P6-2A Mullins Distribution markets CDs of numerous performing artists. At the begin- ning of March, Mullins had in beginning inventory 2,500 CDs with a unit cost of $7. Dur- ing March, Mullins made the following purchases of CDs. March 5 2,000@ $8 3,500 @ $9 March 21 5,000@ $10 2,000@ $11 oMarch 13 March 26 During March 12,000 units were sold. Mullins uses a periodic inventory system. CAS 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 the assumed cost flow methods (FIFO, LIFO, and average-cost). Prove the accuracy of the cost of goods sold under the FIFO and LIFO methods. (Note: For average-cost, round Cost per unit to three decimal places.)

Rahul

Laker Company reported the following January purchases and sales data for its only product.  Date   Activities Units Acquired at Cost Units sold at Retail Jan. 1   Beginning inventory 145 units @ $ 7.00  = $ 1,015               Jan. 10   Sales                   105 units @ $ 16.00   Jan. 20   Purchase 70 units @ $ 6.00  =   420               Jan. 25   Sales                   85 units @ $ 16.00   Jan. 30   Purchase 190 units @ $ 5.50 =   1,045                     Totals 405 units         $ 2,480   190 units            The Company uses a perpetual inventory system. For specific identification, ending inventory consists of 215 units, where 190 are from the January 30 purchase, 5 are from the January 20 purchase, and 20 are from beginning inventory. Exercise 5-4 Perpetual: Income effects of inventory methods LO A1 Required:1. Complete comparative income statements for the month of January for Laker Company for the four inventory methods. Assume expenses are $1,300…

Page 4 of 9 Keiler Motorcycle Shop completed the following transactions during the month of October. Keiler uses a perpetual inventory system. Any freight paid was paid with cash. Oct. 3 Purchased 20 bikes at a cost of $1,150 each from the Lyons Bike Company, under credit terms 1/30, n/45. FOB shipping point. 4 The correct company paid $150 cash freight for above shipment 6 Sold 10 bikes to Doug's Bicycle for $1,500 each, terms 1/15, n/30. Terms FOB destination. 7 Received credit from the Lyons Bike Company for the return of 2 defective bikes. 13 Issued a credit to Doug's Bicycle for the return of one bike from Oct 6 sale. 17 Purchased with cash Office Supplies from the Office Depot in the amount of $200. 20 Doug's Bicycle paid their account in full 24 Paid Lyons Bike Company. Required: Part A: Journalize the above transactions Part B: Calculate the balance of inventory at October 31, assuming the opening balance is $5,000 Part C: dentify one transaction that would be recorded…

Inventory - Periodic On January 1, 20x8, the Music Store had 400 MP3 players in inventory with a cost of $48 per unit. During 20x8 the company made the following purchases of MP3 players: Feb 21 Jun 15 Oct 15 1,000 units at $50 each = $50,000 1,000 units at $52 each = $52,000 1,000 units at $58 each = $58,000 The selling price of each MP3 player is $100. The store had an excellent Christmas season with the result that only 70 MP3 players were left in inventory on December 31, 20x8. Assuming the company uses a periodic inventory system, calculate gross profit for the year ending December 31, 20x8, under each of: i) FIFO; ii) Weighted Average

3. Required information Skip to question   [The following information applies to the questions displayed below.]Ferris Company began January with 4,000 units of its principal product. The cost of each unit is $8. Merchandise transactions for the month of January are as follows:    Purchases Date of Purchase Units   Unit Cost* Total Cost Jan. 10 3,000   $ 9     $ 27,000   Jan. 18 4,000     10       40,000   Totals 7,000             67,000     * Includes purchase price and cost of freight.    Sales Date of Sale Units   Jan. 5 2,000   Jan. 12 1,000   Jan. 20 3,000   Total 6,000      5,000 units were on hand at the end of the month.

Journal Entries   Allied Merchandisers was organized on May 1. Macy Company is a major customer (buyer) of Allied (seller) products.  May 3 Allied made its first and only purchase of inventory for the period on May 3 for 3,000 units at a price of $8 cash per unit (for a total cost of $24,000). May 5 Allied sold 1,500 of the units in inventory for $12 per unit (invoice total: $18,000) to Macy Company under credit terms 2/10, n/60. The goods cost Allied $12,000. May 7 Macy returns 150 units because they did not fit the customer’s needs (invoice amount: $1,800). Allied restores the units, which cost $1,200, to its inventory. May 8 Macy discovers that 150 units are scuffed but are still of use and, therefore, keeps the units. Allied gives a price reduction (allowance) and credits Macy's accounts receivable for $600 to compensate for the damage. May 15 Allied receives payment from Macy for the amount owed on the May 5 purchase; payment is net of returns, allowances, and any cash…