Three identical units of Item Alpha are purchased during February, as shown below.

$$\begin{array}{lllcr} & & \text { Item Alpha } & \text { Units } & \text { Cost } \\ \hline \text { June } & 2 & \text { Purchase } & 1 & \$~~50 \\ & 12 & \text { Purchase } & 1 & 60 \\ & 23 & \text { Purchase } &\underline1& \underline{~~~~70} \\ &\text{Total}&&\underline{\underline{3}}&\underline{\underline{\$180}}\\ &\text{Average cost per unit}&&&\underline{\underline{\$~~60}}&(\$180\div3\text{ units}) \end{array}$$

Assume that one unit is sold on June 27 for $110.

Determine the gross profit for June and ending inventory on June 30 using the (a) first-in, first-out (FIFO); (b) last-in, first-out (LIFO); and (c) weighted average cost methods.

The following income statement does not reflect intraperiod tax allocation.

Recast the income statement to reflect intraperiod tax allocation.

$$\begin{array}{lr} \textbf{INCOME STATEMENT}\\ \textbf{For the Fiscal Year Ended March 31, 2021}\\ \text{(\$ in millions)}\\ \text{Sales revenue}& \$830\\ \text{Cost of goods sold} &(350)\\ \text{Gross profit}& 480\\ \text{Operating expenses}& (180)\\ \text{Income tax expense}& (54)\\ \text{Income before discontinued operations} &246\\ \text{Loss from discontinued operations} &(84)\\ \text{Net income} &\$162\\ \end{array}$$

The company’s tax rate is 25%.

Johnny took out a $500,000, 30-year mortgage with an APR of 4.15%. The first month he made an extra payment of$1,000. What was his balance at the end of that first month?

Listed below are eight technical accounting terms introduced in this chapter.

$$\begin{array}{lll}\text { Retail method } & \text { FIFO method } & \text { Lower-of-cost-or-market } \\ \text { Gross profit method } & \text { LIFO method } & \text { Specific identification } \\ \text { Flow assumption } & \text { Average-cost method } & \end{array}$$

Each of the following statements may (or may not) describe one of these technical terms. For each statement, indicate the term described, or answer "None" if the statement does not correctly describe any of the terms.
e. The flow assumption that provides the most current valuation of inventory in the balance sheet.

Write out the first three terms and the last term. Then use the formula for the sum of the first n terms of an arithmetic sequence to find the indicated sum.

$$\sum _ { i = 1 } ^ { 100 } 4 i$$

The exercise gives the first term or two of a sequence along with a recursion formula for the remaining terms. Write out the first ten terms of the sequence.

$$a _ { 1 } = 1 , \quad a _ { n + 1 } = a _ { n } / ( n + 1 )$$

Jackson Company had 400 units in beginning inventory at a cost of $20 each. Jackson’s 2019 purchases were:

$$\begin{array}{lc} \textbf{Date}&\textbf{Purchases}\\\hline \text{Feb. 21}& \text{5,200 units at \$24 each}\\ \text{July 15} &\text{4,800 units at \$28 each}\\ \text{Sept. 30}& \text{8,500 units at \$30 each}\\ \end{array}$$

Jackson uses a periodic inventory system and sold 18,500 units at $50 each during 2019.

Required:

Prepare income statements through gross margin using each of the costing methods in Requirement 1.

Write out the first three terms and the last term. Then use the formula for the sum of the first n terms of an arithmetic sequence to find the indicated sum.

$$\sum _ { i = 1 } ^ { 100 } 4 i$$

Write out the first three terms and the last term. Then use the formula for the sum of the first $n$ terms of an arithmetic sequence to find the indicated sum.

$$\sum_{i=1}^{100} 4 i$$

Shay took out a $560,000, 10-year mortgage with an APR of 3.5$ 1,200. What was the ending balance at the end of her first month?

The Playa Company has the following information in its records. Certain data have been intentionally omitted ($in thousands).$

$$\begin{array}{lrrr} & 2021 & 2022 & 2023 \\ \hline \text { Beginning inventory } & ? & ? & 225 \\ \text { Cost of goods sold } & 627 & 621 & ? \\ \text { Ending inventory } & ? & 225 & 216 \\ \text { Cost of goods available for sale } & 876 & ? & 800 \\ \text { Purchases (gross) } & 630 & ? & 585 \\ \text { Purchase discounts } & 18 & 15 & ? \\ \text { Purchase returns } & 24 & 30 & 14 \\ \text { Freight-in } & 13 & 32 & 16 \end{array}$$

$

Determine the missing numbers. Show computations where appropriate.

Write out the first three terms and the last term. Then use the formula for the sum of the first $n$ terms of an arithmetic sequence to find the indicated sum.

$$\sum_{i=1}^{50}(-4 i)$$

Three identical units of Item Alpha are purchased during February, as shown below.

$$\begin{array}{lllcr} & & \text { Item Alpha } & \text { Units } & \text { Cost } \\ \hline \text { Feb. } & 9 & \text { Purchase } & 1 & \$~~40 \\ & 17 & \text { Purchase } & 1 & 42 \\ & 26 & \text { Purchase } &\underline1& \underline{~~~~44} \\ &\text{Total}&&\underline{\underline{3}}&\underline{\underline{\$126}}\\ &\text{Average cost per unit}&&&\underline{\underline{\$~~42}}&(\$126\div3\text{ units}) \end{array}$$

Assume that one unit is sold on February 28 for $75.

Determine the gross profit for February and ending inventory on February 28 using the (a) first-in, first-out (FIFO); (b) last-in, first-out (LIFO); and (c) weighted average cost methods.

Write out the first three terms and the last term. Then use the formula for the sum of the first n terms of an arithmetic sequence to find the indicated sum.

$$\sum _ { i = 1 } ^ { 50 } ( - 4 i )$$