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Problem 5-2A Marlow Company uses a perpetual inve...




Problem 5-2A Marlow Company uses a perpetual inventory system. It entered into the following calendar-year 2009 purchases and sales transactions Date Activities Units Acquired at Cost Units Sold at Retail Jan. 1 Beginning inventory???? 770 units @ $50/unit Feb. 10 Purchase??????????. 420 units @ $41/unit Mar. 13 Purchase?????????? 260 units @ $25/unit Mar. 15 Sales????????????. 770 units @ $75/unit Aug. 21 Purchase?????????.. 180 units @ $49/unit Sept. 5 Purchase?????????.. 585 units @ $42/unit Sept. 10 Sales????????????. 650 units @ $75 units Totals???????????.. 2,215 units 1,420 units REQUIRED 1. Compute cost of goods available for sale and the number of units available fir sale. 2. Compare the number of units in ending inventory. 3. Compute the cost assigned to ending inventory using (a) FIFO, (b)) LIFO, (c) specific identification ? from the March 13 purchase, and 455 from the September 5 purchase, and (d) weighted average. (Round per unit costs to three decimals, but inventory balances to the dollar.) 4. Compute gross profit earned by the company for each of the four costing methods in part 1. Analysis Component 5. If the company?s manager earns a bonus based on a percent of gross profit, which method of inventory costing will the manager likely prefer?


Paper#4323 | Written in 18-Jul-2015

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