BE 166
The following accounts are included in the ledger of Dean Company:
Advertising expense
Freight-in
Inventory
Purchases
Purchase returns and allowances
Sales
Sales returns and allowances
Which of the accounts would be included in calculating cost of goods sold?
BE 167
The Entertainment Center accumulates the following cost and market data at December 31.
Inventory CategoriesCost DataMarket Data
Camera$11,000$10,200
Camcorders8,0008,500
DVDs14,00013,000
What is the lower-of-cost-or-market value of the inventory?
BE 168
Oakley Supply Company reports net income of $120,000 in 2011. The ending inventory did not include goods valued at $5,000 that Oakley had consigned to Roberta’s Gift Shop.
(1)What is the correct net income for 2011?
(2)What impact will this error have on the balance sheet at 12/31/11?
BE 169
At December 31, 2011, the following information was available for Fife Company: ending inventory $22,600; beginning inventory $21,400; cost of goods sold $154,000; and sales revenue $330,000.
Calculate the inventory turnover ratio and days in inventory for Fife.
EXERCISES
Ex. 170
The following information is available for Massey Company:
Beginning inventory600 units at $5
First purchase900 units at $6
Second purchase500 units at $7
Assume that Massey uses a periodic inventory system and that there are 800 units left at the end of the month.
Instructions
Compute the cost of ending inventory under the
(a)FIFO method.
(b)LIFO method.