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AKM

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33 views2 pages

AKM

Uploaded by

snafisa262
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“E8.18 (LO3, 5) (FIFO, LIFO, and Average-Cost Determination) Keyser Company's record of transactions for the month of April is as follows. Parchases Sales ‘April 4 (balance on hand)| 600 @ $6.00/April| 3| 500 @ $10.00 4 1.500 @ 6.08 91.300 @ 10.00 8 800 @ 6.40 ui 600 @ 1.00, 13 1,200 @ 650 '23)1,200 @ 11.00 2 700 @ 6.60 27|_900@ 12.00 29 |_500 @ 679 (500 Instructions a. Assuming that periodic inventory records are kept, compute the inventory at April 30 using (4) LIFO and (2) average-cost. ’b. Assuming that perpetual inventory records are kept in both units and dollars, determine the inventory at April 3o using (1) FIFO and (2) LIFO. .Campnte cost of goods sold assuming a periodic inventory system and inventory priced at FIFO. Im an inflationary period, which inventory method—FIFO, LIFO, or avarage-cost—will show the highest net inome? °P8.8 (LO3, 5) (Compute FIFO, LIFO, and Average-Cost) Some of the information found on a detail inventory card for Slatkin Inc. for the first month of operations is as fallows. Received Date _ No. of Units Janus 1.200, $9.00) 19 600,320 1100) 33 500) 600) 48|4.000, 3.30 300) 1,300| 20 1,100 200) 23) 1.300| 3.40) 1500| 26 800) 700) 281600, 3.50) 2300) a 1.300 3,000) Instructions a. From these data compute the ending inventory on each of the following, ‘bases. Assume that perpetual inventory records are kept in units only. (Carry unit costs to four decimal places and ending inventory to the nearest dollar.) 2. First-in, first-out (FIFO), 2. Last in, first out (LIFO). 4. Average-cost. If the perpetual inventory record is kept in dollars, and costs are computed at the time of each withdrawal, would the amounts shown as ending inventory in 1, 2, and 3 above be the same? Explain and compute. ‘suopansmen ath 19yua oy saqne TeuMof exaues amdarg"t -sastadxe [eta sv payan axe 3s9] ‘suumoosep equ pue stumoure yatta” paprooar are saseqund yer BUNS: “squares epueay arp uy uaons aq pines suray! snows axp soy aqusaq ‘= ‘suonovsten atp plodar 0} sauna pouLmof jexaue8 axedarg“s swaxpe} Mat] paprooar aq 0} ame syrmeastp wtp pu sumone ssou3 ye paprooas aru saseuomnd yorp SuTUINSSY suopanysuy igny we St ysty Jo aoroatH pina sta} “000'023 “junodde Ko asEpUEBY IOUT paswyINg SE ‘8/01, ‘99/W"or/1 sutiay “GOO"ETF JaOs9e WO esIpHTEYDToUT paswpng ST "yanoa9e Wo pa! ‘1g ‘ot ysniny Jo aswypand axp Jo yrod paurnyoyt Et ‘pantavat ptt ‘00% or ‘0£/wor/= surzay “ooo ‘21 “ymnoza” uo astpuPYroMt paserpg STAY “porpat Aieqraatt apporred ap sosn sano ‘nojoy post are nny Sump afd so1s0] yo suonovstuln aif Jo attog GON pe ssorg poprosoy soseyamg) EOD fd E8.6 (LO2) (Purchases Recorded Net) Presented below are transactions related to Guillen Ltd, a company that uses the periodic inventory system. ‘May|s0|Purchased goods billed at £20,000 subject to cash discount terms of, 2/10, 0/60. 41 Purchased goods billed at £15,000 subject to terms of 1/15, 0/30. 29 Paid invoice of May 10. ‘24 Purchased goods billed at £11,500 subject to cash discount terms of 2/20, 1/30. Instructions 4. Prepare general journal entries for the transactions above under the assumption that purchases are to be recorded at net amounts after cash discounts and that discounts lost are to be treated as financial expense. 'b. Assuming no purchase or payment transactions other than those given above, prepare the adjusting entry required on May 31 if financial statements are to be prepared as of that date. E8.7 (LO2) Purchases Recorded, Gross Method) Ohno Industries purchased ¥12,000 of merchandise on February 1, 2022, subject to a trade discount of 10% and with credit terms of 3/15, 1/60. It returned ¥3,000 (gross ‘rice before trade or cash discount) on February 4. The invoice was paid on February 13. (All amounts in thousands.) Instructions a. Assuming that Ohno uses the perpetual method for recording, merchandise transactions, record the purchase, return, and payment using ‘the gross method. ‘). Assuming that Ohno uses the periodic method for recording merchandise transactions, record the purchase, return, and payment using the gross method. ¢. At what amount would the purchase on February 1be recorded if the net, method were used? E8.8 (LO, 3) (Periodie versus Perpetual Entries) Chippewas Company sells one product. Presented below is information for January for Chippewas Company Jan 1|Inventory 100 units at $6 each 4Sale_Sounits at $8 each 11 Purchase 150 units at $6.50 each 1g Sale 120 units at $8.75 each, 120 Purchase |160 units at $7 each 27Sale 100 units at $9 each Chippewas uses the FIFO cost flow assumption. All purchases and sales are on account. Instructions a. Assume Chippewas uses a periodic system. Prepare all necessary journal entries, including the end-of-month closing entry, to record cost of goods sold. A physical count indicates that the ending inventory for January is 4110 units. 'b. Compute gross profit using the periodic system. ¢. Assume Chippewas uses a perpetual system. Prepare all necessary journal entries. 4. Compute gross profit using the perpetual system, suoyonnsty SpIOL » 8 otro ‘008 ayaid nox op sporpatu sy amp 30 HOKAL 2

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