Opt_Prob_Solutions_chap_7_Solutions

Opt_Prob_Solutions_chap_7_Solutions - 600 32 19,200 June...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Chapter 7 Optional Problem Solutions E7–6 Weighted Units FIFO LIFO Average Cost of goods sold: Beginning inventory ($8). ............ 3,000 $24,000 $24,000 $24,000 Purchases (March 21) ($9). ........ 5,000 45,000 45,000 45,000 (August 1) ($7). ......... 2,000 14,000 14,000 14,000 Goods available for sale. .. 10,000 83,000 83,000 83,000 Ending inventory*. ....................... 4,000 32,000 33,000 33,200 Cost of goods sold. ........... 6,000 $51,000 $50,000 $49,800 *Ending inventory computations: FIFO: (2,000 units @ $7) + (2,000 units @ $9) = $32,000. LIFO: (3,000 units @ $8) + (1,000 units @ $9) = $33,000. Average: [(3,000 units @ $8) + (5,000 units @ $9) + (2,000 units @ $7)] = $83,000 ÷ 10,000 units = $8.30 per unit. 4,000 units @ $8.30 = $33,200.
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
AP7 - 1. a) Goods available for sale for all methods: Unit Total Units Cost Cost January 1, 2010–Beginning inventory 400 $30 $12,000 February 20, 2010–Purchase
Background image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: 600 32 19,200 June 30, 2010Purchase 500 36 18,000 Goods available for sale 1,500 $49,200 Ending inventory: 1,500 units (700 + 100) = 700 units b) and c) 1. Weighted-average cost: Average unit cost $49,200 1,500=$32.80. Ending inventory (700 units x $32.80) $22,960 Cost of goods sold ($49,200 $22,960) $26,240 2. First-in, first-out: Ending inventory (500 units x $36) + (200 units x $32) $24,400 Cost of goods sold ($49,200 $24,400) $24,800 3. Last-in, first-out: Ending inventory (400 units x $30) + (300 units x $32) $21,600 Cost of goods sold ($49,200 $21,600) $27,600 4. Specific identification: Ending inventory (260 units x $30) + ( 40 units x $32) + (400 units x $36) $23,480 Cost of goods sold ($49,200 $23,480) $25,720...
View Full Document

This homework help was uploaded on 02/19/2009 for the course HA 230 taught by Professor Davidlee during the Fall '06 term at Cornell University (Engineering School).

Page1 / 2

Opt_Prob_Solutions_chap_7_Solutions - 600 32 19,200 June...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online