Accounting Problem Solving
thibbi2001
5-5ATemplate.docx
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The Shirt Shop |
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Summary of Purchase Transactions |
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1/20 |
Purchased Units |
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4/21 |
Purchased Units |
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7/25 |
Purchased Units |
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9/19 |
Purchased Units |
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Available for Sale |
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a. (1)
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FIFO |
Units |
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Unit Cost |
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Total |
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Ending Inventory |
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From 9/19 Purchase |
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From 7/25 Purchase |
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Total Ending Inventory |
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a. (2)
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LIFO |
Units |
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Unit Cost |
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Total |
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Ending Inventory |
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From 1/20 Purchase |
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Total Ending Inventory |
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a. (3)
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Weighted Average |
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Total Cost |
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Total Units |
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Cost per Unit |
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Ending Inventory |
160 units @ $10.51 = |
$1,681.60 |
EXERCISE 5-5A (cont.)
b.
Note: The purchase entries are the same for all three methods.
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The Shirt Shop General Journal |
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Date |
Account Title |
Debit |
Credit |
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Jan. 20 |
Merchandise Inventory |
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Cash |
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Apr. 21 |
Merchandise Inventory |
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Cash |
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July 25 |
Merchandise Inventory |
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Cash |
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Sept. 19 |
Merchandise Inventory |
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Cash |
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(1) FIFO Sales and Cost of Goods Sold |
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2016 |
Cash (810 x $30) |
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Sales Revenue |
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2016 |
Cost of Goods Sold |
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Merchandise Inventory |
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(2) LIFO Sales and Cost of Goods Sold |
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2016 |
Cash |
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Sales Revenue |
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2016 |
Cost of Goods Sold |
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Merchandise Inventory |
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(3) Weighted Average Sales and Cost of Goods Sold |
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2016 |
Cash |
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Sales Revenue |
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2016 |
Cost of Goods Sold |
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Merchandise Inventory |
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EXERCISE 5-5A b. (cont.)
(1) FIFO
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Cash |
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Sales Revenue |
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2016 |
1/20 |
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2016 |
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4/21 |
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Bal. |
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7/25 |
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9/19 |
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Cost of Goods Sold |
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Bal. 6,010 |
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2016 |
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Bal. |
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Merchandise Inventory |
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1/20 |
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4/21 |
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7/25 |
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9/19 |
2016 |
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Bal. |
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(2) LIFO
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Cash |
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Sales Revenue |
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2016 16,200 |
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Cost of Goods Sold |
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Bal. |
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2016 |
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Bal. 8,910 |
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Merchandise Inventory |
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EXERCISE 5-5A b. (cont.)
(3) Weighted Average
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Cash |
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Sales Revenue |
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2016 16,200 |
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Cost of Goods Sold |
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Bal. 6,010 |
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2016 8,513 |
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Bal. 8,513 |
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Merchandise Inventory |
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EXERCISE 5-5A (cont.)
c.
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FIFO |
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Sales ( units @ $20) |
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Cost of Goods Sold |
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Cost of Goods Avail. for Sale* |
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Less: Ending Inventory |
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Cost of Goods Sold |
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Gross Margin |
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$ 8,270 |
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LIFO |
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Sales (810 units @ $20) |
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$16,200 |
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Cost of Goods Sold |
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Cost of Goods Avail. for Sale* |
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Less: Ending Inventory |
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Cost of Goods Sold |
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Gross Margin |
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