Acc308 Financial Accounting: Exam #2 (5 Problems)
Acc308 Financial Accounting EXAM #2 Use the following information for problems #1, 2 and 3 Beginning Balance January 1 80 units @ $50 each $4,000 Purchase January 18 40 units @ $51 each Purchase January 28 40 units at $52 each Sales January 12 30 units Sales January 22 30 units Sales January 31 45 units 1. 15 Points Compute the ending inventory and cost of goods sold assuming LIFO perpetual inventory system. 2. 15 Points Compute the ending inventory and cost of goods sold assuming LIFO periodic inventory system. 3. 15 Points Compute the ending inventory and cost of goods sold assuming average cost (or weighted average) perpetual inventory system. 4. Dymek Sports, Inc. has four products in its inventory. Information about the December 31, 2014 inventory is as follows: Product Total Total Total Net Cost Replacement Realizable Cost Value Gloves $360,000 $330,000 $300,000 Bats 260,000 240,000 320,000 Balls 150,000 110,000 125,000 Uniforms 600,000 560,000 950,000 The normal gross profit percentage is 20% of cost. a. 30 Points Determine the balance sheet inventory carrying value at December 31, 2014, assuming the LCM rule is applied to individual products. b. 10 Points Assuming that Dymek recognizes an inventory write-down as a separate income statement item, determine the amount of the loss, and present the journal entry. 5. 15 Points Joel Company purchased the assets of Amy, Inc. at auction for $1,560,000. An independent appraisal of the market value of the assets is listed below: Land $171,600 Building 514,800 Equipment 600,600 Inventories 429,000 Prepare the journal entry to record the purchase of the assets. Assume a 25% cash down payment with a mortgage for the balance.
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