Chapter 6 Solutions - PRACTICE EXERCISES PE 61A Gross...

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PRACTICE EXERCISES PE 6–1A Gross Profit Ending Inventory a. First-in, first-out (FIFO) $23 ($53 – $30) $78 ($36 + $42) b. Last-in, first-out (LIFO) $11 ($53 – $42) $66 ($30 + $36) c. Average cost $17 ($53 – $36) $72 ($36 × 2) PE 6–1B Gross Profit Ending Inventory a. First-in, first-out (FIFO) $45 ($125 – $80) $172 ($84 + $88) b. Last-in, first-out (LIFO) $37 ($125 – $88) $164 ($80 + $84) c. Average cost $41 ($125 – $84) $168 ($84 × 2) PE 6–2A a. Cost of merchandise sold (July 25): 10 units @ $8 $ 80 50 units @ $12 600 60 $680 b. Inventory, July 31: $900 = 75 units × $12 PE 6–2B a. Cost of merchandise sold (April 24): 12 units @ $70 $ 840 3 units @ $72 216 15 $1,056 b. Inventory, April 30: $1,584 = 22 units × $72
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PE 6–3A a. Cost of merchandise sold (July 25): $720 = (60 units × $12) b. Inventory, July 31: 10 units @ $8 $ 80 65 units @ $12 780 75 $860 PE 6–3B a. Cost of merchandise sold (April 24): $1,080 = (15 units × $72) b. Inventory, April 30: 12 units @ $70 $ 840 10 units @ $72 720 22 $1,560 PE 6–4A a. First-in, first-out (FIFO) method: $2,786 = (10 units × $119) + (14 units × $114) b. Last-in, first-out (LIFO) method: $2,766 = (5 units × $120) + (19 units × $114) c. Average cost method: $2,760 (24 units × $115), where average cost = $115 = $9,200/80 units PE 6–4B a. First-in, first-out (FIFO) method: $2,592 = 48 units × $54 b. Last-in, first-out (LIFO) method: $2,160 = 48 units × $45 c. Average cost method: $2,400 (48 units × $50), where average cost = $50 = $11,250/225 units
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PE 6–5A A B C D E F G 1 Unit Unit Total 2 Inventory Cost Market Lower 3 Commodity Quantity Price Price Cost Market of C or M 4 Alpha 400 $ 6 $ 5 $2,400 $2,000 $2,000 5 Beta 350 12 14 4,200 4,900 4,200 6 Total $6,600 $6,900 $6,200 PE 6–5B A B C D E F G 1 Unit Unit Total 2 Inventory Cost Market Lower 3 Commodity Quantity Price Price Cost Market of C or M 4 Widget 100 $30 $27 $3,000 $2,700 $2,700 5 Gidget 75 24 25 1,800 1,875 1,800 6 Total $4,800 $4,575 $4,500 PE 6–6A Amount of Misstatement Overstatement (Understatement) Balance Sheet: Merchandise inventory overstated. ................... $ 16,000
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Chapter 6 Solutions - PRACTICE EXERCISES PE 61A Gross...

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