HW#3 - Accounting 350 Homework #3 Name: Question 1:...

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Accounting 350 – Homework #3 Name: Question 1: Inventory Measurement StayCool, Inc. sells air conditioners. On January 1, 2003, they had 5,000 air conditioner units in inventory. If StayCool reported inventory on a FIFO basis, its beginning inventory balance would include the following: Year units were purchased Number of units Cost per unit 2001 1,000 $500 2002 4,000 $600 If StayCool reported inventory on a LIFO basis, its beginning inventory balance would include the following: Year units were purchased Number of units Cost per unit 1988 2,000 $300 1992 3,000 $400 During 2003, StayCool purchased 5,000 air conditioner units. Related costs were as follows: Paid to supplier $3,500,000 Freight-in charges 100,000 Selling commissions 200,000 During 2003, StayCool sold 6,000 air conditioner units at a price of $1,200 each. StayCool uses a periodic inventory system. a. Calculate Cost of Sales for 2003 if StayCool, Inc. uses “Periodic LIFO” to value inventory. b. Calculate the balance in ending inventory on December 31, 2003 if StayCool, Inc. uses “Periodic FIFO” to value inventory. 1
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Question 2: Dollar Value LIFO Inventory Neuman Company adopted the dollar-value LIFO method on December 31, 2003. On this date, its inventory consisted of the following items. Neuman has only one inventory pool. Item
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This note was uploaded on 01/20/2012 for the course ECON 380 taught by Professor Joyce during the Spring '11 term at University of Ottawa.

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HW#3 - Accounting 350 Homework #3 Name: Question 1:...

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