Question 1: Miller Inc. is a wholesaler of office supplies. The activity for Model III calculators during August is shown below:
Balance/
Date Transaction Units Cost
August 1 Inventory 2,000 $36.00
7 Purchase 3,000 37.20
12 Sales 3,600
21 Purchase 4,800 38.00
22 Sales 3,800
29 Purchase 1,600 38.60
If Miller Inc. uses a perpetual inventory system, calculate the ending inventory of Model III calculators at August 31 assuming A) the LIFO method and B) the FIFO method.
Stephens Inc. is a wholesaler of photography equipment. The activity for the VTC cameras during July is shown below:
Balance/
Date Transaction Units Cost
July 1 Inventory 2,000 $36.00
7 Purchase 3,000 37.00
12 Sales 3,600
21 Purchase 5,000 37.88
22 Sales 3,800
29 Purchase 1,600 38.11
Question 2: See information for Stephens Inc. above. If Stephens Inc. uses the average cost method to account for inventory, the ending inventory of VTC cameras at July 31 is reported as
a. $153,400.
b. $156,912.
c. $158,736.
d. $159,464.
Question 3: The following information is available for Lyman Company:
Cost of goods sold for 2011 ........................... $1,200,000
Inventories at December 31, 2010 ...................... 350,000
Inventories at December 31, 2011 ...................... 310,000
Assuming that a business year consists of 360 days, the number of days' sales in average inventories for 2011 was
a. 49.5.
b. 93.
c. 99.
d. 105.