Principles of Accounting
12th Edition
ISBN: 9781285607047
Author: NEEDLES
Publisher: Cengage Learning
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Chapter 7, Problem 8AP
1.
To determine
Compute the cost of goods sold and the cost of ending inventory under perpetual inventory system using average-cost method.
2.
To determine
Compute the cost of goods sold and the cost of ending inventory under perpetual inventory system using FIFO method.
3.
To determine
Compute the cost of goods sold and the cost of ending inventory under perpetual inventory system using LIFO method.
4.
To determine
Analyze the balance sheet value of inventory if the company has been facing rising prices for many years and the effect on the inventory turnover ratio.
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Warnerwoods Company uses a perpetual inventory system. It entered into the following purchases and sales transactions
for March.
Date
March 1
March 5
March 9
March 18
March 25
March 29
Perpetual FIFO Perpetual LIFO
Date
March 1
Complete this question by entering your answers in the tabs below.
March 5
Average March 5
March 9
3. Compute the cost assigned to ending inventory using (a) FIFO, (b) LIFO, (c) weighted average, and (d) specific identification. For
specific identification, units sold include 135 units from beginning inventory, 265 units from the March 5 purchase, 115 units from the
March 18 purchase, and 155 units from the March 25 purchase.
March 18
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Purchase
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Average March 18
Activities
Compute the cost assigned to ending inventory using weighted average.
Note: Round your average cost per unit to 2 decimal places.
March 25
Average March 25
March 29
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Weighted
Average
# of units
Goods Purchased
Units Acquired at Cost…
Required Information
[The following Information applies to the questions displayed below.]
Warnerwoods Company uses a perpetual Inventory system. It entered into the following purchases and sales transactions
for March.
Date
March 1
March 5
March 9
March 18
March 25
March 29
Perpetual FIFO Perpetual LIFO
Date
March 1
March 5
Average March 5
March 9
Activities
Beginning inventory
Purchase
Sales
Complete this question by entering your answers in the tabs below.
March 18
Purchase
Purchase
Sales
Totals
Average March 18
HTT
3. Compute the cost assigned to ending Inventory using (a) FIFO. (b) LIFO. (c) weighted average, and (d) specific Identification. For
specific Identification, units sold include 105 units from beginning inventory, 235 units from the March 5 purchase. 85 units from the
March 18 purchase, and 125 units from the March 25 purchase.
March 25
Average March 25
March 29
Totals
Compute the cost assigned to ending inventory using weighted average.
Note: Round your average cost per…
Journalize the following transactions that occurred in November 2018 for Sarah’s Special Place, assuming the perpetual inventory system is being used. No explanations are needed. Identify each accounts payable and accounts receivable with the vendor or customer name. Sarah’s Special Place estimates sales returns at the end of each month.
Proper narrations are required
Chapter 7 Solutions
Principles of Accounting
Ch. 7 - Prob. 1DQCh. 7 - Which of the following methods do not require a...Ch. 7 - Prob. 3DQCh. 7 - Prob. 4DQCh. 7 - Prob. 5DQCh. 7 - Prob. 6DQCh. 7 - Prob. 7DQCh. 7 - Prob. 1SECh. 7 - Assume the following data with regard to inventory...Ch. 7 - Prob. 3SE
Ch. 7 - Prob. 4SECh. 7 - Prob. 5SECh. 7 - Prob. 6SECh. 7 - Prob. 7SECh. 7 - Prob. 8SECh. 7 - Prob. 9SECh. 7 - Prob. 10SECh. 7 - Prob. 11SECh. 7 - Prob. 12SECh. 7 - Prob. 1EACh. 7 - Prob. 2EACh. 7 - Prob. 3EACh. 7 - Prob. 4EACh. 7 - Prob. 5EACh. 7 - Prob. 6EACh. 7 - During July 2014, Micanopy, Inc., sold 500 units...Ch. 7 - Prob. 8EACh. 7 - Prob. 9EACh. 7 - Prob. 10EACh. 7 - Prob. 11EACh. 7 - Prob. 12EACh. 7 - Midori Company merchandises a single product...Ch. 7 - The inventory of Wood4Fun and data on purchases...Ch. 7 - Prob. 3PCh. 7 - Prob. 4PCh. 7 - Prob. 5PCh. 7 - Prob. 6APCh. 7 - DiPaolos inventory, purchases, and sales for March...Ch. 7 - Prob. 8APCh. 7 - Prob. 9APCh. 7 - Zubac Company is a large retail furniture company...Ch. 7 - Prob. 1CCh. 7 - Prob. 2CCh. 7 - ExxonMobil Corporation had net income of 41.0...Ch. 7 - Prob. 4CCh. 7 - JCPenney, a large retail company with many stores,...
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