Mizzou ACCTCY 2037 - Accounting 2037 Homework up to Exam 2 (19 pages)

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Accounting 2037 Homework up to Exam 2



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Accounting 2037 Homework up to Exam 2

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Pages:
19
School:
University of Missouri
Course:
Acctcy 2037 - Accounting II

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Accounting 2037 Homework up to Exam 2 Chapter 18 Homework 18 14 The Schulte Tape Company has a beginning inventory for May of 2 500 250 tapes at 10 each and makes the following purchases and sales of tapes during May May 5 Purchases 150 tapes 11 1 650 12 Sales 160 tapes 22 Purchases 150 tapes 12 1 800 25 Sales 90 tapes Required Compute the cost of goods sold and the ending inventory for May if the company uses the following 1 The perpetual inventory system and the FIFO cost flow assumption 2 The perpetual inventory system and the LIFO cost flow assumption 1 May 12 160 tapes 10 each from beginning inventory 1 600 May 25 90 tapes 10 each from beginning inventory 900 Cost of Goods Sold for May 2 500 150 tapes 11 from purchase on May 5th 1 650 150 tapes 12 from purchase on May 22 1 800 Cost of Ending Inventory 3 450 2 May 12 150 tapes 11 each from purchase on May 5 1 650 May 12 10 tapes 10 each from beginning inventory 100 May 25 90 tapes 12 each from purchase on May 22 1 080 Cost of Goods Sold for May 2 830 240 tapes 10 each from beginning inventory 2 400 60 tapes 12 each from purchase on May 22 720 Cost of Ending Inventory 3 120 18 18 The Brabham Kite Company had the following FIFO costs and replacement costs of kites for its ending inventory Item Number of Unit Unit Replacement Units Cost Cost 804 100 10 11 603 150 12 10 331 320 8 6 928 70 20 22 Required 1 Compute the value of the ending inventory under the lower of cost or market method 2 How are the company s financial statements affected by the application of the lower of cost ormarket method 3 Show how the ending inventory would be reported on the company s balance sheet Assume LCM for both inventory items separately and inventory as a whole 1 Each item separately Item Inventory as a whole 804 603 331 928 Units 100 Items 150 804 320 603 70 331 928 Cost Acquisition Cost LCM Carrying Value 10 1 000 10 1 000 Units Cost Market 12 1 800 Cost10 Market 1 200 100 10 11 1 000 8 2 560 6 1 100 1 920 150 12 10 1 800 1 500 1



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