11. Specific Identification, FIFO, LIFO, and Weighted-Average

Swing Company's beginning inventory and purchases during the fiscal year ended September 30, 20-2, were as shown.

		Units	Unit Price	Total Cost
October 1, 20-1	Beginning inventory	440	$19.00		$8,360
October 18	1st purchase	540	19.50		10,530
November 25	2nd purchase	200	20.50		4,100
January 12, 20-2	3rd purchase	330	22.00		7,260
March 17	4th purchase	910	23.00		20,930
June 2	5th purchase	820	23.50		19,270
August 21	6th purchase	200	24.00		4,800
September 27	7th purchase	660	25.00		16,500
		4,100			$91,750

Use the following information for the specific identification method.

There are 1,300 units of inventory on hand on September 30, 20-2. Of these 1,300 units:

100 are from October 18, 20-1	1st purchase
200 are from January 12, 20-2	3rd purchase
100 are from March 17	4th purchase
400 are from June 2	5th purchase
200 are from August 21	6th purchase
300 are from September 27	7th purchase

Required:

Calculate the total amount to be assigned to cost of goods sold for the fiscal year ended September 30, 20-2, and ending inventory on September 30, 20-2, under each of the following periodic inventory methods.

	Cost of Goods Sold	Cost of Ending Inventory
1. FIFO	$fill in the blank 1	$fill in the blank 2
2. LIFO	$fill in the blank 3	$fill in the blank 4
3. Weighted-average (round calculations to two decimal places)	$fill in the blank 5	$fill in the blank 6
4. Specific identification	$fill in the blank 7	$fill in the blank 8

12.

Calculation of Net Realizable Value

L. R. Updike owns a department store that has a $50,000 balance in Accounts Receivable and a $2,500 credit balance in Allowance for Doubtful Accounts.

1. Determine the net realizable value of the accounts receivable. $fill in the blank 1

2. Assume that an account receivable in the amount of $500 was written off using the allowance method. Determine the net realizable value of the accounts receivable after the write-off. $fill in the blank 2

13.

Calculation of Net Realizable Value

K. L. Dearborn owns a department store that has a $45,900 balance in Accounts Receivable and a $3,000 credit balance in Allowance for Doubtful Accounts.

1. Determine the net realizable value of the accounts receivable. $fill in the blank 1

2. Assume that an account receivable in the amount of $340 was written off using the allowance method. Determine the net realizable value of the accounts receivable after the write-off. $fill in the blank 2

14.

Uncollectible AccountsPercentage of Sales

Alvin's Transport has total credit sales for the year of $182,000 and estimates that 3% of its credit sales will be uncollectible. Record the end-of-period adjusting entry on December 31, in general journal form, for the estimated bad debt expense. Assume the following independent conditions existed prior to the adjustment:

Question Content Area

1. Allowance for Doubtful Accounts has a credit balance of $925.

Page: blank

ROW NUMBER	DATE	ACCOUNT TITLE	DOC. NO.	POST. REF.	DEBIT	CREDIT	ROW NUMBER
1	20-- Dec. 31	Accounts ReceivableAllowance for Doubtful AccountsBad Debt ExpenseCashSales	blank	blank	- Select -	- Select -	1
2	blank	Accounts ReceivableAllowance for Doubtful AccountsBad Debt ExpenseCashSales	blank	blank	- Select -	- Select -	2

Question Content Area

2. Allowance for Doubtful Accounts has a debit balance of $385.

Page: blank

ROW NUMBER	DATE	ACCOUNT TITLE	DOC. NO.	POST. REF.	DEBIT	CREDIT	ROW NUMBER
1	20-- Dec. 31	Accounts ReceivableAllowance for Doubtful AccountsBad Debt ExpenseCashSales	blank	blank	- Select -	- Select -	1
2	blank	Accounts ReceivableAllowance for Doubtful AccountsBad Debt ExpenseCashSales	blank	blank	- Select -	- Select -	2