ANSWER a units at 62 units at 63 945 Total 1565 b June 1 5

Answer a units at 62 units at 63 945 total 1565 b

• Test Prep
• 149
• 88% (124) 109 out of 124 people found this document helpful

This preview shows page 117 - 123 out of 149 pages.

ANSWER: (a) June 20 10 units at \$62 \$ 620 30 15 units at \$63 945 Total \$1,565 (b) June 1 5 units at \$60 \$ 300 8 5 units at \$61 305 30 15 units at \$63 945 Total \$1,550 DIFFICULTY: Moderate Bloom’s: Applying LEARNING OBJECTIVES: ACCT.WARD.16.07-03 - 07-03 ACCREDITING STANDARDS: ACCT.ACBSP.APC.17 - Inventories Reporting ACCT.AICPA.FN.03 - Measurement BUSPROG: Analytic
162 Beginning inventory, purchases, and sales data for hammers are as follows: Mar. 3 Inventory 12 units @ \$15 11 Purchase 13 units @ \$17 14 Sale 18 units 21 Purchase 9 units @ \$20 25 Sale 10 units Assuming the business maintains a perpetual inventory system, complete the inventory cards and calculate the cost of merchandise sold and ending inventory under the following assumptions: a First-in, first-out Purchases Cost of Merchandise Sold Inventory Date Qty. Unit Cost Total Cost Qty. Unit Cost Total Cost Qty. Unit Cost Total Cost Mar. 3 11 14 21 25 Balances b Last-in, first-out Purchases Cost of Merchandise Sold Inventory Date Qty. Unit Cost Total Cost Qty. Unit Cost Total Cost Qty. Unit Cost Total Cost Mar. 3 11 14
21 25 Balances ANSWER: a. First-in, first-out Purchases Cost of Merchandise Sold Inventory Date Qty. Unit Cost Total Cost Qty. Unit Cost Total Cost Qty. Unit Cost Total Cost Mar. 3 12 \$15 \$180 11 13 \$17 \$221 12 13 \$15 \$17 \$180 221 14 12 6 \$15 \$17 \$180 102 7 \$17 \$119 21 9 \$20 \$180 7 9 \$17 \$20 \$119 180 25 7 3 \$17 \$20 \$119 60 6 \$20 \$120 Balances \$461 \$120 b. Last-in, first-out Purchases Cost of Merchandise Sold Inventory Date Qty. Unit Cost Total Cost Qty. Unit Cost Total Cost Qty. Unit Cost Total Cost Mar. 3 12 \$15 \$180 11 13 \$17 \$221 12 13 \$15 \$17 \$180 221 14 13 5 \$17 \$15 \$221 75 7 \$15 \$105 21 9 \$20 \$180 7 9 \$15 \$20 \$105 180 25 9 1 \$20 \$15 \$180 15 6 \$15 \$ 90 Balance s \$491 \$ 90 DIFFICULTY: Moderate Bloom’s: Applying LEARNING OBJECTIVES: ACCT.WARD.16.07-03 - 07-03 ACCREDITING STANDARDS: ACCT.ACBSP.APC.17 - Inventories Reporting ACCT.AICPA.FN.03 -
Measurement BUSPROG: Analytic
163 The units of an item available for sale during the year were as follows: Jan. 1 Inventory 25 units at \$45 Mar. 4 Purchase 15 units at \$50 June 7 Purchase 35 units at \$58 Nov. 15 Purchase 20 units at \$65 There are 30 units of the item in the physical inventory at December 31. The periodic inventory system is used. Determine the ending inventory cost using FIFO. ANSWER: \$1,880 (20 units at \$65 and 10 units at \$58) DIFFICULTY: Easy Bloom’s: Applying LEARNING OBJECTIVES: ACCT.WARD.16.07-04 - 07-04 ACCREDITING STANDARDS: ACCT.ACBSP.APC.17 - Inventories Reporting ACCT.AICPA.FN.03 - Measurement BUSPROG: Analytic 164 The units of an item available for sale during the year were as follows: Jan. 1 Inventory 10 units at \$25 Apr. 4 Purchase 15 units at \$24 May. 20 Purchase 20 units at \$28 Oct. 30 Purchase 18 units at \$30 There are 19 units of the item in the physical inventory at December 31. The periodic inventory system is used. Determine the ending inventory cost using LIFO. ANSWER: \$466 (10 units at \$25 and 9 units at \$24) DIFFICULTY: Easy Bloom’s: Applying LEARNING OBJECTIVES: ACCT.WARD.16.07-04 - 07-04 ACCREDITING STANDARDS: ACCT.ACBSP.APC.17 - Inventories Reporting ACCT.AICPA.FN.03 - Measurement BUSPROG: Analytic
165 The beginning inventory and purchases of an item for the period were as follows: Beginning inventory 6 units at \$70 each First purchase 10 units at \$75 each Second purchase 18 units at \$80 each Third purchase 10 units at \$90 each