Jill Hansen owns Interior Designs, a furniture store. One of her most popular items is a leather recliner. Following is the recliner inventory activity for August. The recliners on hand at August 1 had a unit cost of $280. Date Purchases Sales Units on Hand August 1 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - --------80 August 4- -------120 units @ 300 each - - - -- - - - - ----------- - - - - - - - - - - - - - - --------- 200 August 20- - - - - - - - - - -- - - - - - ----------- - - -140 units @ $510 each - - -------------------- 60 August 25- - - -180 units @ $ 340 each - - - - - - - - - - - - - - - - - - - - -- - - - -----------------240 August 29- - - - - - - - - - - - - - - - - - - - - -- - - - 110 units @$ 590 each - ------------------ - 130 (1). If Interior Designs uses the first-in, first-out (FIFO) inventory method and periodic approach, what values would be assigned to ending inventory, cost of goods sold and gross profit? (2). If Interior Designs uses the last-in, first-out (LIFO) inventory method and periodic approach, what values would be assigned to ending inventory, cost of goods sold and gross profit? (3). If Interior Designs uses the weighted-average inventory method and periodic approach, what values would be assigned to ending inventory, cost of goods sold and gross profit? WORKSHEET a) FIFO Beginning Inventory $ Plus: Purchases __________ Cost of Goods Available for Sale Less: Ending Inventory _________ Cost of Goods Sold $ Sales $ Cost of Goods Sold _________ Gross Profit $ b) LIFO Beginning Inventory $ Plus: Purchases __________ Cost of Goods Available for Sale Less: Ending Inventory _________ Cost of Goods Sold $ Sales $ Cost of Goods Sold _________ Gross Profit $ C) Weighted-Average Beginning Inventory $ Plus: Purchases __________ Cost of Goods Available for Sale Less: Ending Inventory _________ Cost of Goods Sold $ Sales $ Cost of Goods Sold _________ Gross Profit $

Jill Hansen owns Interior Designs, a furniture store. One of her most popular items is a leather recliner. Following is the recliner inventory activity for August. The recliners on hand at August 1 had a unit cost of $280. Date Purchases Sales Units on Hand August 1 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - --------80 August 4- -------120 units @ 300 each - - - -- - - - - ----------- - - - - - - - - - - - - - - --------- 200 August 20- - - - - - - - - - -- - - - - - ----------- - - -140 units @ $510 each - - -------------------- 60 August 25- - - -180 units @ $ 340 each - - - - - - - - - - - - - - - - - - - - -- - - - -----------------240 August 29- - - - - - - - - - - - - - - - - - - - - -- - - - 110 units @$ 590 each - ------------------ - 130 (1). If Interior Designs uses the first-in, first-out (FIFO) inventory method and periodic approach, what values would be assigned to ending inventory, cost of goods sold and gross profit? (2). If Interior Designs uses the last-in, first-out (LIFO) inventory method and periodic approach, what values would be assigned to ending inventory, cost of goods sold and gross profit? (3). If Interior Designs uses the weighted-average inventory method and periodic approach, what values would be assigned to ending inventory, cost of goods sold and gross profit? WORKSHEET a) FIFO Beginning Inventory $ Plus: Purchases ______ Cost of Goods Available for Sale Less: Ending Inventory _ Cost of Goods Sold $ Sales $ Cost of Goods Sold _ Gross Profit $ b) LIFO Beginning Inventory $ Plus: Purchases __ Cost of Goods Available for Sale Less: Ending Inventory _ Cost of Goods Sold $ Sales $ Cost of Goods Sold _ Gross Profit $ C) Weighted-Average Beginning Inventory $ Plus: Purchases __ Cost of Goods Available for Sale Less: Ending Inventory _ Cost of Goods Sold $ Sales $ Cost of Goods Sold _____ Gross Profit $

Financial And Managerial Accounting

15th Edition

ISBN:9781337902663

Author:WARREN, Carl S.

Publisher:WARREN, Carl S.

Chapter5: Accounting For Retail Businesses

Section: Chapter Questions

Problem 40E: Identify items missing in determining cost of goods sold For (a) through (e), identify the items...

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Jill Hansen owns Interior Designs, a furniture store. One of her most popular items is a leather recliner.

Following is the recliner inventory activity for August. The recliners on hand at August 1 had a unit cost of $280.

Date Purchases Sales Units on Hand
August 1 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - --------80
August 4- -------120 units @ 300 each - - - -- - - - - ----------- - - - - - - - - - - - - - - --------- 200
August 20- - - - - - - - - - -- - - - - - ----------- - - -140 units @ $510 each - - -------------------- 60
August 25- - - -180 units @ $ 340 each - - - - - - - - - - - - - - - - - - - - -- - - - -----------------240
August 29- - - - - - - - - - - - - - - - - - - - - -- - - - 110 units @$ 590 each - ------------------ - 130

(1). If Interior Designs uses the first-in, first-out (FIFO) inventory method and periodic approach, what values would be assigned to ending inventory, cost of goods sold and gross profit?
(2). If Interior Designs uses the last-in, first-out (LIFO) inventory method and periodic approach, what values would be assigned to ending inventory, cost of goods sold and gross profit?
(3). If Interior Designs uses the weighted-average inventory method and periodic approach, what values would be assigned to ending inventory, cost of goods sold and gross profit?

WORKSHEET

a) FIFO

Beginning Inventory $
Plus: Purchases __________
Cost of Goods Available for Sale
Less: Ending Inventory _________
Cost of Goods Sold $

Sales $
Cost of Goods Sold _________
Gross Profit $

b) LIFO

Beginning Inventory $
Plus: Purchases __________
Cost of Goods Available for Sale
Less: Ending Inventory _________
Cost of Goods Sold $

Sales $
Cost of Goods Sold _________
Gross Profit $

C) Weighted-Average

Beginning Inventory $
Plus: Purchases __________
Cost of Goods Available for Sale
Less: Ending Inventory _________
Cost of Goods Sold $

Sales $
Cost of Goods Sold _________
Gross Profit $

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