ch.8 solutions - SOLUTIONS TO BRIEF EXERCISES BRIEF...

Info iconThis preview shows pages 1–4. Sign up to view the full content.

View Full Document Right Arrow Icon

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

View Full DocumentRight Arrow Icon

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

View Full DocumentRight Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: SOLUTIONS TO BRIEF EXERCISES BRIEF EXERCISE 8-1 Billie Joel Company Balance Sheet (Partial) December 31 Current assets Cash $ 190,000 Receivables (net)...................................................... 400,000 Inventories Finished goods................................................ $150,000 Work in process.............................................. 200,000 Raw materials................................................. 335,000 685,000 Prepaid insurance.................................................... 41,000 Total current assets........................................ $1,316,000 BRIEF EXERCISE 8-2 Inventory (150 X $30)........................................................ 4,500 Accounts Payable.................................................... 4,500 Accounts Payable (6 X $30).............................................. 180 Inventory.................................................................. 180 Accounts Receivable (125 X $50)..................................... 6,250 Sales.......................................................................... 6,250 Cost of Goods Sold (125 X $30)........................................ 3,750 Inventory.................................................................. 3,750 BRIEF EXERCISE 8-3 December 31 inventory per physical count $200,000 Goods-in-transit purchased FOB shipping point 15,000 Goods-in-transit sold FOB destination 22,000 December 31 inventory $237,000 BRIEF EXERCISE 8-4 Cost of goods sold as reported $1,400,000 Overstatement of 12/31/06 inventory (110,000) Overstatement of 12/31/07 inventory 45,000 Corrected cost of goods sold $1,335,000 12/31/07 retained earnings as reported $5,200,000 Overstatement of 12/31/07 inventory (45,000 ) Corrected 12/31/07 retained earnings $5,155,000 BRIEF EXERCISE 8-5 Weighted average cost per unit $11,850 = $11.85 1,000 Ending inventory 300 X $11.85 = $3,555 Cost of goods available for sale $11,850 Deduct ending inventory 3,555 Cost of goods sold (700 X $11.85) $ 8,295 BRIEF EXERCISE 8-6 Ending inventory (April 23) 300 X $13 = $3,900 Cost of goods available for sale $11,850 Deduct ending inventory 3,900 Cost of goods sold $ 7,950 BRIEF EXERCISE 8-7 April 1 250 X $10 = $2,500 April 15 50 X $12 = 600 Ending inventory $3,100 Cost of goods available for sale $11,850 Deduct ending inventory 3,100 Cost of goods sold $ 8,750 SOLUTIONS TO EXERCISES EXERCISE 8-1 (1520 minutes) Items 1, 3, 5, 8, 11, 13, 14, 16, and 17 would be reported as inventory in the financial statements. The following items would not be reported as inventory: 2. Cost of goods sold in the income statement. 4. Not reported in the financial statements. 6. Cost of goods sold in the income statement....
View Full Document

This note was uploaded on 05/11/2008 for the course ACCT 300A taught by Professor Krishnan during the Spring '08 term at CSU Long Beach.

Page1 / 35

ch.8 solutions - SOLUTIONS TO BRIEF EXERCISES BRIEF...

This preview shows document pages 1 - 4. Sign up to view the full document.

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