Question 1: In its first month of operations,BrambleCompany made three purchases of merchandise in the following sequence: (1)330units at $6, (2)410units at $7, and (3)250units at $8.

Assuming there are380units on hand, compute the cost of the ending inventory under the (a) FIFO method and (b) the LIFO method.Brambleuses a periodic inventory system.

Question 2:

In its first month of operations,OrioleCompany made three purchases of merchandise in the following sequence: (1)300units at $7, (2)490units at $8, and (3)210units at $9.

Calculate the average unit cost.(Round answer to 2 decimal places, e.g. 15.25.)

Average unit cost=?

(b)

The parts of this question must be completed in order. This part will be available when you complete the part above.

Question 3:

CoronadoDepartment Store uses a perpetual inventory system. Data for product E2-D2 include the following purchases.

Date

Number of Units

Unit Cost

May 745$ 18 July 283020

On June 1,Coronadosold25units, and on August 27,42more units.

(a)

Prepare the perpetual inventory schedule for the above transactions using FIFO.

Product E2-D2

Date

Purchases

Cost of Goods Sold

Balance

May. 7$

enter a dollar amount

$

enter a dollar amount

$

enter a dollar amount

June 1$

enter a dollar amount

$

enter a dollar amount

$

enter a dollar amount

July 28$

enter a dollar amount

$

enter a dollar amount

$

enter a dollar amount

Aug. 27$

enter a dollar amount

$

enter a dollar amount

$

enter a dollar amount

(b)

The parts of this question must be completed in order. This part will be available when you complete the part above.

(c)

The parts of this question must be completed in order. This part will be available when you complete the part above.

Question 3:

On June 30,SwiftyFabrics has the following data about the retail inventory method. Goods available for sale: at cost $46,400; at retail $58,000; net sales $48,400; and ending inventory at retail $9,600.

Compute the estimated cost of the ending inventory using the retail inventory method.

The estimated cost of the ending inventory$

enter the estimated cost of the ending inventory in dollars

Question 4:

Kari Downs, an auditor with Wheeler CPAs, is reviewing Depue Company's inventory account. Depue did not have a good year, and top management is under pressure to boost reported income. According to its records, the inventory balance at year-end was $740,000. However, the following information was not considered when determining that amount.

1. Included in the company's count were goods with a cost of $250,000 that the company is holding on consignment. The goods belong to Kroeger Corporation.

2. The physical count did not include goods purchased by Depue with a cost of $40,000 that were shipped FOB destination on December 28 and did not arrive at Depue warehouse until January 3.3. Included in the inventory account were $14,000 of office supplies that were stored in the warehouse and were to be used by the company's supervisors and managers during the coming year.4.The company received an order on December 29 that was boxed and sitting on the loading dock awaiting pick-up on December 31. The shipper picked up the goods on January 1 and delivered them on January 6. The shipping terms were FOB shipping points. The goods had a selling price of $40,000 and a cost of $28,000. The goods were not included in the count because they were sitting on the dock.5.On December 29, Depue shipped goods with a selling price of $80,000 and a cost of $60,000 to Macchia Sales Corporation FOB shipping point. The goods arrived on January 3. Macchia had only ordered goods with a selling price of $10,000 and a cost of $8,000. However, a sales manager at Depue had authorized the shipment and said that if Machia wanted to ship the goods back next week, it could.6.Included in the count was $40,000 of goods that were parts for a machine that the company no longer made. Given the high-tech nature of Depue's products, it was unlikely that these obsolete parts had any other use. However, management would prefer to keep them on the books at cost, "since that is what we paid for them, after all."

(a2)Provide explanations for each item above, saying why you did or did not make an adjustment for each item.

Question 5:

On December 1, Kiyak Electronics Ltd. has three DVD players left in stock. All are identical, all are priced to sell at $150. One of the three DVD players left in stock, with serial #1012, was purchased on June 1 at $100. Another, with serial #1045, was purchased on November 1 for $88. The last player, serial #1056, was purchased on November 30 for $80.

FIFO Periodic Inventory MethodCost of goods sold$188

Specific Identification MethodCost of goods sold would be$188if it wished to minimize the earnings. The cost of goods sold would be$168if it wished to maximize the earnings.

(c)Which of the two inventory methods do you recommend that Kiyak use? Explain why

Question 6:

Ruth's Boards sells a snowboard, Xpert, that is popular with snowboard enthusiasts. Information relating toRuth's purchases of Xpert snowboards during September is shown below. During the same month,120Xpert snowboards were sold.Ruth uses a periodic inventory system.

Date

Explanation

Units

Unit Cost

Total Cost

Sept. 1Inventory27

$96

$2,592

Sept. 12Purchases45

101

4,545

Sept. 19Purchases20

103

2,060

Sept. 26Purchases50

104

5,200

Totals142

$14,397

(a)

Compute the ending inventory at September 30 and cost of goods sold using the FIFO and LIFO methods.

FIFO

LIFO

The ending inventory at September 30$

enter a dollar amount

$

enter a dollar amount

Cost of goods sold$

enter a dollar amount

$

enter a dollar amount

(b)

The parts of this question must be completed in order. This part will be available when you complete the part above.

Question 7:

Sunland's Hardware reported the cost of goods sold as follows.

2022

2021

Beginning inventory$26,000

$16,000

Cost of goods purchased151,000

130,000

Cost of goods available for sale177,000

146,000

Ending inventory31,000

26,000

Cost of goods sold$146,000

$120,000

Sunland's made two errors: (1) 2021 ending inventory was overstated $4,000, and (2) 2022 ending inventory was understated $6,000.

Compute the correct cost of goods sold for each year.

Question 8:

This information is available forSunland's Photo Corporation for 2020, 2021, and 2022.

2020

2021

2022

Beginning inventory$110,000$316,000$411,000Ending inventory316,000411,000488,000Cost of goods sold905,2501,221,3601,285,570Net sales revenue1,207,0001,744,8001,977,800

(a)

Calculate inventory turnover for 2020, 2021, and 2022.(Round answers to 2 decimal places, e.g. 1.52.)

2020

2021

2022

Inventory turn over renter inventory turnover rounded to 2 decimal places

enter inventory turnover rounded to 2 decimal places

enter inventory turnover rounded to 2 decimal places

Question 9:

CullumberCompany reported the following information for November and December 2022.

November

December

Cost of goods purchased$537,000$603,000Inventory, beginning-of-month130,000118,520Inventory, end-of-month118,520?Sales revenue857,0001,000,000

Cullumber's ending inventory on December 31 was destroyed in a fire.

Compute the gross profit rate for November.

Gross profit reenter the gross profit rate in percentages

%

Question 10:

The inventory ofBonitaCompany was destroyed by fire on March 1. From an examination of the accounting records, the following data for the first 2 months of the year are obtained: Sales Revenue $53,000, Sales Returns and Allowances $1,000, Purchases $34,000, Freight-In $1,300, and Purchase Returns and Allowances $1,500.

Determine the merchandise lost by fire, assuming:

(a)

A beginning inventory of $22,000and a gross profit rate of35% on net sales.

The estimated cost of merchandise lost

$

enter the estimated cost of merchandise lost in dollars

Question 11:

ConcordDistribution markets CDs of the performing artist Unique. At the beginning of October,Concordhad in beginning inventory2,000of Unique's CDs with a unit cost of $7.During October,Concordmade the following purchases of Unique's CDs.

Oct. 3..;@$8Oct. 1..;@$10Oct. 9..;@$9Oct. 254,000@$11

In October,10,800units were sold.Concorduses a periodic inventory system.

(a)

Determine the cost of goods available for sale.

Cost of goods available for sale$

enter the cost of goods available for sale in dollars

Question 12:

The management ofSunlandInc. is reevaluating the appropriateness of using its present inventory cost flow method, which is average-cost. The company requests your help in determining the results of operations for 2022 if either the FIFO or the LIFO method had been used. For 2022, the accounting records show these data:

Inventories

Purchases and Sales

Beginning (4,000units)$16,000Total net sales (181,000units)$1,113,150Ending (13,000units)Total cost of goods purchased (190,000units)846,000

Purchases were made quarterly as follows.

Quarter

Units

Unit Cost

Total Cost

1

50,000

$4.20$210,000

2

40,000

4.35174,000

3

40,000

4.50180,000

4

60,000

4.70282,000

190,000

$846,000

Operating expenses were $120,000, and the company's income tax rate is40%.

(a)

Prepare comparative condensed income statements for 2022 under FIFO and LIFO.

Question 13:

You have the following information forSwiftyInc. for the month ended June 30, 2022.Swiftyuses a periodic inventory system.

Date

Description

Quantity

Unit Cost or

Selling Price

June1Beginning inventory40$21June4Purchase13524June10Sale11051June11Sale return1551June18Purchase5527June18Purchase return1027June25Sale6557June28Purchase3531

(a1)

Calculate cost per unit.(Round answer to 2 decimal places, e.g. 5.25.)

Weighted-average cost per unit$

enter the weighted-average cost per unit in dollars rounded to 2 decimal places

Question 14:

CraneCompany lost all of its inventory in a fire on December 26, 2022. The accounting records showed the following inventory-related data for November and December.

November-December

(to 12/26)Net sales$600,000$700,000Beginning inventory30,00036,000Purchases392,000420,000Purchase returns and allowances13,50014,500Purchase discounts8,5009,500Freight-in8,0009,900Ending inventory36,000?

Craneis fully insured for fire losses but must report to the insurance company.

(a)

Compute the gross profit rate for November.

Gross profit reenter the gross profit rate in percentages

%

Question 15:

LilyBooks uses the retail inventory method to estimate its monthly ending inventories. The following information is available for two of its departments onOctober 31, 2022.

Hardcovers

Paperbacks

Cost

Retail

Cost

Retail

Beginning inventory$426,000$640,000$257,000$360,000Purchases2,170,6003,270,0001,176,7501,545,000Freight-in28,00013,000Purchase discounts44,00018,000Net sales3,100,0001,550,000

On December 31,LilyBooks takes a physical inventory at retail. The actual retail values of the inventories in each department are Hardcovers $741,000and Paperbacks $335,000.

(a1)

Determine the cost-to-retail ratio.

Hardcovers

Paperbacks

Cost-to-retail ratio enter percentages

%

enter percentages

%