155. List the internal control objectives illustrated by the following:
(a)
keeping the inventory storeroom locked
(b)
counting the inventory at the end of the accounting period and comparing it with the inventory ledger clerk’s records
(c)
using subsidiary ledgers and a perpetual inventory system
156. Describe three inventory cost flow assumptions and how they impact the financial statements.
157. The following data regarding purchases and sales of a commodity were taken from the related perpetual inventory account:
June 1
Balance
25 units at $60
6
Sale
20 units
8
Purchase
20 units at $61
16
Sale
10 units
20
Purchase
20 units at $62
23
Sale
25 units
30
Purchase
15 units at $63
Calculate the cost of the ending inventory at June 30, using (1) the first-in, first-out (FIFO) method and (2) the last-in, first-out (LIFO) method. Identify the quantity, unit price, and total cost of each lot in the inventory.
158. Beginning inventory, purchases and sales data for hammers are as follows:
Mar 3
Inventory
12 units
@
$15
11
Purchase
13 units
@
$17
14
Sale
18 units
21
Purchase
9 units
@
$20
25
Sale
10 units
Assuming the business maintains a perpetual inventory system, complete the inventory cards and calculate the cost of merchandise sold and ending inventory under the following assumptions:a. First-in, first-out
Purchases
Cost of Merchandise Sold
Inventory
Date
Qty
Unit Cost
Total Cost
Qty
Unit Cost
Total Cost
Qty
Unit Cost
Total Cost
Mar 3
Mar 11
Mar 14
Mar 21
Mar 25
Balances
b. Last-in, first-out
Purchases
Cost of Merchandise Sold
Inventory
Date
Qty
Unit Cost
Total Cost
Qty
Unit Cost
Total Cost
Qty
Unit Cost
Total Cost
Mar 3
Mar 11
Mar 14
Mar 21
Mar 25
Balances
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