Exercise 6-1 Columbia Bank and Trust is considering giving Gallup Company a loan. Before doing so, it decides that further discussions…

Exercise 6-1 Columbia Bank and Trust is considering giving Gallup Company a loan. Before doing so, it decides that further discussions….

Exercise 6-1

< pid="part_res_EAT_1340105442290_0_37944764525556873" class="part ">
< pclass="qti-presentation">
Columbia Bank and Trust is considering giving Gallup Company a loan. Before doing so, it decides that further discussions with Gallup’s accountant may be desirable. One area of particular concern is the Inventory account, which has a year-end balance of $289,340. Discussions with the accountant reveal the following.

1. Gallup sold goods costing $56,210 to Bazil Company FOB shipping point on December 28. The goods are not expected to reach Bazil until January 12. The goods were not included in the physical inventory because they were not in the warehouse.
2. The physical count of the inventory did not include goods costing $86,060 that were shipped to Gallup FOB destination on December 27 and were still in transit at year-end.
3. Gallup received goods costing $31,150 on January 2. The goods were shipped FOB shipping point on December 26 by Lynch Co. The goods were not included in the physical count.
4. Gallup sold goods costing $53,880 to Lamey of Canada FOB destination on December 30. The goods were received in Canada on January 8. They were not included in Gallup’s physical inventory.
5. Gallup received goods costing $42,220 on January 2 that were shipped FOB destination on December 29. The shipment was a rush order that was supposed to arrive December 31. This purchase was included in the ending inventory of $289,340.

Determine the correct inventory amount on December 31.

The correct inventory amount on December 31 $

 

 

 

Exercise 6-4

< pid="part_res_EAT_1340177350424_0_9715480252275872" class="part ">
< pclass="qti-presentation">
Delmott sells a snowboard, Xpert, that is popular with snowboard enthusiasts. Below is information relating to Delmott’s purchases of Xpert snowboards during September. During the same month, 101 Xpert snowboards were sold. Delmott uses a periodic inventory system.

Date

< palign="center">
Explanation
< palign="center">
Units
< palign="center">
Unit Cost
< palign="center">
Total Cost
Sept. 1 Inventory < palign="right">
14
< palign="right">
$117
< palign="right">
$ 1,638
Sept. 12 Purchases < palign="right">
43
< palign="right">
120
< palign="right">
5,160
Sept. 19 Purchases < palign="right">
51
< palign="right">
122
< palign="right">
6,222
Sept. 26 Purchases < palign="right">
21
< palign="right">
123
< palign="right">
2,583
Totals < palign="right">
129
< palign="right">
$15,603

(a) Compute the ending inventory at September 30 using the FIFO, LIFO and average-cost methods. (Round average cost per unit to 3 decimal places, e.g. 125.153 and final answers to 0 decimal places, e.g. 125.)

The ending inventory at September 30 using the FIFO $
The ending inventory at September 30 using the LIFO $
The ending inventory at September 30 using the average-cost $

(b) Compute the cost of goods sold at September 30 using the FIFO, LIFO and average-cost methods. (Round average cost per unit to 3 decimal places, e.g. 125.153 and final answers to 0 decimal places, e.g. 125.)

< palign="center">
FIFO
< palign="center">
LIFO
< palign="center">
AVERAGE-COST

Cost of goods sold $ $ $

 

 

 

 

 

Exercise 6-7

< pid="part_res_EAT_1350483323391_0_19097570557640997_head" class="part ">
< pclass="qti-presentation">
Eggers Company reports the following for the month of June.

< palign="center">
Date
< palign="center">
Explanation
< palign="center">
Units
< palign="center">
Unit Cost
< palign="center">
Total Cost
June 1 Inventory 179 $7 $ 1,253
12 Purchases 552 9 4,968
23 Purchases 298 10 2,980
30 Inventory 343

< pclass="clear">

< pid="part_EAT_1350483323454_0_6856697777231147" class="part ">
< pclass="qti-presentation">
Calculate weighted-average unit cost. 
(Round answers to 3 decimal places, e.g. 5.125.)

Weighted-average unit cost $

< pclass="clear">

< pid="part_EAT_1340195773411_0_08464264069527005" class="part ">
< pclass="qti-presentation">
Compute the cost of the ending inventory and the cost of goods sold under FIFO, LIFO, and average-cost. 
(Round answers to 0 decimal places, e.g. 125.)

< palign="center">
FIFO
< palign="center">
LIFO
< palign="center">
Average-cost
The cost of the ending inventory $ $ $
The cost of goods sold $ $ $

< pclass="clear">

 

 

 

Problem 6-5A

< pid="part_res_EAT_1350483326886_0_4468362527466071_head" class="part ">
< pclass="qti-presentation">
You have the following information for Vincent Inc. for the month ended October 31, 2014. Vincent uses a periodic method for inventory.

< palign="center">
Date
< palign="center">
Description
< palign="center">
Units
< palign="center">
Unit Cost or Selling Price
Oct. 1 Beginning inventory 74 $29
Oct. 9 Purchase 147 32
Oct. 11 Sale 123 43
Oct. 17 Purchase 123 33
Oct. 22 Sale 74 49
Oct. 25 Purchase 86 36
Oct. 29 Sale 135 49

< pclass="clear">

< pid="part_EAT_1350483327104_0_5030597631804323" class="part ">
< pclass="qti-presentation">
Calculate the weighted-average cost. 
(Round answer to 3 decimal places, e.g. 5.125.)

Weighted-average cost per unit < palign="right">
$

< pclass="clear">

Exercise 6-1 Columbia Bank and Trust is considering giving Gallup Company a loan. Before doing so, it decides that further discussions…

Posted in Uncategorized

Leave a Reply