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Category > Accounting Posted 13 Jul 2017 My Price 50.00

In the first months of operations,

Please see attached list of questions.

n its first month of operation, Sunland Company purchased 350 units of inventory for $10, then 450 units for $11, and finally 390 units for $12. At the end of the month, 430 units remained.

Compute the amount of phantom profit that would result if the company used FIFO rather than LIFO.

Phantom profit

Novak Corp. sells a snowboard, EZslide, that is popular with snowboard enthusiasts. Below is information relating to Novak Corp.’s purchases of EZslide snowboards during September. During the same month, 97 EZslide snowboards were sold. Novak Corp. uses a periodic inventory system.

Date	Explanation	Units	Unit Cost	Total Cost
Sept. 1	Inventory	11	$97	$ 1,067
Sept. 12	Purchases	44	100	4,400
Sept. 19	Purchases	47	101	4,747
Sept. 26	Purchases	22	102	2,244
	Totals	124		$12,458

(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.)

FIFO

LIFO

AVERAGE-COST

The ending inventory at September 30

(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

Suppose this information is available for PepsiCo, Inc. for 2015, 2016, and 2017.

(in millions)	2015	2016	2017
Beginning inventory	$2,100	$2,500	$2,300
Ending inventory	2,500	2,300	2,600
Cost of goods sold	18,307	20,754	19,990
Sales revenue	39,702	42,750	42,793

Calculate the inventory turnover for PepsiCo, Inc. for 2015, 2016, and 2017. (Round inventory turnover to 1 decimal place, e.g. 5.1.)

	2015		2016		2017
Inventory turnover		times		times		times

LINK TO TEXT

Calculate the days in inventory for PepsiCo, Inc. for 2015, 2016, and 2017. (Round days in inventory to 1 decimal place, e.g. 5.1.)

	2015		2016		2017
Days in inventory		days		days		days

LINK TO TEXT

Calculate the gross profit rate for PepsiCo, Inc. for 2015, 2016, and 2017. (Round gross profit rate to 1 decimal place, e.g. 5.1%.)

2015

2016

2017

Gross profit rate

Sage Hill Inc. markets CDs of numerous performing artists. At the beginning of March, Sage Hill Inc. had in beginning inventory 2,580 CDs with a unit cost of $7. During March, Sage Hill Inc. made the following purchases of CDs.

March 5		1,910		@		$8		March 21		5,070		@		$10
March 13		3,230		@		$9		March 26		2,040		@		$11

During March 11,530 units were sold. Sage Hill Inc. uses a periodic inventory system.

(a) Determine the cost of goods available for sale.

The cost of goods available for sale

(b) Calculate Average Cost. (Round answer to 3 decimal places, e.g. 5.125.)

Average Cost

SHOW LIST OF ACCOUNTS
LINK TO TEXT

Determine (1) the ending inventory and (2) the cost of goods sold under each of the assumed cost flow methods (FIFO, LIFO, and average-cost). (Round answers to 0 decimal places, e.g. 125.)

	FIFO	LIFO	AVERAGE-COST
The ending inventory	$	$	$
The cost of goods sold	$	$	$

SHOW LIST OF ACCOUNTS
LINK TO TEXT

Which cost flow method results in (1) the highest inventory amount for the balance sheet and (2) the highest cost of goods sold for the income statement?

(1)

produces the highest inventory amount.

(2)

produces the highest cost of goods sold.

Suppose this information (in millions) is available for the Automotive and Other Operations Divisions of General Motors Corporation for a recent year. General Motors Corporation uses the LIFO inventory method.

Beginning inventory		$14,180
Ending inventory		16,220
LIFO reserve		1,392
Current assets		62,973
Current liabilities		66,567
Cost of goods sold		174,241
Sales revenue		194,460

Calculate the inventory turnover and days in inventory. (Round answers to 1 decimal place, e.g. 5.1.)

The inventory turnover			times
Days in inventory			days

SHOW LIST OF ACCOUNTS
LINK TO TEXT

Calculate the current ratio based on inventory as reported using LIFO. (Round answer to 2 decimal places, e.g. 5.12.)

The current ratio based on inventory using LIFO			:1

SHOW LIST OF ACCOUNTS
LINK TO TEXT

Calculate the current ratio after adjusting for the LIFO reserve. (Round answer to 2 decimal places, e.g. 5.12.)

The current ratio after adjusting for the LIFO reserve			:1

Answers

QuickHelper

(10)

Status NEW Posted 13 Jul 2017 08:07 AM My Price 50.00

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