Inventory Costing Methods, Accounting homework help

  

Accounting
week_6acc_vol_2.docx

Unformatted Attachment Preview

Don't use plagiarized sources. Get Your Custom Essay on
Inventory Costing Methods, Accounting homework help
Just from $10/Page
Order Essay

Brief Exercise 6-3
In its first month of operations, Bethke Company made three purchases of merchandise in the
following sequence: (1) 300 units at $6, (2) 400 units at $7, and (3) 200 units at $8.
Assuming there are 360 units on hand, compute the cost of the ending inventory under the FIFO
method and LIFO method. Bethke uses a periodic inventory system.
FIFO
LIFO
$
The cost of the
ending inventory
$
Brief Exercise 6-4
In its first month of operations, Bethke Company made
three purchases of merchandise in the following sequence:
(1) 300 units at $6, (2) 400 units at $7, and (3) 200 units
at $8.
Calculate the average unit cost. (Round answers to 2 decimal places, e.g. 15.25.)
$
Average unit cost
Compute the cost of the ending inventory under the average-cost method, assuming there
are 360 units on hand. (Round answers to 0 decimal places, e.g. 1,250.)
The cost of the ending inventory
$
Brief Exercise 6-6
In its first month of operation, Franklin Company purchased 120 units of inventory for $6,
then 200 units for $7, and finally 140 units for $8. At the end of the month, 180 units remained.
Compute the amount of phantom profit that would result if the company used FIFO rather than
LIFO. The company uses the periodic method.
The amount of phantom profit
$
Brief Exercise 6-7
Central Appliance Center accumulates the following cost and market data at December 31.
Inventory Categories
Cameras
Cost Data
Market Data
$12,000
$12,100
Camcorders
9,500
9,700
DVD players
14,000
12,800
Compute the lower-of-cost-or-market valuation for the company’s total inventory.
The lower-of-cost-or-market valuation
Exercise 6-2
$
Rachel Warren, an auditor with Laplante CPAs, is performing a review of Schuda Company’s inventory
account. Schuda did not have a good year, and top management is under pressure to boost reported
income. According to its records, the inventory balance at year-end was $740,000. However, the
following information was not considered when determining that amount.
Prepare a schedule to determine the correct inventory amount. (If an amount reduces the account
balance then enter with a negative sign preceding the number , e.g. -15,000, or parenthesis
e.g. (15,000). Enter 0 if there is no effect.)
Ending inventory-as reported
$
1.
Included in the company’s count were goods with a cost of $250,000 that the
company is holding on consignment. The goods belong to Harmon Corporation.
2.
The physical count did not include goods purchased by Schuda with a cost of
$40,000 that were shipped FOB destination on December 28 and did not arrive at
Schuda warehouse until January 3.
3.
Included in the inventory account was $14,000 of office supplies that were stored
in the warehouse and were to be used by the company’s supervisors and
managers during the coming year.
4.
The company received an order on December 29 that was boxed and was sitting
on the loading dock awaiting pick-up on December 31. The shipper picked up the
goods on January 1 and delivered them on January 6. The shipping terms were
FOB shipping point. The goods had a selling price of $40,000 and a cost of
$28,000. The goods were not included in the count because they were sitting on
the dock.
5.
On December 29, Schuda shipped goods with a selling price of $80,000 and a
cost of $60,000 to Reza Sales Corporation FOB shipping point. The goods arrived
on January 3. Reza Sales had only ordered goods with a selling price of
$10,000 and a cost of $8,000. However, a sales manager at Schuda had
authorized the shipment and said that if Reza wanted to ship the goods back
next week, it could.
6.
Included in the count was $40,000 of goods that were parts for a machine that
the company no longer made. Given the high-tech nature of Schuda’s products,
it was unlikely that these obsolete parts had any other use. However,
management would prefer to keep them on the books at cost, “since that is what
we paid for them, after all.”
Correct inventory
$
Exercise 6-6
Kaleta Company reports the following for the month of June.
Units
Unit Cost
June 1
Inventory
200
$5
Total Cost
$ 1,000
12
Purchase
400
6
2,400
23
Purchase
300
7
2,100
30
Inventory
100
(a)
Compute the cost of the ending inventory and the cost of goods sold under FIFO and LIFO.
FIFO
LIFO
The cost of the ending
inventory
The cost of goods sold
$
$
$
$
Exercise 6-8
Kaleta Company reports the following for the month of June.
Units
Unit Cost
Total Cost
June 1
Inventory
200
$5
$ 1,000
12
Purchase
400
6
2,400
23
Purchase
300
7
2,100
30
Inventory
100
Calulate Weighted Average Unit Cost. (Round answer to 2 decimal places, e.g. 15.25.)
$
Weighted Average Unit Cost
Compute the cost of the ending inventory and the cost of goods sold using the average-cost
method. (Round answers to 0 decimal places, e.g. 1,250.)
The ending inventory
The cost of goods sold
$
$
Will the results in (a) be higher or lower than the results under FIFO and LIFO?
Ending inventory is
than FIFO $
and
than LIFO $
.
In contrast, cost of goods sold is
than FIFO $
and
than LIFO $
.

Purchase answer to see full
attachment

Place your order
(550 words)

Approximate price: $22

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more

Order your essay today and save 30% with the discount code ESSAYSHELP