1. Lilly Company has the following info at December 31st, 2010:
Beginning inventory $20,500 $28,750
Purchases 12,500 18,750
Transportation in 250
Using the retail inventory method compute the estimated cost of the ending inventory at year-end.
2. Malone Company determines its inventory at lower of cost of market at 12/31/2011.
At year-end, equipment with a cost of $650,000 has a replacement cost of $550,000, a net realizable value (NRV) of $585,000 and NRV less normal profit margin of $565,000. The company would determine the LCM value of the ending inventory at:
3. Peterson Company had the following records for product BA-101:
UNITS UNIT COST
Jan 1 Beg Inventory 600 $8
Jan 5 1,100 $9
Jan 25 1,300 $10
Feb16 800 $11
March 26 600 $12
A physical inventory on March 31st showed 1,500 units on hand.
a. Compute ending inventory at March 31st using FIFO
b. Calculate Cost of goods sold using FIFO.
4. The records of Hayek Boutique have the following data:
Beg. Inventory $200,000 $280,000
Purchases $1,425,000 $2,140,000
Compute the ending inventory using the retail inventory method.
5. Malone has the following information of the ending inventory at cost and lower of cost or market at 12/31/10, 12/31/11, and 12/31/12:
12/31/10 $650,000 $680,000
12/31/11 $780,000 $712,000
12/31/12 $905,000 $830,000
a. What is the value of the inventory at each of these 3 year-end dates?
b. Record the journal entry to bring the inventory to the proper value at each year-end if needed.
6. Johnson has the following information for the month of June:
June 1 Beg. Bal. of 300 units at $10 each
June 10th Sold 200 units at $24 per unit
June 11th Purchased 800 units at $11 each
June 15 Sold 500 units at $25 each
June 20 Purchased 500 units at $13 each
June 27th Sold 250 units at $27 each
Using the LIFO perpetual method prepare a schedule and calculate
a. Ending inventory at June 30th
b. Value of cost of goods sold.
c. What is the gross profit at June 30th?