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Accounting Group Assignment: Inventory Methods

The document provides instructions for a group assignment involving inventory costing methods. It includes details of calculator purchases and sales throughout 2014, and requires students to use FIFO, average cost, and moving average methods to calculate ending inventory cost and cost of goods sold under periodic and perpetual inventory systems. It also provides retail store inventory information and asks students to estimate ending inventory cost using the retail method.

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43 views2 pages

Accounting Group Assignment: Inventory Methods

The document provides instructions for a group assignment involving inventory costing methods. It includes details of calculator purchases and sales throughout 2014, and requires students to use FIFO, average cost, and moving average methods to calculate ending inventory cost and cost of goods sold under periodic and perpetual inventory systems. It also provides retail store inventory information and asks students to estimate ending inventory cost using the retail method.

Uploaded by

mmaf250
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

Rift Valley University Bishoftu Campus

Department of Accounting & Finance and Business Management


Course: Fundamental Accounting II
Group Assignment I
Your Group should comprise of 5-6 members
Instructions
 Thoroughly read the questions and answer accordingly.
 Use only for your understanding. don’t copy from the other groups
 Late submissions other than specified will not be accepted.
 Submitted in February 15/06/2024
 Write your Name, ID and Classification
Q1: Smart enterprise had 80 calculators on hand on January 1, 2014, costing Br 20 each.

Purchases and sales of calculators on cash during the year of 2014 were as follows:

Transactions Units Unit cost Total cost Units


January 12: Purchases 180 Br 20.5 Br 3,690
January 23: Sales 220
February 3: Purchases 100 18.3 1,830
February 24: Sales 110
March 10: Purchases 120 20 2,400
March 21: Purchases 200 20.2 4,040
April 8: Sales 130
April 28: Sales 100
Total 600 11,960 560

Required: According to a physical count, 120 calculators were on hand at April 30, 2014

1. Compute the cost of merchandise available for sale

2. Apply FIFO, Average methods and moving average method of inventory costing
to determine cost ending inventory & Cost of merchandise sold under:

A. Periodic inventory system

B. Perpetual inventory system

Q2: Smart Shoe store uses the retail inventory estimation method to value its inventory. Its
record shows the following information on December 31, 2011.

Cost Retail
Beginning inventory Br. 25,000 Br. 40,000

Purchases (net) 125,000 160,000

Sales (net) 140,000

Required: Compute the estimated yearend inventory balance at cost using retail method of
estimating cost of inventory.

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