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SCh07

# SCh07 - Student Name Instructor Class McGraw-Hill/Irwin...

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Student Name: Instructor Class: McGraw-Hill/Irwin Demonstration Case 7 Requirement 1: Ending Inventory Cost of Goods Sold Units Dollars Units Dollars FIFO 13 \$2,816 12 \$2,409 LIFO 13 \$2,618 12 \$2,607 Weighted Average 13 \$2,717 12 \$2,508 Computations: Goods Available for Sale Units Unit Cost Total Cost Beginning Inventory 11 \$200 \$2,200 Purchase - January 3 5 209 1,045 Purchase - January 4 9 220 1,980 Goods Available for Sale 25 \$5,225 Correct! Correct! FIFO FIFO Ending Inventory Units Unit Cost Total Cost Cost of Goods Sold Last units in-July 21 9 \$220 \$1,980 Goods Available for Sale \$5,225 Next units in-March 15 4 209 836 - Ending Inventory 2,816 13 \$2,816 Cost of Goods Sold \$2,409 Correct! Correct! Correct! LIFO FIFO Ending Inventory Units Unit Cost Total Cost Cost of Goods Sold First units in-Jan. 1 11 \$200 \$2,200 Goods Available for Sale \$5,225 Next units in-March 15 2 209 418 - Ending Inventory 2,618 13 \$2,618 Cost of Goods Sold \$2,607 Correct! Correct! Correct! Weighted Average Computations Average Cost = \$5,225 = \$209 per unit 25 Correct! 13 Units X 209 Ending Inventory \$2,717 Correct! 12 Units X 209 Cost of Goods Sold \$2,508 Correct! Requirement 3: Ebert Electronics Statement of Income For the Month Ended January 31, 2010 Sales \$5,040 Cost of Goods Sold 2,607 Gross Profit 2,433 Operating Expenses 500 Income before Income Taxes 1,933 Income Tax Expense (25%) 483 Net Income \$1,450 Correct! Requirement 4: Units in ending inventory 13 February replacement Cost \$205 Total Market Value \$2,665 Correct! Cost Market LCM Adjustment Needed FIFO \$2,816 \$2,665 \$2,665 \$(151) <--Correct! LIFO \$2,618 \$2,665 \$2,618 \$- <--Correct! Weighted Average \$2,717 \$2,665 \$2,665 \$(52) <--Correct!

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Given DC7: EBERT ELECTRONICS Date Transaction Description Jan. 1 Beg. Inventory 11 units @ \$200 Jan. 3 Purchased 5 units @ \$209 Jan. 4 Purchased 9 units @ \$220 Jan. 5 Sold (12) units @ \$420 13
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SCh07 - Student Name Instructor Class McGraw-Hill/Irwin...

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