solution ch08 - AIM 3331-OU1 chapter 8 BRIEF EXERCISE 8-9...

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AIM 3331-OU1 chapter 8 BRIEF EXERCISE 8-9 2006 inventory at base amount ($21,708 ÷ 1.08) $20,100 2005 inventory at base amount (19,750 ) Increase in base inventory $ 350 2006 inventory under LIFO Layer one $19,750 X 1.00 $19,750 Layer two $ 350 X 1.08 378 $20,128 2007 inventory at base amount ($25,935 ÷ 1.14) $22,750 2006 inventory at base amount 20,100 Increase in base inventory $ 2,650 2007 inventory under LIFO Layer one $19,750 X 1.00 $19,750 Layer two $ 350 X 1.08 378 Layer three $ 2,650 X 1.14 3,021 $23,149 EXERCISE 8-6 (10–20 minutes) 2005 2006 2007 Sales $290,000 $360,000 $410,000 Sales Returns 11,000 13,000 20,000 Net Sales 279,000 347,000 390,000 Beginning Inventory 20,000 32,000 37,000** Ending Inventory 32,000* 37,000 44,000 Purchases 242,000 260,000 298,000 Purchase Returns and Allowances 5,000 8,000 10,000 Transportation-in 8,000 9,000 12,000 Cost of Good Sold 233,000 256,000 293,000 Gross Profit 46,000 91,000 97,000 *This was given as the beginning inventory for 2006. 1
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AIM 3331-OU1 chapter 8 **This was calculated as the ending inventory for 2006. EXERCISE 8-9 (15–25 minutes) (a) Jan. 4 Accounts Receivable. ......................................... 640 Sales (80 X $8). ......... Accounts Payable 640 Jan. 11 Purchases ($150 X $6). ...................................... 900 Accounts Payable. .................................. 900 Jan. 13 Accounts Receivable. ......................................... 1,050 Sales (120 X $8.75). ............................... 1,050 Jan. 20 Purchases (160 X $7). ........................................ 1,120 Accounts Payable. .................................. 1,120 Jan. 27 Accounts Receivable. ......................................... 900 Sales (100 X $9). .................................... 900 Jan. 31
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solution ch08 - AIM 3331-OU1 chapter 8 BRIEF EXERCISE 8-9...

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