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HW_6 Answers - Chapter 6 Inventory and Cost of Goods Sold...

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Chapter 6 Inventory and Cost of Goods Sold Exercises (15-20 min.) E 6-13 Req. 1 Perpetual System Thousands 1. Purchases: Inventory…………………….……….… 1,200 Accounts Payable…………………. 1,200 2. Sales: Cash ($2,000 × .20)…….…………….. 400 Accounts Receivable ($2,000 × .80). 1,600 Sales Revenue…………….………. 2,000 Cost of Goods Sold………………….. 900 Inventory………………….……… .... 900 Req. 2
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Thousands BALANCE SHEET Current assets: Inventory………………………………. $ 670 INCOME STATEMENT Sales revenue……………………………. $2,000 Cost of goods sold……………………… 900 Gross profit………………………………. $1,100
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(10-15 min.) E 6-15 1. Inventory Begin. Bal. ( 5 units @ $160) 800 Purchases Oct. 15 (11 units @ $170) 1,870 Cost of goods sold 26 ( 5 units @ $180) 900 (13 units @ $?) ? Ending bal. ( 8 units @ $?) ? Cost of Goods Sold Ending Inventory (a) Specific unit cost (2 @ $160) + (11 @ $170) = $2,190 (3 @ $160) + (5 @ $180) = $1,380 (b) Average cost 13 × $170* = $2,210 8 × $170* = $1,360 _____ *Average cost per unit = ($800 + $1,870 + $900) = $170 (5 + 11 + 5) (c) FIFO (5 @ $160) + (8 @ $170) = $2,160 (5 @ $180) + (3 @ $170) = $1,410 (d) LIFO (5 @ $180) + (8 @ $170) = $2,260 (5 @ $160) + (3 @ $170) = $1,310 2.
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