Inventories

Houghton Limited is trying to determine the value of its ending inventory as of February 28, 109, the company's year-end. The following transactions occurred and the accountant asked your help in determining whether they should be recorded or not.
  1. On February 26, Houghton shipped goods costing $800 to a customer and charged the customer $1,000. the goods were shipped with terms FOB shipping point and the receiving report indicates that the customer received the goods on March 2.
  2. On February 26, Crain Inc. shipped goods to Houghton under terms FOB shipping point. The invoice price was $450 plus $30 for freight. The receiving report indicates taht the goods were received by Houghton on March 2.
  3. Houghton had $720 of inventory isolated in the warehouse. The inventory is designated for a customer who as requested that the goods be shipped on March 10.
  4. Also included in Houghton's warehouse is $700 of inventory that Korenic Producers shipped to Houghton on consignment.
  5. On February 26, Houghton issued a purchase order to acquire goods costing $900. The goods were shipped with terms FOB destination on February 27. Houghton received the goods on March 2.
  6. On February 26, Houghton shipped goods to a customer under terms FOB destination. The invoice price was $390; the cost of the items was $240. The receiving report indicates that the goods were received by the customer on March 2.

Instructions

For each of the above transactions, specify whether the item in question should be included in ending inventory, and if so, at what amount

Glee Distribution markets CDs of the performing artist Unique. At the beginning of October, Glee had in beginning inventory 2,000 of Unique's CDs with a unit cost of $7. During October, Glee made the following purchases of Unique's CDs.

Sekhon Company had a beginning inventory on January 1 of 160 units of Product 4-18-19 at a cost of $20 per unit. During the year, the following purchases were made.
Mar. 15400 units at $23Sept. 4330 units at $26
July 20250 units at $24Dec. 2100 units at $29

1,000 units were sold. Sekhon Company uses a periodic inventory system

Instructions

  1. Determine the cost of goods available for sale
  2. Determine (1) the ending inventory, and (2) the cost of goods sold under each of the assumed cost flow methods (FIFO, LIFO, and average-cost). Prove the accuracy of the cost of goods under the FIFO and LIFO methods.
  3. Which cost flow method results in (1) the highest inventory amount for the balance sheet, and (2) the highest cost o goods sold for the income statement?

The management of Gresa Inc. is reevaluating the appropriateness of using its present inventory cost flow method, which is average-cost. The company requests your help in determining the results of operations for 2019 if either th FIFO or the LIFO method had been used. For 2019, the accounting records show these data.

You are provided with the following information for Koetteritz Inc. for the month ended June 30, 2019. Koetteritz uses the periodic method for inventory.

Instructions

  1. Calculate (i) ending inventory, (ii) cost of goods sold, (iii) gross profit, and (iv) gross profit rate under each of the following methods.
    (1) LIFO (2) FIFO (3) Average-cost
  2. Compare results for the three cost flow assumptions.

You are provided with the following information for Gobler Inc. Gobler Ince. uses the periodic method of accounting for its inventory transactions

The management of Danica Co. asks your help in determining the comparative effects of the FIFO and LIFO inventory cost flow methods. For 2019, the accounting records provide the following data.

Dempsey Inc is a retailer operating in British Columbia. Dempsey uses the perpetual inventory method. All sales returns from customers result in the goods being returned to inventory, the inventory is not damaged. Assume that there are no credit transactions; all amounts are settled in cash. you are provided with the following information for Dempsey Inc. for the month of January 2019.

Wittmann Co. began operations on July 1. It uses a perpetual inventory system During July, the company had the following purchases and sales.

Bao Company lost all of its inventory in a fire on December 26, 2019. The accounting records showed trhe following gross profit data for November and December.

Problems: Inventories

Problem-1: Inventories

Houghton Limited is trying to determine the value of its ending inventory as of February 28, 109, the company's year-end. The following transactions occurred and the accountant asked your help...

Problem-2: Inventories

Glee Distribution markets CDs of the performing artist Unique. At the beginning of October, Glee had in beginning inventory 2,000 of Unique's CDs with a unit cost of $7. During...

Problem-3: Inventories

Sekhon Company had a beginning inventory on January 1 of 160 units of Product 4-18-19 at a cost of $20 per unit. During the year, the following purchases were made....

Problem-4: Inventories

The management of Gresa Inc. is reevaluating the appropriateness of using its present inventory cost flow method, which is average-cost. The company requests your help in determining the results of...

Problem-5: Inventories

You are provided with the following information for Koetteritz Inc. for the month ended June 30, 2019. Koetteritz uses the periodic method for inventory. Instructions Calculate (i) ending inventory, (ii)...

Problem-6: Inventories

You are provided with the following information for Gobler Inc. Gobler Ince. uses the periodic method of accounting for its inventory transactions

Problem-7: Inventories

The management of Danica Co. asks your help in determining the comparative effects of the FIFO and LIFO inventory cost flow methods. For 2019, the accounting records provide the following...

Problem-8: Inventories

Dempsey Inc is a retailer operating in British Columbia. Dempsey uses the perpetual inventory method. All sales returns from customers result in the goods being returned to inventory, the inventory...

Problem-9: Inventories

Wittmann Co. began operations on July 1. It uses a perpetual inventory system During July, the company had the following purchases and sales.

Problem-10: Inventories

Bao Company lost all of its inventory in a fire on December 26, 2019. The accounting records showed trhe following gross profit data for November and December.

Problem-11: Inventories

Rayre Books uses the retail inventory method to estimate its monthly ending inventories. The following information is available for two of its departments of October 31, 2019.

Problem-12: Inventories

Tri-State Bank and Trust is considering giving Wilfred Company a loan. Before doing so, management decides that further discussions with wilfred's accountant may be desirable. One area of particular concern...

Problem-13: Inventories

Kari Downs, an auditor with Wheeler CPAs, is performing a review of Depue Company's inventory account.

Problem-14: Inventories

On December 1, Kiyak Electronics Ltd. has three DVD players left in stock.

Problem-15: Inventories

Elsa's Boards sells a snowboard, Xpert, that is popular with snowboard enthusiasts, Information relating to Elsa's purchases of Xpert snowboards during September is shown below. Druing the same month, 121...

Problem-16: Inventories

Ballas Co. uses a periodic inventory system. Its records show the following for the month of May, in which 68 units were sold.

Problem-17: Inventories

Moath Company reports the following for the month of June.

Problem-18: Inventories

Shawn Company had 100 units in beginning inventory at a total cost of $10,000. The company purchased 200 units at a total cost of $26,000. At the end of the...

Problem-19: Inventories

Inventory data for Moath Company are presented below.

Problem-20: Inventories

Elliott's Hardware reported cost of goods sold as follows.

Problem-21: Inventories

Smart Watch Company reported the following income statement data for a 2-year period.

Problem-22: Inventories

Freeze Frame Camera Shop uses the lower-of-cost-or-market basis for its inventory. The following data are available at December 31..

Problem-23: Inventories

Charapata Company applied FIFO to its inventory and got the following results for its ending inventory.

Problem-24: Inventories

This information is available for Abdullah's Photo Corporation for 2017, 2018, and 2019.

Problem-25: Inventories

The cost of goods sold computations for Sooner company and Later Company are shown as below

Problem-26: Inventories

Ehrhart Appliance uses a perpetual inventory system. For its flat-screen television sets, the January 1 inventory was 3 sets at $600 each. On January 10, Ehrhart purchased 6 units at...

Problem-27: Inventories

Moath company reports the following for the month of June.

Problem-28: Inventories

Information about Elsa's Boards is presented in below. Additional data regarding Elsa's sales of Xpert snowboards are provided below. Assume that Elsa's uses a perpetual inventory system.

Problem-29: Inventories

Shereen company report the following information for November and December 2017.

Problem-30: Inventories

The inventory of Hang company was destroyed by fire on March 1. From an examination of the accounting records, the following data for the first 2 months of the year...

Problem-31: Inventories

Kicks Shoe Store uses the retail inventory method for its two departments. Women's Shoe and Men's Shoes. The following information for each department is obtained.

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