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Principle of Accounting II Assignment I | PDF | Finance & Money Management
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Principle of Accounting II Assignment I

This document provides instructions for an accounting assignment involving inventory costing methods. Students are asked to: 1) Use FIFO, LIFO, and weighted average to calculate gross profit and ending inventory cost for a company that made three purchases and one sale in February. 2) Calculate cost of goods sold and ending inventory under periodic inventory for a company with beginning inventory, two purchase transactions, and a January 31 physical count of 150 units. 3) Use perpetual inventory to calculate ending inventory, ending inventory cost, and cost of goods sold under FIFO and LIFO for a company with beginning inventory, three purchase transactions, and two sale transactions throughout the year ending December 31, 2010. 4) Calculate

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892 views2 pages

Principle of Accounting II Assignment I

This document provides instructions for an accounting assignment involving inventory costing methods. Students are asked to: 1) Use FIFO, LIFO, and weighted average to calculate gross profit and ending inventory cost for a company that made three purchases and one sale in February. 2) Calculate cost of goods sold and ending inventory under periodic inventory for a company with beginning inventory, two purchase transactions, and a January 31 physical count of 150 units. 3) Use perpetual inventory to calculate ending inventory, ending inventory cost, and cost of goods sold under FIFO and LIFO for a company with beginning inventory, three purchase transactions, and two sale transactions throughout the year ending December 31, 2010. 4) Calculate

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yonas
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© © All Rights Reserved
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EAST AFRICA COLLEGE

Department Of Accounting

Principle of Accounting II Assignment I


Instructions:

 Write the Answers neatly and clearly.


 Individual Assignment
 You must present(do) your result in the class
 The total weight of the assignment is 10%.
 Submission date is on 03-05/12/2013 E.C
1. Assume 3 identical units are purchased during February as follows
Unit costs
February 8 1 45
“ 15 1 48
“ 26 1 51
Assume that one unit is sold on February 27 for $70
Required:
By using FIFO, LIFO and Weighted average method determine:
A. Gross profit
B. Ending Inventory and cost of ending Inventory
2. The beginning Inventory and purchase of ABC Company in January is presented as follows
January 1 Inventory 100 units@$20=2000
“ 10 purchase 80 units @$21=1680
“ 30 purchase 100 units@$22=2200
The physical inventory on January 31 shows that 150 units are on hand
Required: Determine cost of merchandise sold and cost of Ending Inventory under periodic
Inventory system by using the 3 cost flow Assumption.
3. Alsan trading beginning inventory and purchase during the year ended December 31, 2010
was as follow
Unit costs
January 1 inventory 1000 50
March 10 purchase 1200 52.50
June 25 sales 800units
August 30 purchase 800 55
October 5 sales 1500 units
November 26 purchase 2000 56
December 31 sale 1000 units
Required: By using perpetual inventory system determine Ending inventory, cost of ending
inventory and cost of merchandise sold under
A. First in first out (FIFO) method
B. Last in first out (LIFO) method
4. Given
January 1 inventory (cost) $57,000
Purchase in January (net) $180,000
Sales in January (net) $250,000
Gross profit rate 30%
Required:
A. Determine merchandise Available for Sale
B. Determine estimated gross profit
C. Determine estimated cost of merchandise sold
D. Determine estimated cost of ending inventory

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