MyLab Accounting with Pearson eText -- Access Card -- for Horngren's Financial & Managerial Accounting, The Financial Chapters (My Accounting Lab)
5th Edition
ISBN: 9780133877281
Author: Tracie L. Miller-Nobles, Brenda L. Mattison, Ella Mae Matsumura
Publisher: PEARSON
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Textbook Question
Chapter 6, Problem 6.17E
Use the following information to answer Exercises E6-16 through E6-18.
Putter’s Choice carries an inventory of putters and other golf clubs. The sales price of each putter is $119. Company records indicate the following for a particular line of Putter’s Choice putters:
Date | Item | Quantity | Unit Cost |
Nov. 1 | Balance | 22 | $ 60 |
6 | Sale | 12 | |
8 | Purchase | 25 | 81 |
17 | Sale | 25 | |
30 | Sale | 5 |
Measuring ending inventory and cost of goods sold in a perpetual inventory system-LIFO
Requirements
- 1. Prepare Putter’s Choice’s perpetual inventory record for the putters assuming Putter’s Choice uses the LIFO inventory costing method. Then identify the cost of ending inventory and cost of goods sold for the month.
- 2. Journalize Putter's Choice’s inventory transactions using the LIFO inventory costing method. (Assume purchases and sales are made on account.)
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For all exercises, assume the perpetual inventory system is used unless stated otherwise.
Use the following information to answer Exercises E6-16 through E6-18.
Golf Unlimited carries an inventory of putters and other golf clubs. The sales price of each putter is $119. Company records indicate the following for a particular line of Golf Unlimited’s putters:
Measuring ending inventory and cost of goods sold in a perpetual inventory system—LIFO
Requirements
Prepare Golf Unlimited’s perpetual inventory record for the putters assuming Golf Unlimited uses the LIFO inventory costing method. Then identify the cost of ending inventory and cost of goods sold for the month.
Journalize Golf Unlimiteds inventory transactions using the LIFO inventory costing method. (Assume purchases and sales are made on account.)
Shown below is activity for one of the products of Monique Aaron Corp
Purchases
Sales
# Units
$ per Unit
# Units
$ per Unit
1-Jan
500
55
10-Jan
500
60
12-Jan
800
75
20-Jan
1000
63
28-Jan
750
80
Compute the ending inventory, cost of goods available for sale, cost of goods sold in both units and dollars and the Gross Profit assuming the company uses the perpetual Lifo and perpetual fifo methods.
[The following information applies to the questions displayed below.]
Pete’s Tennis Shop has the following transactions related to its top-selling Wilson tennis racket for the month of August. Pete’s Tennis Shop uses a periodic inventory system.
Date
Transactions
Units
Unit Cost
Total Cost
August
1
Beginning inventory
8
$
160
$
1,280
August
4
Sale ($225 each)
5
August
11
Purchase
10
150
1,500
August
13
Sale ($240 each)
8
August
20
Purchase
10
140
1,400
August
26
Sale ($250 each)
11
August
29
Purchase
11
130
1,430
$
5,610
For the specific identification method, the August 4 sale consists of rackets from beginning inventory, the August 13 sale consists of rackets from the August 11 purchase, and the August 26 sale consists of one racket from beginning inventory and 10 rackets from the August 20 purchase.…
Chapter 6 Solutions
MyLab Accounting with Pearson eText -- Access Card -- for Horngren's Financial & Managerial Accounting, The Financial Chapters (My Accounting Lab)
Ch. 6 - Which principle or concept states that businesses...Ch. 6 - Which inventory costing method assigns to ending...Ch. 6 - Assume Nile.com began April with 14 units of...Ch. 6 - Suppose Nile.com used the weighted-average...Ch. 6 - Which inventory costing method results in the...Ch. 6 - Prob. 6QCCh. 6 - At December 31, 2016, Stevenson Company overstated...Ch. 6 - Suppose Maestros had cost of goods sold during the...Ch. 6 - Suppose Nile.com used the LIFO inventory costing...Ch. 6 - Prob. 1RQ
Ch. 6 - Prob. 2RQCh. 6 - Prob. 3RQCh. 6 - What is the goal of conservatism?Ch. 6 - Prob. 5RQCh. 6 - Under a perpetual inventory system, what are the...Ch. 6 - Prob. 7RQCh. 6 - Prob. 8RQCh. 6 - What does the lower-of-cost-or-market (LCM) rule...Ch. 6 - What account is debited when recording the...Ch. 6 - What is the effect on cost of goods sold, gross...Ch. 6 - When does an inventory error cancel out, and why?Ch. 6 - Prob. 13RQCh. 6 - Prob. 14RQCh. 6 - Prob. 15ARQCh. 6 - Prob. 16ARQCh. 6 - Determining inventory accounting principles Ward...Ch. 6 - Determining inventory costing methods Ward Hard...Ch. 6 - Use the following information to answer Short...Ch. 6 - Use the following information to answer Short...Ch. 6 - Use the following information to answer Short...Ch. 6 - Use the following information to answer Short...Ch. 6 - Comparing Cost of Goods Sold under FIFO, UFO, and...Ch. 6 - Applying the lower-of-cost-or-market rule Assume...Ch. 6 - Determining the effect of an inventory error...Ch. 6 - Computing the rate of inventory turnover and days...Ch. 6 - Use the following information to answer Short...Ch. 6 - Prob. 6.12SECh. 6 - Prob. 6.13SECh. 6 - Using accounting vocabulary Match the accounting...Ch. 6 - Comparing inventory methods Zippy, a regional...Ch. 6 - Prob. 6.16ECh. 6 - Use the following information to answer Exercises...Ch. 6 - Use the following information to answer Exercises...Ch. 6 - Comparing amounts for cost of goods sold, ending...Ch. 6 - Comparing cost of goods sold and gross...Ch. 6 - Prob. 6.21ECh. 6 - Prob. 6.22ECh. 6 - Prob. 6.23ECh. 6 - Prob. 6.24ECh. 6 - Prob. 6.25ECh. 6 - Prob. 6.26ECh. 6 - Prob. 6.27ECh. 6 - Accounting for inventory using the perpetual...Ch. 6 - Accounting for inventory using the perpetual...Ch. 6 - Prob. 6.30APCh. 6 - Correcting inventory errors over a three-year...Ch. 6 - Accounting for inventory using the periodic...Ch. 6 - Accounting for inventory using the perpetual...Ch. 6 - Prob. 6.34BPCh. 6 - Prob. 6.35BPCh. 6 - Prob. 6.36BPCh. 6 - Prob. 6.37BPCh. 6 - Prob. 6.38CPCh. 6 - Accounting for inventory using the perpetual...Ch. 6 - Suppose you manage Campbell Appliance. The stores...Ch. 6 - Ever since he was a kid, Carl Montague wanted to...Ch. 6 - The notes are an important part of a companys...
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