510chapter8fall2009afterclass1212009

510chapter8fall2009afterclass1212009 - Chapter 8: Valuation...

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Unformatted text preview: Chapter 8: Valuation of Inventories: A Cost Basis Approach Whats Important Inventory classification and control Physical goods included in inventory Cost flow assumptions LIFO reserve LIFO liquidation Dollar value LIFO Whats not on the exam Special sales agreements Effect of inventory errors Costs included in inventory E8-13 (Revised) Inventory information for Part 311 of Seminole Corp discloses the following information for the month of June. June 1 Balance500 units @10 June 10 Sold 200 units@24 June 11 Purchased 800 units@12 June 15 Sold 500 units@25 June 20 Purchased 200 units@13 June 27 Sold 300 units@27 a) Assuming the periodic inventory method is used, compute CGS and Ending inventory under LIFO and FIFO b) Using perpetual inventory method, what is value of ending inventory using LIFO E8-15 Esplanade Co. was formed on December 1, 2009. The following information is available for Esplanades inventory records for product BAP. Compute ending inventory using FIFO, LIFO and weighted average. Units Unit Cost January 1, 2010(beginning inv) 600 $8 Purchases: January 5, 2010 1,100 9 January 25, 2010 1,300 10 February 16, 2010 800 11 March 26, 2010 600 12 A physical inventory on March 31, 2010, shows 1,500 units on hand E8-17 May 1 Balance 400 units at $20 May 10 Sale 300 units at $38 May12 Purchase 600 units at $25 May 20 Sale 590 units at $38 May 28 Purchase 400 units at $30 a) Assuming that perpetual inventories are not maintained and that a physical count at the end of the month shows 510 units on hand, what is the cost of the ending inventory using FIFO and LIFO....
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This note was uploaded on 12/29/2009 for the course ACC 5100 taught by Professor Andrews during the Fall '09 term at Wayne State University.

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510chapter8fall2009afterclass1212009 - Chapter 8: Valuation...

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