Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please answer all parts The following independent situations relate to inventory accounting. Answer the following questions about inventories. Stellar Co. purchased goods with a list

Please answer all parts

image text in transcribedimage text in transcribedimage text in transcribedimage text in transcribed

The following independent situations relate to inventory accounting. Answer the following questions about inventories. Stellar Co. purchased goods with a list price of $173,500, subject to trade discounts of 20% and 10%, with no cash discounts allowable. How much should Stellar Co. record as the cost of these goods? Cost of goods purchased LINK TO TEXT LINK TO TEXT Pearl Company's inventory of $1,142,500 at December 31, 2017, was based on a physical count of goods priced at cost and before any year-end adjustments relating to the following items. (a) Goods shipped from a vendor f.o.b. shipping point on December 24, 2017, at an invoice cost of $62,140 to Pearl Company were received on January (b) The physical count included $29,250 of goods billed to Sakic Corp. f..b. shipping point on December 31, 2017, The carrier picked up these goods on 4, 2018. January 3, 2018. What amount should Pearl report as inventory on its balance sheet? Inventory to be reported g Martinez Corp. had 1,800 units of part M.O. on hand May 1, 2017, costing $27 each. Purchases of part M.O. during May were as follows. Units Units Cost $29 30 31 May 9 2,300 17 3,800 26 1,300 A physical count on May 31, 2017, shows 2,300 units of part .. on hand. Using the FIFO method, what is the cost of part .. inventory at May 31, 2017? Using the LIFO method, what is the inventory cost? Using the average-cost method, what is the inventory cost? (Round average cost per unit to 2 decimal places, e.g. 15.25 and final answers to o decimal places, e.g. 1,620.) FIFO Average Cost Inventory Cost s Sandhill Company adopted the dollar-value LIFO method on January 1, 2017 (using internal price indexes and multiple pools). The following data are available for inventory pool A for the 2 years following adoption of LIFO. At Base-Yea At Current-Year Cost Inventory Cost 12/31/17 12/31/18 $187,500 217,400 243,500 $187,500 217,400 250,805 Computing an internal price index and using the dollar-value LIFO method, at what amount should the inventory be reported at December 31, 2018? December 31, 2018 Price Index Dollar-value LIFO inventory Teal Inc., a retail store chain, had the following information in its general ledger for the year 2018. Merchandise purchased for resale Interest on notes payable to vendors Purchase returns Freight-irn Freight-out (delivery expense) Cash discounts on purchases $916,809 9,443 17,180 20,240 18,523 7,125 What is Teal's inventoriable cost for 2018? Teal's inventoriable cost for 2018

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Principles And Practice Of Auditing

Authors: George Puttick, Sandra Van Esch

8th Edition

0702156914, 978-0702156915

More Books

Students also viewed these Accounting questions