Question
20. Kim Company just starting business made the following four inventory purchases in June: June 1 150 units $780 June 10 200 units 1,170 June
20. Kim Company just starting business made the following four inventory purchases in June:
June | 1 | 150 units | $780 |
June | 10 | 200 units | 1,170 |
June | 15 | 200 units | 1,260 |
June | 28 | 150 units | 990 |
$4,200 |
A physical count of merchandise inventory on June 30 reveals that there are 250 units on hand. Kim Company is using periodic inventory system. Using the average cost method, compute the amount allocated to the ending inventory on June 30th. Round calculation to the nearest dollar.
Answer:
21. The following data pertains to Zoom Companys merchandise inventory on hand at the end of the year. Zoom Company complies with GAAP including the lower of cost or market principle, applied on an individual product basis.
Commodity | Inventory Quantity | Unit Cost | Unit Replacement Cost/Market |
A | 200 | $10 | $ 8 |
B | 100 | $15 | $16 |
C | 400 | $ 8 | $ 7 |
What amount should be reported for merchandise inventory on the balance sheet?
Answer:
22. Hope Company had the following activity in its inventory account during May.
Date | Activity | Units | Cost Per Unit | Total Cost |
May 1 | Beginning inventory | 100 | $3.00 | $300.00 |
May 3 | Purchase | 40 | 3.10 | 124.00 |
May 7 | Sale | 50 |
|
|
May 12 | Purchase | 50 | 3.20 | 160.00 |
May 16 | Sale | 70 |
|
|
May 23 | Sale | 40 |
|
|
May 30 | Purchase | 60 | 3.30 | 198.00 |
What is the cost of goods sold for the month ended May 31 for Hope Company if the company uses Periodic FIFO as its inventory valuation method? Round calculation to the nearest dollar.
Answer:
23. Hope Company had the following activity in its inventory account during May.
Date | Activity | Units | Cost Per Unit | Total Cost |
May 1 | Beginning inventory | 100 | $3.00 | $300.00 |
May 3 | Purchase | 40 | 3.10 | 124.00 |
May 7 | Sale | 50 |
|
|
May 12 | Purchase | 50 | 3.20 | 160.00 |
May 16 | Sale | 70 |
|
|
May 23 | Sale | 40 |
|
|
May 30 | Purchase | 60 | 3.30 | 198.00 |
What is the ending inventory at May 31 for Hope Company if the company uses Periodic Average Cost method as its inventory valuation method? Round calculation to the nearest dollar.
Answer:
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