Chapter 6 Homework

1.  Cost Flow Methods

The following three identical units of Item K113 are purchased during April:

Assume that one unit is sold on April 27 for $127. Determine the gross profit for April and ending inventory on April 30 using the (a) first-in, first-out (FIFO); (b) last-in, first-out (LIFO); and (c) weighted average cost method.

2.  Perpetual Inventory Using FIFO

Beginning inventory, purchases, and sales for Item Zeta9 are as follows:

Assuming a perpetual inventory system and using the first-in, first-out (FIFO) method, determine (a)the cost of goods sold on October 24 and (b) the inventory on October 31.

a. Cost of goods sold on October 24   $________

b. Inventory on October 31    $ _________

3.   Perpetual Inventory Using LIFO

Beginning inventory, purchases, and sales for Item 88-HX are as follows:

Assuming a perpetual inventory system and using the last-in, first-out (LIFO) method, determine (a) the cost of goods sold on Mar. 27 and (b) the inventory on Mar. 31.

a. Cost of goods sold on March 27   $ ______

b. Inventory on March 31                  $ ______

4.   Perpetual Inventory Using Weighted Average

Beginning inventory, purchases, and sales for WCS12 are as follows:

a. Assuming a perpetual inventory system and using the weighted average cost method, determine the weighted average unit cost after the October 22 purchase. Round your answer to two decimal places.   $ _____

b. Assuming a perpetual inventory system and using the weighted average method, determine the cost of goods sold on October 29. Round your “average unit cost” to two decimal places.  $ _____

c. Assuming a perpetual inventory system and using the weighted average method, determine the inventory on October 31. Round your “average unit cost” to two decimal places.  $ _______

5.   Periodic Inventory Using FIFO, LIFO, and Weighted Average Cost Method.

The units of an item available for sale during the year were as follows:

There are 57 units of the item in the physical inventory at December 31. The periodic inventory system is used. Determine the inventory cost using the (a) the first-in, first-out (FIFO) method; (b) the last-in, first-out (LIFO) method; and (c) the weighted average cost method.

a.  First-in, first out (FIFO) method     $ ______

b. Last-in, first out (LIFO) method      $ _______

c. Weighted average cost method     $ _______

6.   Periodic Inventory by Three Methods

The units of an item available for sale during the year were as follows:

There are 1,100 units of the item in the physical inventory at December 31. The periodic inventory system is used.

a. Determine the inventory cost by the first-in, first-outmethod.  $ _______

b. Determine the inventory cost by the last-in, first-outmethod.   $ _______

c. Determine the inventory cost by the weighted average costmethod.   $ ______

7.  Periodic inventory by three methods; cost of goods sold

The units of an item available for sale during the year were as follows:

There are 208 units of the item in the physical inventory at December 31. The periodic inventory system is used.

Determine the ending inventory cost and the cost of goods sold by three methods.