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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This note was uploaded on 03/18/2012 for the course ACC 111 taught by Professor Sobeiski during the Spring '12 term at Post.

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

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