PART II: SHORT PROBLEMS (60 Points)
1. Tinker Company Bell Company has the following data in its inventory account:
January 1, 2020
Unit purchased
8,000
Unit Cost
$11
Purchases June 19
13,000
$12
Purchases November 8
5,000
$13
Required:
a. If Tinker Bell has 9,000 units on hand on December 31, 2020, What is the cost of ending
Inventory under FIFO method? Show computation
b. Using the data in Tinker Company Inventory data, the cost of ending inventory under LIFO
should be: Show computation
c. Using the same data as above, what is the Cost of Goods Sold under LIFO. Show computation.
2. A Panel Dealer purchased 100 panels at a total cost of $20,000. The following are additional
costs incurred:
a. Shipping cost by train $550; b. Shipping Insurance $300; c. Panel special shipping box $200;
d. sales salaries $2,500; e. advertising $100 and f. restoration costs $1,500.
i. What is the total cost of the panels? Show computation
