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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