revsine09 - Financial Reporting and Analysis Chapter 9 Solutions Inventories Exercises Exercises E9-1 Account analysis(AICPA adapted To find merchandise

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Financial Reporting and Analysis Chapter 9 Solutions Inventories Exercises Exercises E9-1. Account analysis (AICPA adapted)
9-2
\$1,600,000 Cost of goods sold Ending balance X Now we can solve for X. \$300,000 + \$1,900,000 - \$1,600,000 = X X = \$600,000 E9-2. Cost flow computations (AICPA adapted) 9-3
Requirement 1: Cost of goods sold and the cost of ending inventory under the FIFO method are computed below. FIFO FIFO January 12 150 @ \$18 \$2,700 9-4
January 30 50 @ \$18 900 50 @ \$20 _1,000 Units sold 250 Cost of goods sold \$4,600 9-5
Now we know how many units are no longer in inventory, and we can compute the ending balance from the units remaining. Remaining in ending inventory: FIFO 50 @ \$20 \$1,000 100 @ \$22 _2,200 150 Units \$3,200 9-6
Requirement 2: LIFO January 12 100 @ \$22 \$2,200 50 @ \$20 1,000 January 30 50 @ \$20 1,000 9-7
9-8
E9-3. Account analysis (AICPA adapted) We can find cost of goods sold for 2001 by analyzing the inventory account. Inventory Beginning balance \$X Purchases \$315,000 9-9
(Cash + increase in accounts payable)? 9-10