4 Ue SHALYRNA piel Rutty PROGRAM SMART ACCOUNTING SEMESTER 1 AAOIS AMBILAN 2021 CHAPTER 8: ACCOUNTING FOR INVENTORIES 4. Company Y has the following inventory data: August | Beginning inventory 20 units at RM1O 8 Purchases 130 units at RMIS 17 Sale 80 units 25 Purchases 30 units at RM20 30 Sale 60 units ‘Assuming that a(perpetual inventory)system is used, what is ending inventory (rounded into 2 places) undeF the average cost method for August? M6420 eae b. RMGIL.I c. RM64L33 <4. RM500.00 2, Simpson Inc purchased inventory as follows: Jan. 5 500 units at RM10.00 nan) + amis (an) +100 (06) Jan. 1S 1,000 units at RM15.00 —goTla tm Jan. 25 200 units at RM20.00 1 = vnst00 + umson0 + wt Oe 5100 + unise00 + ATT What i the average it cost of inventoo tis eas = mm 94,000 . RMIS.00 170 ©. RMI3.00 = tht LRMISS3 3, Delightful Diss has the follwing inventory dats: Nov. | Inventory 30 units @ RM6.00 each & Purchase 120 units @ RM6AS each — bob 1 17 Purchase 60 units @ RM630 cach — {+ 2 25 Purchase 90 units @ RM6.60 each — 5? 90 [evento joOuntts A physical count of merchandise inventory oni Dreveals that there are 100 units on Ending inventory unde(FIFO periodic inventory sytem is — 657 Endy nvontog wall Bonaena = po nt © RMI drmrzes Eg eng Ot go x va Go = ese Jo x mel 30 = Mn 63 wootPROGRAM SMART ACCOUNTING ‘SEMESTER | AAOIS AMBILAN 2021 4, Hardaway Inc. purchased inventory a follows: Jan. 10 ~200 units at RMS.00 Jan, 20 - 500 units at RM10.00 aoding wastey Jan, 30 - 800 units at RM15.00 rae Hardaway Inc. had no beginning inventory and has.S00 union bandas of January 31, Assuming the @eighted-average method is used, ending inventory would be caling gatoy, | wight argfe dng SRMIB000 sunt | = psn) ave 909 RD. | = bow a x Lt 2 et ot 0D ay 00 eet tr Sas Greco = pa Yas +m 900-+ Oa 17008 — =e NUEDOO ya 5. Hardaway Ine, purchased inventory as follows: © AT Jan, 10 - 200 units at RM5.00 ~ PS Ci Jan, 20 - 500 units at RM10.00 es > (lb de nd to Jan, 30 - 800 units at RMLLS.99 hk 3 pay wees fy dea) Herdaway Inc. had no being inventory and haSOD unig)on hand as of January 31. ‘Assuming the periodic inven hod is wed, ending inventory would be Gee 6. Baker Bakery Company just began business and made the following four inventory purchases in June: Purchase [Purchase units | Cost per unit | Total purchase cost date &M) eM) June 1 | 150 units 2 6p 1,040, whet 10 200 units 2 at [1360 Ade 15 200 nits 7 940 [1,680 3 28 150 units 2 2 11320 tea Ady hates x "A physical count of merchandise inventory on June 30 reveals that there aré10 unifS on hand. Using h(FTFOperodiinvenor method, the amoust allocated ogg AVERT for nes ant [ cadiny toetiony Cot aly oi 160 wnt) Xap 4 = 3 = ao wnir Gaunt x 105. 4o= bn SOP we 824,PROGRAM SMART ACCOUNTING ‘SEMESTER | AAOLS AMBILAN 2021 b. 1,508 os 77. Zimmerman Inc. uses a periodic inventory system. Details month of October are shown below: for the inventory account for the Date Explanation Units Unitcost Total Cost oc.1 segnangimerion "50 $400 $n Oa.10 Purchase 3 0 - po! Oet.20 Purchase até 300 #2 Total roe vag wie) oo X wll, S “Assume that on October 3, there are Suits bn hand, I the company useyFIFO, hati the ‘value of ding inventory? (Bion et ay | ogy ot E55 a | fo KE ©3373 ae 4. $360 ‘8, Zimmerman Inc, uses a periodic inventory system. Details for the inventory account for the ‘month of October are shown below: Date Explanation Units Unit Cost Total cost oct Beginninginventory —-«S0.$ 00 $200.00 et.10 _Porehase suo $50 $5007 4 wa 90 Oct. 20 Purchase 150 $ $750.00 Total 300 $1,400.00 diy watiey “Agsume that on October 31, there are {Fumion hand, I the compans ses FIFO) what is the ice ae | oy my Per 8 10) ayes | edly WHS OF | salngo — tm You estos © Pham | ofvas xuns d. $1,028 eb Lp = Wah 00 9. Zimmerman Ine. uses a periodic inventory system. Details for the inventory account for the ‘month of October are shown below:PROGRAM SMART ACCOUNTING ‘SEMESTER | AAOIS AMBILAN 2021 Date Explanation Units Unitcost_ Total cost ©c.1 Beginninginventory —-50$ 400 $ 20000 (2c.10 Purchase wo § 450 § 45000 4 nia 0c. 20 Purchase 150 § 500 $7000 Total 3m $1400.00 = 0 KP sola = (s0 1100 { es)- #9 * 278% Assume that sales price if RMIO nd there ar¢80 unity on hand as ending inventory. Ifthe companys FIED, what eval ofthe gO for Oswta ae poll A aedicy netieg [ apdiey nated Ton ab ged eld I 9700-1000 $1,200 = §0 uni (as = pun 00 + ue 1700- Baton [090 ©. $1,065 = fut 4. $1,028 eel Yo beaded 10. A company purchased merchandise to be resold at increasing costs during the year 2020. The purchases were made atthe following costs. June 20, 2020 purchase 157) if» } 40.units at $12 lanvary 1, 2020 (carted over om 2018) 20 uns at 10 —— byt 180 weeds Cctober 10,2020 puerese (im ( Soumitsatsts — ated January 25,2020 purchase yy (emer ‘The company sold 10 items atthe end of each month ‘What are the number of units available for sales and tho cat ofthe poe rable fret aad! tadity 180 Gast of godt tld ‘units, $1,770 x 2 WOT IST B. 150 units, $1,386 wk m2 |e pw 199 e456 units, $4,570 —d43O-units, $1,770 11, A company purchased merchandise to be resold at increasing costs during the year 2020. The purchases were made atthe following costs. Januar 4, 2020 (carted overfom 2018) 20 unis at$10 — HY. 13 was Senvsry 25,2020 purchase 40 unis a Sit “tune 20,2020 purchase 40 wmeansi2 | we i570 ‘tober 10, 2020 purchase SO unis a $13 one, “The compaly sold 10 items at the end of each month Assuming th IFO periodic ost low assumption, what wll the company’s cost of goods the 12D ems sTdin 20202 sold forthe 1 2 gata cndy hey Cg 7 See? | Souci” | mt aden =m oy - = puntPROGRAM SMART ACCOUNTING SEMESTER 1 AAOIS AMBILAN 2021 b. $1,386 $1,460 12. A company purchased merchandise to be resold at increasing eosts during the year 2020. The purchases were made at the following costs. January 1,2020 (cared overrom 2019) 20unitsat $10 J ‘anuary 25,2020 purchase Zountsatst1 {15°47 ww czy Sune 20, 2020 prehaee ‘ouisatsie_) October 10,2020 purchase ‘unts at $13 “The company sold 10 items at the end of each month [Assuming the perodic-eighted-averay cost flow assumption, what isthe company’s cost of goods sold for the 120 items" (round up unit costs to two decimal places)? pappne ad ge ald f soy wey | ot ot sizeo allay won) | oan ae ot = fon + 1570-35 $1386 = SD wm = | 5" | = ZoeurX Oma Tun [= moa fot WO | ne + 14 Yl ‘isi, RF HTR TO spun |. aro” vie | 73s ~ a asony purchased merchandise tobe resold at increasing costs during the year 2020. The Penchases were made atthe following coe January 1, 2020 (carried over from 2019) 20 units at $10 ‘January 25, 2020 purchase 40 units at $11 ‘June 20, 2020 purchase 40 units at $12 (October 10, 2020 purchase 50 units at $13, ‘The company sold 10 items on both dates (January 31 & December 31), ‘suming the eel IFO Sst flo aston, whats the omy ont of rd ld in an20? Rao i $260 «$210 4.5201 14. A company purchased merchandise to be resold at increasing costs during the year 2020. The purchases were made atthe following cost:PROGRAM SMART ACCOUNTING ‘SEMESTER | AAOIS AMBILAN 2021 January 1, 2020 (cari over fom 2019) 20units at $10, January 25, 2020 purchase 40 units at $11, ‘June 20, 2020 purchase 40 units at $12 ‘October 10, 2020 purchase 50 units at $13 ‘The company sold 10 items on both dates (January 31 & December 31). Assuming the perpewaT moving-ave flow assumption, what is the company i found up unit costs to two decimal places)? mm 9SD 30 nD = Em 6 bn "5b, GA A goods sold far a morth of seprankar 17 Gt At goods 201d = eo + ( oleat WAT Watt 198) - garb = Wo oe Gras _yrtit Per fhe month xt Spt ld 2078 Ga pot = Um I9sts = Wm 6078 = lm Yt 67. ay \~tsi