Description of this paper

Exercise 6-1;Columbia Bank and Trust is considering giving Gallup Company a loan. Before doing so, it decides that further discussions...

Description

solution


Question

Exercise 6-1 Columbia Bank and Trust is considering giving Gallup Company a loan. Before doing so, it decides that further discussions with Gallup?s accountant may be desirable. One area of particular concern is the Inventory account, which has a year-end balance of $289,340. Discussions with the accountant reveal the following.;1. Gallup sold goods costing $56,210 to Bazil Company FOB shipping point on December 28. The goods are not expected to reach Bazil until January 12. The goods were not included in the physical inventory because they were not in the warehouse.;2. The physical count of the inventory did not include goods costing $86,060 that were shipped to Gallup FOB destination on December 27 and were still in transit at year-end.;3. Gallup received goods costing $31,150 on January 2. The goods were shipped FOB shipping point on December 26 by Lynch Co. The goods were not included in the physical count.;4. Gallup sold goods costing $53,880 to Lamey of Canada FOB destination on December 30. The goods were received in Canada on January 8. They were not included in Gallup?s physical inventory.;5. Gallup received goods costing $42,220 on January 2 that were shipped FOB destination on December 29. The shipment was a rush order that was supposed to arrive December 31. This purchase was included in the ending inventory of $289,340.;Determine the correct inventory amount on December 31.;The correct inventory amount on December 31 $;Exercise 6-4 Delmott sells a snowboard, Xpert, that is popular with snowboard enthusiasts. Below is information relating to Delmott?s purchases of Xpert snowboards during September. During the same month, 101 Xpert snowboards were sold. Delmott uses a periodic inventory system.;Date Explanation Units Unit Cost Total Cost;Sept. 1 Inventory 14 $117 $ 1,638;Sept. 12 Purchases 43 120 5,160;Sept. 19 Purchases 51 122 6,222;Sept. 26 Purchases 21 123 2,583;Totals 129 $15,603;(a) Compute the ending inventory at September 30 using the FIFO, LIFO and average-cost methods. (Round average cost per unit to 3 decimal places, e.g. 125.153 and final answers to 0 decimal places, e.g. 125.);The ending inventory at September 30 using the FIFO $;The ending inventory at September 30 using the LIFO $;The ending inventory at September 30 using the average-cost $;(b) Compute the cost of goods sold at September 30 using the FIFO, LIFO and average-cost methods. (Round average cost per unit to 3 decimal places, e.g. 125.153 and final answers to 0 decimal places, e.g. 125.);FIFO LIFO AVERAGE-COST;Cost of goods sold $ $ $;Exercise 6-7 Eggers Company reports the following for the month of June.;Date Explanation Units Unit Cost Total Cost;June 1 Inventory 179 $7 $ 1,253;12 Purchases 552 9 4,968;23 Purchases 298 10 2,980;30 Inventory 343;Calculate weighted-average unit cost. (Round answers to 3 decimal places, e.g. 5.125.);Weighted-average unit cost $;Compute the cost of the ending inventory and the cost of goods sold under FIFO, LIFO, and average-cost. (Round answers to 0 decimal places, e.g. 125.);FIFO LIFO Average-cost;The cost of the ending inventory $ $ $;The cost of goods sold $ $ $;Problem 6-5A You have the following information for Vincent Inc. for the month ended October 31, 2014. Vincent uses a periodic method for inventory.;Date Description Units Unit Cost or Selling Price;Oct. 1 Beginning inventory 74 $29;Oct. 9 Purchase 147 32;Oct. 11 Sale 123 43;Oct. 17 Purchase 123 33;Oct. 22 Sale 74 49;Oct. 25 Purchase 86 36;Oct. 29 Sale 135 49;Calculate the weighted-average cost. (Round answer to 3 decimal places, e.g. 5.125.);Weighted-average cost per unit $;Calculate ending inventory, cost of goods sold, gross profit under each of the following methods. (1) LIFO. (2) FIFO. (3) Average-cost. (Round answers to 0 decimal place, e.g. 125.);LIFO FIFO AVERAGE-COST;The ending inventory $ $ $;The cost of goods sold $ $ $;Gross profit $ $ $;Calculate gross profit rate under each of the following methods. (1) LIFO. (2) FIFO. (3) Average-cost. (Round answers to 1 decimal place, e.g. 51.2%);LIFO FIFO AVERAGE-COST;Gross profit rate

 

Paper#76206 | Written in 18-Jul-2015

Price : $77
SiteLock