Problem 5-1A Alternative cost flows-perpetual LO P1 [The following information a
ID: 2364459 • Letter: P
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Problem 5-1A Alternative cost flows-perpetual LO P1 [The following information applies to the questions displayed below. Date Activities Units Acquired at Cost Units Sold at Retail Mar. 1 Beginning inventory 160 units @ $52.20/unit Mar. 5 Purchase 255 units @ $57.20/unit Mar. 9 Sales 320 units @ $87.20/unit Mar. 18 Purchase 115 units @ $62.20/unit Mar. 25 Purchase 210 units @ $64.20/unit Mar. 29 Sales 190 units @ $97.20/unit ________________________________________ ________________________________________ ________________________________________ ________________________________________ Totals 740 units 510 units 1. Compute cost of goods available for sale and the number of units available for sale. @ Cost of Good available for sale @Number of units available for sale 2. Compute the number of units in ending inventory Ending inventory 3. Compute the cost assigned to ending inventory using (a) FIFO, (b) LIFO, (c) weighted average, and (d) specific identification. For specific identification, the March 9 sale consisted of 95 units from beginning inventory and 225 units from the March 5 purchase; the March 29 sale consisted of 75 units from the March 18 purchase and 115 units from the March 25 purchase. (Round your per unit costs to 2 decimal places) a. FIFO Ending Inventory b. LIFO c. Weighted average d. Specific identification Compute gross profit earned by the company for each of the four costing methods. For specific identification, the March 9 sale consisted of 95 units from beginning inventory and 225 units from the March 5 purchase; the March 29 sale consisted of 75 units from the March 18 purchase and 115 units from the March 25 purchase. (Round your per unit costs to 2 decimal places and inventory balances.) a. FIFO Gross Profit b. LIFO c. Weighted average d. Specific identification Problem 8-1A Plant asset costs; depreciation methods L.O. C1, P1 Xavier Construction negotiates a lump-sum purchase of several assets from a company that is going out of business. The purchase is completed on January 1, 2011, at a total cash price of $820,000 for a building, land, land improvements, and four vehicles. The estimated market values of the assets are building, $511,450; land, $299,150; land improvements, $48,250; and four vehicles, $106,150. The companyExplanation / Answer
A perpetual inventory system means they keep a running balance of every purchased item. The alternative method is to take a physical inventory at year end to determine the ending balances. Either method can value inventory under FIFO, LIFO or Weighted AVG answers.yahoo.com/question/index?qid=20100529065145AA7AMLE