The following independent situations relate to inventory accounting.
Kim Co. purchased goods with a list price of $182,500, subject to trade discounts of 20% and 10%, with no cash discounts allowable. How much should Kim Co. record as the cost of these goods?
Zimmerman Corp. had 1,500 units of part M.O. on hand May 1, 2010, costing $22.83 each. Purchases of part M.O. during May were as follows.
Units Unit Cost
May 9 2,000 $23.91
May 17 3,500 $25.00
May 26 1,000 $26.09
A physical count on May 31, 2010, shows 2,000 units of part M.O. on hand. Using the FIFO method, what is the cost of part M.O. inventory at May 31, 2010? Using the LIFO method, what is the inventory cost? Using the average cost method, what is the inventory cost?
FIFO inventory cost?
LIFO inventory cost?
Average cost?
Ashbrook Company adopted the dollar-value LIFO method on January 1, 2010 (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
1/1/10 $200,000 $200,000
12/31/10 $240,000 $292,800
12/31/11 $256,000 $286,720
Computing an internal price index and using the dollar-value LIFO method, at what amount should the inventory be reported at December 31, 2011?
Price index (12/31/10) ??
Price index (12/31/11) ??
Dollar-value LIFO inventory (12/31/10) $ ??
Dollar-value LIFO inventory (12/31/11) $ ??
Donovan Inc., a retail store chain, had the following information in its general ledger for the year 2010.
Merchandise purchased for resale $912,870
Interest on notes payable to vendors 9,110
Purchase returns 17,860
Freight-in 24,840
Freight-out 19,860
Cash discounts on purchases 7,080 What is Donovan's inventoriable cost for 2010?