Principles of Financial Accounting.
24th Edition
ISBN: 9781260158601
Author: Wild
Publisher: MCG
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Chapter 6, Problem 9BP
Retail inventory method
The records of Macklin Co. provide the following information for the year ended December 31.
| At Cost | At Retail | |
| January 1 beginning inventory........... | $ 90,022 | $115,610 |
| Cost of goods purchased............... | 502,250 | 761,830 |
| Sales........................... | 782,300 | |
| Sales returns......................... | 3,460 |
Required
1. Use the retail inventory method to estimate the company’s year-end inventory.
2. A year-end physical inventory at retail prices yields a total inventory of $80,450. Prepare a calculation showing the company’s loss from shrinkage at cost and at retail.
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Cost of goods sold—merchandiser and manufacturerThe following data were taken from the general ledgers and
other data of Alpha Manufacturing, Inc., and Bravo Merchandis-ing Co. on April 30 of the current year:
Merchandise inventory, April 1 . ................................. $ 38,000Finished goods, April 1 . . . ....................................... 67,000Purchases . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 121,000Cost of goods manufactured . . . . . . .............................. 287,000Merchandise inventory, April 30 ................................. 33,000Finished goods, April 30 . . . . .................................... 61,000
LO1
LO3
54 Principles of Cost Accounting
Required:1. Compute the cost of goods sold for Bravo Merchandising Co.,selecting the appropriate items from the previous list.2. Compute the cost of goods sold for Alpha Manufacturing,Inc., selecting the appropriate items from the previous list.
Beginning inventory and purchases are presented below:
November 1 Beginning inventory .............................. 10 units at $61
November 6 purchase ................................................. 40 units at $62
November 14 purchase ............................................... 35 units at $65
November 24 purchase ............................................... 15 units at $63
Assuming the periodic inventory system, on November 30th there are 23 items left in inventory. Determine the Total Cost of the Merchandise Sold and the Total Cost of the Ending Inventory using a) FIFO b) LIFO c) Weighted Average
FIFO
LIFO
Beginning inventory and purchases are presented below:
November 1 Beginning inventory .............................. 10 units at $61
November 6 purchase…
Maintain inventory records
Fire fox manufacturing has the following information in relation to commodity for July inventory ................July1...................20 units at birr 50
Sales
July 7.........10 units
July 18.......... 10 units
July 27...........10 units
Purchase
july 3..............20 units at birr 51
July 20 ................. 15 units at birr 52
Required
Task 1: the company used perpetual inventory system and LIFO costing determine cost of goods sold and ending inventory
Task 2: if the company used periodic inventory system and FIFO costing method , determine costs of goods sold and ending inventory.
Chapter 6 Solutions
Principles of Financial Accounting.
Ch. 6 - Perpetual: Assume that Marvel uses a perpetual...Ch. 6 - Perpetual: Assume that Marvel uses a perpetual...Ch. 6 - Perpetual and Periodic: Assume that Marvel uses a...Ch. 6 - Periodic: Assume that Marvel uses a periodic FIFO...Ch. 6 - Prob. 5MCQCh. 6 - A company has cost of goods sold of 85,000 and...Ch. 6 - Describe how costs flow from inventory to cost of...Ch. 6 - Where is the amount of merchandise inventory...Ch. 6 - If costs are declining, will the LIFO or FIFO...Ch. 6 - If inventory errors are said to correct...
Ch. 6 - Prob. 5DQCh. 6 - What is the meaning of market as it is used in...Ch. 6 - What factors contribute to (or cause) inventory...Ch. 6 - When preparing interim financial statements, what...Ch. 6 - Prob. 9DQCh. 6 - Prob. 10DQCh. 6 - Prob. 11DQCh. 6 - Prob. 12DQCh. 6 - Inventory ownership Homestead Crafts, a...Ch. 6 - Prob. 2QSCh. 6 - Computing goods available for sale Wattan Company...Ch. 6 - A company reports the following beginning...Ch. 6 - Perpetual: Inventory costing with FIFO P1 A...Ch. 6 - Perpetual: Inventory costing with FIFO P1 A...Ch. 6 - Perpetual: Inventory costing with FIFO P1 A...Ch. 6 - Perpetual: Inventory costing with FIFO P1 A...Ch. 6 - Perpetual: Inventory costing with FIFO P1 A...Ch. 6 - Perpetual: Assigning costs with FIFO Trey Monson...Ch. 6 - Perpetual: Assigning costs with FIFO P1 Trey...Ch. 6 - Perpetual: Assigning costs with FIFO P1 Trey...Ch. 6 - Perpetual: Assigning costs with FIFO P1 Trey...Ch. 6 - Perpetual: Assigning costs with FIFO P1 Trey...Ch. 6 - Perpetual: Assigning costs with FIFO P1 Trey...Ch. 6 - Perpetual: Assigning costs with FIFO P1 Trey...Ch. 6 - Perpetual: Assigning costs with FIFO P1 Trey...Ch. 6 - Prob. 18QSCh. 6 - Prob. 19QSCh. 6 - Prob. 20QSCh. 6 - Analyzing inventory Endor Company begins the year...Ch. 6 - Prob. 22QSCh. 6 - Prob. 23QSCh. 6 - Prob. 1ECh. 6 - Inventory costs Walberg Associates, antique...Ch. 6 - Perpetual: Inventory costing methods P1 Laker...Ch. 6 - Question: Laker Company reported the following...Ch. 6 - Prob. 5ECh. 6 - Prob. 6ECh. 6 - Perpetual: Inventors- costing methodsFIFO and...Ch. 6 - Question: Refer to the information in Exercise...Ch. 6 - Question: Refer to the information in Exercise 6-7...Ch. 6 - Lower of cost or market Martinez Companys ending...Ch. 6 - Prob. 11ECh. 6 - Prob. 12ECh. 6 - Prob. 13ECh. 6 - Periodic: Cost flow assumptions Lopez Company...Ch. 6 - Periodic: Cost flow assumptions Floras Gifts...Ch. 6 - Prob. 16ECh. 6 - Estimating ending inventorgross profit method On...Ch. 6 - Alternative cost flows Warnerwoods Company uses a...Ch. 6 - Perpetual: Alternative cost flows P1 Warnerwoods...Ch. 6 - Alternative cost flows Montoure Company uses a...Ch. 6 - Perpetual: Alternative cost flows P1 Montoure...Ch. 6 - Prob. 5APCh. 6 - Analysis of inventory errors A2 Navajo Company's...Ch. 6 - Prob. 7APCh. 6 - Periodic: Income comparisons and cost flows A1 P3...Ch. 6 - Prob. 9APCh. 6 - Prob. 10APCh. 6 - Alternative cost flows Ming Company uses a...Ch. 6 - Perpetual: Alternative cost flows P1 Ming Company...Ch. 6 - Perpetual: Alternative cost flows Aloha Company...Ch. 6 - Prob. 4BPCh. 6 - Prob. 5BPCh. 6 - Analysis of inventory errors A2 Hallam Company's...Ch. 6 - Prob. 7BPCh. 6 - Periodic: Income comparisons and cost flows A1 P3...Ch. 6 - Retail inventory method The records of Macklin Co....Ch. 6 - Prob. 10BPCh. 6 - SERIAL PROBLEM Business Solutions P2 A3 This...Ch. 6 - Prob. 1AACh. 6 - Prob. 2AACh. 6 - Prob. 3AACh. 6 - ETHICS CHALLENGE Golf Challenge Corp. is a retail...Ch. 6 - COMMUNICATING IN PRACTICE You are a financial...Ch. 6 - Prob. 3BTNCh. 6 - Prob. 5BTN
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