Question

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the actual inventory hand-held portable computers E Are not necessary under the cost to benefit constraint 12. During a period of steadily rising costs, the inventory valuation method that yields the lowest reported net profit is A Specific identification method B. Average cost method C Weighted-average method D. FIFO method E. LIFO method Calculations: 01:05 Park Company reported the following March purchases and sales data for its only product. Us Aceda Can Soldat Retail 150 units @ $7.00 - $1.050 Mar 10 Sales 90 units SIS Mar 20 Purchase ...... 220 56.00 - .320 Mar 25 Sales .......... 145 units S15 Mar 30 Purchase 90 units @ $5.00 - 450 235 units Park uses a Testual inventory system. Determine the cost assigned to ending inventory and to cost of goods sold using a specific identification, (b) weighted average cost, and (e) FIFO. (Round per unit costs to three decimals, but inventory balances to the dollar) For specific identification, ending inventory consists of 225 units, where 90 are from the March 30 purchase, 80 are from the March 20 purchase and 55 are from beginning inventory Q2: 30% Date Park Company reported the following March purchases and sales data for its only product. Units Acquired at Cost Units Sold at Retail Mar Beginning inventory 150 units @ $7.00 - $1,050 Mar To Sales 90 units @ $15 Mar. 20 Purchase 220 unit 56.00 1.320 Mar 25 Sales 145 units @ $15 Mar 30 Purchase ..... . .. 90 units @ $5.00 450 Totals 460 units $2.820 Park uses periodic Inventory system. Determine the cost assigned to ending inventory and to cost of rods sold using a specific identification. (b) weighted average cost, and (c) FIFO. (Round per unit costs to three decimals, but inventory balances to the dollar) For specte identiniention, ending inventory consists on 225 units, where 90 are from the March 30 purchase, 80 are from the March 20 purchase, and 55 are from beginning inventory. Q3: 16% On March 1, KB Shop had $450,000 of inventory at cost. In the first quarter of the year, it purchase $1,590,000 of merchandise, retumed $23,100, and paid freight charges of $37,600 on purchased merchandis terms FOB shipping point. The company's gross profit averages 30%, and the store had $2,000,000 of sales (at retail) in the first quarter of the year. Use the gross profit method to estimate its cost of inventor the end of the first quarter.

Answer 1

Answer-1(a):

385 Computation of Ending inventory under Specific Identification Method Beg. Inventory 55 units @ $7.00 p.u Mar. 20 80 units @ $6.00 p.u 480 Mar.30 90 units @ $5.00 p.u $ 1,315 450 Computation of Cost of goods sold under Specific Identification Method Beg. Inventory 150 units @ $7.00 p.u $ 1,050 Mar. 20 220 units @ $6.00 p.u 13201 Mar. 30 90 units @ $5.00 p.u 4501 Total cost of goods available for sale $ 2,820 Less: Cost of goods in ending inventory $ 1,315 Total cost of 235 units sold $ 1,505

Answer-1(b):

Date PERPETUAL INVENTORY RECORD (WEIGHTED AVG. COST METHOD) Purchase Cost of goods sold Inventory on hand Unit Unit Unit Quantity Cost Total Cost Quantity Cost Total Cost Quantity Cost Total Cost 7.00 1,050 7.00 630 60 7.00 420 6.00 1320 280 6.2141 1,740 145 6.214 901 135 6.214 839 5.00 450 2251 5.728 $ 1,289 Beg. Inventory Mar.10 Mar.20 Mar.25 Mar.30 150

Hence, ending inventory = $1,289 (225 units)

Cost of goods sold = $630 + 901 = $1,531

Answer-1(c):

Date Beg. Inventory Mar.10 PERPETUAL INVENTORY RECORD (FIFO METHOD) Purchase Cost of goods sold Inventory on hand Unit Unit Unit Quantity Cost Total Cost Quantity Cost Total Cost Quantity Cost Total Cost 150 7.00 1.050 7.00 630 60 7.00 4200 7.00 420 1320 6.00 1,740 420 510 6.00 810 6.00 $ 810 90 5.00 450 5.00 $ 450 Mar.20 220 Mar.25 Mar.30

Hence, ending inventory = $1,260 (225 units)

Cost of goods sold = $630 + 420+510 = $1,560

Answer-2(a):

385 Computation of Ending inventory under Specific Identification Method Beg. Inventory 55 units @ $7.00 p.u Mar. 20 80 units @ $6.00 p.u 480 Mar.30 90 units @ $5.00 p.u $ 1,315 450 Computation of Cost of goods sold under Specific Identification Method Beg. Inventory 150 units @ $7.00 p.u $ 1,050 Mar. 20 220 units @ $6.00 p.u 13201 Mar. 30 90 units @ $5.00 p.u 4501 Total cost of goods available for sale $ 2,820 Less: Cost of goods in ending inventory $ 1,315 Total cost of 235 units sold $ 1,505

Please ask the remaining part in a separate question. Thank you.