Individual Chapter Review Questions Ch. 6
Wildhorse Co. just began business and made the following four inventory purchases in June: June 1 200 units $1300 June 10 250 units 1875 June 15 250 units 2025 June 28 200 units 1700 $6900 A physical count of merchandise inventory on June 30 reveals that there are 260 units on hand. Using the LIFO inventory method, the value of the ending inventory (rounded to whole dollar) on June 30 is
$1,750 $1300 + [(1875 ÷ 250) x (260 - 200)] 1300 + (7.5 x 60) 1300 + 450 = 1750
Windsor, Inc. just began business and made the following four inventory purchases in June: June 1 180 units $1247 June 10 230 units 1633 June 15 230 units 1771 June 28 180 units 1458 $6109 A physical count of merchandise inventory on June 30 reveals that there are 240 units on hand. Using the FIFO inventory method, the amount allocated to ending inventory (rounded to whole dollar) for June is
$1,920 1458 + [(1771 ÷ 230) x (240 - 180)] 1458 + (7.7 x 60) 1458 + 462 = 1920
Clear Clarinets has the following inventory data: July 1 Beginning inventory 38 units at $91 5 Purchases 228 units at $85 14 Sale 152 units 21 Purchases 114 units at $87 30 Sale 106 units Assuming that a periodic inventory system is used, what is the amount allocated to ending inventory on a FIFO basis?
$10,598 (38 + 228 - 152 + 114 - 106) = 122; (114 x 87) + (8 x 85) = 10598
Oriole Company just began business and made the following four inventory purchases in June: June 1 220 units $1574 June 10 270 units 2160 June 15 270 units 2322 June 28 220 units 1980 $8036 A physical count of merchandise inventory on June 30 reveals that there are 280 units on hand. Using the average cost method, the amount allocated to the ending inventory (rounded to whole dollar) on June 30 is:
$2,296 (8036 ÷ (220+270+270+220)) x 280 (8036 ÷ 980) x 280 8.2 x 280 =2296
Sassy Saxophones has the following inventory data: July 1 Beginning inventory 56 units at $134 5 Purchases 336 units at $125 14 Sale 224 units 21 Purchases 168 units at $129 30 Sale 157 units Assuming that a periodic inventory system is used, what is the amount allocated to ending inventory on a LIFO basis?
$22,879 (56 + 336 - 224 + 168 - 157) = 179; (56 x 134) + (123 x 125) = 22879
Dole Industries had the following inventory transactions occur during 2017: Units Cost/unit Feb. 1, 2017 Purchase 67 $67 Mar. 14, 2017 Purchase 115 $70 May 1, 2017 Purchase 81 $73 The company sold 189 units at $93 each and has a tax rate of 30%. Assuming that a periodic inventory system is used, what is the company's gross profit using FIFO? (rounded to whole dollars)
$4,527
Piper Pipes has the following inventory data: July 1 Beginning inventory 52 units at $125 5 Purchases 312 units at $116 14 Sale 208 units 21 Purchases 156 units at $120 30 Sale 146 units Assuming that a periodic inventory system is used, what is the cost of goods sold on a LIFO basis?
$41,688 (156 x 120) + [(208 + 146 - 156) x 116] 18720 + (198 x 116) 18720 + 22968 = 41688
Trumpeting Trumpets has the following inventory data: July 1 Beginning inventory 60 units at $144 5 Purchases 360 units at $134 14 Sale 240 units 21 Purchases 180 units at $138 30 Sale 168 units Assuming that a periodic inventory system is used, what is the cost of goods sold on a FIFO basis?
$55,272 (60 x 144) + [(240 + 168 - 60) x 134] 8640 + (348 x 134) 8640 + 46632 = 55272
A company purchased inventory as follows: ▪ 208 units at $6.20 ▪ 312 units at $6.90 The average unit cost for inventory is:
6.62 ((208 x 6.2) + (312 x 6.9)) ÷ 520 (1289.6 + 2152.8) ÷ 520 3442.4 ÷ 520 = 6.62