1. Dana Hirsch, manager of The Waterfront Bistro, has asked you to review the Inventory Units Purchased report and modify it to make it more readable and to view as much data as possible in one window.
2. Make the following changes:
a. Freeze panes so you can scroll the worksheet without losing the column and row headings.
b. Change the zoom so you can view a much of the worksheet as possible to minimize scrolling. Make sure the cells are still readable. (Note:Depending on your monitor size, change the Custom setting to a value between 50% and 80%.)
c. Adjust all column widths to the length of the longest entry. (Autofit)
d. Change the color of the shading behind the title Inventory Units Purchased. You determine the color.
e. Change the font color and the shading color for A2:O2. You determine the colors.
3. Change the page orientation to landscape. (Hint:Do this at the Page Setup dialog box with Page tab selected.)
The inventory units for purchase reports are examined. The change for zoom for minimizing scrolling worksheets are determined.
E8-1 (Inventoriable Costs) Presented below is a list of items that may or may not be reported as inventory
in a company's December 31 balance sheet.
1. Goods out on consignment at another company's store.
2. Goods sold on an installment basis (bad debts can be reasonably estimated).
3. Goods purchased f.o.b. shipping point that are in transit at December 31.
4. Goods purchased f.o.b. destination that are in transit at December 31.
5. Goods sold to another company, for which our company has signed an agreement to repurchase
at a set price that covers all costs related to the inventory.
6. Goods sold where large returns are predictable.
7. Goods sold f.o.b. shipping point that are in transit at December 31.
8. Freight charges on goods purchased.
9. Interest costs incurred for inventories that are routinely manufactured.
10. Costs incurred to advertise goods held for resale.
11. Materials on hand not yet placed into production by a manufacturing firm.
12. Office supplies.
13. Raw materials on which a manufacturing firm has started production, but which are not completely
14. Factory supplies.
15. Goods held on consignment from another company.
16. Costs identified with units completed by a manufacturing firm, but not yet sold.
17. Goods sold f.o.b. destination that are in transit at December 31.
18. Short-term investments in stocks and bonds that will be resold in the near future.
Indicate which of these items would typically be reported as inventory in the financial statements. If
an item should not be reported as inventory, indicate how it should be reported in the financial statements.
E8-17 (FIFO and LIFO—Periodic and Perpetual) The following is a record of Pervis Ellison Company's
transactions for Boston Teapots for the month of May 2007.
May 1 Balance 400 units @ $20 May 10 Sale 300 units @ $38
12 Purchase 600 units @ $25 20 Sale 540 units @ $38
28 Purchase 400 units @ $30
(a) Assuming that perpetual inventories are not maintained and that a physical count at the end of
the month shows 560 units on hand, what is the cost of the ending inventory using (1) FIFO and
(b) Assuming that perpetual records are maintained and they tie into the general ledger, calculate
the ending inventory using (1) FIFO and (2) LIFO.