Hinson 9-2 Inventory Cost Flow Methods

# Hinson 9-2 Inventory Cost Flow Methods - Aug. 1 Beg. Inv =...

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Intermediate Accounting I Assignment 9-2 Inventory Cost Flow Methods Jamie Hinson March 3, 2008 Exercise 8-11 1. Periodic FIFO Beg. Inv \$12,200 Plus: purchases 85,000 COGS available for sale 97,200 Less: End. Inv (18,300) Cost of goods sold \$78,900 Cost of Ending Inventory: Date of Purchase Units Unit Cost Total Cost 08/08/06 10,000 \$5.50 \$55,000 08/18/07 6,000 \$5.00 \$30,000 Total 16,000 \$85,000 2. Periodic LIFO Beg. Inv \$12,200 Plus: purchases 85,000 COGS available for sale 97,200 Less: End. Inv (18,300) Cost of goods sold \$78,900 Cost of Ending Inventory: Date of Purchase Units Unit Cost Total Cost Beg. Inv. 2,000 \$6.10 \$12,200 August 18, 2006 6,000 \$5.00 \$30,000 Total 8,000 \$42,200 3. Periodic Average Cost = cost of goods available for sale / quantity available for sale \$6.10 = \$18,300 / 3000

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Exercise 8-12 1. Perpetual FIFO Date Purchased Sold Balance
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Unformatted text preview: Aug. 1 Beg. Inv = 2,000 units @\$6.10 \$12,200 Aug. 8 10,000 @ \$5.50 55,000 Aug. 14 8,000 @ \$12.00 96,000 Aug. 18 6,000 @ \$5.00 30,000 Aug. 25 7,000 @ \$11.00 77,000 Balances 8,000 @ \$5.25 7,500 @ \$11.50 \$54,040 2. Perpetual LIFO Date Purchased Sold Balance Aug. 1 Beg. Inv = 2,000 units @\$6.10 \$12,200 Aug. 8 10,000 @ \$5.50 55,000 Aug. 14 8,000 @ \$12.00 96,000 Aug. 18 6,000 @ \$5.00 30,000 Aug. 25 7,000 @ \$11.00 77,000 Balances 8,000 @ \$5.25 7,500 @ \$11.50 \$54,040 3. Perpetual Average Cost = Beg. Inv \$12,200 Plus: purchases 85,000 COGS available for sale 97,200 Less: End. Inv (18,300) Cost of goods sold \$78,900 Cost of Ending Inventory: Weighted-average unit cost = \$97,200 / 18,000 units = \$5.40 3,000 units X \$5.40 = \$16,200...
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## This note was uploaded on 09/08/2010 for the course ACCOUNTING 320 taught by Professor Hickman during the Spring '10 term at Heidelberg.

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Hinson 9-2 Inventory Cost Flow Methods - Aug. 1 Beg. Inv =...

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