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week_2_solutions_1

# week_2_solutions_1 - 4-20 Goods Available for Sale...

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4-20 Goods Available for Sale Beginning inventory 75 First Purchase 100 Second Purchase 175 Goods available for sale 350 a. FIFO Cost of Goods Sold Units From beginning inventory 75 From first purchase 100 From second purchase 125 Total Units Sold 300 Ending Inventory = Goods available for sale - cost of goo Ending Inventory = \$33,450 -28,450 = \$5,000 b. LIFO Cost of Goods Sold Units From second purchase 175 From first purchase 100 From beginning inventory 25 Total Units Sold 300 Ending Inventory = Goods available for sale - cost of goo Ending Inventory = \$33,450 -28,950 = \$4,500 c. Weighted Average Goods available for sale / Total Units = Cost per Unit \$33,450 / 350 = \$95.57 Cost of Goods Sold 300 units @ \$95.57 = \$28,671 Ending Inventory 50 units @ \$95.57 = \$ 4,778.50 Income = Income from FIFO \$7,550 = Income from LIFO \$7,050 = Income from Weighted average \$7,329 = Taxes from FIFO \$2,265 Taxes from LIFO \$2,115 Taxes from Weighted Average \$2,199 Financial Statements from FIFO

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2010 Income Statement Sales revenue \$51,000 Cost of goods sold \$(28,450) Gross margin \$22,550 Less: Operating exp.
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