QUESTION 1

1. Lannister Inc. holds 12,000 units of inventory on January 1, 2017. Under FIFO the inventory lot costs are:

   Inventory Lot	Date	Units	Cost / Unit	Total Cost
   H	12/13/2016	6,000	$120	$720,000
   I	12/22/2016	6,000	$125	$750,000

   Under LIFO the same inventory lots costs are:

   Inventory Lot	Date	Units	Cost / Unit	Total Cost
   A	4/22/2012	2,000	$60	$120,000
   F	10/15/2014	4,000	$84	$336,000
   I	12/22/2016	6,000	$125	$750,000

   Under average cost the same 12,000 inventory units have a total cost of $1,320,300.

   Lannister uses a periodic inventory system.

   During January 2017, Lannister records the following transactions (in chronological order):

   • Sells 2,000 units of inventory with revenue of $175 per unit.
   • Purchases 4,000 units of inventory at a cost of $130 per unit.
   • Sells 5,000 units of inventory with revenue of $180 per unit.
   • Purchases 3,000 units of inventory at a cost of $132 per unit.
   • Sells 4,000 units of inventory with revenue of $184 per unit.
   1. What is Lannisters total sales revenue for January?
   2. How many units of inventory did Lannister have available for sale during the month of January?
   3. How many units did Lannister have in ending inventory on January 31, 2017?
   4. Using FIFO, what was Lannisters cost of goods available for sale (COGAS) for January?
   5. Using FIFO, what was the value of Lannisters ending inventory on January 31, 2017?
   6. Using FIFO, what was Lannisters cost of goods sold (COGS) for January?
   7. Using LIFO, what was Lannisters cost of goods available for sale (COGAS) for January?
   8. Using LIFO, what was the value of Lannisters ending inventory on January 31, 2017?
   9. Using LIFO, what was Lannisters cost of goods sold (COGS) for January?
   10. Using average cost, what was Lannisters cost of goods available for sale (COGAS) for January?
   11. Based on your answer to j above, what was average cost per unit of inventory available for sale during January? For this question only, enter your answer in dollars and cents (xx.xx) without a $ sign.
   12. Using average cost, what was the value of Lannisters ending inventory on January 31, 2017?
   13. Using average cost, what was Lannisters cost of goods sold (COGS) for January?
   14. If a company reports inventory value of $40,000 using LIFO, and its LIFO reserve is $25,000, what value for inventory would it have reported if it had used FIFO instead?

14 points

QUESTION 2

1. Cullumber Company sells coffee beans, which are sensitive to price fluctuations. The following inventory information is available for this product at December 31, 2017:

   Coffee Bean Type	Units of inventory	Unit cost	Market Value/Unit
   Coffea Arabica	14,200	$5.30	$5.24
   Coffea robusta	5,100	$3.70	$3.80

   Calculate the value Cullumber should report for ending inventory on December, 31, 2017 after applying the lower-of-cost-or-market rule.

QUESTION 3

1. In its 10-K filing for fiscal year 2019, Apple Inc. reported annual cost of goods sold (inmillions) of $144,996. Ending inventory balances were $4,106 at 9/28/19 and $3,956 at 9/29/18 (also in millions).

   1. Calculate Apples inventory turnover ratio for FY 2019. Round your answer to one decimal place (e.g., xx.x).
   2. Using the rounded answer to part a, calculate Apples Days in Inventory value for FY 2019. Round your answer to one decimal place (e.g., xx.x).