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Accounting_ExercisesnoVIII.xlsx

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EXERCISE VIII

	FIFO method		Valuation of Inventories
	Units	Price per Unit	Total	Cost of goods sold		Ending balance
Beginning balance	900	130	117000	900	117000	- 0	0
Purchase Dec. 10	1,100	120	132000	1,100	132000	- 0	0
Purchase Dec. 18	1,000	110	110000	200	22000	800	88000
	3,000		359000	2,200	271000	800	88000
		Units	Price per Unit	Total
Sales revenues		2,200	200	440000
Cost of Goods Sold for December				271000
Gross Profit for December				169000
Inventory cost on Dec. 31				88000
	LIFO method		Valuation of Inventories
	Units	Price per Unit	Total	Cost of goods sold		Ending balance
Beginning balance	900	130	117000	100	13000	800	104000
Purchase Dec. 10	1,100	120	132000	1,100	132000	- 0	0
Purchase Dec. 18	1,000	110	110000	1,000	110000	- 0	0
	3,000		359000	2,200	255000	800	104000
		Units	Price per Unit	Total
Sales revenues		2,200	200	440000
Cost of Goods Sold for December				255000
Gross Profit for December				185000
Inventory cost on Dec. 31				104000
Gross sales						$1,740
	Deduct: Sales returns and allowances				$70
	Cash discounts on sales				$100	$170
Net sales						$1 570
Deduct: Cost of goods sold
	Merchandise inventory, December 31, 20X1				$100
	Purchases (gross)			$960
	Deduct: Purchase returns and allowances		$75
	Cash discounts on purchases		$5	$80
	Net purchases			$ 880
	Add: Freight-in 30			$ 30
	Total cost of merchandise acquired				$ 910
	Cost of goods available for sale				$1,010
	Deduct: Merchandise inventory, December 31, 20X2				$ 140
	Cost of goods sold					$ 870
Gross profit						$ 700
	Balance Sheet on Nov. 30, 2014
	Assets		Equities
	Equipment	2,000	Paid-in Capital	4,000
	Land	2,500	Retained Earnings	800
	Raw materials Inventory	1,200	Loan Payable	1,500
	Office Supplies Inventory	2,000	Tax payables	900
	Accounts Receivable	3,000	Salary payables	800
	Cash, Bank	4,300	Accounts payable	3,000
	Prepaid expenses	1,000	Unearned rent revenue	5,000
	Total assets	16,000	Total equities	16,000

Inventory_methods_Exe_VIII

		Amounts i USD
Monday	Buys 2 cans for 50	100
Tuesday	Buys 2 cans for 60	120
Wednesday	Buys 3 cans for 70	210
Thursday	Sells 5 cans for 90	450
	number of cans purchased			7
	total price for purchased cans			430
	weighted average for purchased cans			61
	LIFO method	FIFO method	Weighted average	Specific identification	Specific identification
Sales revenues	450	450	450	450	450
				2 cans from Monday and 3 cans from Wednesday	1 can from Monday and 2 cans from Wednesday 2 cans from Tuesday
Cost of goods sold		100		100	50
	210	120		210	120
	120	70			140
Total CoGS	330	290	307	310	310
Gross profit	120	160	143	140	140
Ending inventory	100	140	122.9	120	120

EXERCISES VIII_A

Balance Sheet on Nov. 30, 2014
Assets		Equities
Equipment	2,000	Paid-in Capital	3,000
Land	1,500	Retained Earnings	1,800
Raw materials Inventory	1,800	Loan Payable	2,500
Office Supplies Inventory	1,200	Salary payables	1,500
Accounts Receivable	3,200	Accounts payable	3,400
Cash, Bank	4,500	Unearned rent revenue	2,000
Prepaid expenses	1,500	Allowance for uncollectible accounts	1,500
Total assets	15,700	Total equities	15,700

EXERCISE VIII_B

	FIFO method		Valuation of Inventories
	Units	Price per Unit	Total	Cost of goods sold		Ending balance
Beginning balance
Purchase Dec. 11
Purchase Dec. 23
Purchase Dec. 27
Total
		Units	Price per Unit	Total
Sales revenues
Cost of Goods Sold for December
Gross Profit for December
Inventory cost on Dec. 31
	LIFO method		Valuation of Inventories
	Units	Price per Unit	Total	Cost of goods sold		Ending balance
Beginning balance
Purchase Dec. 11
Purchase Dec. 23
Purchase Dec. 27
Total
		Units	Price per Unit	Total
Sales revenues
Cost of Goods Sold for December
Gross Profit for December
Inventory cost on Dec. 31
Gross sales						$1,740
	Deduct: Sales returns and allowances				$70
	Cash discounts on sales				$100	$170
Net sales						$1 570
Deduct: Cost of goods sold
	Merchandise inventory, December 31, 20X1				$100
	Purchases (gross)			$960
	Deduct: Purchase returns and allowances		$75
	Cash discounts on purchases		$5	$80
	Net purchases			$ 880
	Add: Freight-in 30			$ 30
	Total cost of merchandise acquired				$ 910
	Cost of goods available for sale				$1,010
	Deduct: Merchandise inventory, December 31, 20X2				$ 140
	Cost of goods sold					$ 870
Gross profit						$ 700
	Balance Sheet on Nov. 30, 2014
	Assets		Equities
	Equipment	2,000	Paid-in Capital	4,000
	Land	2,500	Retained Earnings	800
	Raw materials Inventory	1,200	Loan Payable	1,500
	Office Supplies Inventory	2,000	Tax payables	900
	Accounts Receivable	3,000	Salary payables	800
	Cash, Bank	4,300	Accounts payable	3,000
	Prepaid expenses	1,000	Unearned rent revenue	5,000
	Total assets	16,000	Total equities	16,000

Inventory_methods_VIII_C

		Amounts i USD
Monday	Buys 5 cans for 40
Tuesday	Buys 4 cans for 30
Wednesday	Buys 2 cans for 50
Thursday	Sells 10 cans for 70
	number of cans purchased
	total price for purchased cans
	weighted average for purchased cans
	LIFO method	FIFO method	Weighted average	Specific identification	Specific identification
Sales revenues
Cost of goods sold
Total CoGS			- 0
Gross profit			- 0
Ending inventory			- 0

EXERCISES VIII_D

	Gross sales
		Deduct: Sales returns and allowances
		Cash discounts on sales
	Net sales
	Deduct: Cost of goods sold
		Merchandise inventory, December 31, 2014
		Purchases (gross)
		Deduct: Purchase returns and allowances
		Cash discounts on purchases
		Net purchases
		Add: Freight-in
		Total cost of merchandise acquired
		Cost of goods available for sale
		Deduct: Merchandise inventory, December 31, 2015
		Cost of goods sold
	Gross profit