO Cost of goods sold, 2006 314,500 310,000 322,000 Inventory, December 31, 2006 55,500 60,000 48,000 Cost of goods sold, 2007 519,540 519,000 538,000 Inventory, December 31, 2007 98,960 104,000 73,000...
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