ACCT 211 Learnsmart Assignment 5 Liberty University Solution

ABC Co. uses a perpetual inventory system and uses the LIFO cost flow assumption. Calculate the dollar value of its cost of goods sold for the sale made on Jan. 10.

Many companies choose to use LIFO inventory costing during periods of rising purchase costs because reported cost of goods sold will be . This means that income taxes paid will be than if the company used FIFO or weighted average inventory costing.

Assumes that Q-Mart uses a periodic LIFO inventory system. During the period, it sold 14 units. Calculate the dollar value of its cost of goods sold for the period.

Estimates of inventory are not usually required when a company uses a inventory system because they would presumably have updated inventory data.

The LIFO cost flow assumption assumes that the cost of items purchased are the costs that will be transferred first to cost of goods sold on the .

Assume that Wally World uses a perpetual LIFO inventory system. Its ending inventory consists of 13 units. Calculate the dollar value of its ending inventory.

Q-mart failed to include inventory that was kept in a separate warehouse in its end-of-the-period inventory count. Explain how this error will affect this year’s balance sheet.

Assume that sparks uses a periodic FIFO inventory system. Its ending inventory consists of 9 units. Calculate the dollar value of its ending inventory.

Sparky's incorrectly included inventory that was on consignment in its ending inventory count. Consequently, the ending inventory was overstated on the balance sheet. Explain how this error effect this year's income statement.

Q-mart failed to include inventory that was kept in a separate warehouse in its 12/31 end-of-the-period inventory count. Consequently, the ending inventory on 12/31 was understated on the balance sheet. Explain how this error will effect the current year's income statement. (Check all that apply.)

Assume that Maycces uses a periodic weighted average inventory system. Its ending inventory consists of 13 units. Calculate the dollar value of its ending inventory assuming the following information.

Assume that Maycces uses a perpetual weighted average inventory system. Its ending inventory consist of 13 units. Calculate the dollar value of its ending inventory assuming the following information.

Assume that J-Mart uses a perpetual weighted average inventory system. During the period, it had two sales. Calculate the average cost per unit on hand as of June 8 when it made its first sale.

Review the steps below that apply LCM to individual items of inventory. Place them in the correct order of occurrence.

Show your understanding of the ownership of goods in transit by completing the following statement. If goods are shipped FOB shipping point, then the is responsible for paying freight charges and the will not include the merchandise In their Inventory.

Chocolate Inc. uses a perpetual inventory system and uses the FIFO cost flow assumption. Calculate the cost of goods sold for the sale made on Mar. 20.

Recount the methods used to assign costs to inventory and cost of goods sold under both a perpetual and a periodic system

The FIFO cost flow assumption assumes that the cost of items purchased are the cost that will be transferred first to cost of goods sold on the .