Chap005wildtextbook(1)

# Date purchases cost of goods sold inventory balance

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Date Purchases Cost of Goods Sold Inventory Balance Aug. 1 10 @ 91 \$ = 910 \$ 910 \$ Aug. 15 15 @ 106 \$ = 1,590 \$ 2,500 \$ Aug. 25 8 @ 91 \$ = 728 \$ 12 @ 106 \$ = 1,272 \$ 500 \$ 5-10

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The Cost of Goods Sold for the 20 bikes sold on the August 25 sale is \$2,000. 8 bikes @ 91 = \$ 728 12 bikes @ 106 = \$1,272 After this sale, there are five units in inventory at \$500: 2 bikes @ \$91 = \$ 182 3 bikes @ \$106 = \$ 318 Specific Identification Date Purchases Cost of Goods Sold Inventory Balance Aug. 1 10 @ 91 \$ = 910 \$ 910 \$ Aug. 15 15 @ 106 \$ = 1,590 \$ 2,500 \$ Aug. 25 8 @ 91 \$ = 728 \$ 12 @ 106 \$ = 1,272 \$ 500 \$ 4 @ 119 \$ = 476 \$ #REF! 5-11
Specific Identification Aug. 15 Merchandise inventory 1,590 Accounts payable 1,590 Aug. 25 Accounts receivable 2,600 Sales 2,600 Aug. 25 Cost of goods sold 2,000 Merchandise inventory 2,000 Here are the entries to record the purchases and sales. The numbers in red are determined by the cost flow assumption used. All purchases and sales are made on credit. The selling price of inventory was as follows: 8/25 \$130 5-12

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First-In, First-Out (FIFO) The above purchases were made in August. On August 25, the company sold 20 bikes. Date Purchases Cost of Goods Sold Inventory Balance Aug. 1 10 @ 91 \$ = 910 \$ 910 \$ Aug. 15 15 @ 106 \$ = 1,590 \$ 2,500 \$ 5-13
First-In, First-Out (FIFO) Date Purchases Cost of Goods Sold Inventory Balance Aug. 1 10 @ 91 \$ = 910 \$ 910 \$ Aug. 15 15 @ 106 \$ = 1,590 \$ 2,500 \$ Aug. 25 10 @ 91 \$ = 910 \$ 10 @ 106 \$ = 1,060 \$ 530 \$ The Cost of Goods Sold for the August 25 sale is \$1,970. After this sale, there are five units in inventory at \$530: 5 @ \$106 5-14

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First-In, First-Out (FIFO) Date Purchases Cost of Goods Sold Inventory Balance Aug. 1 10 @ 91 \$ = 910 \$ 910 \$ Aug. 3 15 @ 106 \$ = 1,590 \$ 2,500 \$ Aug. 14 10 @ 91 \$ = 910 \$ 10 @ 106 \$ = 1,060 \$ 530 \$ Balance Sheet Inventory = \$530 Income Statement COGS = \$1,970 5-15
First-In, First-Out (FIFO) Aug. 15 Merchandise inventory 1,590 Accounts payable 1,590 Aug. 25 Accounts receivable 2,600 Sales 2,600 Aug. 25 Cost of goods sold 1,970 Merchandise inventory 1,970 Here are the entries to record the purchases and sales entries. The numbers in red are determined by the cost flow assumption used. All purchases and sales are made on credit. The selling price of inventory was as follows: 8/25 \$130 5-16

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Last-In, First-Out (LIFO) The above purchases were made in August.
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