ACC 205 Week 3 Assignment E5-16 ,E6-23 ,E6-28, P5-29A.doc -...

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Week 3 Assignment ACC 205
E5-16 Sales Sale discounts Net sales Cost of goods sold Gross profit 89,500 1,560 87,940 60,200 (a) 103,600 (b) 99,220 ( c ) 34,020 66,200 2,000 (d) 40,500 ( e) (f) 2,980 (g) 75,800 36,720 A. 87,940 - 60,200 = 27,740 B. 103,600 - 99,220 = 4,380 C. 99,220 - 34,020 = 65,200 D. 66,200 - 40,500 = 64,200 E. 64200 - 40,500 = 23,700 F. Must solve (g) first, then (f) 2,980 +112,520 = 115,500 G 75,800 + 36,720 = 112,520
E 6-23 FIFO LIFO Average Sales revenue (12 * 90)……. 1,080 1,080 1,080 Cost of goods sold: FIFO (12 * 65)…………. 780 Lifo (10*78+2*65)… 910 Average (12*70)………….. 840 Gross profit……………… 300 170 240 Total cost / total units = Average cost per unit [email protected] 65 = 1,040 16 10 @ 78 = 780 10 1,820 / 26 = 70 The FIFO method results in the largest gross profit during times of increasing inventory prices. This method will produce the lowest cost of goods sold.
E6-28 Beginning inventory………… 220,000 Net purchases………. 800,000 Cost of goods available………..

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