UMUC ACC310 Chapter 8 Homework – Graded

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UMUC ACC310 Chapter 8 Homework – Graded

Brief Exercise 8-5 (Part Level Submission)

Amsterdam Company uses a periodic inventory system. For April, when the company sold 440 units, the following information is available.

Units Unit Cost Total Cost
April 1 inventory 280 $12 $ 3,360
April 15 purchase 380 15 5,700
April 23 purchase 340 16 5,440
1,000 $14,500
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(a)

Calculate weighted average cost per unit. (Round answer to 2 decimal places, e.g. 2.76.)

Exercise 8-3

Correct answer. Your answer is correct.

Assume that in an annual audit of Harlowe Inc. at December 31, 2014, you find the following transactions near the closing date.

Assuming that each of the amounts is material, state whether the merchandise should be included in the client’s inventory.

Transactions
1. A special machine, fabricated to order for a customer, was finished and specifically segregated in the back part of the shipping room on December 31, 2014. The customer was billed on that date and the machine excluded from inventory although it was shipped on January 4, 2015. Entry field with correct answer
2. Merchandise costing $2,800 was received on January 3, 2015, and the related purchase invoice recorded January 5. The invoice showed the shipment was made on December 29, 2014, f.o.b. destination. Entry field with correct answer
3. A packing case containing a product costing $3,400 was standing in the shipping room when the physical inventory was taken. It was not included in the inventory because it was marked “Hold for shipping instructions.” Your investigation revealed that the customer’s order was dated December 18, 2014, but that the case was shipped and the customer billed on January 10, 2015. The product was a stock item of your client. Entry field with correct answer
4. Merchandise received on January 6, 2015, costing $680 was entered in the purchases journal on January 7, 2015. The invoice showed shipment was made f.o.b. supplier’s warehouse on December 31, 2014. Because it was not on hand at December 31, it was not included in inventory. Entry field with correct answer
5. Merchandise costing $720 was received on December 28, 2014, and the invoice was not recorded. You located it in the hands of the purchasing agent; it was marked “on consignment.” Entry field with correct answer
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Exercise 8-9 (Part Level Submission)

Fong Sai-Yuk Company sells one product. Presented below is information for January for Fong Sai-Yuk Company.

Jan. 1 Inventory 101 units at $4 each
4 Sale 78 units at $8 each
11 Purchase 155 units at $7 each
13 Sale 121 units at $9 each
20 Purchase 163 units at $6 each
27 Sale 100 units at $11 each

Fong Sai-Yuk uses the FIFO cost flow assumption. All purchases and sales are on account.

Assume Fong Sai-Yuk uses a perpetual system. Prepare all necessary journal entries.(If no entry is required, select “No entry” for the account titles and enter 0 for the amounts. Round answers to 0 decimal places, e.g. 6,578. Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Assume Fong Sai-Yuk uses a periodic system. Prepare all necessary journal entries, including the end-of-month closing entry to record cost of goods sold. A physical count indicates that the ending inventory for January is 120 units.(If no entry is required, select “No entry” for the account titles and enter 0 for the amounts. Round answers to 0 decimal places, e.g. 6,578. Credit account titles are automatically indented when amount is entered. Do not indent manually.)
4

Assume Fong Sai-Yuk uses a periodic system. Prepare all necessary journal entries, including the end-of-month closing entry to record cost of goods sold. A physical count indicates that the ending inventory for January is 120 units. (If no entry is required, select “No entry” for the account titles and enter 0 for the amounts. Round answers to 0 decimal places, e.g. 6,578. Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Exercise 8-13 (Part Level Submission)

Inventory information for Part 311 of Monique Aaron Corp. discloses the following information for the month of June.

June 1 Balance 296 units @ $13 June 10 Sold 197 units @ $32
11 Purchased 803 units @ $16 15 Sold 504 units @ $33
20 Purchased 505 units @ $17 27 Sold 297 units @ $36
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(a)

Correct answer. Your answer is correct.

Assuming that the periodic inventory method is used, compute the cost of goods sold and ending inventory under (1) LIFO and (2) FIFO.

Exercise 8-26

The following information relates to the Jimmy Johnson Company.

Date Ending Inventory
(End-of-Year Prices)
 Price
Index
December 31, 2010 $ 67,500 100
December 31, 2011 126,336 141
December 31, 2012 136,344 156
December 31, 2013 152,789 161
December 31, 2014 141,960 168

Use the dollar-value LIFO method to compute the ending inventory for Johnson Company for 2010 through 2014.