ACCOUNTING-Optix Camera Shop uses the lower-of-cost-or-market basis for its inventory

QUESTION #1

Optix
Camera Shop uses the lower-of-cost-or-market basis for its inventory. The
following data are available at December 31.

Item		Units		Unit Cost		Market
Cameras:
Minolta		5		$178		$160
Canon		10		143		171
Light meters:
Vivitar		13		134		103
Kodak		18		118		134

Determine the amount of the ending inventory by applying the
lower-of-cost-or-market basis.

The ending inventory

$

QUESTION #2

Ziad
Company had a beginning inventory on January 1 of 387 units of
Product 4-18-15 at a cost of $21 per unit. During the year, the following
purchases were made.

Mar. 15

1,032 units

at

$24

Sept. 4

903 units

at

$26

July 20

645 units

at

$25

Dec. 2

258 units

at

$30

2,580 units were sold. Ziad Company uses a periodic inventory system.

Determine
the cost of goods available for sale.

The cost of goods available for sale

$

Warning

Ok

Cancel

Calculate
average cost per unit.(Round answer to 2 decimal places, e.g. 2.25.)

Average cost per unit

$

Determine (1) the ending
inventory, and (2) the cost of goods sold under each of the assumed cost flow
methods (FIFO, LIFO, and average).(Round answers to 0 decimal
places, e.g. 1,250.)

		FIFO		LIFO		AVERAGE-COST
The ending inventory		$		$		$
The cost of goods sold		$		$		$

Warning

Ok

Cancel

Which
cost flow method results in (1) the highest inventory amount for the balance
sheet, and (2) the highest cost of goods sold for the income statement?

(1)		FIFO LIFO Average-cost results in the highest inventory amount, $.
(2)		FIFO LIFO Average-cost produces the highest cost of goods sold, $.

QUESTION #3

You are provided with the following information for Najera Inc. for the month ended June 30, 2014. Najera uses the periodic method for inventory. Date Description Units Unit Cost or Selling Price June 1 Beginning inventory 41 $40 June 4 Purchase 136 44 June 10 Sale 112 72 June 11 Sale return 13 72 June 18 Purchase 52 46 June 18 Purchase return 8 46 June 25 Sale 63 78 June 28 Purchase 33 50 Warning Ok Cancel

Calculate cost per unit.(Round answer to 2 decimal places, e.g. 5.25.) Weighted-average cost per unit $

Calculate
ending inventory, cost of goods sold, gross profit under each of the following
methods. (1) LIFO. (2) FIFO. (3) Average-cost.(Round
average-cost method answers to 2 decimal places, e.g. 1,250.25 and other
answers to 0 decimal places, e.g. 1,250.)

		LIFO		FIFO		AVERAGE-COST
The ending inventory		$		$		$
The cost of goods sold		$		$		$
Gross profit		$		$		$

Warning

Calculate
gross profit rate under each of the following methods. (1) LIFO. (2) FIFO. (3)
Average-cost.(Round answers to 1 decimal place, e.g. 51.2%.)

		LIFO		FIFO		AVERAGE-COST
Gross profit rate			%			%