Ch6 - 6-14 1. Inventory…… 2770 A/P…… 2770 2. A/R...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: 6-14 1. Inventory…… 2770 A/P…… 2770 2. A/R (13 * 500)…… 6500 Sales Revenue …… 6500 Costs of goods sold (5 * 160) + (8 *170)…. 2160 Inventory…… 2160 3. Sales Revenue…… 6500 Cost of goods sold…… (2160) Gross Profit…… 4340 Ending Inventory = (800+ 1870 + 900 – 2160) = 1410 6-15 1a. SPECIFIC UNIT COST Costs of goods sold: (2 * 160) + (11 * 170) = 2190 Ending Inventory: (3570 – 2190) = 1380 b. AVERAGE COST Costs of goods sold: (13 * [3570/21] or 170) = 2210 Ending Inventory: (8 * 170) = 1360 c. FIFO Costs of goods sold: (5 * 160) + (8 * 170) = 2160 Ending Inventory: (5 * 180) + (3 * 170) = 1410 d. LIFO Costs of goods sold: (5 * 180) + (8 * 170) = 2260 Ending Inventory: (5 * 160) + (3 * 170) = 1310 2. Highest costs of good sold = LIFO Lowest costs of good sold = FIFO The cause is increase in inventory 6-17 1a. FIFO Costs of Good Sold: (5 * 90) + (6 * 95) = 1020 Ending Inventory: (6 * 95) = 570 b. LIFO Costs of Good Sold: (11 * 95) = 1045 Ending Inventory: (5 * 90) + 95 = 545 2. Income Statement Sales Revenue (3 * 150) + (8 * 155): 1690 Costs of Goods Sold: 1020 Gross Profit: 670 Operating Expenses: 320 Income before tax: 350 Income after tax: 140 Net Income: 210 6-20 1. LIFO 2. FIFO 3. Specific Unit Cost 4. Average Cost 5. FIFO 6. LIFO 7. LIFO 8. LCM 9. LIFO 10. LIFO ...
View Full Document

This note was uploaded on 08/30/2011 for the course ACG 2021 taught by Professor Hornik during the Fall '08 term at University of Central Florida.

Page1 / 2

Ch6 - 6-14 1. Inventory…… 2770 A/P…… 2770 2. A/R...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online