Exam 18: Inventory and Overhead

Melvin Corporation allocates overhead to all departments based on the square footage occupied by each department. The shoe department occupies 3,000 sq. ft., the toy department 6,000 sq. ft., and the dress department 7,000 sq. ft. Total overhead to be allocated is $64,000. What is the amount allocated to the dress department?

Match the following terms with their definitions. -Perpetual

Moss Co. uses the FIFO method to calculate ending inventory. Assuming 300 units are not sold, the cost of goods sold is: January 1 Inventory 200 units at \ 9 \ 1,800 Feb 15 Purchase 300 units at \ 10 \ 3,000 Aug 20 Purchase 400 units at \ 11 \ 4,400 Dec 20 Purchase 100 units at \ 12 \ 1,200

Calculate estimated cost of ending inventory using the gross profit method: Gross profit on sales 35\% Beg inventory June 1, 2017 \ 22,000 Net purchases \ 6,600 Net sales at retail for June \ 12,000

Calculate inventory turnover at cost (to nearest tenth): Ending Inventory \ 35,000 Beginning Inventory \ 25,000 Cost of goods sold \ 42,00 Net Sales \ 5,800

Moore Supermarket began the year with 300 boxes of oat flake cereal with a unit cost of $1.89. During the year the following additional purchases were made: May 1 200 boxes @ \ 2.10 each June 1 400 boxes @ \ 2.20 each August 1 250 boxes @ \ 2.40 each At the end of the year, Moore had 475 boxes of oat flakes on the shelf and in the back room. Assuming LIFO, calculate (A)cost of ending inventory and (B)cost of goods sold.