Q1. Serebin Corn p any applied FIFO to its inventory and got the following results for its ending inventory.
Cameras - 112 units at a cost per unit of $63
Blu-ray players - 153 units at a cost per unit of $79
iPods - 136 units at a cost per unit of $86
The cost of purchasing units at year-end was cameras $83. Blu-ray players $51 and iPods $73.
Required - Determine the amount of ending inventory at lower-of-cost-or-market.
Q2. Hamid's Hardware reported cost of goods sold as follows.
|
Beginning inventory
|
$ 22,500
|
$30,500
|
|
Cost of goods purchased
|
151,500
|
194,000
|
|
Cost of goods available for sale
|
174,000
|
224,500
|
|
Ending inventory
|
30,500
|
36,500
|
|
Cost of goods sold
|
$143,500
|
$188,000
|
Hamid's made two errors: (1) 2016 ending inventory was overstated $3,400, and (2) 2017 ending inventory was understated $6,250.
Required - Compute the correct cost of goods sold for each year.