80.2K

Verified Solution

Link Copied!

The following independent situations relate to inventory accounting. Answer the following questions about inventories.

Skysong Co. purchased goods with a list price of $185,700, subject to trade discounts of 20% and 10%, with no cash discounts allowable. How much should Skysong Co. record as the cost of these goods?

Cost of goods purchased

$enter the Cost of goods purchased in dollars

eTextbook and Media

Concord Companys inventory of $1,058,900 at December 31, 2020, was based on a physical count of goods priced at cost and before any year-end adjustments relating to the following items.

(a)		Goods shipped from a vendor f.o.b. shipping point on December 24, 2020, at an invoice cost of $69,520 to ConcordCompany were received on January 4, 2021.
(b)		The physical count included $31,120 of goods billed to Sakic Corp. f.o.b. shipping point on December 31, 2020. The carrier picked up these goods on January 3, 2021.

What amount should Concord report as inventory on its balance sheet?

Inventory to be reported

$enter Inventory to be reported in dollars

eTextbook and Media

Marigold Corp. had 1,700 units of part M.O. on hand May 1, 2020, costing $25 each. Purchases of part M.O. during May were as follows.

		Units		Units Cost
May 9		2,200		$26
17		3,700		28
26		1,200		29

A physical count on May 31, 2020, shows 2,200 units of part M.O. on hand. Using the FIFO method, what is the cost of part M.O. inventory at May 31, 2020? Using the LIFO method, what is the inventory cost? Using the average-cost method, what is the inventory cost? (Round average cost per unit to 2 decimal places, e.g. 15.25 and final answers to 0 decimal places, e.g. 1,620.)

		FIFO		LIFO		Average Cost
Inventory Cost		$enter a dollar amount rounded to 0 decimal places		$enter a dollar amount rounded to 0 decimal places		$enter a dollar amount rounded to 0 decimal places

eTextbook and Media

Swifty Company adopted the dollar-value LIFO method on January 1, 2020 (using internal price indexes and multiple pools). The following data are available for inventory pool A for the 2 years following adoption of LIFO.

Inventory		At Base-Year Cost		At Current-Year Cost
1/1/20		$201,600		$201,600
12/31/20		248,900		273,790
12/31/21		255,500		291,270

Computing an internal price index and using the dollar-value LIFO method, at what amount should the inventory be reported at December 31, 2021? (Round price index to 2 decimal places, e.g. 1.45 and inventory to 0 decimal places, e.g. 6,548.)

		December 31, 2021
Price Index		enter the price index
Dollar-value LIFO inventory		$enter a dollar amount

eTextbook and Media

Nash Inc., a retail store chain, had the following information in its general ledger for the year 2021.

Merchandise purchased for resale		$898,098
Interest on notes payable to vendors		7,836
Purchase returns		14,980
Freight-in		21,560
Freight-out (delivery expense)		18,084
Cash discounts on purchases		7,333

What is Nashs inventoriable cost for 2021?

Nashs inventoriable cost for 2021

$enter Nashs inventoriable cost for 2021 in dollars

Answer & Explanation Solved by verified expert

See Answer