310 of inventory, and obtained $960 of purchases discounts. Jill's in transportation-out cost. Salaries of sales personnel amounted to $41, 00. Cost of goods sold amounted to $103,300. ning balance in its inventory account of $12,200. During the accounting per

310 of inventory, and obtained $960 of purchases discounts. Jill's in transportation-out cost. Salaries of sales personnel amounted to $41, 00. Cost of goods sold amounted to $103,300. ning balance in its inventory account of $12,200. During the accounting per

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter6: Cost Of Goods Sold And Inventory

Section: Chapter Questions

Problem 63E: ( Appendix 6B) Inventory Costing Methods: Periodic Inventory System The inventory accounting records...

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Exercise 4-7A (Algo) Determining the cost of inventory LO 4-2, 4-3, 4-4
For each of the following cases determine the ending balance in the inventory account. (Hint. First, determine the total cost of
inventory available for sale. Next, subtract the cost of the inventory sold to arrive at the ending balance.)
a. Jill's Dress Shop had a beginning balance in its inventory account of $50,500. During the accounting period, Jill's purchased
$106,500 of inventory, returned $7,100 of inventory, and obtained $960 of purchases discounts. Jill's incurred $1,420 of
transportation-in cost and $810 of transportation-out cost. Salaries of sales personnel amounted to $41,500. Administrative
expenses amounted to $46,100. Cost of goods sold amounted to $103,300.
b. Ken's Bait Shop had a beginning balance in its inventory account of $12,200. During the accounting period, Ken's purchased
$53,700 of inventory, obtained $1,620 of purchases allowances, and received $570 of purchases discounts. Sales discounts
amounted to $850. Ken's incurred $1,320 of transportation-in cost and $470 of transportation-out cost. Selling and administrative
cost amounted to $14,400. Cost of goods sold amounted to $38,100.
Cost of goods available for sale
Ending Inventory
Jill's Dress
Shop
Ken's Bait
Shop

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( Appendix 6B) Inventory Costing Methods: Periodic Inventory System The inventory accounting records for Lee Enterprises contained the following data: Required: 1. Calculate the cost of ending inventory and the cost of goods sold using the FIFO, LIFO, and average cost methods. ( Note: Use four decimal places for per-unit calculations and round all other numbers to the nearest dollar.) 2. CONCEPTUAL CONNECTION Compare the ending inventory and cost of goods sold computed under all three methods. What can you conclude about the effects of the inventory costing methods on the balance sheet and the income statement?
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