chapter 6 key

# chapter 6 key - Chapter 6 Exercise 6-3(30 minutes a FIFO...

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Chapter 6 Exercise 6-3 (30 minutes) a. FIFO Perpetual Date Goods Purchased Cost of Goods Sold Inventory Balance 1/1 200 @ \$10 = \$ 2,000 1/10 150 @ \$10 = \$ 1,500 50 @ \$10 = \$ 500 3/14 350 @ \$15 = \$5,250 50 @ \$10 = \$ 5,750 350 @ \$15 3/15 50 @ \$10 100 @ \$15 = \$ 1,500 250 @ \$15 = \$ 4,250 7/30 450 @ \$20 = \$9,000 100 @ \$15 = \$10,500 450 @ \$20 10/5 100 @ \$15 330 @ \$20 = \$ 8,100 120 @ \$20 = \$ 2,400 10/26 100 @ \$25 = \$2,500 120 @ \$20 ______ 100 @ \$25 = \$ 4,900 \$13,850

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Exercise 6-3 (Concluded) b. LIFO Perpetual Date Goods Purchased Cost of Goods Sold Inventory Balance 1/1 200 @ \$10 = \$ 2,000 1/10 150 @ \$10 = \$ 1,500 50 @ \$10 = \$ 500 3/14 350 @ \$15 = \$ 5,250 50 @ \$10 = \$ 5,750 350 @ \$15 3/15 50 @ \$10 = \$ 1,250 300 @ \$15 = \$ 4,500 50 @ \$15 7/30 450 @ \$20 = \$ 9,000 50 @ \$10 50 @ \$15 = \$ 10,250 450 @ \$20 10/5 50 @ \$10 430 @ \$20 = \$8,600 50 @ \$15 = \$ 1,650 20 @ \$20 10/26 100 @ \$25 = \$ 2,500 50 @ \$10 50 @ \$15 20 @ \$20 = \$ 4,150 _______ 100 @ \$25 \$14,600 Alternate Solution Format Ending Cost of Inventory Goods Sold a. FIFO (100 x \$25) + (120 x \$20). ....................................................... \$4,900 (150 x \$10) + (50 x \$10) + (250 x \$15) + (100 x \$15)+ (330 x \$20). ..................................................... \$13,850 b. LIFO (50 x \$10) + (50 x \$15) + (20 x \$20) + (100 x \$25). ................ \$4,150 (150 x \$10) + (300 x \$15) + (430 x \$20). ........................... \$14,600 FIFO Gross Margin Sales revenue (880 units sold x \$40 selling price). ................ \$35,200 Less: FIFO cost of goods sold. ............................................... 13,850 Gross profit. ............................................................................... \$21,350 LIFO Gross Margin Sales revenue (880 units sold x \$40 selling price). ................ \$35,200
Less: LIFO cost of goods sold. ............................................... 14,600 Gross profit. ............................................................................... \$20,600

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Exercise 6-4 (15 minutes) a. Specific identification method—Cost of goods sold Cost of goods available for sale. .................................... \$18,750 Ending inventory under specific identification
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chapter 6 key - Chapter 6 Exercise 6-3(30 minutes a FIFO...

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