163. A company that uses a perpetual inventory system made the following cash purchases and sales. There was no beginning inventory.
January 1:
|
Purchased 100 units at $10 per unit
|
February 5:
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Purchased 60 units at $12 per unit
|
March 16:
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Sold 40 units for $16 per unit
|
Prepare the general journal entry to record the March 16 sale, assuming the weighted-average method is used.
164. A company reported the following data related to its ending inventory:
Product
|
Units Available
|
Cost
|
Market
|
849
|
100
|
$10
|
$11
|
842
|
75
|
16
|
14
|
847
|
60
|
14
|
13
|
860
|
40
|
16
|
20
|
Calculate the lowerofcostor-market on both the:
(a) Inventory as a whole.
(b) Inventory applied separately to each product.
165. A company had the following ending inventory costs:
Product
|
Units Available
|
Cost
|
Market
|
A
|
10
|
$ 5
|
$ 6
|
B
|
50
|
8
|
7
|
C
|
35
|
10
|
11
|
Instructions:
(a) Calculate the lower of cost or market (LCM) value for the inventory as a whole.
(b) Calculate the lower of cost or market (LCM) value for each individual item.
166. A company uses the periodic inventory system and the following information is available. All purchases and sales are on credit.
|
|
Units
|
Unit Cost
|
Total Cost
|
Unit Sales Price
|
10/01
|
Inventory balance
|
30
|
$3
|
$ 90
|
|
10/06
|
Purchase
|
70
|
4
|
280
|
|
10/11
|
Purchase
|
45
|
5
|
225
|
|
10/16
|
Purchase
|
50
|
6
|
300
|
|
|
Goods available
|
195
|
|
$895
|
|
|
|
|
|
|
|
10/12
|
Sale
|
100
|
|
|
$10
|
10/20
|
Sale
|
60
|
|
|
11
|
|
Goods sold
|
160
|
|
|
|
|
|
|
|
|
|
10/31
|
Inventory balance
|
35
|
|
|
|
1. Prepare the general journal entries to record:
The October 6 purchase.
The October 12 sale.
2. Assuming the periodic inventory system is used, determine both the cost of the ending inventory and the cost of goods sold using the LIFO method for October.