Hwweek 5

In: Business and Management

Submitted By lukmoo
Words 269
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Homework 5
E8-3 1. Do not include. Title to special order merchandise passes to customer on completion. 2. Do not include. Title did not pass until January 3. 3. Include in inventory. Product belonged to client at December 31, 2012 4. Include in inventory. Under invoice terms, title passed when goods were shipped. 5 . Do not include. Goods received

P8-4 (a) Beginning inventory 1,000 Purchases (2,000 + 3,000) 5,000 Cost of goods available for sale 6,000 Sold (2,500 + 2,000) 4,500 Goods on hand 1,500 Periodic FIFO 1,000 X $12 = $12,000 2,000 X $18 = 36,000 1,500 X $23 = 34,500 4,500 $82,500

(b) Perpetual FIFO 1,000 X $12 = $12,000 2,000 X $18 = 36,000 1,500 X $23 = 34,500 4,500 $82,500

(c) Periodic LIFO 3,000 X $23 = $69,000 1,500 X $18 = 27,000 4,500 $96,000 (d) Perpetual LIFO
Date Purchased Sold Balance
1/1 1,000 * $12 = $12,000
2/4 2,000*$18 = $36,000 (2,000*$18)+(…...

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