A physical inventory of Helmke Company taken at December 31 reveals the following. Per Unit Item Units Cost Market Audio equipment Receivers 335 $ 90 $ 98 CD players 250 111 100 MP3 players 316 86 95 Speakers 194 52 41 Video equipment Handheld LCDs 470 150 125 VCRs 281 93 84 Camcorders 202 310 322 Car audio equipment Satellite radios 175 70 84 CD/MP3 radios 160 97 105 Required: 1. Calculate the lower of cost or market for the inventory applied separately to each item.

A physical inventory of Helmke Company taken at December 31 reveals the following.

		Per Unit
Item	Units	Cost		Market
Audio equipment
Receivers	335	$	90	$	98
CD players	250		111		100
MP3 players	316		86		95
Speakers	194		52		41
Video equipment
Handheld LCDs	470		150		125
VCRs	281		93		84
Camcorders	202		310		322
Car audio equipment
Satellite radios	175		70		84
CD/MP3 radios	160		97		105

Required:

1.

Calculate the lower of cost or market for the inventory applied separately to each item. Explanation: 1.     Per Unit                                   Item Units Cost Market Total Cost Total Market LCM applied to Items     Audio equipment                              Receivers 335    $ 90     $ 98     $ 30,150   $ 32,830   $ 30,150           CD players 250      111       100       27,750     25,000     25,000           MP3 players 316      86       95       27,176     30,020     27,176           Speakers 194      52       41       10,088     7,954     7,954        Video equipment                              Handheld LCDs 470      150       125       70,500     58,750     58,750           VCRs 281      93       84       26,133     23,604     23,604           Camcorders 202      310       322       62,620     65,044     62,620        Car audio equipment                              Satellite radios 175      70       84       12,250     14,700     12,250           CD/MP3 radios 160      97       105       15,520     16,800     15,520                          Total           $ 282,187       $ 263,024                        Lower of cost or market for inventory applied separately = $263,024 2. To adjust inventory cost to market. $19,163 = $282,187 − $263,024

Anthony Company uses a perpetual inventory system. It entered into the following purchases and sales transactions for March. Date Activities Units Acquired at Cost Units Sold at Retail Mar. 1 Beginning inventory 60 units @ $50.20/unit Mar. 5 Purchase 205 units @ $55.20/unit Mar. 9 Sales 220 units @ $85.20/unit Mar. 18 Purchase 65 units @ $60.20/unit Mar. 25 Purchase 110 units @ $62.20/unit Mar. 29 Sales 90 units @ $95.20/unit Totals 440 units 310 units

Anthony Company uses a perpetual inventory system. It entered into the following purchases and sales transactions for March.

Date

Activities

Units Acquired at Cost

Units Sold at Retail

Mar.

1

Beginning inventory

60

units

@ $50.20/unit

Mar.

5

Purchase

205

units

@ $55.20/unit

Mar.

9

Sales

220

units

@ $85.20/unit

Mar.

18

Purchase

65

units

@ $60.20/unit

Mar.

25

Purchase

110

units

@ $62.20/unit

Mar.

29

Sales

90

units

@ $95.20/unit

Totals

440

units

310

units

Required:

Compute cost of goods available for sale and the number of units available for sale.   Explanation:     Beginning inventory 60  units  @ $50.20 $ 3,012     March  5 205  units  @ $55.20   11,316     March 18 65  units  @ $60.20   3,913     March 25 110  units  @ $62.20   6,842         Units available 440  units                 Cost of goods available for sale       $ 25,083    2. Compute the number of units in ending inventory.   Explanation:     Units available (from part 1) 440  units   Less: Units sold (220 + 90) 310  units     Ending Inventory (units) 130  units Compute the cost assigned to ending inventory using (a) FIFO, (b) LIFO, (c) weighted average, and (d) specific identification. For specific identification, the March 9 sale consisted of 45 units from beginning inventory and 175 units from the March 5 purchase; the March 29 sale consisted of 25 units from the March 18 purchase and 65 units from the March 25 purchase. (Round your per unit costs to 2 decimal places)   Explanation: (a) FIFO perpetual   Date Goods Purchased Cost of Goods Sold Inventory Balance   Mar. 1                       60  @ $50.20 = $ 3,012      Mar. 5   205  @ $55.20 = $ 11,316              60  @ $50.20                                   205  @ $55.20 = $ 14,328      Mar. 9             60  @ $50.20 = $ 3,012    45  @ $55.20 = $ 2,484                      160  @ $55.20 = $ 8,832                Mar. 18   65  @ $60.20 = $ 3,913             45  @ $55.20                                   65  @ $60.20 = $ 3,913      Mar. 25   110  @ $62.20 = $ 6,842             45  @ $55.20                                   65  @ $60.20                                   110  @ $62.20 = $ 13,239      Mar. 29             45  @ $55.20 = $ 2,484    20  @ $60.20                         45  @ $60.20 = $ 2,709    110  @ $62.20 = $ 8,046                                                           $ 17,037                                                       (b) LIFO perpetual   Date Goods Purchased Cost of Goods Sold Inventory Balance   Mar. 1                       60  @ $50.20 = $ 3,012      Mar. 5   205  @ $55.20 = $ 11,316              60  @ $50.20                                   205  @ $50.20 = $ 14,328      Mar. 9             205  @ $55.20 = $ 11,316    45  @ $50.20 = $ 2,259                      15  @ $50.20 = $ 753                Mar. 18   65  @ $60.20 = $ 3,913              45  @ $50.20                                   65  @ $60.20 = $ 6,172      Mar. 25   110  @ $62.20 = $ 6,842              45  @ $50.20                                   65  @ $60.20                                   110  @ $62.20 = $ 13,014                                45  @ $50.20         Mar. 29             90  @ $62.20 = $ 5,598    65  @ $60.20                                 20  @ $62.20 = $ 7,416                             $ 17,667                                                 (c) Weighted Average perpetual   Date Goods Purchased Cost of Goods Sold Inventory Balance   Mar. 1                       60  @ $50.20 = $ 3,012      Mar. 5   205  @ $55.20 = $ 11,316             60  @ $50.20                                   205  @ $55.20 = $ 14,328                                (avg. = $54.07)         Mar. 9             220  @ $54.07 = $ 11,895    45  @ $54.07 = $ 2,433                                (avg. = $54.07)         Mar. 18   65  @ $60.20 = $ 3,913             45  @ $54.07                                   65  @ $60.20 = $ 6,346                                (avg. = $57.69)         Mar. 25   110  @ $62.20 = $ 6,842             45  @ $54.07                                   65  @ $60.20                                   110  @ $62.20 = $ 13,188                                (avg. = $59.94)         Mar. 29             90  @ $59.94 = $ 5,395    130  @ $59.94 = $ 7,793                                                           $ 17,290                                                   (d) Specific Identification   Date Goods Purchased Cost of Goods Sold Inventory Balance   Mar. 1                       60  @ $50.20 = $ 3,012      Mar. 5   205  @ $55.20 = $ 11,316              60  @ $50.20                                   205  @ $55.20 = $ 14,328      Mar. 9             45  @ $50.20 = $ 2,259    15  @ $50.20                         175  @ $55.20 = $ 9,660    30  @ $55.20 = $ 2,409      Mar. 18   65  @ $60.20 = $ 3,913              15  @ $50.20                                   30  @ $55.20                                   65  @ $60.20 = $ 6,322      Mar. 25   110  @ $62.20 = $ 6,842              15  @ $50.20                                   30  @ $55.20                                   65  @ $60.20                                   110  @ $62.20 = $ 13,164      Mar. 29             25  @ $60.20 = $ 1,505    15  @ $50.20                         65  @ $62.20 = $ 4,043    30  @ $55.20                                40  @ $60.20                               $ 17,467    45  @ $62.20 = $ 7,616                                   Compute gross profit earned by the company for each of the four costing methods. For specific identification, the March 9 sale consisted of 45 units from beginning inventory and 175 units from the March 5 purchase; the March 29 sale consisted of 25 units from the March 18 purchase and 65 units from the March 25 purchase. (Round your per unit costs to 2 decimal places and inventory balances.)