Question 3

Spotter Corporation reported the following for June in its periodic inventory records.

Date	Description	Units	Unit Cost	Total Cost
June 1	Beginning	15	$8.20	$123.00
11	Purchase	39	9.20	358.80
24	Purchase	21	11.20	235.20
30	Ending	25

Required:

1. Calculate the cost of ending inventory and the cost of goods sold under the (a) FIFO, (b) LIFO, and (c) weighted average cost methods. (Rounded your intermediate calculations and final answers to 2 decimal places.)

	Cost of Ending Inventory	Cost of Goods Sold
FIFO	?	?
LIFO	?	?
Weight Average Cost	?	?

2. Which of the three methods will lead to reporting the highest net income?

a. FIFA

b. LIFO

c. Weighted Average Cost

Question 7

Spotter Corporation reported the following for June in its periodic inventory records.

Required:

1. Calculate the cost of ending inventory and the cost of goods sold under the (a) FIFO, (b) LIFO, and (c) weighted average cost methods. (Rounded your intermediate calculations and final answers to 2 decimal places.)

Date	Description	Units	Units Cost	Total cost
June 1	Beginning	12	$ 8	$96
June 11	Purchase	38	9	342
June 24	Purchase	20	11	220
June 30	Ending	24

	Cost of Ending Inventory	Cost of Goods Sold
FIFO	?	?
LIFO	?	?
Weight Average Cost	?	?

2. Which of the three methods will lead to reporting the highest net income?

a. FIFA

b. LIFO

c. Weighted Average Cost

Question 8

During its second and third quarters of fiscal 2014, Raspberry, Inc. wrote down its BB10 smartphone inventory by approximately $1,703,000,000 because its cost exceeded its market value.

Required:

1

Complete the table below, indicating the account, amount, and direction and show the effects for the above adjustment. (Enter any decreases to account balances with a minus sign.)

Assets

=

Liabilities

+

Stock Holders Equity

Inventory

$1,703,000,000

=

?

?

+

?

?

Question 9

During its second and third quarters of fiscal 2014, Raspberry, Inc. wrote down its BB10 smartphone inventory by approximately $1,703,000,000 because its cost exceeded its market value.

Transaction	General Journal	Debit	Credit
1	?	$1,703,000,000
	?		$1,703,000,000

Question 10

Complete the following table. (Use 365 days in a year. Round the inventory turnover ratio to one decimal place before computing days to sell. Round days to sell to one decimal place.)

Case	BI	Purchase	CGS	EI	Inventory Turnover Ratio	Days to Sell
a	$ 230	$ 890	$ 990	?	?	?
b	220	?	1,720.00	?	8.6	?
c	?	?	1,520.00	85	?	24