Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Problem 4 (9 pts) On January 1, 2020, Taylor Co. adopted dollar-value LIFO method. The inventory value for its one inventory pool on this date

image text in transcribed
Problem 4 (9 pts) On January 1, 2020, Taylor Co. adopted dollar-value LIFO method. The inventory value for its one inventory pool on this date was $400,000. Inventory data for 2017 through 2019 is as follows: Ending Inventory Date at Year-End Cost Cost Index 12/31/20 $451,500 1.05 12/31/21 476,000 1.12 12/31/22 528,000 1.20 Required: Calculate Taylor's inventory for 2020, 2021, and 2022. Problem 5 (10 pts) Reuschel Co. began 2020 with inventory of 10,000 units at cost of $8 per unit. During the year an additional 50,000 units were purchased at a single unit cost. Reuschel sold 40,000 units during 2018. Reuschel uses a periodic inventory system. Cost of goods sold for 2020, applyi. average cost method is $360,000. The company is interested in determining what cost of goods sold and ending inventory would have been if the FIFO or LIFO methods were used. REQUIRED: Determine the cost of goods sold and ending inventory using the FIFO method. b. Determine the cost of goods sold and ending inventory using the LIFO method. Problem 6 (16 pts) LeMay Department Store started business January 1, 2019 and uses the retail method to estimate ending inventory. Listed below is data accumulated for the year ended December 31, 2020: Cost Retail Beginning inventory S120,000 $150,000 Purchases 526,500 845,000 Purchase discount (20,000) Freight-in 3,500 Net markups 5,000 Net markdowns (14,000) Net sales 750,000 Normal spoilage 10,000 Employee discounts 2,000 Required: Calculate the retail value of LeMay Department store ending inventory. Assuming that LeMay Department Store uses conventional retail method, calculate the cost of ending inventory and cost of goods sold. Assuming that LeMay Department Store uses LIFO retail method, calculate the cost of ending inventory and cost of goods sold

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

More Books

Students also viewed these Accounting questions

Question

Can an efficient transformer step up energy? Defend your answer.

Answered: 1 week ago

Question

Which form of proof do you find most persuasive? Why?

Answered: 1 week ago