Reference no: EM132741640

Questions -

A. Lower of Cost or Market

ABC Company's knows that Merchandise Inventory should be presented on the Balance sheet at the Lower of Cost of Market. ABC has determined that the current replacement cost of ending Merchandise Inventory at 12/31/18 is $87,000; the cost is $77,00.

REQUIRED - Record the adjusting entry for merchandise Inventory, if any is required.

B. LIFO; Perpetual Inventory Method

Race Car Company had the following balance and transactions during 2018:

01/02 Beginning Balance 450 units at $25

03/10 Purchase 125 units at $32

05/25 Purchase 35 units at $40

06/10 Sold 280 units at $50

Required - 1 using the LIFO Method, Computed the Ending Inventory (units and amount) at 06/30/18.

2. Compute the Cost of Goods Sold at 06/30/18.

C. Weighted Average Method: Perpetual Inventory System

Second Street Widgets Company began business the following:

06/01 Beginning Inventory 45 widgets that cost $10 each

06/7 Purchase 25 widgets $15 each

06/14 Sold 30 widgets at $25 each

06/18 Purchase 50 widgets at $18 each

06/27 Sales 35 widgets $30 each

Required - Using the Weighted Average Method, Compute the Cost of Goods Sold, Ending Inventory (units and amount), and Gross Profit.