Question
Problems (Shows references and computations are required) A. The Pepita Company inventory at December 31, 2021, was $325,000 based on a physical count priced at
Problems (Shows references and computations are required)
A. | The Pepita Company inventory at December 31, 2021, was $325,000 based on a physical count priced at cost, and before any necessary adjustment for the following: Merchandise costing $30,000, shipped f.o.b. shipping point from a vendor on December 30, 2021, was received on January 5, 2022. Merchandise costing $22,000, shipped f.o.b. destination from a vendor on December 28, 2021, was received on January 3, 2022. Merchandise costing $38,000 was shipped to a customer f.o.b. destination on December 28, arrived at the customer's location on January 6, 2022. Merchandise costing $12,000 was being held on consignment by Traynor Company. What amount should Pepita Company report as inventory in its December 31, 2021, balance sheet? |
B. Egipciaco Corp. uses the periodic inventory system. During its first year of operations, Egipciaco made the following purchases (listed in chronological order of acquisition):
50 units at $200 100 units at $280 190 units at $300 Sales for the year totaled 270 units, leaving 70 units on hand at the end of the year.
1. Ending inventory and Cost of Goods Sold using the average cost method (rounded) is:
2. Ending inventory and Cost of Goods Sold using the FIFO method is:
3. Ending inventory and Cost of Goods Sold using the LIFO method is:
C. (Computations and Inventory Table are required)
The inventory data for an item for November are:
Nov. 1 | Inventory | 20 units at $19 |
4 | Sold | 10 units |
10 | Purchased | 30 units at $20 |
17 | Sold | 20 units |
30 | Purchased | 10 units at $21 |
Using a perpetual system compute the following:
1. Ending inventory and Cost of Goods Sold using the Weighted-average cost method (rounded) is:
2. Ending inventory and Cost of Goods Sold using the FIFO method is:
3. Ending inventory and Cost of Goods Sold using the LIFO method is:
D. The Foxworthy Corporation uses a periodic inventory system and the LIFO inventory cost method for its one product. Beginning inventory of 40,000 units consisted of the following, listed in chronological order of acquisition:
24,000 units at a cost of $6.00 per unit = $144,000
16,000 units at a cost of $7.00 per unit = 112,000
During 2018, inventory quantity declined by 18,000 units. All units purchased during 2018 cost $8.00 per unit.
-Calculate the before-tax LIFO liquidation profit or loss that the company would report in a disclosure note assuming the amount determined is material.
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