Homework Week 3 Complete Solution
Problem 1
Mower-Blower Sales Co. started business on January 20, 2013. Products sold were snow blowers and lawn mowers. Each product sold for $350. Purchases during 2013 were as follows: |
|
Blowers |
Mowers |
||||||
January 21 |
23 |
@ |
$ |
192 |
|
|
|
|
February 3 |
45 |
@ |
|
194 |
|
|
|
|
February 28 |
38 |
@ |
|
190 |
|
|
|
|
March 13 |
19 |
@ |
|
195 |
|
|
|
|
April 6 |
|
|
|
|
20 |
@ |
$ |
211 |
May 22 |
|
|
|
|
50 |
@ |
|
212 |
June 3 |
|
|
|
|
41 |
@ |
|
218 |
June 20 |
|
|
|
|
62 |
@ |
|
225 |
August 15 |
|
|
|
|
19 |
@ |
|
212 |
September 20 |
|
|
|
|
20 |
@ |
|
211 |
November 7 |
16 |
@ |
|
192 |
|
|
|
|
|
In inventory at December 31, 2013, were 8 blowers and 29 mowers. Assume the company uses a periodic inventory system. |
Required 1: |
(a) |
Compute ending inventory valuation at December 31, 2013 under the FIFO and LIFO cost-flow assumptions. (Hint: Compute ending inventory under each method, and then compare results.) |
|
|
The following data are available for Sellco for the fiscal year ended on January 31, 2014: |
Problem 2
|
|
|
|
|
|
Sales |
840 |
units |
|
|
|
Beginning inventory |
280 |
units |
@ |
$ |
4 |
Purchases, in chronological order |
300 |
units |
@ |
$ |
5 |
|
420 |
units |
@ |
$ |
7 |
|
240 |
units |
@ |
$ |
8 |
|
Required: |
(a) |
Calculate cost of goods sold and ending inventory amounts under the cost-flow assumptions, FIFO, LIFO and Weighted average (using a periodic inventory system): (Round your unit cost to 2 decimal places.) |
|
|
(b) |
Assume that net income using the weighted-average cost-flow assumption is $14,400. Calculate net income under FIFO and LIFO. (Round your unit cost to 2 decimal places.) |
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|
Homework Week 3 Complete Solution
January 21 23 @ 192 February 3 45 @ 194 February 28 38 @ 190 March 13 19 @ 195 ...
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