ch6_pe - PRACTICE EXERCISES PE 61A Gross Profit a First-in...

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PRACTICE EXERCISES PE 6–1A Gross Profit Ending Inventory a. First-in, first-out (FIFO) $35 ($150 – $115) $239 ($118 + $121) b. Last-in, first-out (LIFO) $29 ($150 – $121) $233 ($115 + $118) c. Average cost $32 ($150 – $118) $236 ($118 × 2) PE 6–1B Gross Profit Ending Inventory a. First-in, first-out (FIFO) $12 ($100 – $88) $167 ($85 + $82) b. Last-in, first-out (LIFO) $18 ($100 – $82) $173 ($88 + $85) c. Average cost $15 ($100 – $85) $170 ($85 × 2) PE 6–2A a. Cost of merchandise sold (August 30): 13 units @ $34 $442 7 units @ $38 266 20 $708 b. Inventory, August 31: $570 = (15 units × $38) PE 6–2B a. Cost of merchandise sold (March 29): 5 units @ $10 $ 50 35 units @ $14 490 40 $540 b. Inventory, March 31: $308 = (22 units × $ 14)
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PE 6–3A a. Cost of merchandise sold (August 30): $760 = (20 units × $38) b. Inventory, August 31: 13 units @ $34 $442 2 units @ $38 76 15 $518 PE 6–3B a. Cost of merchandise sold (March 29): $560 = (40 units × $14) b. Inventory, March 31: 5 units @ $10 $ 50 17 units @ $14 238 22 $288 PE 6–4A a. First-in, first-out (FIFO) method: $720 = (20 units × $36) b. Last-in, first-out (LIFO) method: $540 = (12 units × $25) + (8 units × $30) c. Average cost method: $645 (20 units × $32.25), where average cost = $32.25 = $2,580/80 units PE 6–4B a.
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