Trini Company had the following transactions for the month.

	Number of Units	Cost per Unit	Total
Beginning inventory	1,050	$22	$23,100
Purchased May 31	1,020	23	23,460
Purchased Jul. 15	1,300	26	33,800
Purchased Nov. 1	1,200	27	32,400
Total (goods available)	4,570		112,760
Ending inventory	900	?

Calculate the cost of goods sold dollar value for the period for each of the following cost allocation methods, using periodic inventory updating. Provide your calculations.

B. last-in, first-out (LIFO)

Trini Company had the following transactions for the month.

Calculate the ending inventory dollar value for each of the following cost allocation methods, using periodic inventory updating. Provide your calculations.

C. weighted average (AVG)

Trini Company had the following transactions for the month.

Calculate the cost of goods sold dollar value for the period for each of the following cost allocation methods, using periodic inventory updating. Provide your calculations.

C. weighted average (AVG)

Use the last-in, first-out (LIFO) cost allocation method, with perpetual inventory updating, to calculate (a) sales revenue, (b) cost of goods sold, and c) gross margin for A75 Company, considering the following transactions.

A hospital must order the drug Porapill from Daisy Drug Company. It costs $500 to place an order and$30 to review the hospital’s inventory of the drug. Annual demand for the drug is N(10,000, 640,000), and it costs $5 to hold one unit in inventory for one year. Orders arrive one month after being placed. Assume that all shortages are backlogged. a. Estimate R and the number of orders per year that should be placed. b. Using the answer in part (a), determine the optimal (R, S) inventory policy. Assume that the shortage cost per unit of the drug is$100.

Amazon.com’s financial statements in Appendix A at the end of this book reveal some interesting relationships. Answer these questions about Amazon: Requirements

1. Compute trend analyses for net sales and net income. Use 2007 as the base year. What is the most notable aspect of this data?
2. Compute inventory turnover for 2009 and 2008. The inventory balance at December 31, 2009, was $2,171 million. Do the trend of net income from 2008 to 2009 and the change in the rate of inventory turnover tell the same story or a different story? Explain your answer

ABC Company’s budgeted sales for June, July, and August are 12,000, 16,000, and 14,000 units, respectively. ABC requires 30% of the next month’s budgeted unit sales as finished goods inventory each month. Budgeted ending finished goods inventory for May is 3,600 units.

Required: Calculate the number of units to be produced in June and July.

Allied Products maintains a large inventory. The company has used the LIFO inventory method for many years, during which the purchase costs of its products have risen substantially. (More than one of the following answers may be correct.)
a. Allied would have reported a higher net income in past years if it had been using the average-cost method.
b. Allied's financial statements imply a lower inventory turnover rate than they would if the company were using FIFO.
c. If Allied were to let its inventory fall far below normal levels, the company's gross profit rate would decline.
d. Allied would have paid more income taxes in past years if it had been using the FIFO method.

Wayward Company wants to prepare interim financial statements for the first quarter. The company wishes to avoid making a physical count of inventory. Wayward’s gross profit rate averages 34%. The following information for the first quarter is available from its records.

$$\begin{array}{lr} \text{January 1 beginning inventory}&\$302,580\\ \text{Cost of goods purchased}&\$941,040\\ \text{Sales}&1,211,160\\ \text{Sales returns}&8,410\\ \end{array}$$

Required Use the gross profit method to estimate the company’s first quarter ending inventory.

Seminole Co. began the year with 23,000 units of product in its January 1 inventory costing $15 each. It made four purchases of its product during the year as follows. The company uses a periodic inventory system. On December 31, a physical count reveals that 40,000 units of its product remain in inventory.

Required

1. Compute the number and total cost of the units available for sale during the year.

2. Compute the amounts assigned to ending inventory and the cost of goods sold using (a) FIFO, (b) LIFO, and (c) weighted average. (Round all amounts to cents.)

Davis & Simpson, a distributor, purchased kitchen shears from different manufacturers.

September 3 700 @ $7.30

September 18 300 @$7.62

September 12 1,200 @ $6.90

September 28 500 @$7.41

The unit value of the beginning inventory of 600 shears was $7.28. Find the value of the ending inventory of 700 shears using FIFO.

The following units of a particular item were available for sale during the calendar year:

The firm uses the weighted average cost method with a perpetual inventory system. Determine the cost of merchandise sold for each sale and the inventory balance after each sale. Present the data in the form illustrated in Exhibit 5.

JC Manufacturing purchased inventory for $5,300 and also paid a$260 freight bill. JC Manufacturing returned 45% of the goods to the seller and later took a 2% purchase discount. What is JC Manufacturing’s final cost of the inventory that it kept? (Round your answer to the nearest whole number.) a. $2,997 b.$2,337 c. $3,117 d.$2,857

The following data (in thousands) were taken from recent annual reports of Apple Inc., a manufacturer of personal computers and related products, and American Greetings Corporation, a manufacturer and distributor of greeting cards and related products:

$$\begin{array}{lrr} & \textbf { Apple } & \textbf { American Greetings } \\ \hline \text { Cost of goods sold } & \$ 39,541,000 & \$ 682,368 \\ \text { Inventory, end of year } & 1,051,000 & 179,730 \\ \text { Inventory, beginning of the year } & 455,000 & 163,956 \end{array}$$

Would you expect American Greetings’ inventory turnover to be higher or lower than Apple’s? Why?