Do calculations on scrap paper as needed. Worked-out solutions are provided at end.
- From the following calculate by the weighted-average method (a) the cost of ending inventory, and (b) the cost of goods sold. Ending inventory shows 18 units.
| Number Purchasedfor resale | Cost per unit | Total | January 1 inventory | 12 | $2 | $24 | March 1 | 9 | $3 | $27 | April 1 | 20 | $4 | $80 | November 1 | 15 | $5 | $75 |
- Rework No. 1 using the FIFO assumption.
- Rework No. 1 using the LIFO assumption.
- Bill's Dress Shop's inventory at cost on January 1 was $32,500. Its retail value is $50,000. During the year, Bill purchased additional merchandise at a cost of $170,000 with a retail value of $366,000. The net sales at retail for the year were $345,000. Calculate Bill's inventory at cost by the retail method. Round the cost ratio to the nearest whole percent.
- On January 1, Font Company had inventory costing $65,000 and during January had net purchases of $118,000. Over recent years, Font's gross profit has averaged 45% on sales. Given that the company has net sales of $190,000, calculate the estimated cost of ending inventory using the gross profit method.
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