E6-14

In development: Feature films $88,200 $75,498 Television series and spec 1,118 1,500 Product Inventory 9,917 32,678 Total film costs $827 890 $943486 a. Interpret the film cost asset categories. b. How are these classifications similar or dissimilar to the inventory classifications used in a manufacturing firm Jan. 1 E6-14 Inventory by three methods The units of an item available for sale during the year were as follows: Inventory 27 units at $400 Feb. 19 Purchase 54 units at $460 June 8 Purchase 63 units at $520 Oct. 7 Purchase 56 units at $550 There are 45 units of the item in the physical inventory at December 31. Determine the cost of ending inventory using (a) the first-in, first-out method, (b) the last-in, first-out method, and (c) the weighted average cost method. TE6-15 Inventory by three methods; cost of goods sold The units of an item available for sale during the year were as follows: Jan. 1 Inventory 21 units at $1,800 May 15 Purchase 29 units at $1,950 Aug. 7 Purchase 10 units at $2,040 Nov. 20 Purchase 15 units at $2,100 There are 18 units of the item in the physical inventory at December 31. Determine the cost of ending inventory and the cost of goods sold by three methods, presenting your answers in the following form: Ending Inventory Cost of Goods Sold Inventory Method a. First-in, first-out b. Last-in, first-out c.Weighted average E6-16 Comparing inventory methods Assume that a firm separately determined inventory under FIFO and LIFO and then com- pared the results. 1. In each space below, place the correct sign [less than (), or equal (-) for each comparison, assuming periods of rising prices. 2. FIFO ending inventory LIFO ending inventory b. FIFO cost of goods sold