Page 326 - Accounting Principles (A Business Perspective)

This book is licensed under a Creative Commons Attribution 3.0 License

a. Using FIFO perpetual inventory procedure, compute cost of goods sold for January.
b. Using FIFO perpetual inventory procedure, prepare the journal entries for January.
c. Compute the cost of goods sold under FIFO periodic inventory procedure. Is there a difference between the

amount computed using the two different procedures?
Alternate problem E Following are data for Dandy Company for the year 2010:
Units Unit
Cost
Merchandise Inventory, 700 @ $20.4
January 1 0
Purchases:
February 2 500 @ 21.00
@
April 5 1,000 24.00
June 1 5 600 @ 2/.00
September 30 700 @ 30.00
November 28 900 @ 31.20
4,400
Sales:
March 5 400
July 18 1,200
August 12 800
October 15 900
3,300
a. Compute the ending inventory as of 2010 December 31, assuming use of perpetual inventory procedure, under

each of the following methods: (1) FIFO, (2) LIFO, and (3) weighted-average (carry unit cost to four decimal places
and round total cost to nearest dollar).
b. Compute the ending inventory as of 2010 December 31, assuming use of periodic inventory procedure, under
each of the following methods: (1) FIFO, (2) LIFO, and (3) weighted-average.
Alternate problem F Refer to the data in alternate problem E
a. Give the journal entries to record the purchases and sales (Cost of Goods Sold entry only) for the year under
FIFO perpetual.
b. Give the journal entries to record the purchases for the year and necessary year-end entries to charge Income
Summary with the cost of goods sold for the year under FIFO periodic. (Note: You may want to refer to the

Appendix in Chapter 6 for this part.)
Alternate problem G Following are data related to a product of Coen Company for the year 2010:
Unit
Units Cost
Merchandise Inventory, January 1 2,100 @ $12.60
Purchases:
March 10 1,500 @ 12.00
May 24 3,000 @ 11.20
July 15 1,800 @ 10.50
September 20 2,100 @ 9.00
December 1 2,700 @ 10.00
Sales:
April 5 1,400
June 13 2,900
October 9 2,300
November 21 1,700
a. Assuming use of perpetual inventory procedure, compute the ending inventory and cost of goods sold under
each of the following methods: (1) FIFO, (2) LIFO, and (3) weighted-average (carry unit cost to four decimal places

and round total cost to nearest dollar).

Accounting Principles: A Business Perspective 327 A Global Text