When using the periodic inventory system which of the

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Intermediate Accounting: Reporting and Analysis
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Chapter 7 / Exercise RE7-8
Intermediate Accounting: Reporting and Analysis
Jones/Wahlen
Expert Verified
7.When using the periodic inventory system, which of the following generally would notbe separatelyaccounted for in the computation of cost of goods sold?*a.Trade discounts applicable to purchases during the periodb.Cash (purchase) discounts taken during the periodc.Purchase returns and allowances of merchandise during the periodd.Cost of freight-in for merchandise purchased during the period
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Intermediate Accounting: Reporting and Analysis
The document you are viewing contains questions related to this textbook.
Chapter 7 / Exercise RE7-8
Intermediate Accounting: Reporting and Analysis
Jones/Wahlen
Expert Verified
8.In a period of rising prices which inventory method generally provides the greatest amount of netincome?
9.Malone Corporation uses the perpetual inventory method. On March 1, it purchased $60,000 ofinventory, terms 2/10, n/30. On March 3, Malone returned goods that cost $6,000. On March 9, Malonepaid the supplier. On March 9, Malone should credit
10.Risers Inc. reported total assets of $1,800,000 and net income of $200,000 for the current year. Risersdetermined that inventory was overstated by $15,000 at the beginning of the year (this was notcorrected). What is the corrected amount for total assets and net income for the year?
Use the following information to answer Questions 11 and 12Niles Co. has the following data related to an item of inventory:Inventory, March 1100 units @ $2.10Purchase, March 7350 units @ $2.20Purchase, March 1670 units @ $2.25Inventory, March 31130 units11.The value assigned to ending inventory if Niles uses LIFO isa.$290.b.$276.c.$273.d.$292.
12.The value assigned to cost of goods sold if Niles uses FIFO is
Use the following information for questions 13 and 14.Niles Co. has the following data related to an item of inventory:Inventory, March 1200 units @ $2.10Purchase, March 7700 units @ $2.20Purchase, March 16140 units @ $2.258
13.The value assigned to ending inventory if Niles uses LIFO is
14. The value assigned to cost of goods sold if Niles uses FIFO isa.$ 580.b.$ 552.c.$1,724.*d. $1,696.To value Cost of Goods Sold, I would first value the ending inventory under FIFO:Count from the bottom up since the first units have already sold-following the idea of first in, first out. 140 Units @ 2.25 = 315120 Units @ 2.20 = 264Ending Inventory= 579Cost of goods available for sale 2,275Less ending inventory under FIFO 579Cost of goods sold 1,696

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