Compute and label cogs and ending inventory for fifo

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Reference no: EM13492682

P6-1C
Mareska Country Limited is trying to determine the value of its ending inventory as of February 28, 2014, the company's year-end. the following transactions occurred, and the accountant asked your help in determining weather they should be recorded or not.
(a) On February 26, Mareska shipped goods costing $800 to a customer and charged the customer $1,000. The goods were shipped with terms FOB destination and the receiving report indicates that the customer received the goods on March 2.

(b) On February 26, Seller Inc. shipped goods to Mareska under terms FOB shipping point. the invoice price was $350 plus $25 for freight. The receiving report indicates that the goods were received by Mareska on March 2.

(c) Mareska had $500 of inventory isolated in the warehouse. the inventory is designed for a customer who has requested that the goods be shipped on March 10.

(d) Also included in Mareska's warehouse is $400 of inventory that Craft producers shipped to Mareska on consignment.

(e) On February 26, Mareska issued a purchase order to acquire goods costing $750. The goods were shipped with terms FOB destination on February 27. Mareska received the goods on March 2.

(f) On february 26, Mareska shipped goods to a customer under terms FOB shipping point. The invoice price was $350 plus $25 for freight; the cost of the items was $300. The receiving report indicates that the goods were received by the customer on march 2.

Intructions
For each of the above transactions, specify whether the item in question should be included in ending inventory, and if so, at what amount.

EX. 192
Shanrock Company uses the periodic inventory method and had the following inventory information available:

Units Unit Cost Total Cost
1/1 Beginning Inventory 100 $4 $ 400
1/20 Purchase 400 $6 2,400
7/25 Purchase 200 $7 1,400
10/20 Purchase 300 $8 2,400

A physical count of inventory on December 31, revealed that there were 400 units on hand.

Instructions: Compute and label COGS and Ending Inventory for FIFO, LIFO and average cost.

Reference no: EM13492682

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