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
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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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