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

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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

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