Required compute the ending inventory and cost of

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116.Required:Compute the ending inventory and cost of goods sold assuming Denver uses average cost and a periodic inventory system. Answer: PERIODIC AVERAGE COSTDate:QTYUNITTOTALCOSTCOSTBeginning inventory500 @$55$27,500Jan. 10 500 @$6030,000Jan. 20 1,000 @$6363,000Total available 2,000 @$ 60.25*120,500Ending inventory (450)@$ 60.25(27,113)Cost of goods sold1,550$93,387*** $120,500/2,000 = $60.25** rounded Learning Objective: 4 Level of Learning: 3117.Required:Compute the ending inventory and cost of goods sold assuming Denver uses average cost and a perpetual inventory system. Answer: Perpetual Average CostDatePurchasedSoldBalanceBeginning Inv.500 @ $55 = $27,500500 @ $55 $27,500Jan. 10500 @ $60 = $30,0001,000 @ $57.50 $57,500Jan. 12800 @ $57.50 = $46,000200 @ $57.50 $11,500Jan. 201,000 @ $63 = $63,0001,200 @ $62.08 $74,500Jan. 28750 @ $62.08= $46,560450 @ $62.08 $27,940*Total cost of goods sold$92,560*rounded Learning Objective: 4 Level of Learning: 350Spiceland/Sepe/Tomassini, Intermediate Accounting, Fourth Edition
Chapter 8 Inventories Measurement118.Required:Compute the ending inventory and cost of goods sold assuming Denver uses LIFO and a periodic inventory system. Answer: Date:QTYUNITTOTALCOSTCOSTBeginning inventory500@$5527,500Jan. 10 purchase500@$6030,000Jan. 20 purchase1,000@$6363,000Total available 2,000120,500Ending inventory 450@$5524,750Cost of goods sold$95,750Learning Objective: 7 Level of Learning: 3119.Selected financial statement data from Western Colorado Stores is shown below.20062005Net sales$625,000$690,000Cost of goods sold500,000490,000Operating expenses 105,00085,000Inventory90,00070,000Required:(a.) Compute the gross profit ratio for 2006.(b.) Compute the inventory turnover ratio for 2006.
Learning Objective: 5 Level of Learning: 3Spiceland/Sepe/Tomassini, Intermediate Accounting, Fourth Edition51
Chapter 8 Inventories Measurement120.Appleton Inc. adopted dollar-value LIFO on January 1, 2006, when the inventory value was $1,200,000. The December 31, 2006, ending inventory at year-end costs was $1,430,000 and the cost index for the year is 1.1.Required:Compute the dollar-value LIFO inventory valuation for the December 31, 2006, inventory.
Learning Objective: 8 Level of Learning: 3

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