Mois

HOMEWORK 6

ACCOUNTING 101

PROFESSOR HELTZER

Name_________________________________

Question 1: 4 Different Inventory Valuation Methods.

▪ The same facts are presented at the top of each page for your convenience.

▪ Assume the company uses the PERIODIC method for inventory.

Method 1: SPECIFIC IDENTIFICATION

FACTS

************************************************************************

| |Description |Units |Price/Unit |Total Price |

|June 1 |Beginning Inventory |10 |$3 |$30 |

|June 2 |Purchase |30 |$4 |$120 |

|June 10 |Purchase |40 |$6 |$240 |

|June 12 |Sale |60 |$20 |$1,200 |

|June 17 |Purchase |70 |$7 |$490 |

|June 21 |Purchase |50 |$10 |$500 |

|June 29 |Sale |80 |$22 |$1,760 |

The company uses the PERIODIC method to account for inventory

************************************************************************

▪ The ending inventory consists of 15 units purchased on 6/2, 25 units purchased on 6/10, and 20 units purchased on 6/21.

**Find Ending Inventory and Cost of Good Sold Under the Specific Identification Method**

Ending Inventory ______________________ Cost of Goods Sold______________________

Method 2: AVERAGE COST ( WEIGHTED-AVERAGE

FACTS

************************************************************************

| |Description |Units...