E6-17 Measuring and journalizing inventory and cost of goods sold in a

Price: $15


E6-17 Measuring and journalizing inventory and cost of goods sold in a
perpetual system—FIFO [20–25 min]

Golf Haven carries an inventory of putters and other golf clubs. Golf Haven uses the
FIFO method and a perpetual inventory system. The sales price of each putter is $128.
Company records indicate the following for a particular line of Golf Haven’s putters

E6-18 Measuring ending inventory and cost of goods sold in a perpetual
system—LIFO [20–25 min]

Refer to the Golf Haven inventory data in Exercise 6-17. Assume that Golf Haven
uses the perpetual LIFO cost method.

E6-19 Measuring ending inventory and cost of goods sold in a perpetual
system—average cost [20–25 min]

Refer to the Golf Haven inventory data in Exercise 6-17. Assume that Golf Haven
uses the average-cost method.

E6-21 Comparing amounts for ending inventory—perpetual inventory—FIFO
and LIFO [5–10 min]

Assume that a Models and More store bought and sold a line of dolls during
December as follows:

E6-22 Comparing cost of goods sold in a perpetual system—FIFO and LIFO
[15–20 min]

E6-25 Applying the lower-of-cost-or-market rule to inventories [5 min]
Naturally Good Foods reports inventory at the lower of average cost or market.
Prior to releasing its March 2012 financial statements, Naturally’s preliminary
income statement, before the year-end adjustments, appears as follows

E6-28 Estimating ending inventory by the gross profit method [10–15 min]
Deluxe Auto Parts holds inventory all over the world. Assume that the records for
one auto part show the following