The accountant counted everything that was in the warehouse as of February 28, which resulted in an ending inventory valuation of $48,000. However, she didn’t know how to treat the following transactions so she didn’t record them.f. On February 28, Heath packaged goods and had them ready for shipping to a customer FOB destination.
The invoice price was $350. the cost of the items was $250.The receiving report indicates that the goods were received by the customer on March 2. For each of the above transactions, specify whether the item in question should be included in ending inventory, and if so, at what amount. If the item should not be included in ending inventory, put 0 for the amount.
Glanville Distribution markets CDs of the performing artist Harrilyn Clooney. At the beginning of March, Glanville had in beginning inventory 1,500 Clooney CDs with a unit cost of $7. During March Glanville made the following purchases of Clooney CDs.
Determine (1) the ending inventory and (2) the cost of goods sold under each of the assumed cost flow methods (FIFO, LIFO, and average-cost). Prove the accuracy of the cost of goods sold under the FIFO and LIFO methods. (Round answers to 0 decimal places.)
(a) Calculate (i) ending inventory, (ii) cost of goods sold, (iii) gross profit, and (iv) gross profit rate under each of the following methods. (Round weighted-average cost per unit to 3 decimal places and use the rounded amount for future computations. Round gross profit rate to 1 decimal place and all other answers to 0 decimal