Inventory
Note: See Inventory Gross Profit Daily Activity for assistance Dub's Paint Supplies' store was destroyed by a tornado on February 10th The only information for the current period that could be salvaged included the following: Beginning inventory, January 1 64,000 Purchases to date $ 155,000 Sales to date $ 275,000 Historically, the company's gross profit ratio has been 40% Estimate the value of the destroyed inventory using the gross profit method. Uptown Mart reported the following amounts on their financial statements for 2016, 2017, and 2018: Cost of goods sold Net income Total current assets Equity For the Year Ended December 31 2016 2017 2018 S88,000 $102,000 895,000 37,000 32,000 36,000 142.000 156,000 128,000 230,000 246,000 265,000 It was discovered early in 2019 that the ending inventory on December 31, 2016, was overstated and the ending inventory on December 31, 2017, was understated by 5,250 2,500 The ending inventory on December 31, 2018, was correct. Ignoring income taxes, determine the correct amounts of cost of goods sold, net income, total current assets, and equity for each of the years. 2016 Cost of goods sold Net income Total current assets Equity 2017 Cost of goods sold Net income Total current assets Equity 2018 Cost of goods sold Net income Total current assets Equity A company reported the following data related to its ending inventory: Department Units Available Cost Market Total Cost Total Market Department Department Department Cost Market | Totals LCM Retail S6 SIO Product Number 872 860 847 843 840 25 55 Retail Wholesale Wholesale Wholesale 15 12 15 22 45 Calculate the lower of cost or-market for: (a) Inventory as a whole. (b) Inventory applied to each department. (c) Inventory applied separately to each product. LM Purchase Price (per unit) Sale Price (per unit) Units 19.00 20.00 35.00 8-Mar 12-Mar 19-Mar 24-Mar 30-Mar 200 350 250 400 450 250 22.00 38.00 24.00 5 March 6 Beginning Inventory 7 Purchase 1 8 Sale 1 9 Purchase 2 10 Sale 2 11 Purchase 3 12 13 April 14 Purchase 4 15 Sale 3 16 Purchase 5 17 Sale 4 18 Sale 5 19 20 Complete a) through f) 300 25.00 40.00 2-Apr 10-Apr 20-Apr 22-Apr 29-Apr 400 250 300 26.00 40.00 42.00 200 21 23 a) Compute cost of goods sold, the cost of ending inventory and gross margin for March using FIFO 24 25 27 b) Compute cost of goods sold, the cost of ending inventory and gross margin for April using FIFO 28 29 31 c) Compute cost of goods sold, the cost of ending inventory and gross margin for March using LIFO 32 34 35 d) Compute cost of goods sold, the cost of ending inventory and gross margin for April using LIFO 39 e) Compute cost of goods sold, the cost of ending inventory and gross margin for March using Ave. Cost 40 43 f) Compute cost of goods sold, the cost of ending inventory and gross margin for April using Ave. Cost 44
