6 totals 20 units 1480 31 units 2204 6 units 432

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6 units× $ 72= $ 432Totals20 units$ 1,48031 units$ 2,2046 units$ 432Using weighted-average, the cost of ending merchandise inventory is $432 and cost of goods sold is $2,204.Calculations:Weighted average cost per unit=Cost of goods available for sale / Number of units available(a)After the Nov. 8 purchase:=($680 + $1,480) / (10 units + 20 units) =$2,160 / 30 units=$72 per unit
Horngren’s Accounting   10/e    Solutions Manual6-30
E6-20, cont.Requirement 2 DateAccounts and ExplanationDebitCreditNov. 6Accounts Receivable896 (b)Sales Revenue896 (b)Sale on account.Nov. 6Cost of Goods Sold476 (e)Merchandise Inventory476 (e)Recorded the cost of goods sold.Nov. 8Merchandise Inventory1,480Accounts Payable1,480Purchased inventory on account.Nov. 17Accounts Receivable2,560 (c)Sales Revenue2,560 (c)Sale on account.Nov. 17Cost of Goods Sold1,440 (e)Merchandise Inventory1,440 (e)Recorded the cost of goods sold.Nov. 30Accounts Receivable512 (d)Sales Revenue512 (d)Sale on account.Nov. 30Cost of Goods Sold288 (e)Merchandise Inventory288 (e)Recorded the cost of goods sold.Horngren’s Accounting   10/e    Solutions Manual6-31
E6-20, cont.Calculations:Total sales revenue=Number of putters sold × Sales price per putter(b)Nov. 6 sale:=7 putters × $128 per putter=$896(c)Nov. 17 sale:=20 putters × $128 per putter=$2,560(d)Nov. 30 sale:=4 putters × $128 per putter=$512(e)Calculated in Requirement 1.Horngren’s Accounting   10/e    Solutions Manual6-32
E6-21Requirement 1Using FIFO, cost of goods sold is $260, ending merchandise inventory is $104, and gross profit is $180.Calculations:PurchasesCost of Goods SoldInventory on HandDateQuantityUnitCostTotal CostQuantityUnitCostTotal CostQuantityUnitCostTotal CostDec. 113 units× $ 11= $ 143$ 14389 units× $ 11= $ 99$ 994 units× $ 11= $ 44$ 441417 units× $ 13= $ 2214 units× $ 11= $ 44$ 26517 units× $ 13= $ 221214 units× $ 11= $ 44$ 1618 units× $ 13= $ 104$ 1049 units× $ 13= $ 117Totals17 units$ 22122 units$ 2608 units$ 104Sales Revenue(a)$ 440Less: Cost of Goods Sold260Gross Profit$ 180(a) Sales revenue=Number of dolls sold × Sales price per doll=22 dolls × $20 per doll=$440
Horngren’s Accounting   10/e    Solutions Manual6-33
E6-21, cont.Requirement 2Using LIFO, cost of goods sold is $268, ending merchandise inventory is $96, and gross profit is $172.Calculations:PurchasesCost of Goods SoldInventory on HandDateQuantityUnitCostTotal CostQuantityUnitCostTotal CostQuantityUnitCostTotal CostDec. 113 units× $ 11= $ 143$ 14389 units× $ 11= $ 99$ 994 units× $ 11= $ 44$ 441417 units× $ 13= $ 2214 units× $ 11= $ 44$ 26517 units× $ 13= $ 2212113 units× $ 13= $ 169$ 1694 units× $ 11= $ 44$ 964 units× $ 13= $ 52Totals17 units$ 22122 units$ 2688 units$ 96Sales Revenue (b)$ 440Less: Cost of Goods Sold268Gross Profit$ 172(b) Calculated in Requirement 1.Horngren’s Accounting   10/e    Solutions Manual6-34
E6-21, cont.Requirement 3 LIFO results in a higher cost of goods sold.Requirement 4 FIFO results in a higher cost of ending merchandise inventory.Requirement 5 FIFO results in a higher gross profit.Horngren’s Accounting   10/e    Solutions Manual6-35
E6-22Requirement 1Using FIFO, cost of goods sold is $1,900 and gross profit is $530.Calculations:PurchasesCost of Goods SoldInventory on HandDateQuantityUnitCostTotal CostQuantityUnitCostTotal CostQuantityUnitCostTotal Cost

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