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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