Firs tinfirs toutfifomethod costofgoodssold inventory

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Unformatted text preview: r Ac e­5 reels inc luded the following c os t lay ers : Purc has e Date Dec . 12, 2010 J an. 9, 2011 Total on hand Quantity 600 900 1,500 Unit Cos t $ 29 32 Total Cos t $ 17,400 28,800 $ 46,200 a. Prepare a s eparate journal entry to rec ord the c os t of goods s old relating to the J anuary 15 s ale of 1,000 Ac e­5 reels , as s uming that Bas s Trac k us es : (Om it the "$" sign in your response.) 1. Spec ific identific ation (500 of the units s old were purc has ed on Dec ember 12, and the remaining 500 were purc has ed on J anuary 9). 2. Av erage c os t. 3. FIFO. 4. LIFO. Date J an 15, 2011 General J ournal 1. Spec ific identific ation method: Cost of goods sold Inventory 2. Av erage­c os t method: Cost of goods sold Inventory 3. Firs t­in, Firs t­out (FIFO) method: Cost of goods sold Inventory 4. Las t­in, Firs t­out (LIFO) method: Cost of goods sold Inventory Debit 30,500 Credit 30,500 30,800 30,200 31,700 30,800 30,200 31,700 b. Complete a s ubs idiary ledger rec ord for Ac e­5 reels us ing eac h of the four inv entory v aluation methods lis ted abov e. Your inv entory rec ords s hould s how both purc has es of this produc t, the s ale on J anuary 15, and the balanc e on hand at Dec ember 12, J anuary 9, and J anuary 15. (Round your final answers to the nearest dollar am ount. Be certain to enter z ero wherever required. Om it the "$" sign in your response.) 1. Specific identification method: PURCHASED Date Dec 12 J an 9 J an 15 Units 600 900 0 0 0 Unit Cos t $ 29 32 0 0 0 Total $ 17,400 28,800 0 0 0 SOLD Units 0 0 0 500 500 Unit Cos t 0 0 0 $ 29 32 Cos t of Goods Sold 0 0 0 0 $ 30,500 BALANCE Units 600 600 900 100 400 Unit Cos t 2. Average­cost method: PURCHASED e z to.mhe c loud.mc gr a w- hill.c om/hm_a c c ounting.tpx? todo= pr intvie w SOLD BALANCE 3/7 11/18/13 Assignme nt Pr int Vie w Date Dec 12 J an 9 J an 15 Units 600 900 0 Unit Cos t $ 29 32 0 Total $ 17,400 28,800 0 Units 0 0 1,000 Unit Cos t 0 0 $ 30.80 Cos t of Goods Sold 0 0 $ 30,800 Cos t of Goods Sold 0 0 0 0 $ 30,200 Units 600 1,500 500 Unit Cos t 3. First­in, First­out (FIFO) method: PURCHASED Date Dec 12 J an 9 J an 15 Units 600 900 0 0 0 Unit Cos t $ 29 32 0 0 0 Total $ 17,400 28,800 0 0 0 SOLD Units 0 0 0 600 400 Unit Cos t 0 0 0 $ 29 32 BALANCE Units 600 600 900 0 500 Unit Cos t 4. Last­in, First­out (LIFO) method: PURCHASED Date Dec 12 J an 9 J an 15 Units 600 900 0 0 0 Unit Cos t $ 29 32 0 0 0 Total $ 17,400 28,800 0 0 0 SOLD Units 0 0 0 900 100 Unit Cos t 0 0 0 $ 32 29 Cos t of Goods Sold 0 0 0 0 $ 31,700 BALANCE Units 600 600 900 0 500 Unit Cos t Learning Objective: 08­01 In a perpetual inventory system, determine the cost of goods sold using (a) specific identification, (b) average cost, (c) FIFO, and (d) LIFO. Discuss the advantages and shortcomings of each method. Worksheet On J anuary 15, 2011, Bas s Trac k s old 1,000 Ac e­5 fis hing reels to Angler's Warehous e. Immediately prior to this s ale, Bas s Trac k 's perpetual inv...
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