Accounting for Inventories (Brief Exercises )
please i need some help in this problems , easy believe me but i don't have time to solve them
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BE8-3 Mayberry Company took a physical inventory on December 31 and determined that goods costing
$200,000 were on hand. Not included in the physical count were $15,000 of goods purchased from Taylor
Corporation, f.o.b. shipping point; and $22,000 of goods sold to Mount Pilot Company for $30,000, f.o.b. destination.
Both the Taylor purchase and the Mount Pilot sale were in transit at year-end. What amount should
Mayberry report as its December 31 inventory?
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BE8-4 Jose Zorilla Company uses a periodic inventory system. For April, when the company sold 700 units,
the following information is available.
Units Unit Cost Total Cost
April 1 inventory 250 $10 $ 2,500
April 15 purchase 400 12 4,800
April 23 purchase 350 13 4,550
1,000 $11,850
Compute the April 30 inventory and the April cost of goods sold using the average cost method.
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BE8-5 Data for Jose Zorilla Company are presented in BE8-4. Compute the April 30 inventory and the April
cost of goods sold using the FIFO method.
BE8-6 Data for Jose Zorilla Company are presented in BE8-4. Compute the April 30 inventory and the April
cost of goods sold using the LIFO method.
BE8-7 Easy-E Company had ending inventory at end-of-year prices of $100,000 at December 31, 2002;
$123,200 at December 31, 2003; and $134,560 at December 31, 2004. The year-end price indexes were 100 for
2002; 110 for 2003; and 116 for 2004. Compute the ending inventory for Easy-E Company for 2002 through
2004 using the dollar-value LIFO method.
BE8-8 Wingers uses the dollar-value LIFO method of computing its inventory. Data for the past 3 years
follow. Compute the value of the 2002 and 2003 inventories using the dollar-value LIFO method.
Year Ended December 31 Inventory at Current-year Cost Price Index
2001... $19,750... 100
2002... 21,708... 108
2003... 25,935... 114
BE8-9 Presented below is information related to Alstott Inc.'s inventory.
(per unit)... kis... Boots... Parkas
Historical cost... $190.00... $106.00... $53.00
Selling price... 217.00... 145.00... 73.75
Cost to distribute... 19.00... 8.00... 2.50
Current replacement cost... 203.00... 105.00... 51.00
Normal profit margin... 32.00... 29.00... 21.25
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; (b) the cost amount that should be used in the
lower of cost or market comparison of boots; and (c) the market amount that should be used to value parkas
on the basis of the lower of cost or market.
