Horngren's Financial & Managerial Accounting, The Financial Chapters (Book & Access Card)
5th Edition
ISBN: 9780134078939
Author: Tracie L. Miller-Nobles, Brenda L. Mattison, Ella Mae Matsumura
Publisher: PEARSON
expand_more
expand_more
format_list_bulleted
Concept explainers
Videos
Textbook Question
Chapter 6, Problem 6.17E
Use the following information to answer Exercises E6-16 through E6-18.
Putter’s Choice carries an inventory of putters and other golf clubs. The sales price of each putter is $119. Company records indicate the following for a particular line of Putter’s Choice putters:
| Date | Item | Quantity | Unit Cost |
| Nov. 1 | Balance | 22 | $ 60 |
| 6 | Sale | 12 | |
| 8 | Purchase | 25 | 81 |
| 17 | Sale | 25 | |
| 30 | Sale | 5 |
Measuring ending inventory and cost of goods sold in a perpetual inventory system-LIFO
Requirements
- 1. Prepare Putter’s Choice’s perpetual inventory record for the putters assuming Putter’s Choice uses the LIFO inventory costing method. Then identify the cost of ending inventory and cost of goods sold for the month.
- 2. Journalize Putter's Choice’s inventory transactions using the LIFO inventory costing method. (Assume purchases and sales are made on account.)
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Use the following information to answer Exercises E6-
Golf Unlimited carries an inventory of putters and other golf clubs. The sales price
of each putter is $119. Company records indicate the following for a particular line of
Golf Unlimited's putters:
Unit Cost
Quantity
Date
Item
$ 53
24
Nov. 1
Balance
20
6.
Sale
70
30
8
Purchase
30
17
Sale
30
Sale
2
E6-16 Measuring and journalizing merchandise inventory and cost of goods
sold-FIFO
Requirements
1. Prepare a perpetual inventory record for the putters assuming Golf Unlimited usee
the FIFO inventory costing method. Then identify the cost of ending inventory
and cost of goods sold for the month.
ucing the FIFO inventory cost-
Use the following information to answer Exercises E6-16 i
Golf Unlimited carries an inventory of putters and other golf clubs. The sales price
of each putter is $119. Company records indicate the following for a particular line of
Golf Unlimited's putters:
Unit Cost
Item
Quantity
Date
$ 53
24
Nov. 1
Balance
6.
Sale
20
30
70
8
Purchase
17
Sale
30
30
Sale
Sport Box sells a wide variety of sporting equipment. The following is information on the purchases and sales of their top selling hockey stick. The hockey stick sells for $125. Description Units Unit Cost Mar. 1 Beginning Inventory 15 $ 40 Mar. 3 Purchase 60 $ 45 Mar. 6 Purchase 110 $ 50 Mar. 17 Sale 55 Mar. 23 Purchase 50 $ 50 Mar. 31 Sale 140
Required: Calculate the cost of goods sold and ending inventory under the perpetual inventory system using the following methods. (Do not round your "Unit Cost" answers. Round all other intermediate and final answers to nearest whole dollar.)
Chapter 6 Solutions
Horngren's Financial & Managerial Accounting, The Financial Chapters (Book & Access Card)
Ch. 6 - Which principle or concept states that businesses...Ch. 6 - Which inventory costing method assigns to ending...Ch. 6 - Assume Nile.com began April with 14 units of...Ch. 6 - Suppose Nile.com used the weighted-average...Ch. 6 - Which inventory costing method results in the...Ch. 6 - Prob. 6QCCh. 6 - At December 31, 2016, Stevenson Company overstated...Ch. 6 - Suppose Maestros had cost of goods sold during the...Ch. 6 - Suppose Nile.com used the LIFO inventory costing...Ch. 6 - Prob. 1RQ
Ch. 6 - Prob. 2RQCh. 6 - Prob. 3RQCh. 6 - What is the goal of conservatism?Ch. 6 - Prob. 5RQCh. 6 - Under a perpetual inventory system, what are the...Ch. 6 - Prob. 7RQCh. 6 - Prob. 8RQCh. 6 - What does the lower-of-cost-or-market (LCM) rule...Ch. 6 - What account is debited when recording the...Ch. 6 - What is the effect on cost of goods sold, gross...Ch. 6 - When does an inventory error cancel out, and why?Ch. 6 - Prob. 13RQCh. 6 - Prob. 14RQCh. 6 - Prob. 15ARQCh. 6 - Prob. 16ARQCh. 6 - Determining inventory accounting principles Ward...Ch. 6 - Determining inventory costing methods Ward Hard...Ch. 6 - Use the following information to answer Short...Ch. 6 - Use the following information to answer Short...Ch. 6 - Use the following information to answer Short...Ch. 6 - Use the following information to answer Short...Ch. 6 - Comparing Cost of Goods Sold under FIFO, UFO, and...Ch. 6 - Applying the lower-of-cost-or-market rule Assume...Ch. 6 - Determining the effect of an inventory error...Ch. 6 - Computing the rate of inventory turnover and days...Ch. 6 - Use the following information to answer Short...Ch. 6 - Prob. 6.12SECh. 6 - Prob. 6.13SECh. 6 - Using accounting vocabulary Match the accounting...Ch. 6 - Comparing inventory methods Zippy, a regional...Ch. 6 - Prob. 6.16ECh. 6 - Use the following information to answer Exercises...Ch. 6 - Use the following information to answer Exercises...Ch. 6 - Comparing amounts for cost of goods sold, ending...Ch. 6 - Comparing cost of goods sold and gross...Ch. 6 - Prob. 6.21ECh. 6 - Prob. 6.22ECh. 6 - Prob. 6.23ECh. 6 - Prob. 6.24ECh. 6 - Prob. 6.25ECh. 6 - Prob. 6.26ECh. 6 - Prob. 6.27ECh. 6 - Accounting for inventory using the perpetual...Ch. 6 - Accounting for inventory using the perpetual...Ch. 6 - Prob. 6.30APCh. 6 - Correcting inventory errors over a three-year...Ch. 6 - Accounting for inventory using the periodic...Ch. 6 - Accounting for inventory using the perpetual...Ch. 6 - Prob. 6.34BPCh. 6 - Prob. 6.35BPCh. 6 - Prob. 6.36BPCh. 6 - Prob. 6.37BPCh. 6 - Prob. 6.38CPCh. 6 - Accounting for inventory using the perpetual...Ch. 6 - Suppose you manage Campbell Appliance. The stores...Ch. 6 - Ever since he was a kid, Carl Montague wanted to...Ch. 6 - The notes are an important part of a companys...
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- Golf Haven Superstore carries an inventory of putters and other golf clubs. The sales price of each putter is $144. Company records indicate the following for a particular line of Golf Haven Superstore's putters View the records. Read the requirements. Requirement 1. Prepare Golf Haven Superstore's perpetual inventory record for the putters assuming Golf Haven Supersto Round weighted average cost per unit to the nearest cent and all other amounts to the nearest dollar. Then identify the cost Start by entering the beginning inventory balances. Enter the transactions in chronological order, calculating new inventory been entered into the perpetual record, calculate the quantity and total cost of inventory purchased, sold, and on hand at the Date Jun. 1 Jun 6 Jun 8 Quantity 12 Purchases Unit Cost 75 Total Cost 900 Cost of Goods Sold Unit Cost Quantity Total Cost 2 $ 72 $ 144 Inventory on Hand Unit Quantity Cost 8 $ 65 6 72 S 72 S Total Cost 576 432 450 Records Date Jun. 1 Jun. 6 Jun. 8…arrow_forwardSport Box sells a wide variety of sporting equipment. The following is information on the purchases and sales of their top selling hockey stick. The hockey stick sells for $130. Description Mar. 1 Beginning Inventory Mar. 3 Purchase Mar. 6 Purchase. Mar. 17 Sale Mar 23 Purchase Mar. 31 Sale Units 29 74 124 1. FIFO 69 78 168 Ending Inventory Unit Cost $54 $ 59 5.64 Required: Calculate the cost of goods sold and ending inventory under the perpetual inventory system using the following methods. (Do not round your "Unit Cost" answers. Round all other intermediate and final answers to nearest whole dollar.) $.64 Cost of Goods Soldarrow_forwardthe xyz company completed the following perpetual inventery transactions. may 1 begnining inventery 20units @$ 61each may 11 purchase 6 units @ $ 76 each may 23 sale 16 units @ $ 89 each may 26 purchase 14 units @ $ 86 each may 29 sale 17 units @ $ 89 each. requirements: 1. calculate cost of goods sold,cost of ending inventery , and gross proift using LIFO. 2. during of rising prices, which method (FIFO-LIFO-AVCO) result in highest gross profit . why. 3.which method would be more withhe maching principle .whyarrow_forward
- Beginning inventory, purchases, and sales data for portable game players are as follows: Apr. Inventory 120 units at $26 Sale 90 units 10 Purchase 140 units at $28 15 Sale 110 units 20 Sale 24 40 units Purchase 160 units at $30 30 The business maintains a perpetual inventory system, costing by the first-in, first-out method. a. Determine the cost of the merchandise sold for each sale and the inventory balance after each sale, presenting the data in the form illustrated in Exhibit 3. b. Based upon the preceding data, would you expect the inventory to be higher or lower using the last-in, first-out method?arrow_forwardFor all exercises, assume the perpetual inventory system is used unless stated otherwise. Use the following information to answer Exercises E6-16 through E6-18. Golf Unlimited carries an inventory of putters and other golf clubs. The sales price of each putter is $119. Company records indicate the following for a particular line of Golf Unlimited’s putters: Measuring ending inventory and cost of goods sold in a perpetual inventory system—LIFO Requirements Prepare Golf Unlimited’s perpetual inventory record for the putters assuming Golf Unlimited uses the LIFO inventory costing method. Then identify the cost of ending inventory and cost of goods sold for the month. Journalize Golf Unlimiteds inventory transactions using the LIFO inventory costing method. (Assume purchases and sales are made on account.)arrow_forwardGuitars and more had a large inventory of guitars and other musical instruments. Using the FIFO method and the Perpetual Inventory System, the company recorded initial inventory, purchases, and sales. Determines the cost of the merchandise sold and the value of the inventory. Date Detail Amount Unit cost (unit cost) May 1 Initial inventory $75 Sale 8. Purchase 11 85 13 Sale 15 15 Sale 19 Purchase 20 105 21 Sale 8. 22 Sale 27 Purchase 10 90 30 Sale 3.arrow_forward
- Sheridan Department Store uses a perpetual inventory system. Data for product E2-D2 include the following purchases. Date Number of Units Unit Cost May 7 55 $11 July 28 25 14 On June 1, Sheridan sold 20 units, and on August 27, 45 more units. (a) Your answer is partially correct. Prepare the perpetual inventory schedule for the above transactions using FIFO. Product E2-D2 Date Purchases Cost of Goods Sold Balance May 7 $enter a dollar amount Correct answer $enter a dollar amount Correct answer $enter a dollar amount Correct answer June 1 $enter a dollar amount Correct answer $enter a dollar amount Correct answer $enter a dollar amount Correct answer July 28 $enter a dollar amount Correct answer $enter a dollar amount Correct answer $enter a dollar amount Correct answer Aug. 27 $enter a dollar amount Correct answer $enter a dollar amount Incorrect…arrow_forwardUse Exhibit 18-1 to determine the sales tax (in $) and calculate the total purchase price (in $) for the item. (Round your answers to the nearest cent.) Item SellingPrice SalesTax TotalPurchase Price Hair dryer $19.22arrow_forwardApplying the Cost of Goods Sold Model Charest Company has the following data for 2022: Item Units Cost Inventory, 12/31/2021 980 $10,780 Purchases 4,480 49,280 Inventory, 12/31/2022 750 8,250 Required: 1. How many units were sold? 2. Using the cost of goods sold model, determine the cost of goods sold.arrow_forward
- Xpert Snowboards sells an ultra-lightweight snowboard that is considered to be one of the best on the market. Information follows for Xpert's purchases and sales of the ultra-lightweight snowboard in October: Transaction Date Oct. 1 Beginning inventory 10 Purchase 12 Sale 13 Purchase 25 Sale 27 Purchase Units 25 30 (42) 35 (45) 20 Unit Purchase Price $295 300 305 310 Unit Sales Price $450 460 Instructions a. Calculate the cost of goods sold and the ending inventory using FIFO and weighted average, assuming Xpert uses a perpetual inventory system. Round the weighted average cost per unit to two decimal places. b. What would be the ending inventory and cost of goods sold if Xpert used FIFO and weighted average in a periodic inventory system? Round the weighted average cost per unit to two decimal places. Record transactions in perpetual and periodic inventory systems.arrow_forwardWHAT IS THE COST OF GOODS AVAILABLE FOR SALE BASE OF THE CHART ?? Vaughn Distribution markets CDs of the performing artist Unique. At the beginning of October, Vaughn had in beginning inventory 2,000 of Unique’s CDs with a unit cost of $5. During October, Vaughn made the following purchases of Unique’s CDs. Oct. 3 2,500 @ $6 Oct. 19 3,000 @ $8 Oct. 9 3,500 @ $7 Oct. 25 4,000 @ $9 During October, 10,850 units were sold. Vaughn uses a periodic inventory system.arrow_forwardGuitars and more had a large inventory of guitars and other musical instruments. Using the Average method and the Perpetual Inventory System, the company recorded initial inventory, purchases, and sales. Determines the cost of the merchandise sold and the value of the inventory. Date Detail Amount Unit cost (unit cost) May 1 Initial inventory $75 Sale 4 8. Purchase 11 85 13 Sale 15 Sale 3 19 Purchase 20 105 21 Sale 22 Sale 27 Purchase 90 30 Sale 2.arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
AccountingAccountingISBN:9781337272094Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.Publisher:Cengage Learning,
Accounting Information SystemsAccountingISBN:9781337619202Author:Hall, James A.Publisher:Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis...AccountingISBN:9780134475585Author:Srikant M. Datar, Madhav V. RajanPublisher:PEARSON
Intermediate AccountingAccountingISBN:9781259722660Author:J. David Spiceland, Mark W. Nelson, Wayne M ThomasPublisher:McGraw-Hill Education
Financial and Managerial AccountingAccountingISBN:9781259726705Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting PrinciplesPublisher:McGraw-Hill Education
Accounting
Accounting
ISBN:9781337272094
Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:Cengage Learning,
Accounting Information Systems
Accounting
ISBN:9781337619202
Author:Hall, James A.
Publisher:Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis...
Accounting
ISBN:9780134475585
Author:Srikant M. Datar, Madhav V. Rajan
Publisher:PEARSON
Intermediate Accounting
Accounting
ISBN:9781259722660
Author:J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:9781259726705
Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:McGraw-Hill Education
Chapter 6 Merchandise Inventory; Author: Vicki Stewart;https://www.youtube.com/watch?v=DnrcQLD2yKU;License: Standard YouTube License, CC-BY
Accounting for Merchandising Operations Recording Purchases of Merchandise; Author: Socrat Ghadban;https://www.youtube.com/watch?v=iQp5UoYpG20;License: Standard Youtube License