INTERMEDIATE ACCOUNTING (LL) >CUSTOM<
9th Edition
ISBN: 9781260365511
Author: SPICELAND
Publisher: MCGRAW-HILL HIGHER EDUCATION
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Chapter 8, Problem 8.16E
Average cost method; periodic and perpetual systems
• LO8–1, LO8–4
The following information is taken from the inventory records of the CNB Company for the month of September:
| Beginning inventory, 9/1/2018 | 5,000 units @ $10.00 |
| Purchases: | |
| 9/7 | 3,000 units @ $10.40 |
| 9/25 | 8,000 units @ $10.75 |
| Sales: | |
| 9/10 | 4,000 units |
| 9/29 | 5,000 units |
7,000 units were on hand at the end of September.
Required:
1. Assuming that CNB uses a periodic inventory system and employs the average cost method, determine cost of goods sold for September and September’s ending inventory.
2. Repeat requirement 1 assuming that the company uses a perpetual inventory system.
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Number of Units
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Calculate the gross margin for the period for each of the following cost allocation methods, using periodic
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B. last-in, first-out (LIFO)
C. weighted average (AVG)
OMANTEL El GOD
O©41% 9:12
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Muscat Company uses the
periodic inventory system to
account for inventories.
Information related to Muscat
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Units
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200
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Purchase, 1/15/2020
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II
es
Required information
Problem 6-2AA (Algo) Periodic: Alternative cost flows LO P3
[The following information applies to the questions displayed below.]
Warnerwoods Company uses a periodic inventory system. It entered into the following purchases and sales transactions
for March.
Date
March 1
March 5
Activities
Beginning inventory
Purchase
March 9
Sales
March 18
March 25
March 29
Purchase
Purchase
Sales
Units Acquired at Cost
125 units @ $60 per unit
425 units @ $65 per unit
170 units @ $70 per unit
250 units @ $72 per unit
Units Sold at Retail
445 units @ $95 per.unit
Totals
970 units
210 units @ $105 per unit
655 units
For specific identification, units sold include 80 units from beginning inventory, 365 units from the March 5 purchase, 65
units from the March 18 purchase, and 145 units from the March 25 purchase.
Problem 6-2AA (Algo) Part 3
3. Compute the cost assigned to ending inventory using (a) FIFO, (b) LIFO, (c) weighted average, and (d) specific identification.
Note: Round…
Chapter 8 Solutions
INTERMEDIATE ACCOUNTING (LL) >CUSTOM<
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