FINANCIAL ACCOUNTINGLL W/CONNECT >IC<
4th Edition
ISBN: 9781259934773
Author: SPICELAND
Publisher: MCG
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Chapter 6, Problem 6.5BE
Calculate ending inventory and cost of goods sold using FIFO (LO6–3)
During the year, Wright Company sells 470 remote-control airplanes for $110 each. The company has the following inventory purchase transactions for the year.
Calculate ending inventory and cost of goods sold for the year, assuming the company uses FIFO.
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During the year, Wright Company sells 510 remote-control airplanes for $100 each. The company has the following inventory purchase
transactions for the year.
Number of Unit
Total
Date
January 1
Transaction,
Beginning inventory
Units
Cost
Cost
50
$64
$3,200
May 5
Purchase
290
67
19,430
240
580
72
17,280
$39,910
November 3 Purchase
Calculate ending inventory and cost of goods sold for the year, assuming the company uses FIFO.
Cost of Goods Available for Sale
Number Cost per
FIFO
Cost of Goods
Number
of units
unit
Available for Sale
of units
Cost of Goods Sold
Cost per
unit
Cost of Goods
Number
Sold
of units
Ending Inventory
Cost per
unit
Ending
Inventory
Beginning Inventory
50 $
64
$
3,200
$
이
Purchases
May 5
290
67
19,430
0
November 3
240
72
17.280
0
Total
580
$
39,910
°
$
о
$
0
During the year, Wright Company sells 495 remote-control airplanes for $110 each. The company has the following inventory purchase
transactions for the year.
Number of Unit
Date
January 1
May 5
Transaction
Units
Cost Total Cost
Beginning inventory
60
$69
$4,140
Purchase
265
72
19,080
November 3
Purchase
215
77
16,555
540
$39,775
Calculate ending inventory and cost of goods sold for the year, assuming the company uses LIFO.
Cost of Goods Available for Sale
Cost of Goods Sold
LIFO
Number
Cost per
of units
unit
Beginning Inventory
60
$
69 $
Cost of Goods
Available for Sale
4,140
Number
of units
Cost per Cost of Goods
unit
Number
Sold
of units
Ending Inventory
Cost per
unit
Ending
Inventory
$
0
Purchases:
May 5
265 $
72
19,080
0
November 3
215 $
77
16,555
0
Total
540
$
39,775
$
0
0
$
0
During the year, Wright Company sells 490 remote-control airplanes for $120 each. The company has the following inventory purchase
transactions for the year.
Number of
Units
40
270
220
Unit
Cost
$68
71
76
Total Cost
$2,720
19,170
16,720
Date
Transaction
Beginning inventory
Purchase
Jan. 1
May. 5
Nov. 3
Purchase
530
$38,610
Calculate ending inventory and cost of goods sold for the year, assuming the company uses FIFO.
FIFO
Cost of Goods Available for Sale
Cost of Goods Sold
Ending Inventory
Cost of Goods
Available for Sale
2.720
Cost of Goods
Sold
Ending
Inventory
# of units Cost per unit
# of units
Cost per unit
#of units
Cost per unit
Beginning Inventory
40
68
40
$4
68
2.720
Purchases:
May 5
270 $
71
19,170
270
71
19.170
Nov. 3
220
76
16,720
220
76
16,720
Total
530
38,610
530
38.610
$4
%24
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Chapter 6 Solutions
FINANCIAL ACCOUNTINGLL W/CONNECT >IC<
Ch. 6 - 1.What is inventory? Where in the financial...Ch. 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 - Explain the method of reporting inventory at lower...Ch. 6 - 16.How is cost of inventory determined? How is net...Ch. 6 - 17.Describe the entry to adjust from cost to net...Ch. 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 - Understand terms related to types of companies...Ch. 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 - Record freight charges for inventory using a...Ch. 6 - Record purchase returns of inventory using a...Ch. 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 - Record purchase returns of inventory using a...Ch. 6 - Refer to the information in BE613, but now assume...Ch. 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 - Calculate inventory using lower of cost and net...Ch. 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 - Mulligan Corporation purchases inventory on...Ch. 6 - Complete the accounting cycle using Inventory...Ch. 6 - Calculate ending inventory and cost of goods sold...Ch. 6 - Prob. 6.2APCh. 6 - Prob. 6.3APCh. 6 - Prob. 6.4APCh. 6 - Calculate ending inventory end cost of goods sold...Ch. 6 - Record transactions using a perpetual system,...Ch. 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 - Record transactions using a perpetual system,...Ch. 6 - Prob. 6.7BPCh. 6 - Use the inventory turnover retio end gross profit...Ch. 6 - Record transactions and prepare a partial income...Ch. 6 - Determine the effects of inventory errors using...Ch. 6 - Great Adventures (This is a continuation of the...Ch. 6 - Prob. 6.2APFACh. 6 - Prob. 6.3APFACh. 6 - Comparative Analysis American Eagle Outfitters,...Ch. 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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- During the year, Wright Company sells 330 remote-control airplanes for $110 each. The company has the following inventory purchase transactions for the year. Date January 1 May 5 November 3 LIFO Beginning Inventory Purchases: May 5 November 3 Transaction Beginning inventory Purchase Purchase Total Calculate ending inventory and cost of goods sold for the year, assuming the company uses LIFO. Number of units 60 Cost of Goods Available for Sale Cost per unit $ 205 $ 110 S 375 73 76 81 Number of Unit Cost $73 76 81 Units 60 S 205 110 375 $ Cost of Goods Available for Sale 4,380 Total Cost $4,380 15,580 8,910 28,870 15,580 8,910 $28,870 Number of units Cost of Goods Sold 0 Cost per Cost of Goods unit Sold $ $ 0 0 0 0 Ending Inventory Cost per unit Number of units 0 Ending Inventory $ 0arrow_forwardDuring the year, Wright Company sells 470 remote-control airplanes for $110 each. The company has the following inventory purchase transactions for the year. Date January 1 May 5 November 3 FIFO Beginning inventory Purchases Calculate ending inventory and cost of goods sold for the year, assuming the company uses FIFO. May 5 November 3 Transaction Beginning inventory Purchase Purchase Total Cost of Goods Available for Sale Number of units 60 250 200 510 Cost per unit $ 82 1818 Number of Unit Units Cost 60 $82 250 85 200 90 510 85 90 Cost of Goods Available for Sale 4,920 S $ Total Cost $4,920 21,250 18,000 $44,178 21,250 18,000 44,170 Number of units Cost of Goods Sold Cost per Cost of Goods unit Sold $ 0 S D 0 0 0 Ending Inventory Cost per unit Number of units 0 Ending Inventory Sarrow_forwardDuring the year, Wright Company sells 475 remote-control airplanes for $120 each. The company has the following inventory purchase transactions for the year. Number of Units 40 255 205 Unit Cost $71 74 79 Total Cost $2,840 18,870 16,195 Date Transaction Beginning inventory Purchase Jan. 1 May. 5 Nov. 3 Purchase 500 $37,905 Calculate ending inventory and cost of goods sold for the year, assuming the company uses LIIFO. LIFO Cost of Goods Available for Sale Cost of Goods Sold Ending Inventory Cost of Goods Available for Sale Cost of Goods Sold Ending Inventory # of units Cost per unit # of units Cost per unit #of units Cost per unit Beginning Inventory 40 2,840 25 71 1.775 Purchases: May 5 255 74 18,870 255 $4 74 18.870 Nov. 3 205 79 16,195 205 79 16,195 Total 500 37,905 485 36.840 %24 %24 %24 %24 %24 %24arrow_forward
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