Warnerwoods Company and Liverpool Company_Invetory Valuation

$22.00

Description

Warnerwoods Company uses a perpetual inventory system. It entered into the following purchases and sales transactions for March.

Date

Activities

Units Acquired at Cost

Units Sold at Retail

Mar.

1

Beginning inventory

170

units

@ $52.40/unit

Mar.

5

Purchase

260

units

@ $57.40/unit

Mar.

9

Sales

330

units

@$87.40/unit

Mar.

18

Purchase

120

units

@ $62.40/unit

Mar.

25

Purchase

220

units

@$64.40/unit

Mar.

29

Sales

200

units

@$97.40/unit





Totals

770

units

530

units










1.

Required:

1.

Compute cost of goods available for sale and the number of units available for sale.

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3.

Compute the cost assigned to ending inventory using(a)FIFO,(b)LIFO,(c)weighted average, and(d)specific identification. For specific identification, the March 9 sale consisted of 100 units from beginning inventory and 230 units from the March 5 purchase; the March 29 sale consisted of 80 units from the March 18 purchase and 120 units from the March 25 purchase.(Round your average cost per unit to 2 decimal places.)

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4.

Compute gross profit earned by the company for each of the four costing methods. For specific identification, the March 9 sale consisted of 100 units from beginning inventory and 230 units from the March 5 purchase; the March 29 sale consisted of 80 units from the March 18 purchase and 120 units from the March 25 purchase.(Round your final answers to two decimal places.)

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A physical inventory of Liverpool Company taken at December 31 reveals the following.

Per Unit


Item

Units

Cost

Market

Audio equipment

Receivers

349

$

104

$

94

CD players

264

125

115

MP3 players

330

100

90

Speakers

208

45

56

Video equipment

Handheld LCDs

484

129

154

VCRs

295

88

97

Camcorders

216

326

314

Car audio equipment

Satellite radios

189

88

74

CD/MP3 radios

174

109

101


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2.

If the market amount is less than the recorded cost of the inventory, then record the LCM adjustment to the Merchandise Inventory account.(If no entry is required for a particular transaction, select “No journal entry required” in the first account field.)

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Warnerwoods Company and Liverpool Company_Invetory Valuation

$23.00

Description

Warnerwoods Company
uses a perpetual inventory system. It entered into the following purchases
and sales transactions for March.

Date

Activities

Units Acquired at Cost

Units Sold at Retail

Mar.

1

Beginning inventory

170

units

@ $52.40/unit

Mar.

5

Purchase

260

units

@ $57.40/unit

Mar.

9

Sales

330

units

@$87.40/unit

Mar.

18

Purchase

120

units

@ $62.40/unit

Mar.

25

Purchase

220

units

@$64.40/unit

Mar.

29

Sales

200

units

@$97.40/unit





Totals

770

units

530

units










1.

Required:

1.

Compute cost of goods available
for sale and the number of units available for sale.

.jpg”>

.jpg”>

3.

Compute the cost
assigned to ending inventory using(a)FIFO,(b)LIFO,(c)weighted average, and(d)specific
identification. For specific identification, the March 9 sale consisted of
100 units from beginning inventory and 230 units from the March 5 purchase;
the March 29 sale consisted of 80 units from the March 18 purchase and 120
units from the March 25 purchase.(Round your average cost per unit to 2 decimal
places.)

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.jpg”>

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4.

Compute gross profit
earned by the company for each of the four costing methods. For specific
identification, the March 9 sale consisted of 100 units from beginning
inventory and 230 units from the March 5 purchase; the March 29 sale
consisted of 80 units from the March 18 purchase and 120 units from the March
25 purchase.(Round your final answers to two decimal places.)

.jpg”>

A physical inventory
of Liverpool Company taken at December 31 reveals the following.

Per Unit


Item

Units

Cost

Market

Audio
equipment

Receivers

349

$

104

$

94

CD
players

264

125

115

MP3
players

330

100

90

Speakers

208

45

56

Video
equipment

Handheld
LCDs

484

129

154

VCRs

295

88

97

Camcorders

216

326

314

Car audio
equipment

Satellite
radios

189

88

74

CD/MP3
radios

174

109

101


.jpg”>

2.

If the market amount
is less than the recorded cost of the inventory, then record the LCM
adjustment to the Merchandise Inventory account.(If no entry is required
for a particular transaction, select “No journal entry required” in
the first account field.)

.jpg”>

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There are no reviews yet.

Be the first to review “Warnerwoods Company and Liverpool Company_Invetory Valuation”

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