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

revsine09 - Financial Reporting and Analysis Chapter 9...

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Financial Reporting and Analysis Chapter 9 Solutions Inventories Exercises Exercises E9-1. Account analysis (AICPA adapted)
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$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
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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
E9-4. Account analysis(AICPA adapted)9-11
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E9-5. Account analysis (AICPA adapted) In this problem, we need to determine the accuracy of the inventory account. We know that cost of goods sold is 70% of sales [70% of $3,000,000 = $2,100,000]. Now let’s examine the T-account to see how our estimate compares. Inventory Beginning balance $550,000 9-15

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