a o corp provided the following information for march 2012 from its perpetual invent 445329

Show computations for each of the following, and clearly show your final answer using the answer sheet provided.

1. The following information is available from the inventory records of A&O Corporation for January 2012:

Purchases		Sales
Balance on 1/1/2012	2,000 @ 9.04	Sales on 1/27/2012	1,800 @11.90
Purchases 0n 1/26/2012	1,500 @10.51

Assume that A&O maintains perpetual inventory records. Calculate the ending inventory at 1/31/2012 using the moving average inventory method (round numbers to two decimals).

1. The following information is available from the inventory records of VAP Corporation for January 2012:

Purchases		Sales
Balance on 1/1/2012	300 @ $10.00	Sales on 1/10/2012	200 @$24..00
Purchases 0n 1/11/2012	800 @$11.00	Sales on 1/15/2012	500 @$25..00
Purchased on 1/20/2012	500 @$13.00	Sales on 1/27/2012	250 @$27..00

Assume that VAP maintains periodic inventory records. Calculate the cost of goods sold under the LIFO method.

1. The following information is available for PVP Company for July 2012:

	Cost	Retail
7/1/2012 inventory	$10,440	$14,500
Purchases during July 2012	31,000	42,000
Net markups, $1,800; net markdowns, $1,000; sales during July 2012, $40,300

Calculate the cost of estimated inventory at 7/31/2012 on a LIFO basis.

1. A&O Corp. provided the following information for March 2012, from its perpetual inventory system:

March 1 balance500 units @ $25	March 18 sales300 units@ $35
March 28 purchases400 units @ $30

Assuming the LIFO perpetual method, calculate A&O’s March 2012 ending inventory.

1. A&O Corp. wishes to accumulate $900,000 for purchasing land five years from 1/1/2012. Assume that A&O will earn an annual return of 8% compounded semiannually during the 5 year period. A&O plans to make a deposit every six months starting on 6/30/2012for a total of 10 deposits. Calculate the amount A&O should deposit every 6 months to accumulate $900,000 at the end of 5 years. Use the appropriate factors given below:

Future value of an ordinary annuity at 8%, for 5 periods=5.86660	Future value of an ordinary annuity at 8%, for10 periods=14.48656
Future value of an ordinary annuity at 4%, for 5 periods=5.41632	Future value of an ordinary annuity at 4%, for 10 periods=12.00611
Present value of an ordinary annuity at 4%, for 5 periods=4.45182	Present value of an ordinary annuity at 4%, for 10 periods=8.11090

1. VAP Company adopted the dollar value LIFO method on 12/31/2011. Its inventory on that date was $277,000 and the price index was 100. Information for the subsequent year is as follows:

	Inventory at current prices	Price index
12/31/2012	448,630	119

Calculate the cost of ending inventory at 12/31/2012 under dollar value LIFO.

1. AVP Company had a balance of $3,500 in the prepaid insurance account at 1/1/2012 and the balance was $2,200 at 12/31/2012. During 2012, AVP recorded insurance expense of $10,000 in its income statement. PVP also paid cash to purchase additional prepaid insurance in 2012. Assuming all necessary journal entries were made, show calculations for the amount of insurance purchased in 2012.

1. On 1/1/2012 A&O Corporation signed a long term non cancellable purchase commitment with VAP Company to purchase product X for $900,000. As of 12/31/2012 the price of product X had declined to $700,000. On 1/1/2013 A&O received delivery of product X paying $900,000. Prepare the journal entries as appropriate on 1/1/2012, 12/31/2012, and 1/1/2013.