Intermediate Accounting, Student Value Edition (2nd Edition)
2nd Edition
ISBN: 9780134732145
Author: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella
Publisher: PEARSON
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Textbook Question
Chapter 10, Problem 10.3E
Moving Average, FIFO, LIFO. Zoola, Inc. provided the following information regarding its inventory for the current year, its second year of operations.
| Transaction | Units | Unit Cost |
| Beginning inventory 1/1 | 3,000 | $17.00 |
| Purchases. January 23 | 4,500 | 16.00 |
| Purchases. February 14 | 1,200 | 16.50 |
| Purchases. March 17 | 2,300 | 17.00 |
| Units sold - April 13 at $20 | 9,600 | |
| Purchases. May 5 | 5,600 | 15.00 |
| Purchases. July 4 | 3,200 | 16.00 |
| Units sold - October 31 at $19 | 8,700 | |
| Purchases. November 22 | 1,400 | 15.00 |
Compute Zoola’s ending inventory and cost of goods sold under each of the following cost-flow methods assuming that the company uses a perpetual inventory system (round your answer for cost per unit to two decimal places)
Required
- a. Moving Average
- b. FIFO
- c. LIFO
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Zoola, Inc. provided the following information regarding its inventory for the current year, its second yearof operations.Transaction Units Unit CostBeginning inventory1/1 3,000 17.00Purchases, January 23 4,500 16.00Purchases, February 14 1,200 16.50Purchases, March 17 2,300 17.00 Units Sold-April 13 at 20 9,600Purchases, May 5 5,600 15.00Purchases, July 4 3,200 16.00 Unit Sold-October 31 at 19 8,700Purchases, November 22 1,400 15.00Instruction :1.1 Compute Zoola’s ending inventory and cost of goods sold under the following cost-flow assumptions assuming a perpetual inventory…
The beginning inventory for Dunne Co. and data on purchases and sales for a three-month period are shown in Problem 7-1B.
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Number of units
Per unit ($)
Total ($)
April
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25
1.200
30.000
8
Purchase
75
1.240
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11
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Instructions1. Determine the inventory on June 30, 2014, and the cost of goods sold for the threemonth period, using the first-in, first-out method and the periodic inventory system.2. Determine the inventory on June 30, 2014, and the cost of goods sold for the threemonth period, using the last-in, first-out method and the periodic inventory system.3. Determine the inventory on June 30, 2014, and the cost of goods sold for the threemonth period,…
Douglas Company's beginning inventory and purchases during the fiscal year ended December 31, 20--, were as shown.
Units
Unit Price
Total Cost
January 1, 20--
Beginning inventory
1,120
$
8.20
$
9,184
March 5
1st purchase
910
9.20
8,372
April 16
2nd purchase
400
9.70
3,880
June 3
3rd purchase
700
10.40
7,280
August 18
4th purchase
580
11.10
6,438
September 13
5th purchase
780
12.10
9,438
November 14
6th purchase
390
13.90
5,421
December 3
7th purchase
520
13.95
7,254
5,400
$
57,267
There are 1,000 units of inventory on hand on December 31.
Required:
1. Calculate the total amount to be assigned to the ending inventory and cost of goods sold on December 31 under each of the following methods:
Cost of Goods Sold
Cost of Ending Inventory
a. FIFO
b. LIFO
c. Weighted-average (round calculations to two decimal places)
2. Assume…
Chapter 10 Solutions
Intermediate Accounting, Student Value Edition (2nd Edition)
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