Comfy Feet manufactures slippers.In 2015,the company hired a new bookkeeper who did not have appropriate training.The bookkeeper charged all of the following costs for manufacturing 70,000 pairs of slippers to "Production Expense."

The company had zero work-in-process at the end of both 2014 and 2015.Finished goods amounted to 20,000 pairs at $9.00 per pair at the end of 2014.There were 6,500 pairs in finished goods inventory at the end of 2015.
Required:
a.Provide the adjusting journal entry or entries at Dec 31,2015 to correct the bookkeeper's errors and properly record the above expenditures recorded in the "Production Expense" account.
b.Assume the company uses a periodic inventory system and the FIFO cost flow assumption for finished goods.Calculate the cost of goods sold and the ending value of finished goods inventory for the year 2015.
c.Now assume the company uses the weighted-average cost flow assumption.Calculate the cost of goods sold and the ending value of finished goods.

Question

Comfy Feet manufactures slippers.In 2015,the company hired a new bookkeeper who did not have appropriate training.The bookkeeper charged all of the following costs for manufacturing 70,000 pairs of slippers to "Production Expense."
  
The company had zero work-in-process at the end of both 2014 and 2015.Finished goods amounted to 20,000 pairs at $9.00 per pair at the end of 2014.There were 6,500 pairs in finished goods inventory at the end of 2015.
Required:
a.Provide the adjusting journal entry or entries at Dec 31,2015 to correct the bookkeeper's errors and properly record the above expenditures recorded in the "Production Expense" account.
b.Assume the company uses a periodic inventory system and the FIFO cost flow assumption for finished goods.Calculate the cost of goods sold and the ending value of finished goods inventory for the year 2015.
c.Now assume the company uses the weighted-average cost flow assumption.Calculate the cost of goods sold and the ending value of finished goods.

Quizplus · Accepted Answer

The Answer of Comfy Feet manufactures slippers.In 2015,the company hired a new bookkeeper who did not have appropriate training.The bookkeeper charged all of the following costs for manufacturing 70,000 pairs of slippers to "Production Expense."
  
The company had zero work-in-process at the end of both 2014 and 2015.Finished goods amounted to 20,000 pairs at $9.00 per pair at the end of 2014.There were 6,500 pairs in finished goods inventory at the end of 2015.
Required:
a.Provide the adjusting journal entry or entries at Dec 31,2015 to correct the bookkeeper's errors and properly record the above expenditures recorded in the "Production Expense" account.
b.Assume the company uses a periodic inventory system and the FIFO cost flow assumption for finished goods.Calculate the cost of goods sold and the ending value of finished goods inventory for the year 2015.
c.Now assume the company uses the weighted-average cost flow assumption.Calculate the cost of goods sold and the ending value of finished goods.

Comfy Feet Manufactures Slippers