Li Kwan Ho
CCBS4005 2021-22 Sem 1: CCBS4005-CL08
Assignment 3
1.
instructions | help
value:
11.00 points
This exercise stresses the relationships between the information recorded in a periodic inventory system
and the basic elements of an income statement. Each of the five lines represents a separate set of
information. You are to fill in the missing amounts. (Input all amounts as positive values except net loss
which should be indicated with a minus sign. Omit the "$" sign in your response.)
Beginning
Inventory
76,000
Net
Purchases
104,000
Ending
Inventory
35,200
Cost of
Goods Sold
144800
Profit
or (Loss)
53200
20,000
a.
b.
470,000
71,000
300,000
107000
264,000
206000
186000
c.
630,000
160,000
471000
190,000
441,000
189,000
150,000
39000
d.
780,000
231000
450,000
135,000
546000
234,000
260,000
-26000
e.
430000
156,000
434000
290,000
300,000
130,000
145000
(15,000)
©2021 McGraw-Hill Education. All rights reserved.
Gross Profit
125,200
Expenses
72,000
Net Sales
270,000
CCBS4005 2021-22 Sem 1: CCBS4005-CL08
Assignment 3
Li Kwan Ho
instructions | help
[The following information applies to the questions displayed below.]
Viper Company began year 2011 with 20,500 units of product in its January 1 inventory costing $15.10 each. It
made successive purchases of its product in year 2011 as follows. The company uses a periodic inventory
system. On December 31, 2011, a physical count reveals that 36,000 units of its product remain in inventory.
Mar. 7
May. 25
Aug. 1
Nov. 10
3.
29,000 units @ $18.10 each
31,000 units @ $22.10 each
21,000 units @ $24.10 each
33,500 units @ $27.10 each
value:
Required information
4.00 points
Required:
1. Compute the number and total cost of the units available for sale in year 2011. (Omit the "$" sign in
your response.)
135000 units
Number of units available for sale
Cost of the units available for sale
4.
2933500
$
value:
Required information
16.00 points
2. Compute the amounts assigned to the 2011 ending inventory and the cost of goods sold. (Input all
amounts as positive values. Round per unit costs to 3 decimal places. Round your final answers
to the nearest dollar amount. Omit the "$" sign in your response.)
(a) FIFO periodic
Total cost of units available for sale
2933500
$
968100
Less ending inventory on a FIFO basis
Cost of units sold
1965400
$
(b) Weighted average cost periodic
Total cost of units available for sale
Less ending inventory on a weighted average
cost
Cost of units sold
$
2933500
782266.667
$ 2151233.333
©2021 McGraw-Hill Education. All rights reserved.
CCBS4005 2021-22 Sem 1: CCBS4005-CL08
Assignment 3
2.
Li Kwan Ho
instructions | help
value:
20.00 points
Marlow Company uses a perpetual inventory system. It entered into the following calendar-year 2011
purchases and sales transactions.
Date
Jan. 1
Feb. 10
Mar. 13
Mar. 15
Aug. 21
Sept. 5
Sept. 10
Activities
Beginning inventory
Purchase
Purchase
Sales
Purchase
Purchase
Sales
Totals
Units Acquired at Cost
790 units @ $47.80/unit
390 units @ $43.80/unit
195 units @ $23.80/unit
Units Sold at Retail
685 units @ $78.80/unit
350 units @ $63.80/unit
185 units @ $51.80/unit
105 units @ $78.80/unit
1,910 units
790 units
Required:
1. Compute cost of goods available for sale and the number of units available for sale. (Omit the "$" sign
in your response.)
Cost of goods available for sale
91397
$
1910 units
Number of units available for sale
2. Compute the number of units in ending inventory.
Ending inventory
1120 units
3. Compute the cost assigned to ending inventory using (a) FIFO, (b) specific identification-units sold
consist of 595 units from beginning inventory and 195 units from the March 13 purchase, and (c)
weighted average cost. (Due to rounding, the sum of Cost of Goods Sold and Ending inventory
may not equal the Cost of Good available for sales. Round your per unit costs to 2 decimal
places. Round your final answers to the nearest dollar amount. Omit the "$" sign in your
response.)
(a) FIFO
Ending inventory
53630
$
(b) Specific identification
$
29145
(c) Weighted average cost
$
53594.05
4. Compute gross profit earned by the company for each of the three costing methods. (Round your per
unit costs to 2 decimal places and inventory balances and final answer to the nearest dollar
amount.Omit the "$" sign in your response.)
(a) FIFO
Gross profit
24490
$
(b) Specific identification
$
62252
(c) Weighted average cost
$
37802.95
©2021 McGraw-Hill Education. All rights reserved.
Li Kwan Ho
CCBS4005 2021-22 Sem 1: CCBS4005-CL08
Assignment 3
5.
instructions | help
value:
13.00 points
Wilcox Mills is a manufacturer that makes all sales on 30-day credit terms. Annual sales are approximately
$30 million. At the end of 2012, accounts receivable were presented in the company's statement of financial
position as follows:
Accounts receivable from clients
Less: Allowance for Impairment
$ 3,100,000
80,000
During 2013, $165,000 of specific accounts receivable were written off as uncollectible. Of these accounts
written off, receivables totaling $13,000 were subsequently collected. At the end of 2013, an aging of
accounts receivable indicated a need for a $232,000 allowance to cover possible failure to collect the
accounts currently outstanding.
Wilcox Mills makes adjusting entries for uncollectible accounts only at year-end.
1.One entry to summarize all accounts written off against the Allowance for Impairment during 2013.
2.Entries to record the $13,000 in accounts receivable that were subsequently collected.
3.The adjusting entry required at December 31, 2013, to increase the Allowance for Impairment to
$232,000.
a. Prepare the above general journal entries: (Omit the "$" sign in your response.)
Date
2013
Var.*
General Journal
Accounts receivable
Debit
165000
Allowance for Impairment
Var.*
Allowance for Impairment
165000
165000
Accounts receivable
Var.*
165000
Accounts receivable
13000
Allowance for Impairment
Dec 31
Credit
Uncollectible accounts expense
13000
232000
Allowance for Impairment
©2021 McGraw-Hill Education. All rights reserved.
232000
Li Kwan Ho
CCBS4005 2021-22 Sem 1: CCBS4005-CL08
Assignment 3
6.
instructions | help
value:
13.00 points
Pachel Corporation reports the following information pertaining to its accounts receivable:
Current
$ 60,000
1–30
$ 40,000
Days Past Due
31–60
61–90
$ 25,000
$ 12,000
Over 90
$ 2,000
The company's credit department provided the following estimates regarding the percent of accounts
expected to eventually be written off from each category listed above:
Current receivables outstanding
Receivables 1–30 days past due
Receivables 31–60 days past due
Receivables 61–90 days past due
Receivables over 90 days past due
2%
4
16
40
90
The company uses a statement of financial position approach to estimate credit losses.
a. Record the company's impairment loss of receivable, assuming it has a $1,400 credit balance in its
Allowance for Impairment prior to making the necessary adjustment. (Omit the "$" sign in your
response.)
General Journal
Impairment loss of receivable
Debit
12000
Allowance for Impairment
Credit
12000
b. Record the company's impairment loss of receivable, assuming it has a $1,600 debit balance in its
Allowance for Impairment prior to making the necessary adjustment. (Omit the "$" sign in your
response.)
General Journal
Loss on sale of investments
Debit
11800
(Click to select)
Credit
11800
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