163. Using the information given below for a company that uses a perpetual inventory system,
calculate the ending inventory using FIFO.
Units Unit
Cost
Beginning inventory 100 $10
Jan. 5 purchased 40 12
Jan. 10 sold 60 –
Jan. 15 purchased 70 13
Jan. 25 sold 50
–
164. Using the information given below for a company that uses a perpetual inventory system,
calculate the ending inventory using LIFO.
Units Unit
Cost
Beginning inventory 100 $10
Jan. 5 purchased 40 12
Jan. 10 sold 60 –
Jan. 15 purchased 70 13
Jan. 25 sold 50
165. Using the information given below for a company that uses a perpetual inventory system,
calculate the ending inventory using weighted average.
Units Unit
Cost
Beginning inventory 100 $10
Jan. 5 purchased 40 12
Jan. 10 sold 60 –
Jan. 15 purchased 70 13
Jan. 25 sold 50 –
166. Using the information given below, prepare general journal entries to record the March
16 sale assuming a cash sale and the FIFO method is used.
January 1: Purchased 100 units at $10 per unit.
February 5: Purchased 60 units at $12 per unit.
March 16: Sold 40 units for $16 per unit.
167. Using the information given below, prepare the general journal entry to record the March
16 sale assuming a cash sale and the LIFO method is used:
January 1: Purchased 100 units at $10 per unit.
February 5: Purchased 60 units at $12 per unit.
March 16: Sold 40 units for $16 per unit.
168. Using the information given below, prepare the general journal entry to record the March
16 sale assuming a cash sale and the weighted average method is used.
January 1: Purchased 100 units at $10 per unit.
February 5: Purchased 60 units at $12 per unit.
March 16: Sold 40 units for $16 per unit.
169. A company reported the following data related to its ending inventory:
Product
849 Units Available
100 Cost
$10 Market
$11
842 75 16 14
847 60 14 13
860 40 16 20
Calculate the lower-of-cost-or-market on the: (a) Inventory as a whole and (b) inventory
applied separately to each product.
170. A company had the following ending inventory costs:
Product Units of Hand Unit Cost Market Value
A 10 $ 5 $ 6
B 50 8 7
C 35 10 11
Instructions;
1. Calculate the lower of cost or market (LCM) value for the inventory as a whole.
2. Calculate the lower of cost or market (LCM) value for each individual item.
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171. A company uses the periodic inventory system, and the following information is
available. All purchases and sales are on credit.
Units Unit
Cost
$3 Total
Cost
$ 90 Unit
Price
10/01 Inventory Balance 30
10/06 Purchase 70 4 280
10/11 Purchase 45 5 225
10/16 Purchase 50 6 300
Goods available 195 $895
10/12 Sale 100 $10
10/20 Sale 60 11
Goods sold 160
10/31 Inventory Balance 35
1. Prepare the general journal entries to record:
The October 6 purchase.
The October 12 sale.
2. Assuming the periodic inventory system is used, determine both the cost of the ending
inventory and the cost of goods sold using the LIFO method for October.
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172. A company made the following merchandise purchases and sales during the month of
May:
May 1 Purchased 380 units at $15 each
May 5 Purchased 270 units at $17 each
May 10 Sold 400 units at $50 each
May 20 Purchased 300 units at $22 each
May 25 Sold 400 units at $50 each
There was no beginning inventory. If the company uses the weighted average periodic
method, what would be the cost of the ending inventory?
173. A company made the following merchandise purchases and sales during the month of
May:
May 1 Purchased 380 units at $15 each
May 5 Purchased 270 units at $17 each
May 10 Sold 400 units at $50 each
May 20 Purchased 300 units at $22 each
May 25 Sold 400 units at $50 each
There was no beginning inventory. If the company uses the LIFO periodic inventory method,
what would be the cost of the ending inventory?
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174. A company made the following merchandise purchases and sales during the month of
May:
May 1 Purchased 380 units at $15 each
May 5 Purchased 270 units at $17 each
May 10 Sold 400 units at $50 each
May 20 Purchased 300 units at $22 each
May 25 Sold 400 units at $50 each
There was no beginning inventory. If the company uses the FIFO periodic inventory method,
what would be the cost of the ending inventory?
175. A company’s store was destroyed by a fire on February 10 of the current year. The only
information for the current period that could be salvaged included the following:
Beginning inventory, January 1: $34,000
Purchases to date: $118,000
Sales to date: $140,000
Historically, the company’s gross profit ratio has been 30%. Estimate the value of the
destroyed inventory using the gross profit method.
176. Apply the retail method to the following company information to calculate the cost of the
ending inventory for the current period.
Cost Retail
Beginning inventory…………………………………………… $20,224 $31,600
Net purchases………………………………………………….. 59,508 97,000
Sales…………………………………………………………… 89,000