Chapter 8 HW - P8-01: Various Inventory Issues1. $175,000 -...

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Unformatted text preview: P8-01: Various Inventory Issues1. $175,000 - ($175,000 x .20) = $140,000$140,000 - ($175,000 x .10) = $122,500, cost of goods purchased2.3.FIFO inventory cost:1,000 units @ $241,000 units @ $23TotalLIFO inventory cost:1,500 units @ $21500 units @ $22TotalAverage cost:1,500 units @ $212,000 units @ $223,500 units @ $23@ $24$180,00 / 8,000 = $22.50. Thus, ending inventory (2,000 x $22.50) is $45,0004. Computation of price indexes:12.31.10$264,000= 110$240,00012.31.11$286,720= 112$256,000Dollar value LIFO inventory 12.31.10:Increase $240,000 - $200,000 = $40,000 12.31.10 price index = x1.10Increase in terms of 105$44,000 2010 LayerDollar value LIFO inventory 12.31.11:Increase $256,000 - $240,000 = $16,000 12.31.11 price index = x1.12$1,100,000 + $69,000 = $1,169,000. The $69,000 of goods in transit on which title passed on D(f.o.b shipping point) should be added to 12.31.10 inventory. The $29,000 of goods shipped (f.oon January 3, 2011 should remain part of 12.31.10 inventory.Because no date was associated with the units issued or sold, the periodic (rather than perpetual)method must be assumed.1,000units8,000Total unitsIncrease in terms of 112$17,920 2011 Layer2010 Layer$42,000Base inventory$200,000Dollar-value LIFO invetory$259,9205. The inventoriable costs for 2010 are:Merchandise purchased$909,400Add: Freight-in$22,000$931,400Deduct: Purchase returns$16,500Purchase discounts$6,800$23,300Inventoriable cost$908,100P8-02: Inventory AdjustmentDimitri CompanySchedule of AdjustmentsDecember 21, 2010Accounts InventoryPayableNet SalesInitial amounts:$1,520,000 $1,200,000 $8,150,000 Adjustments:1.NONENONE($40,000)2.$76,000 $76,000 NONE3.$30,000 NONENONE4.$32,000 NONE($47,000)5.$26,000 NONENONE6.$27,000 NONENONE7.NONE$56,000 NONE8.$4,000 $8,000 NONETotal adjustments$195,000 $140,000 ($87,000)Adjusted amounts:$1,715,000 $1,340,000 $8,063,000 1....
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This note was uploaded on 12/13/2009 for the course ACCOUNTING ACC 100 A taught by Professor A during the Fall '09 term at University of Phoenix.

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Chapter 8 HW - P8-01: Various Inventory Issues1. $175,000 -...

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