Accounting Principles 1 Exam 3 (Chapters 5 & 6) Businsky Spring 2013 Name ________________________ POINTS POINTS PROBLEM POSSIBLE RECEIVED 1 16 2 30 3 14 4 15 TOTAL 75 PROBLEM 1 (16 points) The merchandise inventory of Planter Co was destroyed by flood on August 15.
Accounting Principles 1 Exam 3 (Chapters 5 & 6) Businsky Spring 2013 Name ________________________ POINTS POINTS PROBLEM POSSIBLE RECEIVED 1 16 2 30 3 14 4 15 TOTAL 75 PROBLEM 1 (16 points) The merchandise inventory of Planter Co was destroyed by flood on August 15. The following data was obtained from the accounting records: Jan 1 Inventory $650,000 Jan 1 – August 15 Purchases (net) 1,100,000 Sales (net) 2,600,000 Gross Profit Rate 40% Instructions: Estimate the cost of the inventory destroyed in the flood. Show all work. Sales (1/1 – 8/15) 100% Cost of Goods Sold (1/1 – 8/15) 60% Gross Profit 40% Inventory Beg Inventory (1/1) – COGS (1/1 – 8/15): Purchases (1/1 – 8/15): Ending (8/15): Problem 2 (30 points) Beginning inventory, purchases, and sales data for personal organizers are as follows: Jan 1 Beginning Inventory 45 units @ $24 3 Sold 35 units 8 Purchased 70 units @ $32 21 Sold 65 units 30 Purchased 25 units @ $47 Instructions: 1 – Using the above transactions prepare the perpetual inventory record using each of the costing methods listed below. 2 – In the space provided below identify the ending inventory balance and cost of goods sold for June under each method. FIFO LIFO Weighted Average (Round unit cost to the nearest cent and total costs to the nearest dollar) FIFO FIFO Purchases Cost of Goods Sold Inventory On Hand Date Quantity Unit Cost Total Cost Quantity Unit Cost Total Cost Quantity Unit Cost Total Cost Jan 1 45 $24 $1,080 Jan 3 35 $24 $840 10 $24 $240 Jan 8 70 $32 $2,240 70 $32 $2,240 Jan21 10 $24 $240 55 $32 $1,760 15 $32 $480 Jan30 25 $47 $1,175 25 $47 $1,175 100 $2,840 40 $1,655 Ending Inventory: $1,655 Cost of Goods Sold:…
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