Loose-Leaf for Fundamentals of Cost Accounting
5th Edition
ISBN: 9781259728914
Author: William N. Lanen Professor, Shannon Anderson Associate Professor, Michael W Maher
Publisher: McGraw-Hill Education
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Textbook Question
Chapter 6, Problem 24E
Basic Cost Flow Model
Ralph’s Mini-Mart store in Alpine experienced the following events during the current year:
- 1. Incurred $270,000 in selling costs.
- 2. Incurred $180,000 of administrative costs.
- 3. Purchased $870,000 of merchandise.
- 4. Paid $30,000 for transportation-in costs.
- 5. Took an inventory at year-end and learned that goods costing $140,000 were on hand. This compared with a beginning inventory of $225,000 on January 1.
- 6. Determined that sales revenue during the year was $2,600,000.
- 7. Debited all costs incurred to the appropriate account and credited to Accounts Payable. All sales were for cash.
Required
Give the amounts for the following items in the Merchandise Inventory account:
- a. Beginning balance (BB).
- b. Transfers-in (TI).
- c. Ending balance (EB).
- d. Transfers-out (TO).
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a. Compute the amount of ending inventory The Shirt Shop would report on the balance sheet, assuming the following cost flow
assumptions: (1) FIFO, (2) LIFO, and (3) weighted average.
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Purchased
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Complete this question by entering your answers in the tabs below.
Ending inventory
Required B
Compute the amount of ending inventory The Shirt Shop would report on the balance sheet, assuming the following cost flow
assumptions: (1) FIFO, (2) LIFO, and (3) weighted average.
Note: Round intermediate calculations to 2 decimal places and final answers to the nearest whole dollar amount.
FIFO
@
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Cranbrook Used Books experienced the following events during the current year:
a. Incurred $12,000 in selling costs.
b. Took an inventory at year-end and learned that goods costing $55,000 were on hand. This compared with a beginning inventory of
$72,000 on January 1.
c. Purchased $124,000 of merchandise.
d. Incurred $56,000 of administrative costs.
e. Determined that sales revenue during the year was $187,000.
f. Paid $4,500 for transportation-in costs.
g. Debited all costs incurred to the appropriate account and credited to Accounts Payable. All sales were for cash.
Required:
Give the amounts for the following items in the Merchandise Inventory account:
a. Ending balance (EB)
b. Transfers-in (TI)
c. Beginning balance (BB)
d. Transfers-out (TO)
Amount
Ralph’s Mini-Mart store in Alpine experienced the following events during the current year:
1. Incurred $391,000 in selling costs.
2. Incurred $1,216,000 of administrative costs.
3. Purchased $381,000 of merchandise.
4. Paid $35,000 for transportation-in costs.
5. Took an inventory at year-end and learned that goods costing $202,000 were on hand. This compared with a beginning inventory of $311,000 on January 1.
6. Determined that sales revenue during the year was $2,972,000.
7. Debited all costs incurred to the appropriate account and credited to Accounts Payable. All sales were for cash.
Required:
Give the amounts for the following items in the Merchandise Inventory account:
Beginning Balance =
Transfers In =
Transfers Out =
Ending Balance =
Chapter 6 Solutions
Loose-Leaf for Fundamentals of Cost Accounting
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