ALLUS! At Retail od Beginning inventory ........ $63,800 Cost of goods purchased.. $128.400 115,060 196.800 Check Editor On January 1, JKR Shop had $225,000 of beginning inventory at cost. In the first quarter of the year, it Exercise 6-17 cost $350 purchased $795.000 of merchandise, returned $11,550, and paid freight charges of $18,800 on purchased merchandise, terms FOB shipping point. The company's gross profit averages 30%, and the store had Estimating ending $1,000,000 of net sales (at retail) in the first quarter of the year. inventory-gros probe Use the gross profit method to estimate its cost of inventory at the end of the first quarter. method P4 Tree Seedlings has the following current-year purchases and sales for its only product. Exercise 6-18 Perpetual inventory costing Date Activities Units Acquired at Cost Units Sold at Retail P1 Jan. 1 Beginning inventory......... 40 units @ $2 $ 80 30 units 58 Jan. 3 Sales.. 70 units Purchase..... $3 $210 Feb. 14 60 units $8 Feb. 15 Sales..... 90 units $4 = $360 June 30 Purchase..... B6 units $8 Nov. 6 Sales.... 20 units $5 - $100 Nov. 19 Purchase.... 176 units 220 units $750 Totals ....... Required The company uses a perpetual inventory system. Determine the costs assigned to ending inventory and to cost of goods sold using (a) FIFO and (b) LIFO. (c) Compute the gross margin for each method. L V chance e isgi the countr for all the 1500 y and m ed way hehe Pass i ng d ay . The companys per 6-15 pode LAUROR egy 14 the key 36 5121.00 Begg ar . Cestofadpurchased........ On January 1.JKR Shephed $225.000 of a conta hefur quarter of the yea purchased 795.000 hadi 11.30 padre che si pret merchandise shipping point. The company's proposes the w a $1.000.000 of net sales retail) in the first quarter of the year. Use the gross profit method to estimate its cost of investory at the end of the first quartet r s 6-17 ending t er nuod P4 Tree Seedlings has the following current purchases and sales for its only product Perpetual entory Coving Utsi da Con Units Soldat Retail Feb 14 Oslo 908 5060 Purchase 20 1 5 - $100 Required The company uses a perpetual inventory system. Determine the costs a nd to be inventory and to cost of poods sold using a FIFO and (b) LIRO, Compute the gross marge for each method Chapter 6 wees en Cost of Sales Exercise 6-19 Periodivery cong Refer to the information in Exercise 6-18 and use the periode mentory system is used. Determine the costs assigned to ending inventory and to cost of poods sold using a FIR and () LIRO ) Computer the gross margis for each method 13 PROBLEM SET A connect Warnerwoods Company uses a perpetual inventory system. Il entered into the following purchases sales actions for March e action the Mahalecosted of beginning memory and 340 units from the March 5 purchase, the March 29 sale consisted of 40 units from the March 18 purchase and 120 units from the March 25 purchase.) Perpetual Alemave Units Acredates! Begg ory- Puth 120 200 50.00 per 562.00 per 596.00 petun 160 580 Required 1. Compute cost of goods a lle for sale and the number of units available for sale. 2. Compute the imber of units in ending inventory 3. Compute the cost assigned to ending immory using (a) FIRO, LIPO. (c) weighted average and (d) specific identification (Round all amounts to cents.) 4. Compute gross profitearmed by the company for each of the four costing methods in part 3. SHOW $143 FOOD, 51790 Problem -2A Refer to the information in Problem 6-1 A and assume the periodic inventory system is used Required 1. Compute cost of goods available for sale and the number of its 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 amount to cents.) 4. Compute gross profit earned by the company for each of the four costing methods in part 3. Problem 6-3A cost flows Monture Company uses a perpetual inventory system. It entered into the following calendar year pur- chases and sales transactions. (For specific identification, units sold consist of 600 units from beginning inventory, 300 from the February 10 purchase, 200 from the March 13 purchase, 50 from the August 21 purchase, and 250 from the September 5 purchase.) Activities Units Acquired Cost Units Sold at Retail Jan Feb 10 Mar 1) 15 Beginning story.............. Purchase....................... Purchase............ Sales 600 $45.00 per unit 400 units 54200 per unit 200 $27.00 per unit M 800 $75.00 per unit Sep 5 Sep 10 Purchase................. Sos 100 500 55000 perunt $46.00 per unit 600 units 1.400 units $75.00 per 1300