Exam 18: Inventory and Overhead

Given the following, with 21 units remaining: Beg. Inventory Units Unit Cost Jan 1 8 \ 6.00 Apr 11 24 \ 11.00 May 17 30 \ 14.00 Dec 5 19 \ 16.00 Calculate: LIFO FIFO Weighted- Average Cost of Ending Inventory A C E Cost of Goods Sold B D F

Given the following information, you have been requested by your supervisor to submit the cost of ending inventory under LIFO, FIFO, and weighted average. At year end 850 units remained in inventory. January 1 inventory 2,500 at \ 2.95 April 9 4,000 at \ 4.00 June 15 1,000 at \ 6.50 August 10 500 at \ 7.00 December 9 200 at \ 8.50

In specific identification, which one is not true?

Blue Company on January 1, had inventory costing $65,000; during January net purchases were $119,000. Over recent years, Blue's gross profit has averaged 40% on sales. Assuming that the company has net sales of $190,000, calculate the estimated cost of ending inventory by using the gross profit method.

Complete the table: Beg Inventory Units Unit Cost Dollar Cost Jan 1 20 \ 8.00 A May 10 15 \ 11.00 B June 30 17 \ 20.00 C Dec 10 12 \ 21.00 D

Complete (assume $60,000 of overhead to be distributed): Sq Ft Ratio Amt of Overhead Allocated Department A 10,000 A B Department B 30,000 C D

Calculate inventory turnover at cost (to nearest hundredth): Ending Inventory \ 30,000 Beginning Inventory \ 20,000 Cost of Goods Sold \ 48,000 Net Sales \ 80,000

FIFO assumes all but one of the following:

Calculate using retail method: Cost Retail Price Beginning Inventory \ 75,000 \ 115,000 Purchases during the year \ 37,000 \ 55,000 Sales for year \ 71,000 (round cost ratio to nearest thousandth)

The following information was provided to Mel Blank, owner of Morse Market. Can you help Mel calculate the cost of ending inventory under LIFO, FIFO, and weighted average? During the year, a total of 1,200 were sold. January 1 inventory 500 at \ 2 April 10 300 at \ 3 June 20 500 at \ 4 August 1 200 at \ 5 November 15 100 at \ 11

A cost ratio of $0.68 means that for each $1 of retail inventory it costs the store $0.68.

Calculate the inventory turnover at cost for the following: average inventory $20,590, cost of goods sold $50,900, net sales $119,800. (Round your answer to the nearest tenth.)

The gross profit method is a way to estimate the cost of ending inventory without a physical count.

In the retail method the ending inventory at cost is calculated by multiplying the cost ratio times:

Weighted-average unit cost is total cost of goods available for sale divided by beginning number of units available for sale.

Match the following terms with their definitions. -LIFO

All but which one of the following is information needed to calculate inventory valuation by the retail method?

Inventory turnover at retail is equal to net sales divided by:

Compared with inventory turnover at cost, inventory turnover at retail is usually:

Given the following, calculate the estimated cost of ending inventory using the gross profit method. Gross profit on sales 28\% Beg Inventory Jan 1, 2017 \ 60,000 Net Purchases \ 44,000 Net Sales at Retail \ 55,000