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 $

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