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assignment ch 7-9 - LIFO FIFO Weighted Average Cost of...

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Syed Abdullah Mannan Introduction to Financial Accounting Date: 09-28-2011 Chapter 7 7-12 No. The weighted average must take into account the number of units purchased at each price. For the Gamma Company, the weighted average unit cost of inventory is {(2 X $4.00) + (3 X $5.00)} / 5 = $4.60. 7-37 Cost of Goods Available= $19,400 (6,000 + 4,200 + 4,400 + 2,300 + 2,500) LIFO Ending Inventory = (3,000 @ $2.00) + (1,500 @ $2.10) = $9,150 FIFO Ending Inventory = 1,000 @ 2.50 = $2,500 1,000 @ 2.30 = $2,300 2,000 @ 2.20 = $4,400 500 @ 2.10 = $1,050 4,500 $10,250 Weighted Average = 19,400/9000 = $2.15 per unit Ending Inventory = 4,500 @ $2.15 = $9,675
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Unformatted text preview: LIFO FIFO Weighted Average Cost of Goods Available $19,400 $19,400 $19,400 Less Ending Inventory 9,150 10,250 9,675 $10,250 $ 9,150 $ 9,725 Chapter 8 8-10 No. Depreciation doesn’t generate cash. 8-35 D= C-R ($80,000 - $8,000) = $.36 per mile N (200,000) Depreciation Expense: Year 1: $.36 X 60,000 = $21,600 Year 2: $.36 X 90,000 = $32,400 Net Book Value When Sold: $80,000 - $21,600 - $32,400 = $26,000 Gain on Sale: $30,000 - $26,000 = $4,000 Chapter 9 9-33 The person received a check for a lump sum in which all of the state and federal taxes had been deducted from the check....
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