# Intermediate Accounting I 4a 1

Question 1(E 8-13)

1. FIFO Periodic
 Units Available for Sale = 2000 + 10000 + 6000 = 18,000 Units Sold = 8000 + 7000 = 15,000 Units in Ending Inventory = 18,000 – 15,000 = 3,000 Cost of Goods Sold Units Unit Cost Total Sales From Aug 1 Inventory 2000 \$6.10 \$12,200 Sales From Aug 8 Purchase 10000 \$5.50 \$55,000 Sales From Aug 18 Purchase 3000 \$5.00 \$15,000 15,000 \$82,200 Ending Inventory Units Unit Cost Total Inventory From Aug 18 Purchase 3000 \$5.00 \$15,000

1. LIFO Periodic
 Units Available for Sale = 2000 + 10000 + 6000 = 18,000 Units Sold = 8000 + 7000 = 15,000 Units in Ending Inventory = 18,000 – 15,000 = 3,000 Cost of Goods Sold Units Unit Cost Total Sales From Aug 18 Purchase 6000 \$5.00 \$30,000 Sales From Aug 8 Purchase 9000 \$5.50 \$49,500 15,000 \$79,500 Ending Inventory Units Unit Cost Total Inventory From Aug 8 Purchase 1000 \$5.50 \$5,500 Inventory From Aug 1 Inventory 2000 \$6.10 \$12,200 \$17,700

1. AVCO Periodic
 Units Available for Sale = 2000 + 10000 + 6000 = 18,000 Units Sold = 8000 + 7000 = 15,000 Units in Ending Inventory = 18,000 – 15,000 = 3,000 Weighted Average Unit Cost Units Unit Cost Total Aug 1 Inventory 2000 \$6.10 \$12,200 Aug 8 Purchase 10000 \$5.50 \$55,000 Aug 18 Purchase 6000 \$5.00 \$30,000 18,000 * \$5.4 \$97,200 * \$97200 ÷ 18000 Cost of Goods Sold 15000 \$5.4 \$81,000 Ending Inventory 3000 \$5.4 \$16,200

Question 2 (E 8-14)

1. FIFO Perpetual
 Date Purchases Sales Balance Aug 1 2000*\$6.10 =\$12,200 Aug 8 10000*\$5.50 = \$55000 2000*\$6.10 =\$12,200 10000*\$5.50 = \$55000 Aug 14 2000*\$6.10 = \$12,200 6000*\$5.50 = \$33000 4000*\$5.50 = \$22000 Aug 18 6000*\$5.00= \$30,000 6000*\$5.00= \$30,000 Aug 25 4000*\$5.50 = \$22000 3000*\$5.00= \$15,000 3000*\$5.00= \$15,000

1. a) Cost of goods sold= \$12,200+\$33000+\$22000+\$15,000= \$82,200
2. b) Ending inventory = 3000*\$5.00= \$15,000
3. LIFO Perpetual
 Date Purchases Sales Balance Aug 1 2000*\$6.10 =\$12,200 Aug 8 10000*\$5.50 = \$55000 2000*\$6.10 =\$12,200 10000*\$5.50 = \$55000 Aug 14 8000*\$5.50 = \$44000 2000*\$6.10 =\$12,200 2000*\$5.50 = \$11000 Aug 18 6000*\$5.00= \$30,000 2000*\$6.10 =\$12,200 2000*\$5.50 = \$11000 6000*\$5.00= \$30,000 Aug 25 6000*\$5.00= \$30,000 1000*\$5.50 = \$5500 2000*\$6.10 =\$12,200 1000*\$5.50 = \$5500

1. a) Cost of goods sold= \$44000+\$30000+\$5500 = \$79,500
2. b) Ending inventory = \$12,200+\$5500= \$17,700
3. AVCO Periodic
 Date Purchases Sales Balance Aug 1 2000*\$6.10 =\$12,200 Aug 8 10000*\$5.50 = \$55000 2000*\$6.10 =\$12,200 10000*\$5.50 = \$55000 12000 *\$5.60 = \$55000 Aug 14 8000*\$5.60= \$44800 4000*\$5.60 = \$22400 Aug 18 6000*\$5.00= \$30,000 4000*\$5.60 = \$22400 6000*\$5.00= \$30,000 10000*\$5.24 =\$52,400 Aug 25 7000*\$5.24 =\$36,680 3000*\$5.24= \$15,720

1. a) Cost of goods sold= \$44800+\$36680 = \$81,480
2. b) Ending inventory = 3000*\$5.24= \$15,720
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