5 this would be included in the inventory because of

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5) This would be included in the inventory because of shipping terms. E8-5 A) Physical count 234,890  Browser  merchandise 10,420  Minsky merchandise 8,540  Consingment inventory (10,438) Sale to Sims (11,520) Returns 1,500  Total inventory 233,392  B) #3 Sales 12,800           A/R 12,800  #4 Purchases 15,630           A/P 15,630  #8 Sales returns and allowances 2,600           A/R 2,600  E8-9 A) 1/4 A/R 640            Sales 640  1/11 Purchases 975            A/P 975  1/13 A/R 1,050            Sales 1,050  1/20 Purchases 1,120            A/P 1,120 
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1/27 A/R 900            Sales 900  1/31 Inventory 770  COGS 1,925            Purchases 2,095            Inventory 600  B) Sales 2,590  Less: COGS 1,925  Gross profit 665  C) 1/4 A/R 640            Sales 640  COGS 480            Inventory 480  1/11 Inventory 975            A/P 975  1/13 A/R 1,050            Sales 1,050  COGS 770            Inventory 770  1/20 Inventory 1,120            A/P 1,120  A/R 900            Sales 900  COGS 675            Inventory 675  D) Sales 2,590  Less: COGS (1,925) Gross profit 665  E8-14 A) 5300-4500 = 800 Periodic: LIFO 600 x 6 and 200 x 6.08 = $4,816 Average Cost 33655/5300 = 6.35 x 800 = $5,080 B) Ending inventory is 800 for FIFO anf LIFO
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FIFO 500 x 6.79 + 300 x 6.60 = $5,375 LIFO 100 x 6 + 200 x 6.08 + 500 x 6.79 = $5,211 100 1500 800 C) Beginning Inv 3,600  Add: Purchases 30,055  Cost of goods available for sale 33,655  Less: Ending inventory (5,375) COGS 28,280  D) FIFO E8-15 units cost per unit Total cost Beginning inv 600 4800 Purchases 1100 9900 1300 10  13000 800 11  8800 600 12  7200 4400 43700 FIFO 600 @ 12 7200 800 @ 11 8800 100 @10 1000 17000 LIFO 600 @ 8 4800 900 @ 9 8100 12900 Average 43,700/4,400 = 9.93 x 1500 = $14,895 E8-16 A) Ending inventory is 700 LIFO 100 x 4.10 + 600 x 4.30 = $2,990 FIFO 500x 4.58 + 200 x 4.60 = $3,210 Average 9324/2100 = 4.44 x 700 = 3=$3,108 B) LIFO will have the lowest gross profit because LIFO produces the highest cost of go when compared to the other 2 methods. The lowest for ending inventory is LIFO because the older inventory is purchased at a lower rate because inflation increases the rate for each purchase.
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E8-23 98,000-92,000 = 6,000 99,200-92,600 = 6,600 6,600/6,000 = 110 P8-4 A) 1,800-1,450 = 350 FIFO -  200 x 5.80 + 150 x 5.60 = $2,000 LIFO -  100 x 5 + 250 x 5.10 = $1,775 Average -  9720/1800 = 5.40 x 350 = $1,890 B) FIFO - same as above $2,000 LIFO -  100 x 5 + 50 x 5.10 + 200 x 5.80 = $1,915 Average -  $1,977.29  4/1 100 5.00 100 4/4 400 5.10 400 4/5 300 4/11 300 5.30 500 4/12 200 4/18 200 5.35 500 4/26 600 5.60 1,100 4/27 800 4/28 150 4/30 200 5.80 350 P8-7
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100 100  100  100 1000 400  400  200 0 1,200  700  0 700  500 oods sold
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5.0000 500.00 5.0800 2,540.00 1,016.00 5.2120 2,606.00 5.2120 1,563.60 5.2672 2,633.60 5.4487 5,993.57 5.4487 1,634.61 5.4487 817.31 5.6494 1,977.29
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E9-1 Part # Quantity Per unit cost Replacement cost Total cost 110 600 95 100 57,000 111 1000 60 52 60,000 112 500 80 76 40,000 113 200 170 180 34,000 120 400 205 208 82,000 121 1600 16 0.5 25,600 122 300 240 235 72,000 370,600 A) 334,300 B) 340,500 E9-4 A) 12/31/10 COGS 24,000           Inventory 12/31/11 COGS 20,000           Inventory B) 12/31/10 Loss due to market decline in inventory 24,000           Allowance to reduce inventory to market 12/31/11 Loss due to market decline in inventory 4,000
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  • Spring '10
  • George
  • Accounting, Net Income, Doubtful Accounts, total

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