Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Question 1: MacFarland Inc.s January 1 inventory consisted of 10 units @ $91 each. MacFarland shows the following data for 20X1: Date Purchases Sales February

Question 1:

MacFarland Inc.s January 1 inventory consisted of 10 units @ $91 each. MacFarland shows the following data for 20X1:

Date

Purchases

Sales

February 2

15 units @ $106 each

March 3

20 units @ $150/unit

May 12

20 units @ $115 each

June 22

10 units @ $119 each

Sept. 13

23 units @ $150/unit

If MacFarland uses the perpetual method and moving-average costing, what is the value of its ending inventory on December 31?

a) $1,368

b) $1,420

c) $1,293

d) $1,260

$1,330

Question 2)

GTI Company uses a perpetual inventory system. It entered into the following purchase and sale transactions for April:

Date Activity Units acquired at cost Units sold at retail
April 1 beginning inventory 20 units @ $3,000/unit
April 5 purchase 30 units @ $3,500/unit
April 9 sale 35 units @ $12,000/unit
April 18 purchase 5 units @ $4,500/unit
April 25 purchase 10 units @ $4,800/unit
April 29 sale 25 units @ $14,000/unit
TOTALS 65 units 60 units

Compute the ending inventory for the month using LIFO:

$215,500

$24,000

$15,000

$220,500

$211,500

$20,000

Question 3)

ClickCo begins operations in 20X1 uses the periodic method and LIFO costing, and purchases merchandise as follows

20X1

Units

Unit cost

March

450

$3.00

August

650

$3.50

20X2

February

550

$4.00

October

250

$5.00

If ClickCo sells 850 units in 20X1 and again in 20X2, ending inventory on the 20X2 balance sheet will be:

$800

$700

$0

$600

$1,000

Please solve all of these I don't have any remaining questions which I can post here, and I am already failing the course. I will surely upvote you.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered 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

Students also viewed these Accounting questions