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Category > Accounting Posted 23 Jun 2017 My Price 10.00

ACC 308 1-2 Homework Chapter 8, 100 % Score

1)

John's Specialty Store uses a perpetual inventory system. The following are some inventory transactions for the month of May 2013:


 

1.  John’s purchased merchandise on account for $6,000. Freight charges of $800 were paid in cash.
2. 

John’s returned some of the merchandise purchased in (1). The cost of the merchandise was $1,100 and John’s account was credited by the supplier.
3.  Merchandise costing $3,300 was sold for $6,200 in cash.


 

Required:

Prepare the necessary journal entries to record these transactions. (If no entry is required for a particular transaction, select "No journal entry required" in the first account field.)

2)

John's Specialty Store uses a periodic inventory system. The following are some inventory transactions for the month of May 2013:

   

1.  John's purchased merchandise on account for $5,200. Freight charges of $400 were paid in cash.
2. 

John’s returned some of the merchandise purchased in (1). The cost of the merchandise was $700 and John’s account was credited by the supplier.
3.  Merchandise costing $2,900 was sold for $5,400 in cash.

   

Required:

Prepare the necessary journal entries to record these transactions. (If no entry is required for a particular transaction, select "No journal entry required" in the first account field.)

 3)

Altira Corporation uses a periodic inventory system. The following information related to its merchandise inventory during the month of August 2013 is available:

 

 
  Aug.1     Inventory on hand—10,000 units; cost $8.00 each.
8     Purchased 26,000 units for $7.1 each.
14     Sold 19,000 units for $13.6 each.
18     Purchased 14,000 units for $6.6 each.
25     Sold 18,000 units for $12.6 each.
31     Inventory on hand—13,000 units.

 

Required:

Determine the inventory balance Altira would report in its August 31, 2013, balance sheet and the cost of goods sold it would report in its August 2013 income statement using each of the following cost flow methods:

4)

Alta Ski Company's inventory records contained the following information regarding its latest ski model. The company uses a periodic inventory system.

 

 

  Beginning inventory, January 1, 2013

1,300

 units

@

$

95

 each

  Purchases:

     January 15

2,700

 units

@

$

110

 each

     January 21

2,500

 units

@

$

115

 each

  Sales:

     January 5

1,250

 units

@

$

135

 each

     January 22

1,650

 units

@

$

145

 each

     January 29

1,100

 units

@

$

150

 each

  Ending inventory, January 31, 2013

2,500

 units

 

 

 

 

   

Required:

 

1.1

Which method, FIFO or LIFO, will result in the highest cost of goods sold figure for January 2013?

 

 

 

1.2

Which method will result in the highest ending inventory balance?

 

 

 

2.

Compute cost of goods sold for January and the ending inventory using both the FIFO and LIFO methods.

 

 5)

On January 1, 2013, the Taylor Company adopted the dollar-value LIFO method. The inventory value for its one inventory pool on this date was $350,000. Inventory data for 2013 through 2015 are as follows:

 

  Date Ending Inventory at Year-End Costs Cost Index
  12/31/13 $ 384,800     1.04  
  12/31/14   442,750     1.15  
  12/31/15   461,250     1.23  

 

Required:
Calculate Taylor’s ending inventory for 2013, 2014, and 2015.

 

 
 

Answers

SmartExpert
(118)
Status NEW Posted 23 Jun 2017 10:06 AM My Price 10.00

ACC----------- 30-----------8 1------------2 -----------Hom-----------ewo-----------rk -----------Cha-----------pte-----------r 8-----------

Attachments

file 1498215215-ACC 308 1-2 Homework Chapter 8.docx preview (478 words )
A-----------CC -----------308----------- 1------------2 H-----------ome-----------wor-----------k C-----------hap-----------ter----------- 8 ----------- 1)----------- J-----------ohn-----------'s -----------Spe-----------cia-----------lty----------- St-----------ore----------- us-----------es -----------a p-----------erp-----------etu-----------al -----------inv-----------ent-----------ory----------- sy-----------ste-----------m. -----------The----------- fo-----------llo-----------win-----------g a-----------re -----------som-----------e i-----------nve-----------nto-----------ry -----------tra-----------nsa-----------cti-----------ons----------- fo-----------r t-----------he -----------mon-----------th -----------of -----------May----------- 20-----------13:----------- Â-----------  -----------1.Â-----------  J-----------ohn-----------’-----------s p-----------urc-----------has-----------ed -----------mer-----------cha-----------ndi-----------se -----------on -----------acc-----------oun-----------t f-----------or -----------$6,-----------000-----------. F-----------rei-----------ght----------- ch-----------arg-----------es -----------of -----------$80-----------0 w-----------ere----------- pa-----------id -----------in -----------cas-----------h. ----------- 2.-----------  -----------Joh-----------nâ€-----------™s -----------ret-----------urn-----------ed -----------som-----------e o-----------f t-----------he -----------mer-----------cha-----------ndi-----------se -----------pur-----------cha-----------sed----------- in----------- (1-----------). -----------The----------- co-----------st -----------of -----------the----------- me-----------rch-----------and-----------ise----------- wa-----------s $-----------1,1-----------00 -----------and----------- Jo-----------hnâ-----------€™s----------- ac-----------cou-----------nt -----------was----------- cr-----------edi-----------ted----------- by----------- th-----------e s-----------upp-----------lie-----------r.
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