PROBLEM SET B Problem 6-1B Perpetual: Alternative cost flows P1 Ming Company uses a perpetual inventory...

 

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PROBLEM SET B Problem 6-1B Perpetual: Alternative cost flows P1 Ming Company uses a perpetual inventory system. It entered into the following purchases and sales transactions for April. (For specific identification, the April 9 sale consisted of 8 units from beginning inventory and 27 units from the April 6 purchase; the April 30 sale consisted of 12 units from beginning inventory, 3 units from the April 6 purchase, and 10 units from the April 25 purchase.) Date Activities Units Acquired at Cost Units Sold at Retail Apr. 1 Apr. 6 Apr. 9 Apr. 17 Apr. 25 Beginning inventory Purchase. 20 units @ $3,000.00 per unit .... 30 units @ $3,500.00 per unit ..... Sales. 35 units @ $12.000.00 per unit 5 units @ $4.500.00 per unit 10 units @ $4,800.00 per unit Purchase Purchase Apr. 30 Sales 25 units @ $14,000.00 per unit ... Total 65 units 60 units Required 1. Compute cost of goods available for sale and the number of units available for sale. 2. Compute the number of units in ending inventory. 3. Compute the cost assigned to ending inventory using (a) FIFO, (b) LIFO, (c) weighted average, and (d) specific identification. (Round all amounts to cents.) 4. Compute gross profit earned by the company for each of the four costing methods in part 3. Check (3) Ending inventory: FIFO, $24,000; LIFO, S15,000; WA, $20,000 (4) LIFO gross profit, $549,500 PROBLEM SET B Problem 6-1B Perpetual: Alternative cost flows P1 Ming Company uses a perpetual inventory system. It entered into the following purchases and sales transactions for April. (For specific identification, the April 9 sale consisted of 8 units from beginning inventory and 27 units from the April 6 purchase; the April 30 sale consisted of 12 units from beginning inventory, 3 units from the April 6 purchase, and 10 units from the April 25 purchase.) Date Activities Units Acquired at Cost Units Sold at Retail Apr. 1 Apr. 6 Apr. 9 Apr. 17 Apr. 25 Beginning inventory Purchase. 20 units @ $3,000.00 per unit .... 30 units @ $3,500.00 per unit ..... Sales. 35 units @ $12.000.00 per unit 5 units @ $4.500.00 per unit 10 units @ $4,800.00 per unit Purchase Purchase Apr. 30 Sales 25 units @ $14,000.00 per unit ... Total 65 units 60 units Required 1. Compute cost of goods available for sale and the number of units available for sale. 2. Compute the number of units in ending inventory. 3. Compute the cost assigned to ending inventory using (a) FIFO, (b) LIFO, (c) weighted average, and (d) specific identification. (Round all amounts to cents.) 4. Compute gross profit earned by the company for each of the four costing methods in part 3. Check (3) Ending inventory: FIFO, $24,000; LIFO, S15,000; WA, $20,000 (4) LIFO gross profit, $549,500