Intermediate Accounting
1st Edition
ISBN: 9780132162302
Author: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella
Publisher: PEARSON
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Textbook Question
Chapter 10, Problem 10.6BE
FIFO, Perpetual Basis. Spider incorporated provided the following information regarding its inventory for the current year.
| Transaction | Units | Sales in Units | Unit Cost | Total Cost |
| Beginning inventory 1/1 | 3,500 | $50 | $175,000 | |
| Purchases | ||||
| March 30 | 5,000 | 65 | 325,000 | |
| July 15 | 1,000 | 72 | 72,000 | |
| September 1 | 6,100 | |||
| Total available for sale | 9,500 | $572,000 | ||
| Units sold September 1 | (6,100) | |||
| Ending inventory | 3,400 |
Determine Spider’s ending inventory and cost of goods sold under the FIFO perpetual basis.
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6. Purchased materials on account, $5,000.
7. Used $2,000 in direct materials and $700 in indirect materials in production.
8. Incurred $9,000 in labor costs, of which 60% was direct labor.
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Chapter 10 Solutions
Intermediate Accounting
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