Question
1. Crane Marine Products began the year with 10 units of marine floats at a cost of $15.00 each. During the year, it made the
1. Crane Marine Products began the year with 10 units of marine floats at a cost of $15.00 each. During the year, it made the following purchases: May 5, 30 units at $22.00; July 16, 15 units at $27.00; and December 7, 20 units at $33.00. Assuming there are 25 units on hand at the end of the period, determine the cost of goods sold under (a) FIFO, (b) LIFO, and (c) average-cost. Crane uses the periodic approach.
| Cost of Goods Sold | ||
|---|---|---|
| FIFO | $enter cost of goods sold under First In First Out in dollars | |
| LIFO | $enter cost of goods sold under Last In First Out in dollars | |
| Average-cost | $enter cost of goods sold under Average-cost in dollars |
2. Suppose at December 31 of a recent year, the following information (in thousands) was available for sunglasses manufacturer Oakley, Inc.: ending inventory $170,500, beginning inventory $132,000, cost of goods sold $378,125, and sales revenue $836,000. Calculate the inventory turnover and days in inventory for Oakley, Inc. (Round inventory turnover to 2 decimal places, e.g. 15.25 and days in inventory to 0 decimal places, e.g. 15. Use 365 days for calculation.)
| Inventory turnover | enter inventory turnover in times rounded to 2 decimal places | times | |
|---|---|---|---|
| Days in inventory | enter a number of days in inventory rounded to 0 decimal places | days |
3. Use a tabular summary to record the following transactions for Marin Co. (Omit recording cost of goods sold.)
| (a) | On July 1, Marin Co. sold merchandise on account to Stacey Inc. for $20,820. | |
| (b) | On July 8, Stacey Inc. returned $2,520 of July 1 merchandise to Marin Co. | |
| (c) | On July 11, Stacey Inc. paid for the merchandise. |
(Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)
| Assets | = | Liabilities | + | Stockholders' Equity | ||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Retained Earnings | ||||||||||||||||||
| Cash | + | Accts. Rec. | = | + | Common Stock | + | Rev. | - | Exp. | |||||||||
| (a) | July | 1 | $enter a dollar amount | $enter a dollar amount | $enter a dollar amount | $enter a dollar amount | $enter a dollar amount | select an account title Sales returns & allowancesCost of goods soldAccounts receivableBad debt expenseSales revenue | ||||||||||
| (b) | 8 | enter a dollar amount | enter a dollar amount | enter a dollar amount | enter a dollar amount | enter a dollar amount | select an account title Bad debt expenseCost of goods soldSales returns & allowancesAccounts receivableSales revenue | |||||||||||
| (c) | 11 | enter a dollar amount | enter a dollar amount | enter a dollar amount | enter a dollar amount | enter a dollar amount | select an account title Bad debt expenseCost of goods soldSales revenueAccounts receivableSales returns & allowances | |||||||||||
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