Steve Company buys and sells one product. Its beginning inventory, purchases, and sales during calendar-year...
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Steve Company buys and sells one product. Its beginning inventory, purchases, and sales during calendar-year 2018 follow. Date Sold at Retail Units Acquired at Cost 400 units @ $14 = $ 5,600 Jan. 1 Beg. inventory Jan. 15 Sale 200 units @ $30 Mar. 10 Purchase 200 units @ $15 = $ 3,000 Apr. 1 Sale 200 units @ $30 May 9 Purchase Sep. 22 Purchase 300 units @ $16 = $ 4,800 250 units @ $20 = $ 5,000 Nov. 1 Sale 300 units @ $35 Nov. 28 Purchase 100 units @ $21 = $ 2,100 Totals Units Available for Sale 1,250 units = $20,500 Total Units Sold 700 units Additional tracking data for specific identification: (1) January 15 sale200 units @ $14, (2) April 1 sale-200 units @ $15, and (3) November 1 sale200 units @ $14 and 100 units @ $20. 1. During a period of rising costs, which method (LIFO/FIFO/Wtd Average) will provide the highest net income? 2. Using the information provided below, what is the inventory value using lower of cost or market? Units Product Helmets Bats Cost $50 $78 Market $54 17 $72 3. Using the information provided below, calculate the inventory turnover. Cost of goods sold Ending Inventory 2013 $643,825 97,400 2012 $426,650 87,750
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