ACCT
BProblemsChapter 6

# BProblemsChapter 6 - P roblem 6-1 The completed table is...

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Problem 6-1 The completed table is shown below. Each deduction involves the basic inventory equation. Ending inventory = Beginning Inventory + Purchase – Shipments (COGS) as well as the basic relationships inherent in any income statement, that is:, Income = Revenues – Expenses Co. W Co. X Co. Y Co. Z Sales ................................................................................................................................................................................ \$2,250 \$1,800 \$1,350 \$2,100 Cost of goods sold: ......................................................................................................................................................... Beginning inventory ................................................................................................................................................... 300 225 500 300 Plus: Purchases ........................................................................................................................................................... 975 975 850 1,200 Less: Ending inventory ............................................................................................................................................... 225 300 300 150 Cost of good sold ................................................................................................................................................... 1,050 900 1,050 1,350 Gross margin ................................................................................................................................................................... 1,200 900 300 750 Period expenses .............................................................................................................................................................. 300 400 150 800 Net income (Loss) ........................................................................................................................................................... \$ 900 \$ 500 \$ 150 \$ (50) Problem 6-5 Fifo Av. Cost Lifo a. Sales ...............................................................................................................................................................................

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