Or 12 Chap Stud Problem Set Assign Protected View Saved to this PC- Layout References Mailings Review View Help Erosoft Delender Advanced Threat Protection and it hasn't detected any threats. if you need to edit this file, click enable editing. Complete UITBIT EXCEEOCENETIC PROVIDED BODITE U DZE Question 1 - Inventory Costing - Perpetual Systems- FIFO Costing Method Template provided Question 2-Inventory Costing - Average Costing Method Template Provided Starshine Coffee Equipment sells European style coffee makers and uses a perpetual inventory system. Its inventory records show that on June 1, Starshine had 12 units on hand at a cost of $220 each. Transactions related to purchase and sale of coffee makers in June were as follows: Date June 10 Transaction Units Per Unit Cost Sales Price Sale 3 $510 June 15 Sale 4 $510 June 20 Purchase 5 $230 June 22 Purchase 6 $240 June 30 Sale 10 $500 Instructions a) For each of FIFO and Weighted Average methods, create a chart and calculate the ending inventory as at June 30 and the cost of goods sold for the month of June. (22) Use the Excel Template provided. b) Prove your work for each method using the formula: (Opening Inventory + Purchases-COGS Ending Inventory) (2) c) Make the 2-part Sales entry on June 30 for each method. (4) O hp Question 3-Inventory Costing-Specific Identification Method In July, Unique Jewels Company purchased the following items: Date Purchased July 2 July 5 July 10 July 19 July 20 #Rings 1 2 1 3 4 Cost per Ring $15,000 $9,250 $750 $12,500 $945 On July 22, one ring from the July 2 purchase was sold for $19,500 and 2 rings from the July 20 purchase were sold for $1,520 each. All sales and purchases are made on credit. Instructions: a) Calculate ending inventory and cost of goods sold using specific identification. b) Prepare the journal entry to record the July 22 sale. Assume HST 13%. Question 4 - Valuation of Inventory Benjaha Company is preparing the annual financial statements dated December 31, 2015. Information about inventory stocked for regular sale follows: Item Quantity on Hand A 25 B 100 C 20 D 80 Instructions Unit Cost When Acquired $25 55 60 50 Net Realizable Value at year end $22 55 88 46 a. Calculate the correct value for the December 31, 2015 ending inventory using the lower of cost and net realizable value on individual inventory items. Inventory Cost NRV LCNRV Item A B C D Totals b. Assume Benjaha uses a perpetual inventory system. Prepare the journal entry to record any inventory write down required. Question 5-Estimating Inventories - Gross Profit Method North Bay Company suffered a loss of its inventory on March 28 due to a fire in its warehouse. As a basis for filing a claim with its insurance company, North Bay Company developed the following information: March net sales through March 28... Beginning Inventory, March 1....... Merchandise purchases through March 28. $500,000 190,000 225,000 The company has experienced an average gross profit margin of 30% in the past and this margin appears to be appropriate in the current period. Instructions Using the gross profit method, prepare an estimate of the cost of the inventory destroyed by fire on March 28. Show all calculations in good form. Question 6- Estimate Inventory at Retail Terry's Electronics uses the retail method to determine inventory cost. The following information is available for the month of January, 2014: Beginning inventory, at cost.............. Goods purchased at cost (net of allowances)... Net sales............ Beginning inventory, at retail. Goods purchased, at retail Instructions $64,000 168,000 295,000 110,000 315,000 Calculate the estimated cost of the January 31, 2014 inventory using the retail inventory method