ACC 556 Week 3 Quiz | Assignment Help | Strayer University
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ACC 556 Week 3 Quiz | Assignment Help | Strayer University
Brief Exercise 6-04
In its first month of operations, Concord Corporation made three
purchases of merchandise in the following sequence: (1) 650 units at
$4, (2) 750 units at $6, and (3) 850 units at $7.
Problem 6-05A a1-a3
You have the following information for Splish Brothers Inc. for the
month ended October 31, 2022. Splish Brothers uses a periodic method for
inventory.
|
Date |
Description |
Units |
Unit Cost or Selling Price |
|||
|
Oct. 1 |
Beginning inventory |
55 |
$26 |
|||
|
Oct. 9 |
Purchase |
140 |
28 |
|||
|
Oct. 11 |
Sale |
90 |
45 |
|||
|
Oct. 17 |
Purchase |
90 |
29 |
|||
|
Oct. 22 |
Sale |
55 |
50 |
|||
|
Oct. 25 |
Purchase |
65 |
31 |
|||
|
Oct. 29 |
Sale |
100 |
50 |
Exercise 6-07 a1-a2
Pearl Industries uses a periodic inventory system and reports the
following for the month of June.
|
Date |
Explanation |
Units |
Unit Cost |
Total Cost |
||||
|
June 1 |
Inventory |
130 |
$5 |
$ 650 |
||||
|
12 |
Purchases |
370 |
6 |
2,220 |
||||
|
23 |
Purchases |
220 |
7 |
1,540 |
||||
|
30 |
Inventory |
240 |
Brief Exercise 6-02
|
|
|
Kingbird, Inc. took a physical inventory on December 31 and determined
that goods costing $230,000 were on hand. Not included in the physical count
were $31,000 of goods purchased from Blue Spruce Corp., FOB, shipping point,
and $20,500 of goods sold to Blossom Company for $30,000, FOB destination. Both
the Blue Spruce purchase and the Blossom sale were in transit at year-end.
What amount should Kingbird report as its December 31 inventory?
Exercise 6-05
Cullumber Company uses a periodic inventory system. Its records show the
following for the month of May, in which 74 units were sold.
|
Date |
Explanation |
Units |
Unit Cost |
Total Cost |
||||
|
May 1 |
Inventory |
34 |
$9 |
$306 |
||||
|
15 |
Purchase |
26 |
10 |
260 |
||||
|
24 |
Purchase |
40 |
11 |
440 |
||||
|
Total |
100 |
$1,006 |
Exercise 6-02
|
|
|
Farley Bains, an auditor with Nolls CPAs, is performing a review of
Martinez Corp.’s Inventory account. Martinez did not have a good year, and top
management is under pressure to boost reported income. According to its
records, the inventory balance at year-end was $751,290. However, the following
information was not considered when determining that amount.
Prepare a schedule to determine the correct inventory amount. (Show amounts that reduce inventory with a negative sign or parenthesis
e.g. -45 or parentheses e.g. (45).)
Exercise 6-02
Farley Bains, an auditor with Nolls
CPAs, is performing a review of Martinez Corp.’s Inventory account. Martinez
did not have a good year, and top management is under pressure to boost
reported income. According to its records, the inventory balance at year-end
was $751,290. However, the following information was not considered when
determining that amount.
Prepare a schedule to determine the correct inventory amount. (Show amounts that reduce inventory
Exercise 6-03 a1
|
|
|
Gato Inc. had the following inventory situations to consider at January
31, its year-end.
(a1)
Identify which of the following items should be included in inventory.
|
Goods held on consignment for Steele Corp. since December 12. |
|
Goods shipped on consignment to Logan Holdings Inc. on January 5. |
|
Goods shipped to a customer, FOB destination, on January 29 that are
still in transit. |
|
Goods shipped to a customer, FOB shipping point, on January 29 that
are still in transit. |
|
Goods purchased FOB destination from a supplier on January 25 that are
still in transit. |
|
Goods purchased FOB shipping point from a supplier on January 25 that
are still in transit. |
|
Office supplies on hand at January 31. |
Exercise 6-01
|
|
|
Umatilla Bank and Trust is considering giving Shamrock, Inc. a loan.
Before doing so, it decides that further discussions with Shamrock’s accountant
may be desirable. One area of particular concern is the Inventory account,
which has a year-end balance of $282,890. Discussions with the accountant
reveal the following.
|
1. |
Shamrock shipped goods costing $50,770 to Hemlock Company FOB shipping
point on December 28. The goods are not expected to reach Hemlock until
January 12. The goods were not included in the physical inventory because
they were not in the warehouse. |
|
|
2. |
The physical count of the inventory did not include goods costing
$103,820 that were shipped to Shamrock FOB destination on December 27 and
were still in transit at year-end. |
|
|
3. |
Shamrock received goods costing $26,950 on January 2. The goods were
shipped FOB shipping point on December 26 by Yanice Co. The goods were not
included in the physical count. |
|
|
4. |
Shamrock shipped goods costing $47,050 to Ehler of Canada FOB
destination on December 30. The goods were received in Canada on January 8.
They were not included in Shamrock physical inventory. |
|
|
5. |
Shamrock received goods costing $41,500 on January 2 that were shipped
FOB destination on December 29. The shipment was a rush order that was
supposed to arrive December 31. This purchase was included in the ending
inventory of $282,890. |
Determine the correct inventory amount on December 31.
Brief Exercise 6-01
|
|
|
Peete Company identifies the following items for possible inclusion in
the physical inventory.
Indicate whether each item should be included or excluded from the inventory
taking.
Exercise 6-04
|
|
|
Blue Spruce Corp. sells a snowboard, EZslide, that is popular with
snowboard enthusiasts. Below is information relating to Blue Spruce Corp.’s
purchases of EZslide snowboards during September. During the same
month, 108 EZslide snowboards were sold. Blue Spruce Corp. uses a
periodic inventory system.
|
Date |
Explanation |
Units |
Unit Cost |
Total Cost |
||||
|
Sept. 1 |
Inventory |
11 |
$116 |
$ 1,276 |
||||
|
Sept. 12 |
Purchases |
48 |
119 |
5,712 |
||||
|
Sept. 19 |
Purchases |
60 |
120 |
7,200 |
||||
|
Sept. 26 |
Purchases |
21 |
121 |
2,541 |
||||
|
Totals |
140 |
$16,729 |
(a) Compute the ending inventory at September 30 using the FIFO, LIFO and
average-cost methods. (Round average cost per
unit to 3 decimal places, e.g. 125.153 and final answers to 0 decimal places,
e.g. 125.)
Brief Exercise 6-07
|
|
|
In its first month of operation, Splish Brothers Inc.
purchased 300 units of inventory for $8, then 400 units for
$9, and finally 340 units for $10. At the end of the
month, 380 units remained.
Compute the amount of phantom profit that would result if the company used FIFO
rather than LIFO.
Exercise 6-09
Oriole Camera Shop Inc. uses the lower-of-cost-or-net realizable
value basis for its inventory. The following data are available at December 31.
|
Units |
Cost |
Net
Realizable Value |
||||
|
Cameras |
||||||
|
Minolta |
5 |
$165 |
$156 |
|||
|
Canon |
7 |
136 |
140 |
|||
|
Light
Meters |
||||||
|
Vivitar |
11 |
137 |
103 |
|||
|
Kodak |
10 |
120 |
123 |
What amount should be reported on Oriole Camera Shop’s financial statements,
assuming the lower-of-cost-or-net realizable value rule is applied?
Brief Exercise 6-03
|
|
|
In its first month of operations, Waterway Industries made three
purchases of merchandise in the following sequence: (1) 370 units at
$4, (2) 470 units at $6, and (3) 570 units at $7. Assuming
there are 270 units on hand at the end of the period, compute the
cost of the ending inventory under (a) the FIFO method and (b) the LIFO method.
Waterway Industries uses a periodic inventory system.
USA 
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