Exam 16: Inventory

The following is the inventory for the year for Cyber Energy: Date Units Cost per unit Total Cost Beginning inventory, Jan. 1 1,000 \ 4.00 \ 4,000 Purchase, May 6 1,250 \ 4.20 \ 5,250 Purchase, July 18 2,000 \ 4.75 \ 9,500 Purchase, December 10 750 \ 6.00 \ 4,500 Total Units Available 5,000 \ 23,250 Calculate the ending inventory of 1,500 units using both FIFO and LIFO methods. A)Which method values the ending inventory higher, and B)How much higher?

Malone's Products August 1 − August 31 Cost Retail Beginning Inventory, August 1 \ 135,000 \ 180,000 Purchases \ 300,000 \ 400,000 Net Sales \ 450,000\ Using the retail method, Malone found the estimated value of his ending inventory at cost on August 31 was $97,500. What was the amount of his gross profit?

Extra Manufacturing maintains a gross margin of 30% on all of its merchandise. In March the company had a beginning inventory of $416,800, net purchases of $201,500, and net sales of $660,200. Use the gross profit method to estimate the cost of ending inventory as of March 31.

Use the lower-of-cost-or-market rule to determine the value of the following inventory for Bargain Bonanza, Inc. ITEM QTY COST MKT BASIS AMOUNT Mountain bikes 154 \ 598 \ 554 Fax machines 133 163 212 Dishwashers 457 508 772 TVs 491 196 252 VCRs 123 259 235 Total value in Inventory is:

Goods purchased for resale are called merchandise inventory.​