ACCT 1201 Lecture Notes - Dunder Mifflin, Direct Labor Cost, Combined Gas And Steam

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skyraven864

22 Mar 2013

School

Northeastern University

Department

Accounting

Course

ACCT 1201

Professor

Ronen Gal-or

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Document Summary

Valuing inventory and cost of goods sold (cogs) Valuing inventory and cost of goods sold (cogs: inventory tangible property that is (1) held for sale in the normal course of business or (2) used to produce goods or services for sale. Paper is inventory for dunder mifflin, but supplies for northeastern. Cars are inventory for ford, but equipment for northeastern: types of inventory: merchandise and manufacturing. R4: merchandise inventory costs include the sum of costs incurred in bringing an article to usable or salable condition and location. Freight in (not freight out, which is a shipping expense) Include everything it takes to get the merchandise to its salable condition. Based on its physical count of inventory in its warehouse at year-end, dec 31, 2011, madison. During the audit, the independent cpa uncovered the following additional information: 1: goods from a supplier costing are in transit with ups on december 31, 2011.

Related Questions

10.

Ferris Company began 2016 with 6,000 units of its principalproduct. The cost of each unit is $6. Merchandise transactions forthe month of January 2016 are as follows:

Purchases

Date ofPurchase	Units		Unit Cost*		Total Cost
Jan. 10		5,000	$	7	$	35,000
Jan. 18		6,000		8		48,000

Totals		11,000			$	83,000

*Includes purchase price andcost of freight.

Sales

Date of Sale	Units
Jan. 5		3,000
Jan. 12		2,000
Jan. 20		4,000

Total		9,000

8,000 units were on hand at theend of the month.

Required:

Calculate January's ending inventory and cost of goods sold forthe month using each of the following alternatives:

FIFO	Cost of Goods Available for Sale			Cost of Goods Sold - Periodic FIFO			Ending Inventory - Periodic FIFO
FIFO	# of units	Cost per unit	Cost of Goods Available for Sale	# of units sold	Cost perunit	Cost of Goods Sold	# of units in ending inventory	Cost per unit	Ending Inventory
BeginningInventory	6,000	$6.00	$36,000	6,000	$6.00	$36,000		$6.00	$0
Purchases:
January 10	5,000	$7.00	35,000		$7.00	0		$7.00	0
January 18	6,000	$8.00	48,000		$8.00	0		$8.00	0
Total	17,000		$119,000	6,000		$36,000			$0

LIFO	Cost of Goods Available for Sale			Cost of Goods Sold - Periodic LIFO			Ending Inventory - Periodic LIFO
LIFO	# ofunits	Cost perunit	Cost ofGoods Available for Sale	# of unitssold	Cost perunit	Cost ofGoods Sold	# of unitsin ending inventory	Cost perunit	EndingInventory
Beginning Inventory
Purchases:
January 10
January 18
Total

AverageCost	Cost ofGoods Available for Sale			Cost ofGoods Sold - Average Cost			EndingInventory - Average Cost
AverageCost	# of units	Average Cost per unit	Cost of Goods Available for Sale	# of units sold	Average Cost per Unit	Cost of Goods Sold	# of units in ending inventory	Average Cost per unit	Ending Inventory
Beginning Inventory	6,000		$36,000
Purchases:
January 10	5,000		35,000
January 18	6,000		48,000
Total	17,000		$119,000

PerpetualLIFO:

Cost of Goods Available for Sale

Cost of Goods Sold - January 5

Cost of Goods Sold - January 12

Cost ofGoods Sold - January 20

Inventory Balance

# of units

Cost per unit

Cost of Goods Available for Sale

# of units in ending inventory

Perpetual Average	Inventory on hand			Cost of Goods Sold
Perpetual Average	# of units	Cost per unit	Inventory Value	# of units sold	Avg.Cost per unit	Cost of Goods Sold
Beginning Inventory
Sale - January5
Subtotal Average Cost
Purchase - January 10
Subtotal Average Cost
Sale - January12
Subtotal Average Cost
Purchase - January18
SubtotalAverage Cost
Sale - January 20
Total

skymosquito772

Use the following information for the Exercisesbelow.

[The following information applies to the questionsdisplayed below.]

Laker Company reported the following January purchases and salesdata for its only product.

Date		Activities	Units Acquired at Cost								Units sold at Retail
Jan.	1	Beginning inventory	140	units	@	$	6.00	=	$	840
Jan.	10	Sales										100	units	@	$	15
Jan.	20	Purchase	60	units	@	$	5.00	=		300
Jan.	25	Sales										80	units	@	$	15
Jan.	30	Purchase	180	units	@	$	4.50	=		810
		Totals	380	units					$	1,950		180	units

The Company uses a perpetual inventory system. For specificidentification, ending inventory consists of 200 units, where 180are from the January 30 purchase, 5 are from the January 20purchase, and 15 are from beginning inventory.

Exercise 6-3 Perpetual: Inventory costing methods LO P1

Required:
1. Complete the table to determine the costassigned to ending inventory and cost of goods sold using specificidentification.
2. Determine the cost assigned to ending inventoryand to cost of goods sold using weighted average.
3. Determine the cost assigned to ending inventoryand to cost of goods sold using FIFO.
4. Determine the cost assigned to ending inventoryand to cost of goods sold using LIFO.

Required 3

Required 4

Complete the table to determine the cost assigned to endinginventory and cost of goods sold using specific identification.

Specific Identification
	Available for Sale			Cost of Goods Sold			Ending Inventory
Purchase Date	Activity	Units	Unit Cost	Units Sold	Unit Cost	COGS	Ending Inventory- Units	Cost Per Unit	Ending Inventory- Cost
Jan. 1	Beginning inventory	140
Jan. 20	Purchase	60
Jan. 30	Purchase	180
		380		0		$0	0		$0

Determine the cost assigned to ending inventory and to cost ofgoods sold using weighted average. (Round cost per unit to 2decimal places.)

Weighted Average - Perpetual:

Goods Purchased

Cost of Goods Sold

Inventory Balance

Date

# of units

Cost per unit

# of units sold

Cost per unit

Cost of Goods Sold

# of units

Cost per unit

Inventory Balance

January 1

140

$6.00

$840.00

January 10

January 20

Average cost

January 25

January 30

Totals

Determine the cost assigned to ending inventory and to cost ofgoods sold using FIFO.

Perpetual FIFO:

Goods Purchased

Cost of Goods Sold

Inventory Balance

Date

# of units

Cost per unit

# of units sold

Cost per unit

Cost of Goods Sold

# of units

Cost per unit

Inventory Balance

January 1

140

$6.00

$840.00

January 10

January 20

January 25

January 30

Totals

Determine the cost assigned to ending inventory and to cost ofgoods sold using LIFO.

Perpetual LIFO:

Goods Purchased

Cost of Goods Sold

Inventory Balance

Date

# of units

Cost per unit

# of units sold

Cost per unit

Cost of Goods Sold

# of units

Cost per unit

Inventory Balance

January 1

140

$6.00

$840.00

January 10

January 20

January 25

January 30

Totals

plumkoala693

The inventory of Product PIT and data on purchases and sales fora two-month period follow. The company closes its books at the endof each month. It uses the periodic inventory system.

Apr. 1 Beginning inventory 50 units @ $204

10 Purchase 100 units @ $220

17 Sale 90 units

30 Ending inventory 60 units

May 2 Purchase 100 units @ $216

14 Purchase 50 units @ $224

22 Purchase 60 units @ $234

30 Sale 200 units

31 Ending inventory 70 units

Required

1. Compute the cost of ending inventory of ProductPIT on April 30 and May 31using the average-cost method. Inaddition, determine cost of goods sold for April and May. Roundunit costs to cents and totals to dollars.

2. Compute the cost of the ending inventory on April 30 and May31 using the FIFO method. In addition, determine cost of goods soldfor April and May. 3. Compute the cost of the ending inventory onApril 30 and May 31 using the LIFO method. In addition, determinecost of goods sold for April and May.

4. Do the cash flows from operations for April and May differdepending on which inventory costing method is usedâaverage-cost,FIFO, or LIFO? Explain.

greyseal92

ACCT 1201 Lecture Notes - Dunder Mifflin, Direct Labor Cost, Combined Gas And Steam

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