ch.7 drill sheets-act - Chapter 7 Lab Practice Concept:...

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Unformatted text preview: Chapter 7 Lab Practice Concept: Calculating Sales, Cost of Goods Sold, and Gross Profit under Periodic FIFO, LIFO, and Weighted Average Cost M7-6 Given the following information, calculate sales, cost of goods sold, and gross profit, under (a) FIFO, (b) LIFO, and (c) weighted average. Assume a periodic inventory system is used. Date Description Units Unit Cost Unit Sales Price 7/1 Beg. Inventory 100 $10 7/13 Purchase 500 $13 7/25 Sold (200) $15 7/31 Ending Inventory 400 1. Sales ___________________________________ 2. Goods Available for Sale (Show Calculation) 3. Cost of Goods Sold a. FIFO b. LIFO c. Weighted Average 4. Ending Inventory a. FIFO b. LIFO c. Weighted Average 5. Gross Profit FIFO LIFO Weighted Average Sales Acc 2013, Chapter 7 Lab Practice (Phillips 3e) Page 1 of 10 M7-8 Calculating Cost of Goods Sold and Ending Inventory under Periodic FIFO, LIFO, and Weighted Average In its first month of operations, Literacy for the Illiterate opened a new bookstore and bought merchandise in the following order: (1) 300 units at $7 on January 1, (2) 450 units at $8 on January 8, and (3) 750 units at $9 on January 29. Assuming 900 units are on hand at the end of the month, calculate the cost of goods sold and ending inventory on January 31 under the ( a ) FIFO, ( b ) LIFO, and ( c ) weighted average cost flow assumptions. Assume a periodic inventory system is used. a. Cost of Goods Sold a. FIFO b. LIFO c. Weighted Average b. Ending Inventory a. FIFO b. LIFO c. Weighted Average M7-12 Journal entries for M7012 Purchase Freight Return Payment within discount period M7-11 Posting and Value in Inventory Acc 2013, Chapter 7 Lab Practice (Phillips 3e) Page 2 of 10 E7-14 Recording Journal Entries for Purchases and Purchase Discounts Using a Perpetual Inventory System Using the information in E7-13, prepare journal entries to record the transactions, assuming Axe uses a perpetual inventory system. 1/6 1/6 1/14 2/2 2/28 E7-13 Calculate the cost of inventory as of February 28. (Work Exercise 7-14 first, then post) E7-16 Recording Journal Entries for Purchases, Purchase Discounts, and Purchase Returns Using a Perpetual Inventory System . Using the information in E7-15, prepare journal entries to record the transactions, assuming Ace uses a perpetual inventory system. 6/3 6/5 6/6 6/11 6/22 7-15 Cost of inventory Acc 2013, Chapter 7 Lab Practice (Phillips 3e) Page 3 of 10 E 7-8 Evaluating the Effects of Inventory Methods on Income from Operations, Income Taxes, and Net Income (Periodic) Courtney Company uses a periodic inventory system. Data for 2007: beginning merchandise inventory (December 31, 2006), 1,000 units at $35; purchases, 4,000 units at $38; operating expenses (excluding income taxes), $71,000; ending inventory per physical count at December 31, 2007, 900 units; sales price per unit, $70; and average income tax rate, 30 percent.per physical count at December 31, 2007, 900 units; sales price per unit, $70; and average income tax rate, 30 percent....
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This note was uploaded on 01/19/2011 for the course ACC 2013 taught by Professor Noe during the Spring '08 term at The University of Texas at San Antonio- San Antonio.

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ch.7 drill sheets-act - Chapter 7 Lab Practice Concept:...

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