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Blue Jewelry shop buys three different rings: a one carat diamond solitaire at a cost of $1,370, a one carat oval sapphire at a cost of $2,070, and a two carat pear shaped emerald at a cost of $2.710. During the month, the shop sells two of the rings, at the selling price of $2,350 for the diamond ring and $3,690 for the emerald. At December 31, the sapphire ring is still on hand. Calculate the cost of goods sold using specific identification. Cost of goods sold $ On January 3, Sarasota Corp. purchased 4 portable electronic keyboards for $572 each. On January 20, it purchased 3 more of the same model keyboards for $507 each. During the month, it sold 2 keyboards; 1 was purchased on January 3 and the other was purchased on January 20. Calculate the cost of goods sold and ending inventory for the month using specific identification, Cost of goods sold $ 1079 Ending inventory $ 1651 Identify all of the following statements that are correct with regards to inventory systems. a. The key difference between a perpetual inventory system and a periodic inventory system is under a periodic inventory system, inventory counts must be completed. b. Inventory items that are in transit, with terms FOB shipping point, are included in the balance of inventory in the inventory system of the company buying the goods. c. The accounting records, under a perpetual inventory system, are continuously updated with changes in the inventory volumes and values. d. The main reasons a physical inventory may not equal the inventory balance under a perpetual inventory system are shrinkage and/or theft. e. Inventory items that are in transit, with terms FOB destination, should be included the balance of inventory in the inventory system of the company buying the goods. f. A physical count of inventory may only be necessary under the perpetual inventory system if the company is concerned about theft. g. A company that is selling consigned goods in its stores should not include the value of consigned inventory in its physical inventory count sh Review each description and choose the inventory valuation formula the company is most likely using: specific identification, FIFO or average cost port a b. c. d. The cost per unit at any point in time is determined by dividing the cost of goods available for sale by the units available for sale The value of the ending inventory of the company is based on the last goods purchased. The company's inventory is homogenous, with older goods being sold before the shelves are restocked The company manufactures cardboard boxes for sale to moving companies and self-move truck rental companies. Each item of inventory is specially marked with its unit cost and inventory items are tracked individually. The cost of the oldest goods on hand is allocated to the cost of goods first. The company sells high unit per unit products that are unique. e. f I R Helgeson Inc. identifies the following items as possibly belonging in its physical inventory count. For each item, indicate whether or not it should be included in the inventory. The following information is available for Canadian Tire Corporation (in $ millions): port 2015 2014 2013 Inventory $ 1,764.5 $1,623.8 $1,481.0 Net sales 12,279.6 12,462.9 11,785.6 Cost of goods sold 7,747.1 8,033.2 7.678.0 Calculate the inventory turnover and days in inventory ratios for 2015 and 2014. (Round Inventory turnover to 1 decimal place, eg. 15.2. Round days in Inventory to nearest day, e.g. 15. Use 365 days for calculation) 2015 2014 Inventory Turnover times times Days in Inventory days days eTextbook and Media Did Canadian Tire's inventory management improve or deteriorate in 2015? The following information on cost and net realizable value of Swifty Ltd's various inventory categories was gathered at December 31: Inventory Categories Cost NRV $346,100 $324,700 Desktops Tablets and readers 169,500 225,300 Laptops 220,200 284,400 Tablets and readers 96,500 93,500 Calculate the lower of cost and net realizable value for each inventory category within Swifty's inventory. Lower of cost and net realizable value $ e Textbook and Media List of Accounts Prepare the entry needed to adjust Swifty's inventory value to the lower of cost or net realizable value at December 31. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the amounts.) art In its first month of operations, Indigo Inc. made three purchases of merchandise in the following sequence: (1) 370 units at $8 each. (2) 690 units at $13 each, and (3) 790 units at $12 each. A physical inventory count determined that there were 580 units on hand at the end of the month. Assuming Indigo uses a periodic inventory system. Calculate the cost of the ending inventory and cost of goods sold using by FIFO. $ Ending inventory Cost of goods sold $ e Textbook and Media Calculate the cost of the ending inventory and cost of goods sold using average. (Round final answers to 2 decimal places, eg. 1.52.) Weighted average cost $ $ Ending inventory $ Cost of goods sold WileyPLUS Support At the beginning of the year, Sheffield Ltd. had 880 units with a cost of $6 per unit in its beginning inventory. The following inventory transactions occurred during the month of January Jan. 3 Sold 720 units on account for $13 each. 9 Purchased 1,030 units on account for $7 per unit. 15 Sold 810 units for cash at $12 each. Prepare journal entries assuming that Sheffield Ltd, uses FIFO under a perpetual inventory system. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. If no entry is required, select "No Entry for the account titles and enter for the amounts) Date Account Titles and Explanation Debit Credit Jan. 3 3 I 9 15 Indigo Limited uses a perpetual inventory system. The inventory records show the following data for its first month of operations: t Date Explanation Units Unit Cost Total Cost Balance in Units Aug 2 Purchases 249 $72 $17,928 249 3 Purchases 505 96 48.480 754 10 Sales (288) 466 15 Purchases 862 125 107.750 1,328 25 Sales (319) 1,009 Calculate the cost of goods sold and ending inventory using the FIFO cost method. Cost of goods sold $ Ending inventory $ e Textbook and Media Calculate the cost of goods sold and ending inventory using the average cost method. (Round average cost per unit and final answers to decimal places, e.g. 1.25.)

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