Bundle: College Accounting: A Career Approach (with QuickBooks Online), Loose-leaf Version, 13th + LMS Integrated CengageNOWV2, 1 term (6 months) Printed Access
13th Edition
ISBN: 9781337587358
Author: Cathy J. Scott
Publisher: Cengage Learning
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Chapter C, Problem 2P
Use the information presented in Problem C-1 to solve this problem.
Bean Nursery sells bark to its customers at retail. Bean buys bark from a plywood mill in bulk and transports the bark in its own trucks. Information relating to the beginning inventory and purchases of bark is as follows:
Required
Find the cost of the ending inventory by the first-in, first-out method.
Check Figure
Cost of ending inventory, $562
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Assume that Whitewall Tire Store completed the following perpetual inventory transactions for a line of tires:
i (Click the icon to view the transactions.)
Read the requirements.
Requirement 1. Compute cost of goods sold and gross profit using the FIFO inventory costing method.
Begin by computing the cost of goods sold and cost of ending merchandise inventory using the FIFO inventory costing method. Enter the transactions in chronological order, calculating new inventory on hand balances after each transaction. Once all of the transactions have
been entered into the perpetual record, calculate the quantity and total cost of merchandise inventory purchased, sold, and on hand at the end of the period. (Enter the oldest inventory layers first.)
Date Quantity
Dec. 1
11
23
261
29
Totals
Purchases
Unit
Cost
Cost of Goods Sold
Total
Unit
Cost Quantity Cost
Total
Cost
Inventory on Hand
Unit
Quantity Cost
C
Total
Cost
More info
Dec. 1 Beginning merchandise inventory
Dec. 11 Purchase
Dec. 23…
Assume that Whitewall Tire Store completed the following perpetual inventory transactions for a line of tires:
(Click the icon to view the transactions.)
Requirement 1. Compute cost of goods sold and gross profit using the FIFO inventory costing method.
Begin by computing the cost of goods sold and cost of ending merchandise inventory using the FIFO inventory costing method. Enter the transactions in chronological order, calculating new inventory on hand balances after each transaction. Once all of the transactions have
been entered into the perpetual record, calculate the quantity and total cost of merchandise inventory purchased, sold, and on hand at the end of the period. (Enter the oldest inventory layers first.)
Cost of Goods Sold
Date Quantity
Dec. 1
11
23
26
29
Totals
Purchases
Unit
Cost
Total
Unit
Cost Quantity Cost
Total
Cost
Inventory on Hand
Unit
Cost
Quantity
C
Total
Cost
1.
Requirements
More info
Dec. 1
Beginning merchandise inventory
Dec. 11 Purchase
Dec. 23 Sale
Dec. 26…
Assume that AB Tire Store completed the following perpetual inventory transactions for a line of tires:
(Click the icon to view the transactions.)
Requirements
1.
2.
3.
4.
Compute cost of goods sold and gross profit using the FIFO inventory
costing method.
Compute cost of goods sold and gross profit using the LIFO inventory
costing method.
Compute cost of goods sold and gross profit using the weighted-average
inventory costing method. (Round weighted-average cost per unit to the
nearest cent and all other amounts to the nearest dollar.)
Which method results in the largest gross profit, and why?
X
More info
4
Dec. 1 Beginning merchandise inventory
Dec. 11 Purchase
Dec. 23 Sale
Dec. 26 Purchase
Dec. 29 Sale
24 tires @ $61 each
6 tires @ $76 each
16 tires @ $83 each
14 tires @ $86 each
17 tires @ $83 each
Chapter C Solutions
Bundle: College Accounting: A Career Approach (with QuickBooks Online), Loose-leaf Version, 13th + LMS Integrated CengageNOWV2, 1 term (6 months) Printed Access
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