e On February 26 Meinhof issued a purchase order to acquire goods costing 900

E on february 26 meinhof issued a purchase order to

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(e)On February 26, Meinhof issued a purchase order to acquire goods costing $900. Thegoods were shipped with terms FOB Shipping point on February 27. Meinhof receivedthe goods on March 2.(f)On February 26, Meinhof shipped goods to a customer under terms FOB destination.The invoice price was $350; the cost of the items was $220. The receiving reportindicates that the goods were received by the customer on March 2.InstructionsFor each of the above transactions, specify whether the item in question should beincluded in ending inventory, and if so, at what amount.P6-2CTroy Distribution markets CDs of the performing artist Adele. At the beginning ofOctober, Troy had in beginning inventory 2,000 of Adele’s CDs with a unit cost of $7.During October Troy made the following purchases of Adele’s CDs.Oct. 33,000 @ $8Oct. 193,000 @ $10Oct. 93,500 @ $9Oct. 253,500 @ $11During October, 13,000 units were sold. Troy uses a periodic inventory system.Instructions(a)Determine the cost of goods available for sale.(b) Determine (1) the ending inventory and (2) the cost of goods sold under each of theassumed cost flow methods (FIFO, LIFO, and average-cost). Prove the accuracy of thecost of goods sold under the FIFO and LIFO methods.(c) Which cost flow method results in (1) the highest inventory amount for the balancesheet and (2) the highest cost of goods sold for the income statement?P6-3CLasik Company had a beginning inventory on January 1 of 150 units of Product4-18-15 at a cost of $20 per unit. During the year, the following purchases were made.Mar. 15400 units at $23Sept. 4350 units at $26July 20250 units at $24Dec. 2100 units at $291,050 units were sold. Lasik Company uses a periodic inventory system.Instructions(a)Determine the cost of goods available for sale.(b) Determine (1) the ending inventory, and (2) the cost of goods sold under each of theassumed cost flow methods (FIFO, LIFO, and average-cost). Prove the accuracy of thecost of goods sold under the FIFO and LIFO methods.(c) Which cost flow method results in (1) the highest inventory amount for the balancesheet, and (2) the highest cost of goods sold for the income statement?P6-4CThe management of Berrier Inc. is reevaluating the appropriateness of using itspresent inventory cost flow method, which is average-cost. The company requests yourhelp in determining the results of operations for 2014 if either the FIFO or the LIFOmethod had been used. For 2014, the accounting records show these data:66InventoriesPROBLEMS: SET CDetermine items and amountsto be recorded in inventory.(LO 1)Determine cost of goods soldand ending inventory usingFIFO, LIFO, and average-costwith analysis.(LO 2, 3)(b) (2) Cost of goods sold:FIFO$116,000LIFO$124,000Average$119,600Determine cost of goods soldand ending inventory, usingFIFO, LIFO, and average-costwith analysis.(LO 2, 3)(b) (2) Cost of goods sold:FIFO$24,700LIFO$26,050Average$25,368Compute ending inventory,prepare income statements,and answer questions usingFIFO and LIFO.

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