Principles of Financial Accounting.
22nd Edition
ISBN: 9780077632892
Author: John J. Wild
Publisher: McGraw Hill
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Chapter 6, Problem 9BP
Retail inventory method
The records of Macklin Co. provide the following information for the year ended December 31.
| At Cost | At Retail | |
| January 1 beginning inventory........... | $ 90,022 | $115,610 |
| Cost of goods purchased............... | 502,250 | 761,830 |
| Sales........................... | 782,300 | |
| Sales returns......................... | 3,460 |
Required
1. Use the retail inventory method to estimate the company’s year-end inventory.
2. A year-end physical inventory at retail prices yields a total inventory of $80,450. Prepare a calculation showing the company’s loss from shrinkage at cost and at retail.
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Cost of goods sold—merchandiser and manufacturerThe following data were taken from the general ledgers and
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Merchandise inventory, April 1 . ................................. $ 38,000Finished goods, April 1 . . . ....................................... 67,000Purchases . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 121,000Cost of goods manufactured . . . . . . .............................. 287,000Merchandise inventory, April 30 ................................. 33,000Finished goods, April 30 . . . . .................................... 61,000
LO1
LO3
54 Principles of Cost Accounting
Required:1. Compute the cost of goods sold for Bravo Merchandising Co.,selecting the appropriate items from the previous list.2. Compute the cost of goods sold for Alpha Manufacturing,Inc., selecting the appropriate items from the previous list.
Beginning inventory and purchases are presented below:
November 1 Beginning inventory .............................. 10 units at $61
November 6 purchase ................................................. 40 units at $62
November 14 purchase ............................................... 35 units at $65
November 24 purchase ............................................... 15 units at $63
Assuming the periodic inventory system, on November 30th there are 23 items left in inventory. Determine the Total Cost of the Merchandise Sold and the Total Cost of the Ending Inventory using a) FIFO b) LIFO c) Weighted Average
FIFO
LIFO
Beginning inventory and purchases are presented below:
November 1 Beginning inventory .............................. 10 units at $61
November 6 purchase…
LIFO, FIFO, & Moving Average Cost: Perpetual Inventory Methods:
Rock Shop shows the following data related to an item of inventory:
Inventory, January 1st..............
100 units @ $5.00
Purchase, January 9th............
300 units @ $5.40
Sold, January 11th..
Purchase, January 19th............
Purchase, January 21st....
Sold, January 28th....
325 units
70 @ $6.00
250 @$6.10
150 units
Please answer the following questions under the Perpetual Inventory Method:
1) What is the value of Ending Inventory & COGS under the FIFO Method?
2) What is the value of Ending Inventory & COGS under the LIFO Method?
3) What is the value of Ending Inventory & COGS under the Moving Avg. Cost Method?
Chapter 6 Solutions
Principles of Financial Accounting.
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