301C6gp - \$91,000 Date Units Cost Cost Less Ending...

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Acct 301 Chapter 6 Group Activity Answer Key (P6-2B) 301C6gp.doc/jun’09/Burbage COST OF GOODS AVAILABLE FOR SALE: Date Explanation Units Unit Cost Total Cost Oct. 1 Beginning inventory 1,500 \$5 \$ 7,500 3 Purchase 4,000 6 24,000 9 Purchase 3,000 7 21,000 19 Purchase 2,000 8 16,000 25 Purchase 2,500 9 22,500 UAFS** 13,000 *COGAFS \$91,000 Less Units Sold < 9,000> Ending Inventory Units 4,000 FIFO: (1) Ending Inventory (2) Cost of Goods Sold Unit Total *Cost of goods available for sale \$91,000 Date Units Cost Cost Less: Ending inventory 34,500 Oct. 25 2,500 \$9 \$22,500 Cost of goods sold \$56,500 19 1,500 8 12,000 4,000 \$34,500 LIFO: (1) Ending Inventory (2) Cost of Goods Sold Unit Total *Cost of goods available for sale
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Unformatted text preview: \$91,000 Date Units Cost Cost Less: Ending inventory 22,500 Oct. 1 1,500 \$5 \$ 7,500 Cost of goods sold \$68,500 3 2,500 6 15,000 4,000 \$22,500 AVERAGE COST: (1) Ending Inventory (2) Cost of Goods Sold COGAFS/UAFS = Average cost per unit *Cost of goods available for sale \$91,000 \$91,000 ÷ 13,000 = \$7.00 Less: Ending inventory 28,000 Cost of goods sold \$63,000 Unit Total Units Cost Cost 4,000 @ \$7.00 = \$28,000 (1) FIFO results in the highest inventory amount for the balance sheet, \$34,500. (2) LIFO results in the highest cost of goods sold, \$68,500. *COGAFS = Cost of goods available for sale **UAFS = Units available for sale...
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This note was uploaded on 12/14/2010 for the course BUS 3103 taught by Professor Nugent during the Spring '09 term at Texas Woman's University.

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