Financial Accounting, Student Value Edition (5th Edition)
5th Edition
ISBN: 9780134728520
Author: Robert Kemp, Jeffrey Waybright
Publisher: PEARSON
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Question
Chapter 5, Problem 1CP
1.
To determine
Ascertain the amount of ending inventory balance and the cost of goods sold for July 31, under FIFO method.
2.
To determine
Ascertain the amount of ending inventory balance and the cost of goods sold for July 31, under LIFO method.
3.
To determine
Ascertain the amount of ending inventory balance and the cost of goods sold for July 31, under Average cost method.
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Students have asked these similar questions
problem session
purchases and sales of a particular product during the year are shown below:
may. 1 Beginning Inventory
1,500 units @
$ 10
may. 18 Purchase
1,250 units @
$ 12
may 20 Sold
1,500 units @
$ 20
may. 25 Purchase
1,750 units @
$ 14
may. 27 Sold
1,750 units @
$ 25
may. 29 Purchase
500 units @
$ 15
Assuming that company uses perpetual inventory system, determine the cost of goods sold and compute the ending inventory as of may. 31 and make the journal entry for may. 27 transaction by using inventory subsidiary ledger for LIFO cost flow assumption.
Question
Greg’s Bicycle Shop has the following transactions related to its top-selling Mongoose mountain bike for the month of March. Greg's Bicycle Shop uses a periodic inventory system.
Date
Transactions
Units
Unit Cost
Total Cost
March
1
Beginning inventory
20
$
175
$
3,500
March
5
Sale ($250 each)
15
March
9
Purchase
10
195
1,950
March
17
Sale ($300 each)
8
March
22
Purchase
10
205
2,050
March
27
Sale ($325 each)
12
March
30
Purchase
8
225
1,800
$
9,300
For the specific identification method, the March 5 sale consists of bikes from the beginning inventory, the March 17 sale consists of bikes from the March 9 purchase, and the March 27 sale consists of four bikes from the beginning inventory and eight bikes from the March 22 purchase.
Required:
***Only…
QUESTION ONE
At beginning of July 2021, Idah & Faith (IF) Co had 25 microwave ovens in inventory costing of
K750 per unit. Over the next three months, the company made the following purchases.
Date
Quantity
Unit cost
K
6 July
770
5 August
4
800
1 September
8.
850
14 September
6.
880
During that period, there were sales of 35 units, generating a total sales revenue of K38,500.
REQUIRED:
a) Prepare the stores ledger card for the materials in stock that record all material movements
using:
(i) FIFO method
(ii) LIFO method
b) Based on the work done in (a) above, determine the cost of sales and profit for three months to
30 September using FIFO and also based on LIFO.
c) Compare the reported profit of the company in (b) above over the three months to 30 September
based on the two methods (FIFO and LIFO) and comment on the results.
Chapter 5 Solutions
Financial Accounting, Student Value Edition (5th Edition)
Ch. 5 - Prob. 1DQCh. 5 - How are the financial statements of a manufacturer...Ch. 5 - What is a cost-flow assumption? Why is a cost-flow...Ch. 5 - If a company had two units that cost 1 each in its...Ch. 5 - Prob. 5DQCh. 5 - Prob. 6DQCh. 5 - Prob. 7DQCh. 5 - Prob. 8DQCh. 5 - Prob. 9DQCh. 5 - Prob. 10DQ
Ch. 5 - During April, Bargain Hardware made sales of...Ch. 5 - Prob. 2SCCh. 5 - Prob. 3SCCh. 5 - Prob. 4SCCh. 5 - Prob. 5SCCh. 5 - Prob. 6SCCh. 5 - Prob. 7SCCh. 5 - Prob. 8SCCh. 5 - Prob. 9SCCh. 5 - Prob. 10SCCh. 5 - Prob. 11SCCh. 5 - Prob. 12SCCh. 5 - Prob. 1SECh. 5 - Prob. 2SECh. 5 - Prob. 3SECh. 5 - Prob. 4SECh. 5 - Prob. 5SECh. 5 - Prob. 6SECh. 5 - Prob. 7SECh. 5 - Prob. 8SECh. 5 - Lower-of-cost-or-market rule (Learning Objective...Ch. 5 - Prob. 10SECh. 5 - Inventory principles and terminology (Learning...Ch. 5 - Prob. 12SECh. 5 - Prob. 13SECh. 5 - Prob. 14SECh. 5 - Prob. 15SECh. 5 - Prob. 16AECh. 5 - Prob. 17AECh. 5 - Prob. 18AECh. 5 - Prob. 19AECh. 5 - Prob. 20AECh. 5 - Prob. 21AECh. 5 - Prob. 22AECh. 5 - Prob. 23AECh. 5 - Prob. 24AECh. 5 - Prob. 25AECh. 5 - Prob. 26AECh. 5 - Prob. 27AECh. 5 - FIFO (Learning Objective 2) 10-15 min. Tee Time,...Ch. 5 - LIFO (Learning Objective 2) 10-15 min. Refer to...Ch. 5 - Prob. 30BECh. 5 - Prob. 31BECh. 5 - Prob. 32BECh. 5 - Prob. 33BECh. 5 - Prob. 34BECh. 5 - Prob. 35BECh. 5 - Prob. 36BECh. 5 - Prob. 37BECh. 5 - Prob. 38BECh. 5 - Prob. 39BECh. 5 - Computing LIFO and journalizing inventory...Ch. 5 - Prob. 41APCh. 5 - FIFO, LIFO, and average cost (Learning Objectives...Ch. 5 - Prob. 43APCh. 5 - Prob. 44APCh. 5 - Prob. 45APCh. 5 - Estimating ending inventory (Learning Objective 7)...Ch. 5 - Prob. 47APCh. 5 - Prob. 48BPCh. 5 - Prob. 49BPCh. 5 - FIFO, LIFO, and average cost (Learning Objectives...Ch. 5 - Prob. 51BPCh. 5 - Prob. 52BPCh. 5 - Prob. 53BPCh. 5 - Prob. 54BPCh. 5 - Prob. 55BPCh. 5 - Continuing Exercise This exercise continues the...Ch. 5 - Prob. 1CPCh. 5 - Prob. 1CFSAPCh. 5 - Prob. 1EIACh. 5 - Prob. 2EIACh. 5 - Prob. 1FACh. 5 - Prob. 1IACh. 5 - Prob. 1SBACh. 5 - Prob. 1WCCh. 5 - Comprehensive Problem The Accounting Cycle for a...
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