Inventory

The following information applied to Fenn, Inc. for year 2: Merchandise purchased for resale $400,000 Freight-in 10,000 Freight-out 5,000 Purchase returns 2,000 Fenn’s year 2 inventoriable cost was

On December 28, year 2, Kerr Manufacturing Co. purchased goods costing $50,000. The terms were FOB destination. Some of the costs incurred in connection with the sale and delivery of the goods were as follows: Packaging for shipment $1,000 Shipping 1,500 Special handling charges 2,000 These goods were received on December 31, year 2. In Kerr’s December 31, year 2 balance sheet, what amount of cost for these goods should be included in inventory?

On June 1, year 2, Pitt Corp. sold merchandise with a list price of $5,000 to Burr on account. Pitt allowed trade discounts of 30% and 20%. Credit terms were 2/15, n/40 and the sale was made FOB shipping point. Pitt prepaid $200 of delivery costs for Burr as an accommodation. On June 12, year 2, Pitt received from Burr a remittance in full payment amounting to

The following information was taken from Cody Co.’s accounting records for the year ended December 31, year 2: Decrease in raw materials inventory $ 15,000 Increase in fnished goods inventory 35,000 Raw material purchased 430,000 Direct labor payroll 200,000 Factory overhead 300,000 Freight-out 45,000 There was no work in process inventory at the beginning or end of the year. Cody’s year 2 cost of goods sold is

The following information pertains to Deal Corp.’s year 2 cost of goods sold: Inventory, 12/31/Y1 $90,000 Year 2 purchases 124,000 Year 2 write-off of obsolete inventory 34,000 Inventory, 12/31/Y2 30,000 The inventory written off became obsolete due to an unexpected and unusual technological advance by a competitor. In its year 2 income statement, what amount should Deal report as cost of goods sold?

How should the following costs affect a retailer’s inventory? Freight-in Interest on inventory loan

According to the net method, which of the following items should be included in the cost of inventory? Freight costs Purchase discounts not taken

The following information pertained to Azur Co. for the year: Purchases $102,800 Purchase discounts 10,280 Freight in 15,420 Freight out 5,140 Beginning inventory 30,840 Ending inventory 20,560 What amount should Azur report as cost of goods sold for the year?

When allocating costs to inventory produced for the period, fxed overhead should be based upon

Per the Codifcation, what is considered the normal capacity of production facilities?

How should unallocated fxed overhead costs be treated?

When manufacturing inventory, what is the accounting treatment for abnormal freight-in costs?

On December 15, year 2, Flanagan purchased goods costing $100,000. The terms were FOB shipping point. Costs incurred by Flanagan in connection with the purchase and delivery of the goods were as follows: Normal freight charges $3,000 Handling costs 2,000 Insurance on shipment 500 Abnormal freight charges for express shipping 1,200 The goods were received on December 17, year 2. What is the amount that Flanagan should charge to inventory and to current period expense?

Bach Co. adopted the dollar-value LIFO inventory method as of January 1, year 2. A single inventory pool and an internally computed price index are used to compute Bach’s LIFO inventory layers. Information about Bach’s dollar value inventory follows: Inventory Date At base year cost At dollar value LIFO 1/1/Y1 $90,000 $90,000 Year 1 layer 20,000 30,000 Year 2 layer 40,000 80,000 What was the price index used to compute Bach’s year 2 dollar value LIFO inventory layer?

Nest Co. recorded the following inventory information during the month of January: Units Unit cost Total cost Units on hand Balance on 1/1 2,000 $1 $2,000 2,000 Purchased on 1/8 1,200 3 3,600 3,200 Sold on 1/23 1,800 1,400 Purchased on 1/28 800 5 4,000 2,200 Nest uses the LIFO method to cost inventory. What amount should Nest report as inventory on January 31 under each of the following methods of recording inventory? Perpetual Periodic

The weighted-average for the year inventory cost flow method is applicable to which of the following inventory systems? Periodic Perpetual

During January year 2, Metro Co., which maintains a perpetual inventory system, recorded the following information pertaining to its inventory: Units Unit cost Total cost Units on hand Balance on 1/1/Y2 1,000 $1 $1,000 1,000 Purchased on 1/7/Y2 600 3 1,800 1,600 Sold on 1/20/Y2 900 700 Purchased on 1/25/Y2 400 5 2,000 1,100 Under the moving-average method, what amount should Metro report as inventory at January 31, year 2?

Based on a physical inventory taken on December 31, year 2, Chewy Co. determined its chocolate inventory on a FIFO basis at $26,000 with a replacement cost of $20,000. Chewy estimated that, after further processing costs of $12,000, the chocolate could be sold as fnished candy bars for $40,000. Chewy’s normal proft margin is 10% of sales. Under the lower of cost or market rule, what amount should Chewy report as chocolate inventory in its December 31, year 2 balance sheet?