Financial Accounting
3rd Edition
ISBN: 9780078025549
Author: J. David Spiceland, Wayne M Thomas, Don Herrmann
Publisher: McGraw-Hill Education
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Textbook Question
Chapter 6, Problem 6.1BP
Calculate ending inventory and cost of goods sold for four inventory methods (LO6–3)
PROBLEMS: SET B
Jimmie’s Fishing Hole has the following transactions related to its top-selling Shimano fishing reel for the month of June:
Requited:
1. Calculate ending inventory and cost of goods sold at June 30, using the specific identification method The June 7 sale consists of fishing reels from beginning inventory, the June 15 sale consists of three fishing reels from beginning inventory and nine fishing reels from the June 12 purchase, and the June 27 sale consists of one fishing reel from beginning inventory and seven fishing reels from the June 21 purchase.
2. Using FIFO, calculate ending inventory and cost of goods sold at June 30.
3. Using LIFO, calculate ending inventory arid cost of goods sold at June 30.
4. Using weighted average cost, calculate ending inventory and cost of goods sold at June 30.
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[The following information applies to the questions displayed below.]
Trey Monson starts a merchandising business on December 1 and enters into the following three inventory purchases.
Monson uses a periodic inventory system. Also, on December 15, Monson sells 28 units for $25 each.
Purchases on December 7
Purchases on December 14
Purchases on December 21
QS 5-17A (Algo) Periodic: Inventory costing with weighted average LO P3
Determine the costs assigned to ending inventory when costs are assigned based on the weighted average method.
Note: Round cost per units to 2 decimal places.
Purchases:
December 7
Total
December 14
December 21
18 units @ $10.00 cost
35 units @ $15.00 cost
28 units @ $18.00 cost
Goods Available for Sale
# of units
Cost per
unit
18 $
35 $
28 $
81 $
10.00
15.00
18.00
14.92
Weighted average - Periodic
Cost of Goods
Available for
Sale
$
180
525
504
1,209
Cost of Goods Sold
# of units
sold
53
Average
Cost per
Unit
Cost of
Goods Sold
$ 0.00
# of units
in ending…
3
From the following, calculate the cost of ending inventory and cost of goods sold for the FIFO method, ending inventory is 49
units.
Note: Round your answers to the nearest cent.
ences
Beginning inventory
and purchases
January 1
April 10
May 15
July 22
August 19
September 30
November 10
December 15
Mc
Graw
Hill
Cost of ending inventory
Cost of goods sold
Units
5
10
12
15
18
20
32
16
Unit
cost
$ 2.00
2.50
3.00
3.25
4.00
4.20
4.40
4.80
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REQUIRED: Determine the cost assigned to ending inventory and to cost of goods sold using LIFO. Each
yellow cell must include a formula using cell references, EVEN IF THE FORMULA RESULT IS ZERO.
Date
Jan. 1 Beginning inventory
Jan. 11: Sales
Jan. 15 Purchase
Jan. 17: Sales
Jan, 21:Purchase
Jan. 23: Sales
Totals
Units
purchased
Cost of Goods Sold - Perpetual LIFO:
560
840
890:
Ending Inventory-Perpetual LIFO:
2,290
Calculate cost of goods sold for the January
11 sale of 450 units.
Calculate cost of goods sold for the January
17 sale of 670 units.
Cost per
unit
$14
17
19
Units Sold
450
Total Cost of Goods Sold for January - 1,920 units
Units in
Ending
Inventory
Total Cost Units Sold Selling Price Total Sales
of Purchase
per unit
Total Ending Inventory for January - 370 units
$7,840
14,280
16,910
$39,030
units @
units
units@
450
670
800
1,920
Cost per
unit
$14
$14
Cost per
unit
$40:
$40
$40
per unit=
units @
units
$18,000
26,800
32,000
$76,800
Cost of
Goods Sold
$6,300
Inventory
Balance
Chapter 6 Solutions
Financial Accounting
Ch. 6 - Prob. 1RQCh. 6 - Prob. 2RQCh. 6 - What is the difference among raw materials...Ch. 6 - Prob. 4RQCh. 6 - Prob. 5RQCh. 6 - What is a multiple-step income statement? What...Ch. 6 - Cheryl believes that companies report cost of...Ch. 6 - What are the three primary cost flow assumptions?...Ch. 6 - 9.Which cost flow assumption generally results in...Ch. 6 - Prob. 10RQ
Ch. 6 - Prob. 11RQCh. 6 - 12.Explain how LIFO generally results in lower...Ch. 6 - Prob. 13RQCh. 6 - Explain how freight charges, purchase returns, and...Ch. 6 - Prob. 15RQCh. 6 - Prob. 16RQCh. 6 - Prob. 17RQCh. 6 - Prob. 18RQCh. 6 - Prob. 19RQCh. 6 - How is gross profit calculated? What is the gross...Ch. 6 - 21.Explain how the sale of inventory on account is...Ch. 6 - Prob. 22RQCh. 6 - Prob. 23RQCh. 6 - Prob. 24RQCh. 6 - Prob. 6.1BECh. 6 - Prob. 6.2BECh. 6 - Calculate cost of goods sold (LO62) At the...Ch. 6 - Prob. 6.4BECh. 6 - Calculate ending inventory and cost of goods sold...Ch. 6 - Calculate ending inventory and cost of goods sold...Ch. 6 - Calculate ending inventory and cost of goods sold...Ch. 6 - Prob. 6.8BECh. 6 - Identify financial statement effects of FIFO and...Ch. 6 - Prob. 6.10BECh. 6 - Prob. 6.11BECh. 6 - Prob. 6.12BECh. 6 - Prob. 6.13BECh. 6 - Prob. 6.14BECh. 6 - Prob. 6.15BECh. 6 - Prob. 6.16BECh. 6 - Prob. 6.17BECh. 6 - Prob. 6.18BECh. 6 - Prob. 6.19BECh. 6 - Prob. 6.20BECh. 6 - Prob. 6.21BECh. 6 - Prob. 6.22BECh. 6 - Calculate cost of goods sold (LO62) Russell Retail...Ch. 6 - Prob. 6.2ECh. 6 - Prob. 6.3ECh. 6 - Calculate inventory amounts when costs are rising...Ch. 6 - Calculate inventory amounts when costs are...Ch. 6 - Record Inventory transactions using o perpetual...Ch. 6 - Record inventory purchase and purchase return...Ch. 6 - Prob. 6.8ECh. 6 - Prob. 6.9ECh. 6 - Prob. 6.10ECh. 6 - Record transactions using a perpetual system...Ch. 6 - Record transactions using a perpetual system...Ch. 6 - Prob. 6.13ECh. 6 - Prob. 6.14ECh. 6 - Calculate cost of goods sold, the inventory...Ch. 6 - Prob. 6.16ECh. 6 - Prob. 6.17ECh. 6 - Prob. 6.18ECh. 6 - Record inventory purchases and sales using a...Ch. 6 - Prob. 6.20ECh. 6 - Calculate ending inventory and cost of goods sold...Ch. 6 - Prob. 6.2APCh. 6 - Prob. 6.3APCh. 6 - Prob. 6.4APCh. 6 - Prob. 6.5APCh. 6 - Prob. 6.6APCh. 6 - Prob. 6.7APCh. 6 - Prob. 6.8APCh. 6 - Record transactions and prepare a partial income...Ch. 6 - Prob. 6.10APCh. 6 - Calculate ending inventory and cost of goods sold...Ch. 6 - Prob. 6.2BPCh. 6 - Prob. 6.3BPCh. 6 - Prob. 6.4BPCh. 6 - Prob. 6.5BPCh. 6 - Prob. 6.6BPCh. 6 - Prob. 6.7BPCh. 6 - Use the inventory turnover retio end gross profit...Ch. 6 - Record transactions and prepare a partial income...Ch. 6 - Prob. 6.10BPCh. 6 - Prob. 6.1APCPCh. 6 - Prob. 6.2APFACh. 6 - Prob. 6.3APFACh. 6 - Prob. 6.4APCACh. 6 - Prob. 6.5APECh. 6 - Prob. 6.6APIRCh. 6 - Written Communication You have just been hired as...Ch. 6 - Prob. 6.8APEM
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