1)Ski West, Incorporated, operates a downhill ski area near Lake Tahoe, California. An all-day adult lift ticket can be purchased for $85. Adult customers also can purchase a season pass that entitles the pass holder to ski any day during the season, which typically runs from December 1 through April 30. Ski West expects its season pass holders to use their passes equally throughout the season. The company’s fiscal year ends on December 31.
On November 6, 2024, Ski West sells a season pass to Jake Lawson for $450.
What are the financial statement effects from the sale of the season pass on November 6, 2024
A company provides the following information related to its inventory.InventoryNumber of UnitsUnit CostUnit NRV
Item A3,800$ 52$ 46
Item B4,2002830
Item C2,5003431
Item D1,300222
Calculate ending inventory using the lower of cost and net realizable value rule.
Based on your analysis, prepare the journal entry needed to adjust inventor
3)Sara’s Boutique has the following transactions related to its top-selling Gucci purse for the month of October.
DateTransactionsUnitsUnit CostTotal Cost
October 1Beginning inventory6$ 730$ 4,380
October 4Sale4 October 10Purchase57403,700
October 13Sale3 October 20Purchase47503,000
October 28Sale7 October 30Purchase87606,080
$ 17,160
1. Calculate ending inventory and cost of goods sold at October 31, using the specific identification method. The October 4 sale consists of purses from beginning inventory, the October 13 sale consists of one purse from beginning inventory and two purses from the October 10 purchase, and the October 28 sale consists of three purses from the October 10 purchase and four purses from the October 20 purchase.
2. Using FIFO, calculate ending inventory and cost of goods sold at October 31
3. Using LIFO, calculate ending inventory and cost of goods sold at October 31.4. Using weighted-average cost, calculate ending inventory and cost of goods sold at October 31.
Note: Round your intermediate calculations to 4 decimal places and final answers to 2 decimal places.
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