Accounting Homework Week 3

hw20ch20820b-08.04.xls

Problem

Patti Devine owns Devine Decorating. One of her most popular items is the Remind-a-Chime digital clock. This programmable clock issues "voice-based" reminders of important events like birthdays, anniversaries, etc.
Following is the Remind-a-Clock inventory activity for January. The clocks on hand at January 1 had a unit cost of $140.
	Date	Purchases	Sales	Units on Hand
	1-Jan			40
	5-Jan	60 units @ $150 each		100
	16-Jan		70 units @ $255 each	30
	23-Jan	90 units @ $170 each		120
	28-Jan		55 units @ $295 each	65
(a)	If Devine uses the first-in, first-out (FIFO) inventory method (periodic approach), what values would be assigned to ending inventory and cost of goods sold? How much is gross profit?
(b)	If Devine uses the last-in, first-out (LIFO) inventory method (periodic approach), what values would be assigned to ending inventory and cost of goods sold? How much is gross profit?
(c)	If Devine uses the weighted-average inventory method (periodic approach), what values would be assigned to ending inventory and cost of goods sold? How much is gross profit?

&R&"Myriad Web Pro,Bold"&20B-08.04

B-08.04

(a)	FIFO
	Beginning inventory	$ -
	Plus: Purchases	-
	Cost of goods available for sale	$ -
	Less: Ending inventory	-
	Cost of goods sold	$ -
	Sales	$ -
	Cost of goods sold	-
	Gross profit	$ -
(b)	LIFO
	Beginning inventory	$ -
	Plus: Purchases	-
	Cost of goods available for sale	$ -
	Less: Ending inventory	-
	Cost of goods sold	$ -
	Sales	$ -
	Cost of goods sold	-
	Gross profit	$ -
(c)	Weighted-average
	Beginning inventory	$ -
	Plus: Purchases	-
	Cost of goods available for sale	$ -
	Less: Ending inventory	-
	Cost of goods sold	$ -
	Sales	$ -
	Cost of goods sold	-
	Gross profit	$ -

&L&"Myriad Web Pro,Bold"&12Name: Date: Section: &R&"Myriad Web Pro,Bold"&20B-08.04

B-08.04