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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
(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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