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Busi 1004- ICP-Ch.5, 6, 7

# Busi 1004- ICP-Ch.5, 6, 7 - ICP 5-1 a Cost of Goods...

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ICP 5-1 a. Cost of Goods Available for Sale \$ Units Opening Inventory (800 units @ \$8.00 each) \$6,400 800 Sep 6 Purchase (600 units @ \$8.40 each) 5,040 600 Sep 13 Purchase (1,200 units @ \$8.75 each) 10,500 1,200 Sep 22 Purchase (900 units @ \$9.00 each) 8,100 900 \$30,040 3,500 Average unit cost = Cost of Goods Available for Sale/Units Available for Sale = \$30,040 / 3,600 = \$8.58286/unit Ending Inventory = # units in inventory x unit cost = 1,000 units x \$8.58286/unit = \$8,583 COGS = # units sold x unit cost = 2,500 units x \$8.58286/unit = \$21,457 OR - COGS = \$30,040 – 8,583 = \$21,457 b. Ending inventory = 1,000 units Sep 13 purchase – 100 units @ \$8.75 = \$875 Sep 22 purchase – 900 units @ \$9.00 = \$8,100 Total inventory = \$8,975 COGS = \$30,040 – 8,975 = \$21,065 c. Purchases (Sales) Balance Date Units Unit Cost Total Cost Units Total Cost Sep 1 800 \$6,400 Sep 6 600 \$8.40 5,040 1,400 11,440 Sep 10 (800) 8.00 (6,400) (200) 8.40 (1,680) 400 3,360 Sep 13 1,200 8.75 10,500 1,600 13,860 Sep 18 (400) 8.40 (3,360) (400) 8.75 (3,500) 800 7,000 Sep 22 900 9.00 8,100 1,700 15,100 Sep 28 (700) 8.75 6,125 1,000 8,975

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d. Purchases (Sales) Balance Date Units Unit Cost Total Cost Units Unit Cost Total Cost Sep 1 800 \$8.00000 \$6,400 Sep 6 600 \$8.40000 \$5,040 1,400 8.17143 1 11,440 Sep 10 (1,000) 8.17143 (8,171) 400 3,269 Sep 13 1,200 8.75000 10,500 1,600 8.60563 2 13,769 Sep 18 (800) 8.60563 (6,885) 800 6,884 Sep 22 900 9.00000 8,100 1,700 8.81412 3 14,984 Sep 28 (700) 8.81412 (6,170)
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Busi 1004- ICP-Ch.5, 6, 7 - ICP 5-1 a Cost of Goods...

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