COST ALLOCATION AND LOWER-OF-COST-OR-MARKET Hall Company’s beginning inventory and purchases during the fiscal year ended December 31, 20--, were as follows: There are 1,100 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: (a) FIFO (b) LIFO (c) Weighted-average (round calculations to two decimal places) 2. Assume that the market price per unit (cost to replace) of Hall’s inventory on December 31 was $16. Calculate the total amount to be assigned to the ending inventory on December 31 under each of the following methods: (a) FIFO lower-of-cost-or-market (b) Weighted-average lower-of-cost-or-market 3. Prepare required entries to apply: (a) FIFO lower-of-cost-or-market (b) Weighted-average lower-of-cost-or-market

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College Accounting, Chapters 1-27

23rd Edition
HEINTZ + 1 other
Publisher: Cengage Learning,
ISBN: 9781337794756
BuyFind

College Accounting, Chapters 1-27

23rd Edition
HEINTZ + 1 other
Publisher: Cengage Learning,
ISBN: 9781337794756

Solutions

Chapter
Section
Chapter 13, Problem 7SPB
Textbook Problem

COST ALLOCATION AND LOWER-OF-COST-OR-MARKET Hall Company’s beginning inventory and purchases during the fiscal year ended December 31, 20--, were as follows:

Chapter 13, Problem 7SPB, COST ALLOCATION AND LOWER-OF-COST-OR-MARKET Hall Companys beginning inventory and purchases during

There are 1,100 units of inventory on hand on December 31.

REQUIRED

  1. 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:
    1. (a) FIFO
    2. (b) LIFO
    3. (c) Weighted-average (round calculations to two decimal places)
  2. 2. Assume that the market price per unit (cost to replace) of Hall’s inventory on December 31 was $16. Calculate the total amount to be assigned to the ending inventory on December 31 under each of the following methods:
    1. (a) FIFO lower-of-cost-or-market
    2. (b) Weighted-average lower-of-cost-or-market
  3. 3. Prepare required entries to apply:
    1. (a) FIFO lower-of-cost-or-market
    2. (b) Weighted-average lower-of-cost-or-market

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Chapter 13 Solutions

College Accounting, Chapters 1-27
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