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Need Help with these three Accounting Problems. Having some issues solving these. Thank you in advance. Problem 6-1A Houghton Limited is trying to determine the
Need Help with these three Accounting Problems. Having some issues solving these. Thank you in advance.
Problem 6-1A Houghton Limited is trying to determine the value of its ending inventory as of February 28, 2017, the company's year-end. The following transactions occurred, and the accountant asked your help in determining whether they should be recorded or not. For each of the below transactions, specify whether the item in question should be included in ending inventory, and if so, at what amount. (a) On February 26, Houghton shipped goods costing $1,840 to a customer and charged the customer $2,300. The goods were shipped with terms FOB shipping point and the receiving report indicates that the customer received the goods on March 2. $ (b) On February 26, Crain Inc. shipped goods to Houghton under terms FOB shipping point. The invoice price was $600 plus $40 for freight. The receiving report indicates that the goods were received by Houghton on March 2. $ (c) Houghton had $700 of inventory isolated in the warehouse. The inventory is designated for a customer who has requested that the goods be shipped on March 10. $ (d) Also included in Houghton's warehouse is $870 of inventory that Korenic Producers shipped to Houghton on consignment. $ (e) On February 26, Houghton issued a purchase order to acquire goods costing $1,000. The goods were shipped with terms FOB destination on February 27. Houghton received the goods on March 2. $ (f) $ On February 26, Houghton shipped goods to a customer under terms FOB destination. The invoice price was $415; the cost of the items was $255. The receiving report indicates that the goods were received by the customer on March 2. Problem 6-2A Glee Distribution markets CDs of the performing artist Unique. At the beginning of October, Glee had in beginning inventory 4,200 of Unique's CDs with a unit cost of $7. During October, Glee made the following purchases of Unique's CDs. Oct. 3 Oct. 9 $ 8 $ 7,350 @ 9 5,250 @ Oct. 19 Oct. 25 6,300 @ $10 8,400 @ $11 During October, 22,890 units were sold. Glee uses a periodic inventory system. Don't show me this message again for the assignment Determine the cost of goods available for sale. $ Cost of goods available for sale Don't show me this message again for the assignment Link to Text Calculate cost per unit. (Round answer to 2 decimal places, e.g. 2.25.) $ Cost per unit Don't show me this message again for the assignment Link to Text Determine (1) the ending inventory and (2) the cost of goods sold under each of the assumed cost flow methods (FIFO, LIFO, and average-cost). (Round answers to 0 decimal places, e.g. 1,250.) FIFO LIFO AVERAGE-COST $ $ $ $ The ending inventory The cost of goods sold $ $ Don't show me this message again for the assignment Link to Text Which cost flow method results in (1) the highest inventory amount for the balance sheet and (2) the highest cost of goods sold for the income statement? produces the highest inventory amount, $ (1) . produces the highest cost of goods sold, $ (2) . Problem 6-6A You are provided with the following information for Gobler Inc. Gobler Inc. uses the periodic method of accounting for its inventory transactions. Marc h Marc h Marc h Marc h Marc h Marc h 1 Beginning inventory 2,000 liters at a cost of 58 per liter. 3 Purchased 2,400 liters at a cost of 62 per liter. 5 Sold 2,300 liters for $1.05 per liter. 1 Purchased 4,150 liters at a cost of 67 per liter. 0 2 Purchased 2,550 liters at a cost of 76 per liter. 0 3 Sold 5,100 liters for $1.35 per liter. 0 Don't show me this message again for the assignment Calculate the value of ending inventory that would be reported on the balance sheet, under each of the following cost flow assumptions. (Round answers to 2 decimal places, e.g. 125.50.) (1) Specific identification method assuming: (i) The March 5 sale consisted of 1,000 liters from the March 1 beginning inventory and 1,300 liters from the March 3 purchase; and (ii) The March 30 sale consisted of the following number of units sold from beginning inventory and each purchase: 400 liters from March 1; 550 liters from March 3; 2,800 liters from March 10; 1,350 liters from March 20. (2) FIFO (3) LIFO Ending inventory Specific identification FIFO LIFO $ $ $Step by Step Solution
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