Introduction to Economics

Reagan Corporation is a wholesale distributor of truck replacement parts. Initial amounts taken from Reagan’s records are as follows: Inventory at December 31 (based on a physical count of goods in Reagan’s warehouse on December 31) $1,250,000 Accounts payable at December 31: Additional Information: 1. Parts held by Reagan on consignment from Charlie, amounting to $155,000, were included in the physical count of goods in Reagan’s warehouse and in accounts payable at December 31. 2....

Question: Ferris Company began 2013 with 6,000 units of its principal product. The cost of each unit is $8. Merchandise transactions for the month of January 2013 are as follows: Required: Calculate January’s ending inventory and cost of goods sold for the month using each of the following alternatives: 1. FIFO, periodic system 2. LIFO, periodic system3. LIFO, perpetual system 4. Average cost, periodic system 5. Average cost, perpetual system

If Thomas uses a first-in, first-out perpetual inventory system, the total cost of the inventory for carburetor 2642J at March 31 is a. $196,115 b. $197,488 c. $201,300 d. $263,825

If Thomas uses a last-in, first-out periodic inventory system, the total cost of the inventory for carburetor 2642J at March 31 is a. $196,115 b. $197,488 c. $201,300 d. $268,400

Dalton Company adopted the dollar-value LIFO inventory method on January 1, 2013. In applying the LIFO method, Dalton uses internal price indexes and the multiple-pools approach. The following data were available for Inventory Pool No. 1 for the two years following the adoption of LIFO: Under the dollar-value LIFO method the inventory at December 31, 2014, should be a. $128,000 b. $129,800 c. $130,800 d. $140,800 Beginning in 2011, International Financial Reporting Standards are tested ...

[This is a variation of Exercise 8-1 modified to focus on the periodic inventory system.] John’s Specialty Store uses a periodic inventory system. The following are some inventory transactions for the month of May 2013: 1. John’s purchased merchandise on account for $5,000. Freight charges of $300 were paid in cash. 2. John’s returned some of the merchandise purchased in (1). The cost of the merchandise was $600 and John’s account was credited by the supplier. 3. Merchandise costing ...

The Phoenix Corporation’s fiscal year ends on December 31. Phoenix determines inventory quantity by a physical count of inventory on hand at the close of business on December 31. The company’s controller has asked for your help in deciding if the following items should be included in the year-end inventory count. 1. Merchandise held on consignment for Trout Creek Clothing. 2. Goods shipped f.o.b. destination on December 28 that arrived at the customer’s location on January 4. 3. Goods p...

Altira Corporation uses a periodic inventory system. The following information related to its merchandise inventory during the month of August 2013 is available: Aug. 1 Inventory on hand—2,000 units; cost $6.10 each. 8 Purchased 10,000 units for $5.50 each. 14 Sold 8,000 units for $12.00 each. 18 Purchased 6,000 units for $5.00 each. 25 Sold 7,000 units for $11.00 each. 31 Inventory on hand—3,000 units. Required: Determine the inventory balance Altira would report in its August 31, 2...

The following information is taken from the inventory records of the CNB Company: Beginning inventory, 9/1/13 5,000 units @ $10.00 Purchases: 9/7 3,000 units @ $10.40 9/25 8,000 units @ $10.75 Sales: 9/10 4,000 units 9/29 5,000 units 7,000 units were on hand at the end of September. Required: 1. Assuming that CNB uses a periodic inventory system and employs the average cost method, determine cost of goods sold for September and September’s ending inventory. 2. Repeat requirement 1 a...

On December 28, 2013, Videotech Corporation (VTC) purchased 10 units of a new satellite uplink system from Tristar Communications for $25,000 each. The terms of each sale were 1/10, n/30. VTC uses the gross method to account for purchase discounts and a perpetual inventory system. VTC paid the net-of-discount amount on January 6, 2014. Prepare the journal entries on December 28 and January 6 to record the purchase and payment.