Demo 4 Solution

Demo 4 Solution - Demonstration Problem 4-1 Solution FIFO...

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Demonstration Problem 4-1 Solution FIFO LIFO Weighted Average Sales 600 600 600 Cost of Goods Sold (400) (450) (425) Gross Margin 200 150 175
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Demonstration Problem 4-2 Solution, Inventory Summary. Crystal Apple’s 2008 inventory contains the following layers. Units Cost per Unit Total Cost Beginning Balance 200 x 18 = $ 3,600 First Purchase 800 x 20 = 16,000 Second Purchase 1,200 x 24 = 28,800 Total Available 2,200 n/a $48,400 Demonstration Problem 4-2 Solution, part a FIFO LIFO Weighted Average Cost of Goods Sold $44,560 $45,520 $44,880 Ending Inventory $3,840 $2,880 $3,520 Calculation of cost of goods sold: FIFO: 200 x $18 + 800 x $20 + 1,040 x $24 LIFO: 1,200 x $24 + 800 x $20 + 40 x $18 Weighted Average: $48,400/2,200 x 2,040
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Demonstration Problem 4-2 Solution, part b. Financial Statements Crystal Apple Sales Company Comparative Financial Statements Income Statements for the Year Ended December 31, 2008 FIFO LIFO W. Avg. Sales
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Demo 4 Solution - Demonstration Problem 4-1 Solution FIFO...

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