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acct ch 6

acct ch 6 - 10x10=100 25x14=350 5x18=90 =540 ending...

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Sheet1 Page 1 Specific units- it is known which goods are sold and left, used for big ticket items Ex: 5 of $10 units, 25 of $14 units, and 10 $18 units were sold COGS: Enidng inventory COGS: 5 x 10=50 25X 14=350 10x18 =180 total = Cost of goods AFS $900 Average cost= # goods AVS 60= avarage cost=15 15x40=600 15x20=300 900 FIFO-First in first out, assumes the oldest stuff sold first, newest goods are left Does not have to match what actually happens to goods
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Unformatted text preview: 10x10=100 25x14=350 5x18=90 =540 ending inventory= 20x18= 360 LIFO- Last in First out, assume newest goods sold first, oldest still here COGS 25x18=450 15x14=210 660 Ending inventory= 10x14+10x10=240 GAAP says you can use any of the 4 methods. COGS=income statement Lifo=240, fifo=360, wighted average=300, specific unit cost=320 P 290([email protected])+([email protected])+([email protected])=2800 EX 6-2 Inventory3410 A/P3410 Oct. Sales Entry A/R8500 Sales Rev8500 COGS2800 Inventory2800 Gross Profit: Sales8500 COGS (2800) GP5700 Ending inventory [email protected] & [email protected]
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