Solutions to Inventory Practice Problems

Solutions to Inventory Practice Problems - Solutions to...

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Solutions to Inventory Practice Problems EXERCISE 8-5 (15–20 minutes) (a) Inventory December 31, 2010 (unadjusted) . ................ $234,890 Transaction 2 . ................................................................ 10,420 Transaction 3 . ................................................................ –0– Transaction 4 . ................................................................ –0– Transaction 5 . ................................................................ 8,540 Transaction 6 . ................................................................ (10,438) Transaction 7 . ................................................................ (11,520) Transaction 8 . ................................................................ 1,500 Inventory December 31, 2010 (adjusted) . ..................... $233,392 (b) Transaction 3 Sales . ............................................................. 12,800 Accounts Receivable . ......................... 12,800 (To reverse sale entry in 2010) Transaction 4 Purchases (Inventory) . ................................. 15,630 Accounts Payable . ............................... 15,630 (To record purchase of merchandise in 2010) Transaction 8 Sales Returns and Allowances . ................... 2,600 Accounts Receivable . ......................... 2,600
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EXERCISE 8-15 (15–20 minutes) (a) ESPLANADE COMPANY Computation of Inventory for Product BAP Under FIFO Inventory Method March 31, 2010 Units Unit Cost Total Cost March 26, 2010 . .............................. 600 $12.00 $ 7,200 February 16, 2010 . ......................... 800 11.00 8,800 January 25, 2010 (portion). ............ 100 10.00 March 31, 2010, inventory . ............ 1,000 1,500 $17,000 (b) ESPLANADE COMPANY Computation of Inventory for Product BAP Under LIFO Inventory Method March 31, 2010 Units Unit Cost Total Cost Beginning inventory . ..................... 600 $8.00 $ 4,800 January 5, 2010 (portion) . ............. 900 9.00 March 31, 2010, inventory . ............ 8,100
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