ClassExCh6.xlsx - Ex6-2 Cost of inventory(estates contents...

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Ex6-2 Cost of inventory (estate’s contents) Price \$ 75,000.00 Transportation-in 2,400.00 Insurance on shipment 300.00 Cleaning and refurbishing 980.00 Total cost of inventory \$ 78,680.00 Ex6-4 LAKER COMPANY Income Statements For Month Ended January 31 Specific Identification Weighted FIFO LIFO Sales (180 units x \$15 price) \$ 2,700.00 \$ 2,700.00 \$ 2,700.00 \$ 2,700.00 Cost of goods sold 1,025.00 1,032.00 1,040.00 1,020.00 Gross profit \$ 1,675.00 \$ 1,668.00 \$ 1,660.00 \$ 1,680.00 Expenses 1,250.00 ### 1,250.00 1,250.00 Income before taxes \$ 425.00 \$ 418.00 \$ 410.00 \$ 430.00 Income tax expense (40%) 170.00 167.20 164.00 172.00 Net income \$ 255.00 \$ 250.80 \$ 246.00 \$ 258.00 Ending Inventory \$ 925.00 \$ 918.00 \$ 910.00 \$ 930.00
SI Under Over CGAS 1,950.00 1,950.00 1,950.00 EI (925.00) (875.00) (975.00) CGS 1,025.00 1,075.00 975.00 Sales \$ 2,700.00 \$ 2,700.00 \$ 2,700.00 CGS 1,775.00 1,825.00 1,725.00 GP \$ 925.00 \$ 875.00 \$ 975.00
b. Weighted AVG Perpetual Date Goods Purchased Cost of Goods So # Units Cost/Unit # Units Cost/Unit 1-Jan 10-Jan 100 \$ 6.00 Average 20-Jan 60 \$ 5.00 Average 25-Jan 80 \$ 5.40 30-Jan 180 \$ 4.50 Average c. FIFO Perpetual Date Goods Purchased Cost of Goods So # Units Cost/Unit # Units Cost/Unit 1-Jan 10-Jan 100 \$ 6.00 20-Jan 60 \$ 5.00 25-Jan 40 \$ 6.00 40 \$ 5.00 30-Jan 180 \$ 4.50 d. LIFO Perpetual Date Goods Purchased Cost of Goods So # Units Cost/Unit # Units Cost/Unit 1-Jan 10-Jan 100 \$ 6.00 20-Jan 60 \$ 5.00 25-Jan 60 \$ 5.00 20 \$ 6.00 30-Jan 180 \$ 4.50
a. Specific identification old Inventory Balance CGS # Units Cost/Unit 140 \$ 6.00 \$ 840.00 (180 x \$4.50) + (5 x \$5.00) + (15 x \$6.00) \$ 600.00 40 \$ 6.00 \$ 240.00 \$1,950 - \$925 40 \$ 6.00 240.00 40 \$ 6.00 \$ 240.00 Sales 180 units x \$15 = 60 \$ 5.00 \$ 300.00 100 \$ 5.40 \$ 540.00 \$ 432.00 20 \$ 5.40 108.00 20 \$ 5.40 \$