ACCT Assignments Chapter 6

# ACCT Assignments Chapter 6 - Chapter Assignments 339...

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Unformatted text preview: Chapter Assignments 339 CHAPTER ASSIGNMENTS Short Exercises L01 Management Issues SE 1. Indicate whether each of the following items is associated with (a) allocat- ing the cost of inventories in accordance with the matching rule, (b) assessing the impact of inventory decisions, (c) evaluating the level of inventory, or (d) engag- ing in an unethical practice. 1. Calculating days' inventory on hand 2. Ordering a supply of inventory to satisfy customer needs 3. Valuing inventory at an amount to achieve a specific profit objective 4. Calculating the income tax effect of an inventory method 5. Deciding the cost to place on ending inventory L01 Inventory Turnover and Days' Inventory on Hand SE 2. During 2009, Gabriella's Fashion had beginning inventory of \$960,000, ending inventory of \$1,120,000, and cost of goods sold of \$4,400,000. Compute the inventory turnover and days' inventory on hand. L03 Specific Identification M ethod SE 3. Assume the following data with regard to inventory for Caciato Company: Aug. 1 Inventory 40 units @ \$10 per unit \$ 400 8 Purchase 50 units @ \$11 per unit 550 22 Purchase 35 units CO \$12 per unit 420 Goods available for sale 125 units \$1,370 Aug. 15 Sale 45 units 28 Sale 25 units Inventory, Aug. 31 55 units Assuming that the inventory consists of 30 units from the August 8 purchase and 25 units from the purchase of August 22, calculate the cost of ending inventory and cost of goods sold. LO3 Average-Cost Method: Periodic Inventory System SE 4. Using the data in SE 3, calculate the cost of ending inventory and cost of V goods sold according to the average-cost method under the periodic inventory system. LO3 FIFO Method: Periodic Inventory System SE 5. Using the data in SE 3, calculate the cost of ending inventory and cost of goods sold according to the FIFO method under the periodic inventory system. L03 LIFO Method: Periodic Inventory System / S E 6. Using the data in SE 3, calculate the cost of ending inventory and cost of goods sold according to the LIFO method under the periodic inventory system. 340 CHAPTER 6 Inventories 104 Effects of Inventory costing Methods and Changing Prices SE 7. Using Table 6-1 as an example, prepare a table with four columns that shows the ending inventory and cost of goods sold for each of the results from your calculations in SE 3 through SE 6, including the effects of the different prices at which the merchandise was purchased. Which method(s) would result in the lowest income taxes? SO5 S r SO5 Average-Cost Method: Perpetual Inventory System SE S. Using the data in SE 3, calculate the cost of ending inventory and cost of goods sold according to the average-cost method under the perpetual inventory system....
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## This note was uploaded on 02/18/2012 for the course ACCOUNTING 2301 taught by Professor Dr.susaneason during the Spring '12 term at San Jacinto.

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ACCT Assignments Chapter 6 - Chapter Assignments 339...

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