Loose Leaf for Financial Accounting: Information for Decisions
9th Edition
ISBN: 9781260158762
Author: John J Wild
Publisher: McGraw-Hill Education
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Chapter 5, Problem 10QS
Summary Introduction
Introduction:
Inventory is a record of finished goods of a company which the can sell to the customer, work in progress which can be transform into finish good and raw material which is a means of production. Inventory is also classified as current asset in the balance sheet and it is valued by FIFO, LIFO, LCM and weighted average method.
To calculate: Cost assigned to ending inventory using FIFO method.
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Trey Monson starts a merchandising business on December 1 and enters into the following three inventory purchases.
Monson uses a perpetual inventory system. Also, on December 15, Monson sells 15 units for $29 each.
Purchases on December 7
Purchases on December 14
Purchases on December 21
Determine the costs assigned to ending inventory when costs are assigned based on the weighted average method. (Round your per
unit costs to 2 decimal places.)
December 7
Date
December 14
Average cost December 14
December 15
December 21
Average cost December 21
Totals
10 units @ $15.00 cost
20 units @ $21.00 cost
15 units @ $23.00 cost
# of
units
Weighted Average - Perpetual:
Goods purchased
Cost per unit Inventory Value
# of
units
sold
Cost of Goods Sold
Cost per Cost of Goods
unit
Sold
# of units
Inventory Balance
Cost per unit
Inventory
Balance
Trey Monson starts a merchandising business on December 1 and enters into the following three inventory purchases. Also, on December 15, Monson sells 15 units for $20 each.
Purchases on December 7
10 units @ $ 6.00 cost
Purchases on December 14
20 units @ $12.00 cost
Purchases on December 21
15 units @ $14.00 cost
Required:Monson uses a perpetual inventory system. Determine the costs assigned to the December 31 ending inventory based on the FIFO method.
Trey Monson starts a merchandising business on December 1 and enters into the following three
inventory purchases. Monson uses a perpetual inventory system. Also, on December 15, Monson sells 15
units for $29 each.
Purchases on December 7
Purchases on December 14
Purchases on December 21
Determine the costs assigned to ending inventory when costs are assigned based on the LIFO method.
Date
December 7
December 14
Total December 14
December 15
Totals
Total December 15
December 21
10 units @ $15.00 cost
20 units @ $21.00 cost
15 units @ $23.00 cost
Goods purchased
# of units
Cost per
unit
Cost of Goods
Available for
Sale
Perpetual LIFO:
# of
units
sold
Cost of Goods Sold
Cost per Cost of Goods
unit
Sold
Inventory Balance
Cost per
unit
# of units
Inventory
Balance
Chapter 5 Solutions
Loose Leaf for Financial Accounting: Information for Decisions
Ch. 5 - Describe how costs flow from inventory to cost of...Ch. 5 - Prob. 2DQCh. 5 - Prob. 3DQCh. 5 - If inventory errors are said to correct...Ch. 5 - Prob. 5DQCh. 5 - Prob. 6DQCh. 5 - Prob. 7DQCh. 5 - When preparing interim financial statements, what...Ch. 5 - Prob. 9DQCh. 5 - Prob. 10DQ
Ch. 5 - Prob. 11DQCh. 5 - Refer to Samsung’s financial statements in...Ch. 5 - Prob. 1QSCh. 5 - Prob. 2QSCh. 5 - Prob. 3QSCh. 5 - Prob. 4QSCh. 5 - Prob. 6QSCh. 5 - Prob. 7QSCh. 5 - Prob. 8QSCh. 5 - Prob. 9QSCh. 5 - Prob. 10QSCh. 5 - Prob. 11QSCh. 5 - Refer to the information in QS 5-10 and assume the...Ch. 5 - Prob. 13QSCh. 5 - Prob. 14QSCh. 5 - Prob. 15QSCh. 5 - Prob. 16QSCh. 5 - Prob. 17QSCh. 5 - Identify the inventory costing method best...Ch. 5 - Prob. 19QSCh. 5 - In taking a physical inventory at the end of the...Ch. 5 - Prob. 21QSCh. 5 - Confucious Bookstore’s inventory is destroyed by a...Ch. 5 - Answer each of the following questions related to...Ch. 5 - Prob. 24QSCh. 5 - Prob. 1ECh. 5 - Prob. 2ECh. 5 - Laker Company reported following January purchases...Ch. 5 - Prob. 7ECh. 5 - Prob. 8ECh. 5 - Prob. 9ECh. 5 - Prob. 10ECh. 5 - Prob. 11ECh. 5 - Prob. 12ECh. 5 - Prob. 13ECh. 5 - Prob. 14ECh. 5 - Prob. 15ECh. 5 - Prob. 16ECh. 5 - Prob. 17ECh. 5 - Tree seedlins has the following current-year...Ch. 5 - Prob. 1PSACh. 5 - Prob. 2PSACh. 5 - Prob. 3PSACh. 5 - Prob. 5PSACh. 5 - Prob. 6PSACh. 5 - Prob. 7PSACh. 5 - QP Corp. sold 4,000 units of its product at $50...Ch. 5 - Prob. 9PSACh. 5 - Prob. 10PSACh. 5 - Prob. 1PSBCh. 5 - Prob. 2PSBCh. 5 - Prob. 3PSBCh. 5 - Prob. 4PSBCh. 5 - Prob. 5PSBCh. 5 - Hallam Company’s financial statements show the...Ch. 5 - Prob. 7PSBCh. 5 - Shepard Company sold 4,000 units of its product at...Ch. 5 - Prob. 9PSBCh. 5 - Prob. 10PSBCh. 5 - Santana Rey of Business solutions is evaluating...Ch. 5 - Prob. 5.2SPCh. 5 - Prob. 1FSACh. 5 - Prob. 2FSACh. 5 - Prob. 3FSACh. 5 - Golf Challenge Corp. is a retail sports store...Ch. 5 - Prob. 2BTNCh. 5 - Prob. 5BTN
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