8/12/2019 Chapter - 06_math
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CHAPTER 06 INVENTORIES
Problem 01
Glanville Distribution markets CDs of the performing artist
Harrilyn Clooney.At the beginning of March, Glanville had in
beginning inventory 1,!!
Clooney CDs "ith a unit cost of #$. During March Glanville made
the follo"ing purchases of Clooney CDs.
March %,!!! & #' March (1 ),!!! & #1!
March 1% ,!! & #* March (+ (,!!! & #11
During March 1(,!! units "ere sold. Glanville uses a periodic
inventory system.
Instructions
a- Determine the cost of goods available for sale.
b- Determine 1- the ending inventory and (- the cost of goods
sold under each of the assumed cost flo" methods /0, /0, and
average2cost-.
3rove the accuracy of the cost of goods sold under the /0 and /0
methods.
c- 4hich cost flo" method results in 1- the highest inventory
amount for the balance sheet and (- the highest cost of goods sold
for the income
statement5
Problem 02
6ddings Company had a beginning inventory of )!! units of
3roduct 78A at a cost of #'.!! per unit. During the year, purchases
"ere9
eb. (! +!! units at #* Aug. 1( %!! units at #11
May !! units at #1! Dec. ' (!! units at #1(
6ddings Company uses a periodic inventory system. :ales totaled
1,!! units.
Instructions
a- Determine the cost of goods available for sale.
b- Determine 1- the ending inventory, and (- the cost of goods
sold under each of the assumed cost flo" methods /0, /0, and
average-.
3rove the accuracy of the cost of goods sold under the /0 and /0
methods.c- 4hich cost flo" method results in 1- the lo"est
inventory amount for the balance sheet, and (- the lo"est cost of
goods sold for the income
statement5
Problem 03
:oul 3atrol Distribution markets CDs of the performing artist
;aylor Hicks. At the beginning of 0ctober, :oul 3atrol had in
beginning inventory
(,!!! of Hicks
