ACC 557 Week 4 Chapter 6 ( E6-1 , E6-10 , E6-14 , P6-3A )
E6-1 : Premier Bank and Trust is considering giving Alou Company a loan . Before doing so , management decides that further discussions with Alou ’ s accountant may be desirable . One area of particular concern is the inventory account , which has year-end balance of $ 297,000 . Discuss with accountant .. ............
E6-10 : Fenton company applied FIFO to its inventory and got the following results for its ending inventory . Determine the amount of ending inventory at lower-of-cost-or-market ............
E6-14 : The cost of goods sold computations for silver company and Gold Company
a ) Compute inventory turnover for each company ............ b ) Compute days in inventory for each company ............
P6-3A : Milo company had a beginning inventory of 400 units of product Kimbo at a cost of $ 8 per unit . During the year , purchases were : ............
a ) Determine the cost of goods available for sale ............ b ) Calculate the weighted average unit cost ............ c ) Determine ending inventory and cost of goods sold ............
d ) Which cost flow method results in lowest inventory amount and lowest goods sold ? ............
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