Question

Concord Company’s 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 Concord Company 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 LINK TO TEXT LINK TO TEXT LINK TO TEXT

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 LINK TO TEXT LINK TO TEXT LINK TO TEXT

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

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 Nash’s inventoriable cost for 2021? Nash’s inventoriable cost for 2021 $enter Nash’s inventoriable cost for 2021 in dollars

Answer 1

Please find below table useful to compute desired results: -

А Ε B Inventory before adjustment Goods in Transit Inventory to be reported 1058900 69520 =D1+D2 H Inventory At base-year cost At current-year cost Price Index Jan. 1. 2020 201600 201600 =H2/G2*100 Dec. 31, 2020 248900 273790 =H3/G3*100 Dec. 31. 2021 255500 291270 =H4/G4*100 Dollar-value LIFO inventory =H2*12/100 =(G3-G2)*13/100 =(G4-G3)*14/100 =SUM(J2:J4) Price 3700 Merchandise purchased for resale Interest on notes payable to vendors Purchase returns Freight-in Freight-Out (delivery Expense) Cash discounts on purchases Inventoriable Cost 898098 7836 14980 21560 18084 7333 =17-19+110-112 13 5 Date Units Cost 6 May. 1 1700 =B6 C6 7 May. 9 2200 =B7*C7 8 May. 17 =B8C8 9 May 26 1200 =B9*C9 10 Total =SUM(B6:B9) =SUM(C6:09) I=SUM(D6:D9) 11 Average Price =D10/B10 12 Ending Inventory 2200 Using FIFO method 14 =A9 =B9 =C9 =B14*C14 15 =A8 =B12-B14 =B15*C15 16 Total =D14+D15 17 Using LIFO method =A6 =B6 =C6 =B18*C18 =B12-B18 =C7 =B19*C19 Total =D18+D19 Ending Inventory under AC method Using Average Price =D11*B12 =C8 =A7

End Results would be as follows: -

E 1 2 3 A B C Inventory before adjustment Goods in Transit Inventory to be reported D $1,058.900 $69,520 $1,128,420 F Inventory Jan. 1. 2020 Dec. 31, 2020 Dec. 31. 2021 H At base-year cost At current-year cost Price Index Dollar-value LIFO inventory $201.600 $201.600 100 $201.600 $248.900 $273,790 110 $52.030 $255,500 $291,270 $7,524 $261,154) 4. 114 $898,098 Merchandise purchased for resale Interest on notes payable to vendors Purchase returns Freight-in Freight-Out (delivery Expense) Cash discounts on purchases Inventoriable Cost $7,836 $14.980 $21,560 $18,084 $7,333 $897,345 5 Date Units Price Cost 6 May. 1 1.700 $250 $42,500 7 May. 9 2,200 $26 $57,200 8 May. 17 3,700 $28 $103.600 9 May. 26 1,200 $29 $34.800 10 Total 8.800 $108 $238.100 11 Average Price $27 12 Ending Inventory 2.200 13 Using FIFO method 14 May. 26 1,200 $29 $34.800 15 May. 17 1 ,000 $28 $28,000 Total $62,800 17 Using LIFO method 18 May. 1 1,700 $25 $42.500 19 May. 9 500 $26 $13,000 20 Total $55,500 Ending Inventory under AC method 22 Using Average Price $59,525 16