ACC/422 Final Exam

Headland Company uses a periodic inventory system. For April, when the company sold 560 units, the following information is available.

		Units		Unit Cost		Total Cost
April 1 inventory		240		$27			$ 6,480
April 15 purchase		370		32			11,840
April 23 purchase		390		35			13,650
		1,000					$31,970

Compute the April 30 inventory and the April cost of goods sold using the FIFO method.

Ending inventory		$ [removed]
Cost of goods sold		$ [removed]

Sandhill Company uses a periodic inventory system. For April, when the company sold 600 units, the following information is available.

		Units		Unit Cost		Total Cost
April 1 inventory		350		$24			$ 8,400
April 15 purchase		370		29			10,730
April 23 purchase		280		31			8,680
		1,000					$27,810

Compute the April 30 inventory and the April cost of goods sold using the LIFO method.

Ending inventory		$ [removed]
Cost of goods sold		$ [removed]

Presented below is information related to Sarasota Inc.’s inventory, assuming Sarasota uses lower-of-LIFO cost-or-market.

(per unit)		Skis		Boots		Parkas
Historical cost		$235.60		$131.44		$65.72
Selling price		262.88		179.80		91.45
Cost to distribute		23.56		9.92		3.10
Current replacement cost		251.72		130.20		63.24
Normal profit margin		39.68		35.96		26.35

Determine the following:

(a) The two limits to market value (i.e., the ceiling and the floor) that should be used in the lower-of-cost-or-market computation for skis.

Ceiling Limit		$ [removed]
Floor Limit		$ [removed]

(b) The cost amount that should be used in the lower-of-cost-or-market comparison of boots.

The cost amount

$ [removed]

(c) The market amount that should be used to value parkas on the basis of the lower-of-cost-or-market.

The market amount

$ [removed]

A fire destroys all of the merchandise of Indigo Company on February 10, 2017. Presented below is information compiled up to the date of the fire.

Inventory, January 1, 2017		$411,600
Sales revenue to February 10, 2017		1,990,300
Purchases to February 10, 2017		1,145,430
Freight-in to February 10, 2017		63,700
Rate of gross profit on selling price		30%

What is the approximate inventory on February 10, 2017?

Inventory at February 10, 2017

$