Question 1 : Oahu Kiki tracks the number of units purchased and sold throughout each accounting period
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Question : Oahu Kiki tracks the number of units purchased and sold throughout each accounting period but applies its inventory costing method at the end of each month, as if it uses a periodic inventory system. Assume Oahu Kikis records show the following for the month of January. Sales totaled units.
Date
Units
Unit Cost
Total Cost
Beginning Inventory
January
$
$
Purchase
January
Purchase
January
Required:
Calculate the number and cost of goods available for sale.
Calculate the number of units in ending inventory.
Calculate the cost of ending inventory and cost of goods sold using the a FIFO, b LIFO, and c weighted average cost methods. Question: Orion Iron Corporation tracks the number of units purchased and sold throughout each year but applies its inventory costing method at the end of the year, as if it uses a periodic inventory system. Assume its accounting records provided the following information at the end of the annual accounting period, December
Transactions
Units
Unit Cost
a Inventory, Beginning
$
For the year:
b Purchase, April
c Purchase, June
d Sale, May sold for $ per unit
e Sale, July sold for $ per unit
f Operating expenses excluding income tax expense $
Required:
Calculate the number and cost of goods available for sale.
Calculate the number of units in ending inventory.
Compute the cost of ending inventory and cost of goods sold under a FIFO, b LIFO, and c weighted average cost.
Prepare an income statement that shows under the FIFO method, LIFO method and weighted average method.
Which inventory costing method minimizes income taxes? Question : Peterson Furniture Designs is preparing the annual financial statements dated December Ending inventory information about the five major items stocked for regular sale follows:
Required:
a Complete the table column WriteDown per Item and then sum the final column.
b Compute the amount of the total writedown when the LCMNRV rule is applied to each item.
Prepare the journal entry Peterson Furniture Designs would record on December to write down its inventory to LCMNRV Complete the table column WriteDown per Item and then sum the final column.
Item Unit Cost FIFO NRV per Item Writedown per Item Quantity on Hand Total Writedown
Alligator Armoires $ $
Bear Bureaus
Cougar Credenzas
Dingo Cribs
Elephant Dressers Question : Sandals Company is preparing the annual financial statements dated December Ending inventory is presently recorded at its total cost of $ Information about its inventory items follows:
Product Line Quantity on Hand Unit Cost When Acquired FIFO Value at YearEnd
Air Flow $ $
Blister Buster
Coolonite
Dudesly
Required:
Compute the LCMNRV writedown per unit and in total for each item in the table. Also compute the total overall writedown for all items.
How will the writedown of inventory to lower of cost or marketnet realizable value affect the companys expenses reported for the year ended December
Compute the amount that should be reported for the inventory on December after the LCMNRV rule has been applied to each item. Compute the LCMNRV writedown per unit and in total for each item in the table. Also compute the total overall writedown for all items.
Product Line Quantity on Hand Writedown per item Total Writedown
Air Flow
Blister Buster
Coolonite
Dudesly
Total
Related Book For
Fundamentals of Financial Accounting
ISBN: 978-0078025914
5th edition
Authors: Fred Phillips, Robert Libby, Patricia Libby
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