Determine ending inventory under perpetual inventory system

Reference no: EM13858132

Problem 1:

Ziad Company had a beginning inventory on January 1 of 330 units of Product 4-18-15 at a cost of $21 per unit. During the year, the following purchases were made.

Mar. 15

880 units

$24

Sept. 4

770 units

$27

July 20

550 units

$25

Dec. 2

220 units

$31

2,200 units were sold. Ziad Company uses a periodic inventory system.

Determine the cost of goods available for sale.

Calculate average cost per unit

Determine (1) the ending inventory, and (2) the cost of goods sold under each of the assumed cost flow methods (FIFO, LIFO, and average).

Which cost flow method results in (1) the highest inventory amount for the balance sheet, and (2) the highest cost of goods sold for the income statement?

Problem 2:

You are provided with the following information for Najera Inc. for the month ended June 30, 2014. Najera uses the periodic method for inventory.

Date		Description	Units	Unit Cost or Selling Price
June	1	Beginning inventory	43	$39
June	4	Purchase	139	43
June	10	Sale	114	71
June	11	Sale return	15	71
June	18	Purchase	57	45
June	18	Purchase return	9	45
June	25	Sale	66	76
June	28	Purchase	33	49

Calculate cost per unit.

Calculate ending inventory, cost of goods sold, gross profit under each of the following methods. (1) LIFO. (2) FIFO. (3) Average-cost.

Calculate gross profit rate under each of the following methods. (1) LIFO. (2) FIFO. (3) Average-cost.

Problem 3:

Terando Co. began operations on July 1. It uses a perpetual inventory system. During July, the company had the following purchases and sales.

		Purchases
Date		Units	Unit Cost	Sales Units
July	1	185	$113
July	6			148
July	11	259	$128
July	14			111
July	21	296	$139
July	27			222

Calculate the average cost per unit at June 1, 6, 11, 14, 21 & 27.

Determine the ending inventory under a perpetual inventory system using (1) FIFO, (2) moving-average cost, and (3) LIFO.

Reference no: EM13858132

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