Acct 200: Chapter 6 Weekly Worksheet

1)

King Electronics has the following merchandise (inventory) information:

Merchandise

Cost

Market

Laptop Computers

$39,000

$37,000

Desktop Computers

$24,000

$28,000

These assets should be valued on King Electronics' balance sheet at what

amounts?

a. Laptop Computers: $________

b. Desktop Computers: $________

2)

Tulip Co. completed its inventory count calculating a total inventory value of

$280,000. Given the information listed below regarding possible necessary

adjustments, what is the corrected inventory?

-

Tulip Co. did not include in its inventory count purchased goods of $24,000

which were in transit (terms: FOB shipping point).

-

Tulip Co. included goods in its inventory count that are goods held on

consignment for Rose Co., costing $21,000.

-

Tulip Co. did not include in its inventory count goods that had been sold with a

cost of $22,000 which were in transit (terms: FOB shipping point).

a.

What is Tulip Company's corrected inventory value (show work)?

_______________________________________

3) If

costs are rising

, then (Fill in with

greater

or

less than

):

a.

FIFO COGS is ___________ LIFO COGS.

b.

FIFO ending inventory is ___________LIFO ending inventory.

c.

Net Income for a company using FIFO will be ___________ a company that uses

LIFO.

4)

If

ending inventory is overstated

(Fill in with

overstated,

understated, or not

impacted

):

a.

COGS is

__________________.

b.

Revenue is

__________________.

c.

Expenses are

__________________.

d.

Net Income is

__________________.

e.

Ending Retained Earnings are

__________________.

f.

Assets are

__________________.

g.

Liabilities are

__________________.

h.

Stockholder's Equity is

__________________.

5)

During 2021, Angelina & Co. sold 50,000 units of its product. The following units

were on hand or purchased during the year:

Units

Cost per

Total Cost

Beginning inventory

10,000

$15.12

$151,200

Purchase 2/2/20

15,000

$15.20

$228,000

Purchase 6/15/20

34,000

$15.60

$530,400

Purchase 10/30/20

32,000

$15.75

$504,000

Total available

91,000

$1,413,600

Less Sold

___

Ending Inventory

Required:

In the table above, fill in the number of units sold and the number of units in

Ending Inventory. Calculate ending inventory and cost of goods sold for FIFO, LIFO,

and average cost (make sure to

show work

):

a.

If the company used the

FIFO method

, what is the value of ending inventory and

cost of goods sold?

Ending Inventory:

Cost of Goods Sold:

b.

If the company used the

LIFO method

, what is the value of ending inventory and

cost of goods sold?

Ending Inventory:

Cost of Goods Sold:

c.

If the company used the

Average Cost method

, what is the value of ending

inventory and cost of goods sold?

Please round your calculated average cost per unit to 2 decimals (example - $18.79)

Average Cost per unit = ___________________

Ending Inventory:

Cost of Goods Sold: