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Chapter 6 - E7 - E14 exercise

# Chapter 6 - E7 - E14 exercise - Chapter 6 E7 Martha's Grain...

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Chapter 6, E7 Martha's Grain Shop 1) Specific Indentification Method Jan. 1 Beginning Inventory 125 23 2875 (sold 100 - 25 remaining @ \$23 = \$575) Feb. 25 Purchase 100 26 2600 Jun. 15 Purchase 200 28 5600 (sold 200 - 0 remaining) Oct. 15 Purchase 150 28 4200 (sold 100 - 50 remaining @ 28 = \$1,400) Dec. 15 Purchase 100 30 3000 (sold 100 - 0 remaining) Goods available for sale 675 18275 Total Sales 500 Dec. 31 Ending Inventory 175 Jan. 1 Beginning inventory 125 23 \$2,875 Sold -100 23 -2,300 Feb. 25 Purchase 100 26 2,600 Jun. 15 Purchase 200 28 5,600 Jun. 15 Sold -200 28 -5,600 Oct. 15 Purchase 150 28 4,200 Oct. 15 Sold -100 28 -2,800 Dec. 15 Purchase 100 30 3,000 15-Dec Sold -100 30 -3,000 175 \$4,575 Jun. 15 Purchase 200 28 5,600 Jan. 1 Inventory 100 23 2,300 Oct. 15 Purchase 100 28 2,800 Dec. 15 Purchase 100 30 3,000 500 13,700 Ending Inventory \$18,275 - \$13,700 = \$4,575 2) Average Cost Method Average unit cost = \$18,275 / 675 = \$27.07 per unit Cost of goods available for sale \$18,275 Less Dec 31 inv (175 x 27.07) 4,737 Cost of goods sold \$13,538 3) FIFO method Cost of goods available for sale 18,275 Less Dec 31 inventory 100 cases @ 30 from Dec 15th 3,000 75 cases @ 28 from Oct 15th 2,100 13,175 4) LIFO method

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Chapter 6, E7 Martha's Grain Shop cost of goods available for sale 18,275 Less Dec 31 inventory
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Chapter 6 - E7 - E14 exercise - Chapter 6 E7 Martha's Grain...

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