Problem 8-1 The following independent situations relate to inventory accounting. Answer the following questions about inventories. Sweet 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 Sweet Co. record as the cost of these goods? Cost of goods purchased S IINK TO TEXT LINK TO TEXT Pharoah Company's inventory of $1,142,500 at December 31, 2017, wass 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 Pharoah Company were received on January 4, 2018. (b) The physical count included $29,250 of goods billed to Sakic Corp. f.o.b. shipping point on December 31, 2017. The carrier picked up these goods on January 3, 2018. What amount should Pharoah report as inventory on its balance sheet? Inventory to be reported $ LINK TO TEXT LINK TO TEXT Novak 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 Cost Units ay 9 $29 2,300 17 3,800 30 1,300 26 31 A physical count on May 31, 2017, shows 2,300 units of part M.O. on hand. Using the FIFO method, what is the cost of part M.O. 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 decimal places, e.g. 1,620.) Average Cost FIFO LIFO Inventory Cost LINK TO TEXT LINK TO Splish 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-Year At Current-Year Cast Inventory 1/1/17 $187,500 $187,500 12/31/17 217,400 217,400 12/31/18 243,500 250,805 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 LINK TO TEXT LINK TO TEXT Blossom Inc., a retail store chain, had the following information in its general ledger for the year 2018. Merchandise purchased for resale $916,809 Interest on notes payable to vendors 9,443 Purchase returns 17,180 Freight-in 20,240 Freight-out (delivery expense) 18,523 Cash discounts on purchases 7,125 What is Blossom's inventoriable cost for 2018? Blossom's inventoriable cost for 2018 Open Show Work Click if you would like to Show Work for this question: LINK TO TEXXT LINK TO TEXT
