ORIE 3150 Homework _5 Fall 2009 Answers

# ORIE 3150 Homework _5 Fall 2009 Answers - 3150 #5 1. 65...

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ΟΡΙΕ 3150 Ηομεϖορκ#5 1.Π6-5Α Cost of Goods Available for Sale Date Explanation Units Unit Cost Total Cost October 1 Beginning inventory 60 \$25 \$1,500 9 Purchase 120 26 3,120 17 Purchase 90 27 2,430 25 Purchase 80 29 2,320 350 \$9,370 Ending Inventory in Units Sales revenue Units available for sale 350 Date Units Unit Price Total Sales Sales (100 + 60 + 110) 270 October 11 100 \$35 \$ 3,500 Units remaining in ending inventory 80 22 60 40 2,400 29 110 40 4,400 270 \$10,300 (a) (1) LIFO (i) Ending inventory (ii) Cost of goods sold October 1 60 @ \$25 = \$1,500 9 20 @ \$26 = \$ 520 Cost of goods available for sale \$9,370 80 \$2,020 Less: Ending inventory 2,020 Cost of goods sold \$7,350 (iii) Gross profit (iv) Gross profit rate Sales revenue \$10,300 Gross profit Net Sales \$2,950 \$10,300 =28.6% Cost of goods sold 7,350 Gross profit \$ 2,950

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PROBLEM 6-5A (Continued) (2) FIFO (i) Ending inventory (ii) Cost of goods sold October 25 80 @ \$29 = \$2,320 Cost of goods available for sale \$9,370 Less: Ending inventory 2,320 Cost of goods sold \$7,050 (iii) Gross profit (iv) Gross profit rate Sales revenue \$10,300 Gross profit Net sales = \$3,250 \$10,300 =31.6% Cost of goods sold 7,050 Gross profit \$ 3,250 (3) Average Weighted average cost per unit: Cost of goods available for sale Units available for sale \$9,370 350 =\$26.771 (i) Ending inventory (ii) Cost of goods sold 80 @ \$26.771 = \$2,142* Cost of goods available for sale \$9,370 *rounded to nearest dollar Less: Ending inventory 2,142 Cost of goods sold \$7,228 (iii) Gross profit (iv) Gross profit rate Sales revenue \$10,300 Gross profit Net sales = \$3,072 \$10,300 =29.8% Cost of goods sold 7,228 Gross profit \$ 3,072 (β29 ΛΙΦΟπροδυχεστηελοϖεστενδινγ ινωεντορψωαλυε,γροσσπροφιτ,ανδγροσσ προφιτρατεβεχαυσειτσχοστοφγοοδσσολδισηιγηερτηανΦΙΦΟοραωεραγεχοστ.
2.ΤηεΧολλινσΧομπανψηασφιωεινωεντορψιτεμσονηανδ.Χολλινσηασφουνδτηαττηε ιτεμσϖουλδνεεδτοβερεφυρβισηεδβεφορετηεψχουλδβεσολδ,ανδρεπλαχεμεντχοστσοφ εαχηοφτηεσειτεμσηασχηανγεδ.Χολλινσνεεδστοαδϕυσττηεινωεντορψχοστοφτηειτεμσ. Φινδτηενεϖ χοστφορεαχηιτεμ, ανδπροωιδετηεϕουρναλεντρψνεεδεδ τομακετηε αδϕυστμεντιντηειρφινανχιαλρεχορδσ. Ιτεμ Νυμβερ ονηανδ Χοστπερ υνιτ Ρεπλαχεμεντ Χοστπερυνιτ Σελλινγ Πριχεπερ υνιτ Νορμαλ Προφιτπερ υνιτ Ρεφυρβισηινγ Χοστσπερ υνιτ Φοονβιτ 4 550 555 5100 520 15 Γραππλε 8 100 90 120 24 20 Ηοοκ 14 80 70 85 17 20 Ιβινγερ 8 90 37 100 20 24 ϑαχκζοομ 10 95 92 110 22 24 Ρεχαλλτηεδεφινιτιονσ

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## This note was uploaded on 04/06/2010 for the course ORIE 3150 at Cornell University (Engineering School).

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ORIE 3150 Homework _5 Fall 2009 Answers - 3150 #5 1. 65...

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