2293 Chapter 7 Assign Solution 292[1]

2293 Chapter 7 Assign Solution 292[1] - 2293 Chapter 7...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
2293 Chapter 7 Assign Solution 292 7-20 a) 1. FIFO Sale # 1 = 120 units Cost of Goods sold = (45 x $8) + (75 x $9) = $1,035 Sale # 2 = 130 units Cost of Goods sold = (75 x $9) + (55 x $10) = $1225 Total Cost of Goods Sold = $1,035 + $1,225 = $2,260 Gross profit = (120 x $16) + (130 x $17) - $2,260 = $1,870 2. Weighted Average Sale # 1 = 120 units Cost of Goods sold = Total Cost/Total Units available x units sold = $2,360/260 x 120 units = $1,089.23 Note: As of the first sale, only the beginning balance and the first two purchases are in inventory. Average cost therefore is calculated at this point. Sale # 2 = 130 units Cost of Goods sold = Total Cost/Total Units available x units sold = $1,870.77/190 x 130 units = $1,280 Note: After the first sale, there are 140 units left in inventory at a total cost of $1,270.77. The next purchase is added to this and the weighted average is recalculated. Total Cost of Goods Sold = $1,089.23 + $1,280 = $2,369.23 Gross profit = (120 x $16) + (130 x $17) - $2,369.23 = $1,760.77 OR Using the Perpetual Tables
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Date Purchases COGS Ending Inventory Units Unit Cost Total Units Unit Cost Total Units Unit Cost Total Jan 1, 08 45 8 360 45
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 4

2293 Chapter 7 Assign Solution 292[1] - 2293 Chapter 7...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online