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Exam 6: Inventories

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Question 101

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Assuming a perpetual inventory system and the last-in, first-out method, determine (a) the inventory on November 30 and (b) the cost of the goods sold for November. ​ Nov. 1 Purchased 600 units $80 each 4 Sold 200 units 11 Purchased 350 units $82 each 12 Sold 275 units 22 Purchased 175 units $84 each 23 Sold 155 units ​

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(a) Inventory valuation:
​
400...

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Question 102

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Three identical units of merchandise were purchased during March, as shown: ​ $\begin{array}{|c|l|c|r|}\hline & {\text { Steele Plate }} & \text { Units } & {\text { Cost }} \\\hline \text { Mar. 3 } & \text { Purchase } & 1 & \$ 830 \\\hline 10 & \text { Purchase } & 1 & 840 \\\hline 19 & \text { Purchase } & 1 & 880 \\\hline \text { Total } & & \underline{3} & \$ 2,550 \\\hline\end{array}$ ​ Assume that one unit is sold on March 23 for $1,125. Determine the gross profit for March and ending inventory on March 31 using (a) FIFO and (b) LIFO.

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Question 103

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Applying the lower of cost or market to each item of inventory, what should the total inventory value be for the following items $\begin{array} { | c | c | c | c | c | c | } \hline \text { Item } & \begin{array} { c } \text { Inventory } \\\text { Quantity }\end{array} & \begin{array} { c } \text { Cost per } \\\text { Unit }\end{array} & \begin{array} { c } \text { Market value } \\\text { perUnit }\end{array} & \begin{array} { c } \text { Total } \\\text { Cost }\end{array} & \begin{array} { c } \text { Total } \\\text { Market }\end{array} \\\hline \mathrm { A } & 300 & \$ 15.00 & \$ 14.50 & \$ 4,500 & \$ 4,350 \\\hline \mathrm { B } & 200 & \$ 14.00 & \$ 15.00 & \$ 2,800 & \$ 3,000 \\\hline \mathrm { C } & 100 & \$ 17.00 & \$ 17.50 & \$ 1,700 & \$ 1,750 \\\hline\end{array}$

The beginning inventory and purchases of an item for the period were as follows: $\begin{array} { l l } \text { Beginning inventory } & 6 \text { units at } \$ 70 \text { each } \\\text { First purchase } & 10 \text { units at } \$ 75 \text { each } \\\text { Second purchase } & 18 \text { units at } \$ 80 \text { each } \\\text { Third purchase } & 10 \text { units at } \$ 90 \text { each }\end{array}$ ​ The company uses the periodic system, and there were 15 units in the inventory at the end of the period. Determine the cost of the 15 units in the inventory by each of the following methods, presenting details of your computations: (a) first-in, first-out; (b) last-in, first-out; (c) average cost. Do not round your intermediate calculations. Round your final answer to two decimal places.

Fill in the missing amounts from the chart below regarding the calculation of Bean Corporation's estimated inventory using the retail method of estimation.

For the year ended December 31, Depot Max's cost of goods sold was $56,900. Inventory at the beginning of the year was $6,540. Ending inventory was $7,250. Compute Depot Max's inventory turnover for the year.

Beginning inventory, purchases, and sales data for tennis rackets are as follows: ​ Complete the inventory cost card assuming the business maintains a perpetual inventory system and determine the cost of goods sold and ending inventory using the weighted average cost method. ​ ​ ​

On the basis of the following data for Sanford Industries as of December 31, what is the value of the inventory at the lower of cost or market? Apply lower of cost or market to each inventory item.

Addison, Inc. uses a perpetual inventory system. Below is information about one inventory item for the month of September. -Use the information in the table to answer this question. If Addison uses the weighted average cost method, calculate the inventory balance at the end of September?

Match each situation to its impact on the current year's net income.

In valuing merchandise for inventory purposes, net realizable value is the estimated selling price less any direct costs of disposal.

Use the information below to answer the following questions. The Boxwood Company sells blankets for $60 each. The following was taken from the inventory records during May. The company had no beginning inventory on May 1. ​ ​ -Assuming that the company uses the perpetual inventory system, determine the May 31 inventory balance using the LIFO inventory cost method.

Hampton Co. took a physical count of its inventory on December 31. In addition, it had to decide whether or not the following items should be added to this count. Answer "True" or "False" to indicate which items should and should not be added to the December 31 inventory count.

Which of the following is not an example for safeguarding inventory?

The following lots of a Commodity P were available for sale during the year. Use this information to answer the questions that follow. ​ ​ The firm uses the periodic system, and there are 20 units of the commodity on hand at the end of the year. -What is the year-end inventory balance using the LIFO method? Use the information provided in the table to answer this question

When merchandise sold is assumed to be in the order in which the purchases were made, the company is using

Based on the following information, what is (1) inventory turnover; (2) average daily cost of goods sold using a 365 day year; and (3) number of days' sales in inventory. Cost of goods sold $195,640 Inventory: Beginning of year 20,500 End of year 18,628

Assume that three identical units of merchandise were purchased during October, as follows: ​ $\begin{array} { | l | c | c | c | c | } \hline & & & \text { Units } & \text { Cost } \\\hline \text { October } & 5 & \text { Purchase } & 1 & \$ 5 \\\hline & 12 & \text { Purchase } & 1 & 13 \\\hline & 28 & \text { Purchase } & 1 & 15 \\\hline \text { Total } & & & \underline { 3 } & \$ 33 \\\hline\end{array}$ ​ Assume one unit is sold on October 31 for $28. Determine cost of goods sold, gross profit, and ending inventory under the LIFO method.

The method of estimating inventory that uses records of the selling prices of the merchandise is called

The lower-of-cost-or-market method of determining the value of ending inventory can be applied on an item by item, by major classification of inventory, or by the total inventory.