ProblemSet5 - Chapter 6 Inventory and Cost of Goods Sold...

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Chapter 6 Inventory and Cost of Goods Sold (15-25 min.) E 6-14 Journal DATE ACCOUNT TITLES AND EXPLANATION DEBIT CREDIT 1 Inventory ($1,870 + $900)……………. . 2,770 Accounts Payable…………………. .. 2,770 2 Accounts Receivable (13 @ $500)…. . 6,500 Sales Revenue………………………. 6,500 Cost of Goods Sold……………………. 2,160* Inventory……………………………… 2,160 3 Sales revenue…………………………. .. $6,500 Cost of goods sold……………………. . 2,160 Gross profit……………………………. .. $4,340 Ending inventory ($800 + $1,870 + $900 $2,160) …... $1,410** _____ *(5 @ $160) + (8 @ $170) = $2,160 **Or, (5 @ $180) + (3 @ $170) = $1,410
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(10-15 min.) E 6-15 1. Inventory Begin. Bal. ( 5 units @ $160) 800 Purchases Oct. 15 (11 units @ $170) 1,870 Cost of goods sold 26 ( 5 units @ $180) 900 (13 units @ $?) ? Ending bal. ( 8 units @ $?) ? Cost of Goods Sold Ending Inventory (a) Specific unit cost (2 @ $160) + (11 @ $170) = $2,190 (3 @ $160) + (5 @ $180) = $1,380 (b) Average cost 13 × $170* = $2,210 8 × $170* = $1,360 _____ *Average cost per unit = ($800 + $1,870 + $900)
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This note was uploaded on 04/22/2011 for the course ECON 1001 taught by Professor Puller during the Spring '11 term at Georgia Institute of Technology.

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ProblemSet5 - Chapter 6 Inventory and Cost of Goods Sold...

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