ower-of-Cost-or-Market Stalberg Company's beginning inventory and purchases during the fiscal year ended December 31, 20--, were as follows:     Units Unit Price   Total Cost Jan. 1 Beginning inventory 10 $20         $200       Mar. 5 1st purchase 10 22         220       Sept. 9 2nd purchase 10 25         250       Dec. 8 3rd purchase 10 30         300           40     $970         There are 10 units of inventory on hand on December 31. Question Content Area 1.  Calculate the total amount to be assigned to the ending inventory under each of the following periodic inventory methods: a.  FIFO$fill in the blank afc0e7fdc02f065_1 b.  Weighted-average (round calculations to two decimal places.)$fill in the blank afc0e7fdc02f065_2 2.  Assume that the market price per unit (cost to replace) of Stalberg's inventory on December 31, 20--, was $26. Calculate the total amount to be assigned to the ending inventory on December 31 under each of the following methods: a.  FIFO lower-of-cost-or-market$fill in the blank afc0e7fdc02f065_3 b.  Weighted-average lower-of-cost-or-market$fill in the blank afc0e7fdc02f065_4   Question Content Area 3.  What journal entry would be made under lower-of-cost-or-market for parts 2(a) FIFO and 2(b) Weighted-average? If no entry is required, select "No Entry Required". a.               b.

College Accounting, Chapters 1-27
23rd Edition
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:HEINTZ, James A.
Chapter13: Accounting For Merchandise Inventory
Section: Chapter Questions
Problem 7SPB: COST ALLOCATION AND LOWER-OF-COST-OR-MARKET Hall Companys beginning inventory and purchases during...
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ower-of-Cost-or-Market

Stalberg Company's beginning inventory and purchases during the fiscal year ended December 31, 20--, were as follows:

    Units Unit Price   Total Cost
Jan. 1 Beginning inventory 10 $20         $200      
Mar. 5 1st purchase 10 22         220      
Sept. 9 2nd purchase 10 25         250      
Dec. 8 3rd purchase 10 30         300      
    40     $970      

 


There are 10 units of inventory on hand on December 31.

Question Content Area

1.  Calculate the total amount to be assigned to the ending inventory under each of the following periodic inventory methods:

a.  FIFO
$fill in the blank afc0e7fdc02f065_1

b.  Weighted-average (round calculations to two decimal places.)
$fill in the blank afc0e7fdc02f065_2

2.  Assume that the market price per unit (cost to replace) of Stalberg's inventory on December 31, 20--, was $26. Calculate the total amount to be assigned to the ending inventory on December 31 under each of the following methods:

a.  FIFO lower-of-cost-or-market
$fill in the blank afc0e7fdc02f065_3

b.  Weighted-average lower-of-cost-or-market
$fill in the blank afc0e7fdc02f065_4

 

Question Content Area

3.  What journal entry would be made under lower-of-cost-or-market for parts 2(a) FIFO and 2(b) Weighted-average?

If no entry is required, select "No Entry Required".

a.
 
   
 
 
   
b.
 
   
 
 
   
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