Financial Accounting, Student Value Edition (5th Edition)
5th Edition
ISBN: 9780134728520
Author: Robert Kemp, Jeffrey Waybright
Publisher: PEARSON
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Textbook Question
Chapter 5, Problem 4DQ
If a company had two units that cost $1 each in its beginning inventory and purchased two more units for $2 each, what would be the cost of goods sold associated with a sale of three units under each of the following assumptions?
- a. FIFO
- b. LIFO
- c. Average cost
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Students have asked these similar questions
You have the following information for Kingbird Diamonds. Kingbird Diamonds uses the periodic method of accounting for its
inventory transactions. Kingbird only carries one brand and size of diamonds-all are identical. Each batch of diamonds purchased is
carefully coded and marked with its purchase cost.
March 1
March 3
March 5
March 10
March 25
Beginning inventory 180 diamonds at a cost of €368 per diamond.
Purchased 240 diamonds at a cost of €420 each.
Sold 224 diamonds for €720 each.
Purchased 420 diamonds at a cost of €464 each.
Sold 480 diamonds for €780 each.
Waterway Inc. is a retailer operating in British Columbia. Waterway uses the perpetual inventory system. All sales returns from
customers result in the goods being returned to inventory: the Inventory is not damaged. Assume that there are no credit
transactions; all amounts are settled in cash. You are provided with the following information for Waterway Inc. for the month of
January 2022.
Date
January 1
January 5
January 8 Sale
January 10
January 15
January 16
January 20
January 25
(a1)
January 1
January 5
January 8
January 10
January 15
January 16
Description
January 20
January 25
Beginning inventory
Purchase
Sale return
Purchase
Purchase return
Sale
Purchase
$
$
$
$
$
$
$
Quantity
Calculate the Moving-average cost per unit at January 1, 5, 8, 10, 15, 16, 20, & 25. (Round moving average cost per unit answers to 3
decimal places, eg. 5.251.)
Moving-Average Cost per unit
$
100
eTextbook and Media
139
111
10
55
5
88
18
Unit Cost or Selling Price
$13
16
27
27
18
18
31
20
0WCre skipped FOB ship-
() On Fehruay 28 Pit packaged goods and had them ready for shipping to a customer
ecination The invoice rice was $350 plus $25 for freight; the cost of the items
recaivinuRreooct indicates that the goods were received by the customer
1L
eDniar,
vit received the goods on March 1.
(B
1
siaaged goods set aside in the warehouse because they are no longer salea-
p0ods orginally cost $400 and, originally, Pitt expected to sell these items
or $600.
Instructionns
For each of the above transactions, specify whether the item in question should be included
in ending inventory, and if so, at what amount. For each item that is not included in
ending inventory, indicate who owns it and what account, if any, it should have been
recorded in.
of goods sold and
y using FIFO,
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…
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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