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A company has beginning inventory of 42 units at a cost of$13.00 each on October 1. On October 5, it purchases 27 units at$14.00 per unit. On October 12 it purchases 37 units at $15.00 perunit. On October 15, it sells 81 units. Using the FIFO periodicinventory method, what is the value of the inventory at October 15after the sale?

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Sixta Kovacek
Sixta KovacekLv2
28 Sep 2019

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Sandra’s Purse Boutique has the following transactions relatedto its top-selling Gucci purse for the month of October2015. Sandra's Purse Boutique uses a periodic inventory system.

Date Transactions Units Cost perUnit TotalCost
October 1 Beginning inventory 6 $720 $ 4,320
October 4 Sale 4
October 10 Purchase 5 730 3,650
October 13 Sale 3
October 20 Purchase 4 740 2,960
October 28 Sale 7
October 30 Purchase 6 750 4,500
$15,430
Required:
1.

Calculate ending inventory and cost of goods sold at October 31,2015, using the specific identification method. The October 4 saleconsists of purses from beginning inventory, the October 13 saleconsists of one purse from beginning inventory and two purses fromthe October 10 purchase, and the October 28 sale consists of threepurses from the October 10 purchase and four purses from theOctober 20 purchase.

2.

Using FIFO, calculate ending inventory and cost of goods sold atOctober 31, 2015.

3.

Using LIFO, calculate ending inventory and cost of goods sold atOctober 31, 2015.

4.

Using weighted-average cost, calculate ending inventory and costof goods sold at October 31, 2015.(Round your intermediateand final answers to 2 decimal places.)

Sandra's Purse Boutique uses a periodic inventory system and hasthe following transactions related to its top-selling Gucci pursefor the month of October 2010.

Date Transactions Units Cost per unit Total cost
October 1 Beginning inventory 6 $807 $4,842
October 4 Sale 4
October 10 Purchase 5 804 4,020
October 13 Sale 3
October 20 Purchase 4 813 3,252
October 28 Sale 7
October 30 Purchase 6 824 4,944
$17,058
Calculate ending inventory and cost of goods sold at October 31,2010, using the specific identification method. The October 4 saleconsists of purses from beginning inventory, the October 13 saleconsists of one purse from beginning inventory and two purses fromthe October 10 purchase, and the October 28 sale consists of threepurses from the October 10 purchase and four purses from theOctober 20 purchase. (Omit the "$" sign in your response.)

1.Using LIFO, calculate ending inventory and cost of goods sold atOctober 31, 2010
2. Using average cost, calculate ending inventory and cost of goodssold at October 31, 2010



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Pittsburgh Aluminum Company uses a process cost system to recordthe costs of manufacturing rolled aluminum, which consists of thesmelting and rolling processes. Materials are entered from smeltingat the beginning of the rolling process. The inventory of Work inProcess—Rolling on September 1 and debits to the account duringSeptember were as follows:

Bal., 1,000 units, 30% completed:

Direct materials (1,000 x $5) $ 5,000

Conversion (1,000 x 30% x $2.1) 630

$ 5,630

From Smelting Department, 24,000 units $122,400

Direct labor 34,978

Factory overhead 18,834

During September, 1,000 units in process on September 1 werecompleted, and of the 24,000 units entering the department, allwere completed except 2,400 units that were 90% completed. Chargesto Work in Process—Rolling for October were as follows:

From Smelting Department, 27,600 units $146,280

Direct labor 40,840

Factory overhead 21,996

During October, the units in process at the beginning of themonth were completed, and of the 27,600 units entering thedepartment, all were completed except 1,300 units that were 60%completed.

Required:

1. Enter the balance as of September 1 in a four-column accountfor Work in Process—Rolling. Record the debits and the credits inthe account for September. Construct a cost of production reportand present computations for determining (a) equivalent units ofproduction for materials and conversion, (b) costs per equivalentunit, (c) cost of goods finished, differentiating between unitsstarted in the prior period and units started and finished inSeptember, and (d) work in process inventory. If an amount box doesnot require an entry, leave it blank.

ACCOUNT

Work in Process-Rolling Department

ACCOUNT NO.

BALANCE

DATE

ITEM

POST. REF.

DEBIT

CREDIT

DEBIT

CREDIT

Sept. 1 Bal., 1,000 units, 30% completed

Sept. 30 Smelting Dept., 24,000 units at $5.1

Sept. 30 Direct labor

Sept. 30 Factory overhead

Sept. 30 Finished goods

Sept. 30 Bal., 2,400 units, 90% completed

If an amount is zero, enter in a zero "0". Round cost per unitanswers to the nearest cent.

Pittsburgh Aluminum Company

Cost of Production Report-Rolling Department

For the Month Ended September 30

Whole Units

Equivalent Units

Units

Direct Materials (a)

Conversion (a)

Units charged to production:

Inventory in process, September 1

Received from Smelting Department

Total units accounted for by the Rolling Department

Units to be assigned costs:

Inventory in process, September 1

Started and completed in September

Transferred to finished goods in September

Inventory in process, September 30

Total units to be assigned costs

Costs

Costs

Direct Materials

Conversion

Total Costs

Cost per equivalent unit:

Total costs for September in Rolling Department $ $

Total equivalent units

Cost per equivalent unit (b) $ $

Costs assigned to production:

Inventory in process, September 1 $

Costs incurred in September

Total costs accounted for by the Rolling Department $

Costs allocated to completed and partially completed units:

Inventory in process, September 1 balance (c) $

To complete inventory in process, September 1 (c) $ $

Cost of completed September 1 work in process $

Started and completed in September (c) $

Transferred to finished goods in September (c) $

Inventory in process, September 30 (d)

Total costs assigned by the Rolling Department $

2. Provide the same information for October by recording theOctober transactions in the four-column work in process account.Construct a cost of production report, and present the Octobercomputations (a through d) listed in part (1). If an amount boxdoes not require an entry, leave it blank.

ACCOUNT

Work in Process-Rolling Department

ACCOUNT NO.

Balance

DATE

ITEM

POST. REF.

DEBIT

CREDIT

DEBIT

CREDIT

October 1 Balance

October 31 Smelting Dept., 27,600 units at $5.3

October 31 Direct labor

October 31 Factory overhead

October 31 Finished goods

October 31 Bal., 1,300 units, 60% completed

If an amount is zero, enter in a zero "0". Round cost per unitanswers to the nearest cent.

Pittsburgh Aluminum Company

Cost of Production Report-Rolling Department

For the Month Ended October 31

Whole Units

Equivalent Units

Units

Direct Materials (a)

Conversion (a)

Units charged to production:

Inventory in process, October 1

Received from Smelting Department

Total units accounted for by the Rolling Department

Units to be assigned costs:

Inventory in process, October 1

Started and completed in October

Transferred to finished goods in October

Inventory in process, October 31

Total units to be assigned costs

Costs

Costs

Direct Materials

Conversion

Total Costs

Cost per equivalent unit:

Total costs for October in Rolling Department $ $

Total equivalent units

Cost per equivalent unit (b) $ $

Costs assigned to production:

Inventory in process, October 1 $

Costs incurred in October

Total costs accounted for by the Rolling Department $

Costs allocated to completed and partially completed units:

Inventory in process, October 1 balance (c) $

To complete inventory in process, October 1 (c) $ $

Cost of completed October 1 work in process $

Started and completed in October (c)

Transferred to finished goods in October (c) $

Inventory in process, October 31 (d)

Total costs assigned by the Rolling Department $

3. The cost per equivalent unit for directmaterials

from August to October. The cost per equivalent unit forconversion costs

from August to October. These changes

be investigated for their underlying causes, and any necessarycorrective actions should be taken.

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