Reference no: EM133080445
Exercise 1 - Acme, S.A. had an inventory of 2,500 units as of April 1. The unit price of inventory at that date was ¢50. During the month the following acquisitions were made:
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Units
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Unit cost
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Cost
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Initial inventory
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2,500
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¢50
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¢125,000
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6-Apr
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2,500
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¢53
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¢132,500
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13-Apr
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5,000
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¢55
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¢275,000
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19-Apr
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6,000
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¢54
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¢324,000
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26-Apr
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10,000
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¢52
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¢520,000
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29-Apr
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4,500
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¢54
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¢243,000
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Total
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30,500
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¢1,619,500
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For a total of merchandise sold of:
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Units
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6-Apr
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2,500
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13-Apr
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5,000
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19-Apr
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6,000
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26-Apr
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10,000
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29-Apr
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4,500
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At the end of April it had an inventory of 9,250 units, according to a physical count.
Required -
1. Determines the value of the final inventory using the UEPS method.
2. Determines the value of the cost of sales using the UEPS method.
3. Determines the value of the final inventory using the PEPS method.
4. Determines the value of the cost of sales using the PEPS method.
Exercise 2 - As of June 30, Productos Islas had the following information regarding purchases and sales of merchandise:
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Units
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Cost per unit
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Initial inventory
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4,000
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¢80
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June 2-2
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8,000
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¢82
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June 8-1
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4,000
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¢88
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June 19-19
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12,000
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¢83
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June 26-26
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4,000
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¢85
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32,000
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During June, 23,600 units were sold at ¢180 each during the month.
Required -
1. Calculates the final inventory by the Weighted Average method.
2. Calculate the final inventory by the PEPS method.
3. Calculate the final inventory by the UEPS method.
4. Calculate the cost of sales by the UEPS method.
5. It calculates gross profit on sales, assuming that Productos Islas used the UEPS method to value the final inventory.
Exercise 3 - On November 1, the company Coronado, S.A. had an inventory of 120 units of a certain product. The cost per unit was ¢316 to have a total balance of ¢37,920.
During the month the following purchases were made:
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Units
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Unit cost
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4-nov
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250
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¢ 322
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7-nov
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500
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¢ 323
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15-nov
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500
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¢ 326
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20-nov
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400
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¢ 329
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26-nov
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500
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¢ 331
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2,150
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On Nov. 30, there were 390 units in stock, according to a physical count. Net sales for the period were ¢799,800 and overhead was $108,500.
Required -
1. Calculate net income using the PEPS method.
2. Calculate thenet d utility using the UEPS method.
3. Calculate net income using the weighted average method.
4. Calculate the value of the final inventory using the specific costs method. For this, the data that is known is that the final inventory is composed of 190 units purchased on the 26th, 120 units on the 20th and 80 units purchased on the 7th.
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