1)The following information relates to inventory for Shoeless Joe Inc. Date Quantity Price March 1 Beginning Inventory

Question

1)The following information relates to inventory for Shoeless Joe Inc. Date Quantity Price March 1 Beginning Inventory 20 $2 March 7 Purchase 15 3 March 11 Sale 25 7 March 12 Purchase 20 4 At what amount would Shoeless report ending inventory using FIFO cost flow assumptions? 2. Ace Bonding Company purchased inventory on account. The inventory costs $2,000 and is expected to sell for $3,000. How should Ace record the purchase using a perpetual inventory system? A. Inventory 2,000 Accounts Payable 2,000 B. Cost of Goods Sold 2,000 Deferred Revenue 1,000 Sales Revenue 3,000 C. Cost of Goods Sold 2,000 Accounts Payable 2,000 D. Cost of Goods Sold 2,000 Gain 1,000 Accounts Payable 3,000 3. Consider the following inventory data: Beginning inventory $150,000 Ending inventory 100,000 Purchases 310,000 What is the average days in inventory for the year? 152.0 days. 101.4 days. 126.7 days. 111.7 days.

Help In Homework · Accepted Answer

Answer: 1 Ending inventory = ($3 ×10) + ($4 ×20) = $110. 2 A. Inventory 2000 Accounts Payable 2000 3 126.7 days. Average days in inventory = 365/2.88 = 126.7 Cost of goods sold = $150,000 + $310,000 - $100,000 = $360,000 Inventory turnover ratio = $360,000 [($150,000 + $100,000)/2)] = 2.88.

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1)The following information relates to inventory for Shoeless Joe Inc

Expert Solution

Archived Solution

Date		Quantity	Price
March 1	Beginning Inventory	20	$2
March 7	Purchase	15	3
March 11	Sale	25	7
March 12	Purchase	20	4

A.	Inventory	2,000
	Accounts Payable		2,000
B.	Cost of Goods Sold	2,000
	Deferred Revenue	1,000
	Sales Revenue		3,000
C.	Cost of Goods Sold	2,000
	Accounts Payable		2,000
D.	Cost of Goods Sold	2,000
	Gain	1,000
	Accounts Payable		3,000

Beginning inventory	$150,000
Ending inventory	100,000
Purchases	310,000

1	Ending inventory = ($3 ×10) + ($4 ×20) = $110.


2	A.	Inventory	2000
		Accounts Payable		2000


3	126.7 days.

	Average days in inventory = 365/2.88 = 126.7

	Cost of goods sold = $150,000 + $310,000 - $100,000 = $360,000

	Inventory turnover ratio = $360,000 [($150,000 + $100,000)/2)] = 2.88.