# Key Assignment

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Key Assignment
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award:

10 points
Russell Retail Group begins the year with inventory of \$55,000 and ends the year with inventory of
\$29,000. During the year, the following amounts are recorded.

Purchases
Purchase returns
Purchase discounts
Freight-in
Freight-out

\$ 190,000
20,000
13,000
36,000
21,000

Required:

Cost of goods sold
Worksheet

\$
Difficulty: Medium

Learning Objective: 06-2

[The following information applies to the questions displayed below.]

During 2010, TRC Corporation has the following inventory transactions. [cal2a]

Date
Jan. 1
Apr. 7
Jul. 16
Oct. 6

Transaction
Beginning inventory
Purchase
Purchase
Purchase

Number of units
32
128
184
102
446

Unit cost \$ 31
33
36
40

Total cost
\$ 992
4,224
6,624
4,080
\$ 15,920

For the entire year, the company sells 376 units of inventory for \$53 each and uses a periodic inventory system. award:

10 points
Requirement 1:
Using FIFO, calculate (a) ending inventory, (b) cost of goods sold, (c) sales revenue, and (d) gross profit.

10/4/2010 9:55 PM

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(a)
(b)
(c)
(d)

Ending inventory
Cost of goods sold
Sales revenue
Gross profit

\$
\$
\$
\$

Worksheet

Difficulty: Hard

Learning Objective: 06-3

award:

10 points
Requirement 2:
Using LIFO, calculate (a) ending inventory, (b) cost of goods sold, (c) sales revenue, and (d) gross profit.

(a)
(b)
(c)
(d)

Ending inventory
Cost of goods sold
Sales revenue
Gross profit

\$
\$
\$
\$

Worksheet

Difficulty: Hard

Learning Objective: 06-3

award:

10 points
Requirement 3:
Using average cost, calculate (a) ending inventory, (b) cost of goods sold, (c)

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