Unit cost accounting tenth edition solutions manual

This preview shows page 26 - 34 out of 176 pages.

Unit Cost
ACCOUNTING - Tenth Edition Solutions Manual Chapter 6: Merchandise Inventory Page 27 of 176
ACCOUNTING - Tenth Edition Solutions Manual S6B-14 Compute the estimated cost of ending merchandise inventory by the gross profit method.
Chapter 6: Merchandise Inventory Page 28 of 176 * $501,000 × 0.55 = $275,550
ACCOUNTING - Tenth Edition Solutions Manual S6B-15 Compute the estimated cost of ending merchandise inventory by the retail method. (Round the cost to retail ratio to the nearest percent.)
Chapter 6: Merchandise Inventory Page 29 of 176
ACCOUNTING - Tenth Edition Solutions Manual Chapter 6: Merchandise Inventory Page 30 of 176 E6-16 Match the accounting terms with the corresponding definitions. Solution: 1. c 2. h 3. f 4. e 5. g 6. d 7. b 8. a
ACCOUNTING - Tenth Edition Solutions Manual Chapter 6: Merchandise Inventory Page 31 of 176 E6-17 Requirements 1. 2. 3. Determine the amount that would be reported in ending merchandise inventory on November 15 using the FIFO inventory costing method. Determine the amount that would be reported in ending merchandise inventory on November 15 using the LIFO inventory costing method. Determine the amount that would be reported in ending merchandise inventory on November 15 using the weighted-average inventory costing method. Round all amounts to the nearest cent.
ACCOUNTING - Tenth Edition Solutions Manual Chapter 6: Merchandise Inventory Page 32 of 176 Solution: Requirement 1 Ending merchandise inventory on November 15 is $10.60 using FIFO. Calculation: FIFO Purchases Cost of Goods Sold Inventory on Hand Date Quantity Total Cost Quantity Total Cost Quantity Unit Cost Total Cost Nov. 2 8 units × $ 2.00 = $ 16.00 8 units × $ 2.00 = $ 16.00 $ 16 6 2 units × $ 2.10 = $ 4.20 8 units × $ 2.00 = $ 16.00 $ 20 2 units × $ 2.10 = $ 4.20 8 3 units × $ 2.00 = $ 6.00 $ 6 5 units × $ 2.00 = $ 10.00 $ 14 2 units × $ 2.10 = $ 4.20 13 2 units × $ 2.20 = $ 4.40 5 units × $ 2.00 = $ 10.00 $ 18.60 2 units × $ 2.10 = $ 4.20 2 units × $ 2.20 = $ 4.40 14 4 units × $ 2.00 = $ 8.00 $ 8 1 unit × $ 2.00 = $ 2.00 $ 10.60 2 units × $ 2.10 = $ 4.20 2 units × $ 2.20 = $ 4.40 Totals 12 units $ 25 7 units $ 14 5 units $ 10.60 Unit Cost Unit Cost
ACCOUNTING - Tenth Edition Solutions Manual Chapter 6: Merchandise Inventory Page 33 of 176 Requirement 2 Ending merchandise inventory on November 15 is $10.00 using LIFO. Calculations: Purchases Cost of Goods Sold Inventory on Hand Date Quantity Total Cost Quantity Total Cost Quantity Unit Cost Total Cost Nov. 2 8 units × $ 2.00 = $ 16.00 8 units × $ 2.00 = $ 16.00 $ 16 6 2 units × $ 2.10 = $ 4.20 8 units × $ 2.00 = $ 16.00 $ 20 2 units × $ 2.10 = $ 4.20 8 2 units × $ 2.10 = $ 4.20 $ 6 7 units × $ 2.00 = $ 14.00 $ 14 1 unit × $ 2.00 = $ 2.00 ### 2 units × $ 2.20 = $ 4.40 7 units × $ 2.00 = $ 14.00 $ 18.40 2 units

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture