INVENTORY PROBLEMS AND SOLUTIONS

INVENTORY PROBLEMS AND SOLUTIONS - CHAPTER 8 ON INVENTORIES...

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CHAPTER 8 ON INVENTORIES Kiner Co. has the following data related to an item of inventory: Inventory, March 1 100 units @ $4.20 Purchase, March 7 350 units @ $4.40 Purchase, March 16 70 units @ $4.50 Inventory, March 31 130 units 1. The value assigned to ending inventory if Kiner uses LIFO is a. $579. b. $552. c. $546. d. $585. 1. b (100 × $4.20) + (30 × $4.40) = $552. 2. The value assigned to cost of goods sold if Kiner uses FIFO is a. $579. b. $552. c. $1,723. d. $1,696. 2. d 100 + 350 + 70 – 130 = 390 units (100 × $4.20) + (290 × $4.40) = $1,696. Use the following information for questions 3 through 6. Transactions for the month of June were: Purchases Sales June 1 (balance) 800 @ $3.20 June 2 600 @ $5.50 3 2,200 @ 3.10 6 1,600 @ 5.50 7 1,200 @ 3.30 9 1,000 @ 5.50 15 1,800 @ 3.40 10 400 @ 6.00 22 500 @ 3.50 18 1,400 @ 6.00 25 200 @ 6.00
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3. Assuming that perpetual inventory records are kept in units only, the ending inventory on a LIFO basis is a. $4,110. b.
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This note was uploaded on 12/03/2009 for the course ACG 3131 taught by Professor Rotella during the Spring '08 term at University of Central Florida.

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INVENTORY PROBLEMS AND SOLUTIONS - CHAPTER 8 ON INVENTORIES...

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